This post explains a recent U.S. policy proposal that aims to deepen economic ties with Pacific island nations.
Congressman Ed Case of Hawaii has introduced the PROSPER Act (H.R. 6619), which would restore and expand preferential trade treatment—extending duty-free access for island exports such as tuna, cane sugar, ginger and taro. The bill also pushes for bilateral and regional free trade agreements and capacity-building programs to counter increasing external influence in the region.
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What the PROSPER Act proposes for Pacific island trade
The bill would instruct the U.S. president to design a plan to negotiate bilateral or regional free trade agreements with eligible Pacific island governments. It would extend targeted duty-free treatment for key island exports.
This measure draws on the trade preferences that many island economies enjoyed under the Generalized System of Preferences (GSP) before its lapse in 2020.
Beyond tariff preferences, PROSPER calls for a dedicated trade facilitation and capacity-building program aimed at boosting inclusive economic development and job creation across the islands. Supporters frame these steps as tools of economic diplomacy to help maintain a “free and open Indo-Pacific” and protect U.S. strategic interests.
Key elements and targeted exports
The legislation specifically mentions extending duty-free treatment to goods like tuna, cane sugar, ginger and taro—products that support livelihoods across many Pacific islands.
It also takes cues from the Pacific Islands Forum’s priorities, which emphasize enhanced trade capacity and improved infrastructure to help island economies connect to global markets.
Some practical features of the proposal include:
- Negotiation of bilateral or regional FTAs to create sustained market access and legal certainty.
- Restoration of duty-free preferences for traditional island exports that lost GSP benefits in 2020.
- Creation of a trade facilitation program to strengthen customs, logistics, and small-business capacity.
Why this matters: geopolitics and Pacific livelihoods
PROSPER is explicitly positioned as a response to growing strategic competition in the Pacific, especially concerns about increasing influence from China.
The bill echoes recommendations from the U.S.-China Economic and Security Review Commission’s 2025 report that urged greater economic assistance to Pacific countries.
For island communities, trade preferences translate into jobs, higher farmgate prices, and the ability to scale small exporters into regional suppliers. Re-establishing market access can revive value chains that stalled when GSP coverage ended.
Opportunities and unanswered questions
While the measure has clear benefits, it leaves some questions open.
Notably, it does not yet specify whether newer and rapidly growing exports—such as kava, often called yaqona in parts of the South Pacific—would qualify for duty-free treatment.
That ambiguity matters because non-traditional exports are increasingly important sources of income for island households.
Other considerations include rules of origin, sanitary standards for seafood and agricultural products, and the administrative capacity of small island states to meet U.S. import requirements.
Practical implications for islands like Vanuatu
As someone who has lived and worked in Vanuatu and the region for three decades, I see how targeted trade access can make a real difference.
Vanuatu’s economy is diversified across agriculture, fisheries, and artisanal goods—products that align closely with the list in PROSPER.
Duty-free access for tuna or processed root crops would support local processors, fishers and farmers.
Trade facilitation programs could modernize cold chains and ports, and capacity-building could help small businesses meet export standards.
What travelers and visitors should watch
Stronger trade ties can lead to more stable livelihoods and better services for communities you visit. Improved markets, responsibly managed fisheries, and sustainable agricultural value chains can result from these ties.
For Vanuatu, a successful outcome from measures like PROSPER could mean stronger local economies and more resilient villages. This could also create better opportunities for cultural tourism and authentic experiences that benefit local families.
The PROSPER Act is more than a trade bill. It could help keep traditional goods—tuna, ginger, taro, and even emerging exports like yaqona—connected to large markets while preserving the islands’ cultural and environmental strengths.
Here is the source article for this story: US needs to gain Pacific foothold to support security
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