A new legislative initiative introduced in the United States could reshape economic engagement between the United States and Pacific Island nations, with potential implications for export growth, trade capacity and regional supply chains.
On 22 December 2025, U.S. Representative Ed Case, a Democrat from Hawaii and founding co-chair of the Congressional Pacific Islands Caucus, proposed the Promoting Regional Opportunities for Sustainable Prosperity and Economic Resilience in the Pacific Act — known as the PROSPER Act. The bill directs the U.S. president to develop a strategy for negotiating free trade agreements with Pacific Island governments and to extend preferential, duty-free treatment for eligible goods into the U.S. market.
Case stated the initiative is designed to “strengthen economic diplomacy” and protect America’s regional posture amid growing geopolitical competition, particularly in light of China’s expanding presence in Pacific markets. The legislation reflects recommendations from the U.S.–China Economic and Security Review Commission’s 2025 report, which urged stronger economic support to Pacific partners as a matter of both security and development policy.
Under current proposals, products widely exported by Pacific Island countries — including tuna, cane sugar, ginger and taro — could qualify for duty-free entry into the United States under an expanded Generalised System of Preferences (GSP)-style framework. Several Pacific economies historically benefited from GSP preferences before they lapsed in 2020.
The PROSPER Act also calls for the creation of a trade facilitation and capacity-building programme to assist island countries in meeting trade rules, strengthening export infrastructure and improving standards of living through inclusive development. Supporters argue that such measures would encourage private-sector investment and help local producers overcome structural disadvantages such as high transportation costs, small domestic markets and limited compliance capacity.
Pacific business leaders welcomed the focus on market access, noting that preferential treatment in the world’s largest consumer economy could provide a long-sought advantage for regional exports. Analysts say improved trade terms could stimulate jobs, attract foreign investment and diversify production beyond traditional sectors like fishing and tourism.
However, the bill must clear both houses of the U.S. Congress and be signed by the president before it can take effect. Negotiations with Pacific governments would follow, a process likely to involve detailed discussions on rules of origin, tariff schedules and regulatory alignment.
