Nauru is a Pacific island nation 42km south of the equator and 4,000km northeast of Sydney Ocean Island (Kiribati) and Makatea (French Polynesia) the other two large phosphate rock islands. Nauru’s land area is 21 km2.
The inhabitants of Nauru are mostly indigenous Micronesians, with a few Europeans. Some other Pacific islanders, Chinese, Australian, and Filipino expatriates are also present.
Australia – Nauru
Nauru has a positive relationship with Australia, which is its main trade, investment, and development assistance partner. In August 2009, the Australian government raised its Nauru representation from consulate-general to high commission.
Nauru and Australia signed a Memorandum of Understanding on Security Cooperation in September 2017. In October 2017, Australia and Nauru signed a Memorandum of Understanding on Development Cooperation, defining mutual priorities and pledges for the developing relationship between the two countries.
Australia created a regional processing center in Nauru in September 2012 to process asylum seekers’ international protection claims.
Nauru participates in Australia’s Seasonal Worker Program and the Pacific Labour Scheme, which connects workers from Nauru and other Pacific islands with employers in Australia that are experiencing labor shortages, usually in rural and regional areas.
US – Nauru
In 1976, eight years after Nauru gained independence from an Australia-administered trusteeship, the US established diplomatic relations with the island nation. The United States and Nauru have a good relationship based on mutual respect and shared interests. The two countries collaborate on a variety of subjects, including regional security, sustainable economic development, and educational opportunities, as well as fisheries protection. There are no consular or diplomatic offices for the United States in Nauru. Officers from the US Embassy in Fiji are also accredited to Nauru and visit regularly.
The US, on the other hand, is a key financial contributor to international and regional institutions that help Nauru, such as the Asian Development Bank (ADB), World Bank, United Nations The World Health Organization, and the Children’s Fund, and the United Nations Population Fund. Under the Oceania Maritime Security Initiative (OMSI), the US has expanded its ship rider arrangement with Nauru to offer security and support operations that allow Nauruan law enforcement personnel to board US Navy and Coast Guard boats.
Pacific Agreement on Closer Economic Relations Plus (PACER)
PACER Plus (Pacific Pact on Closer Economic Relations Plus) is a free trade agreement that prioritizes development.
On December 13, 2020, PACER Plus went into effect. The Agreement includes New Zealand, Australia, Samoa, Tuvalu, Kiribati, Tonga, Solomon Islands, Niue, and the Cook Islands. The agreement has been signed but not approved by Nauru and Vanuatu.
PACER Plus is a key aspect of Australia’s Pacific engagement and gives a way to contribute to the region’s security, stability, and prosperity. In a variety of areas, PACER Plus will give business opportunities for Australian exporters and investors. As the principles of the Agreement lead to more open and transparent policies and larger regional and international linkages, these opportunities will grow.
South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA)
SPARTECA (South Pacific Regional Trade and Economic Cooperation Agreement) is a nonreciprocal trade agreement in which Australia and New Zealand grant duty-free and unlimited access to certain items originating in Pacific Islands Forum developing island member countries. The agreement was signed in Tarawa, Kiribati, in 1980, and is subject to Rules of Origin laws intended to remedy the two groups’ uneven trade relationships. SPARTECA has benefited the textiles, clothing, and footwear (TCF) industry by providing preferential access to Australian and New Zealand markets. The agreement became effective on January 1, 1981.
