In this bulletin:
1. NZ/TUV — New Zealand pledges $20 million to Tuvalu, leaders agree to an eventual treaty
2. COOKS — Cook Islands govt urged to act as New Zealand funding freeze drags on
3. FIJI — Lawyer Tupou Draunidalo to lead proposed FijiansFirst party, Koya among founders
4. FIJI — New Caledonia strengthens ties with Fiji through new Delegation in Suva
5. PACIFIC — NZ Immigration bill passes first reading amid rising concerns for Pasifika
6. AUST — Gender equality in focus as national security priority
7. UN — Oceans take in a lot of heat as Earth’s energy imbalance hits record
8. PACNEWS BIZ — Australian Joint Standing Committee on Treaties backs Pacific Resilience Facility deal
9. PACNEWS BIZ — Fuel price pressures to push inflation higher, warns RBF
10. PACNEWS BIZ — Guam employment and earnings on the rise, but global conflict poses threats to local economic gains
11. PACNEWS IN FOCUS — Understanding the Ongoing France-Vanuatu Negotiations About Matthew and Hunter Islands
12. PACNEWS DIGEST — Dire fertiliser shortage a lurking threat due to Hormuz crisis
NZ/TUV – DIPLOMACY: RNZ PACIFIC PACNEWS 2: Fri 27 Mar 2026
New Zealand pledges $20 million to Tuvalu, leaders agree to an eventual treaty
AUCKLAND, 27 MARCH 2026 (RNZ PACIFIC)—New Zealand will provide an additional $20 million(US$14 million) to flood resilience work in Tuvalu.
Prime Minister Christopher Luxon met with his Tuvaluan counterpart Feleti Teo on Thursday in Auckland, where the two leaders signed an updated partnership agreement.
They also discussed how Kiwi support for Tuvalu may continue, including the prospect of a treaty by 2028, though details were vague.
The contribution to the Tuvalu Coastal Adaptation Project more than doubles Aotearoa’s aid to the island nation in the current financial year, according to Ministry of Foreign Affairs and Trade’s Devdata website.
Luxon said he has “huge admiration” for Tuvalu.
‘It is leading the way globally in responding to sea-level rise, and we are incredibly proud to support Prime Minister Teo’s globally renowned land raising and coastal protection efforts,” he said.
“We know that the outcomes for our people and our region depend on that resilience … New Zealand stands ready to help provide practical support.”
Teo said any sea-level rise will have “a devastating impact” on his country, both real and theoretical.
“As you will know, Tuvalu is an atoll island nation, it is totally flat,” he said.
“I have spoken in many international arenas, advocating for countries to continue to recognise Tuvalu’s sovereignty and the permanency of its maritime boundaries despite the impact of sea-level rise.”
Luxon said he was proud of the 6500 Tuvaluans living in New Zealand, the largest Tuvaluan diaspora in the world.
The threat that Tuvalu could lose it’s legal status as a nation, if too much of its land area becomes submerged, has become the subject of its diplomacy in the last few years.
A projection widely circulated by the United Nations estimates that 95 percent of Tuvalu’s land area, across all nine of its islands, could be underwater by the turn of the century.
Acting on this dilemma, Tuvalu has sought treaty agreements with several wealthy partners, including Australia and, more controversially, Taiwan.
As part of their Falepili Union treaty with Australia, Tuvalu secured “climate mobility” visas for up to 280 Tuvaluans, or roughly 2 percent of their population, each year. The first group arrived early this year.
Tuvalu also promised mutual agreement with Australia on any partnership or arrangements to do with defence and security.
Two years later, they struck the “Kaitasi Treaty” with Taiwan, guaranteeing their continual recognition of Taiwan at a time of significant Chinese influence in the region. China has refused to have diplomatic relations with any country simultaneously with Taiwan for years.
It makes Tuvalu one of only three Pacific nations to recognise Taiwan, alongside Palau and the Marshall Islands.
Luxon said any features of a treaty were premature at this stage.
“We have not defined what that looks like yet, that is the work that we will get through with our officials in the coming years,” he said.
But Teo canvassed a number of issues in their joint press conference, from security, to energy, to climate.
He said he was pleased Luxon was open to the idea of a treaty.
When asked whether it may resemble the Falepili Union with it’s special visas, Luxon said they were monitoring it’s progress.
“We are learning a lot from the Falepili treaty and how it is being implemented and what is working, and maybe, what can be improved on,” he said.
Teo added he hoped to have it in place by 2028, the 50th anniversary of their independence……PACNEWS
COOKS – DIPLOMACY: COOK ISLANDS NEWS PACNEWS 2: Fri 27 Mar 2026
Cook Islands govt urged to act as New Zealand funding freeze drags on
RAROTONGA, 27 MARCH 2026 (COOK ISLANDS NEWS) —Opposition leader Tina Browne says the Cook Islands government must now outline a clear pathway to resolve the pause in New Zealand funding following the recent “informal” meeting between Prime Minister Mark Brown and New Zealand Foreign Minister Winston Peters.
The meeting between Brown and Peters took place in Auckland last week during the Prime Minister’s visit to Aotearoa, marking the first engagement between the two leaders after 18 months of diplomatic strain between the two countries.
Cook Islands Democratic Party leader Browne said while she welcomed the meeting, the focus must now move to tangible outcomes for the Cook Islands.
“I welcome the meeting, but let’s not oversell it. A single informal meeting and a photo won’t resolve an 18-month issue,” Browne told Cook Islands News.
“This conversation was overdue, and the joint statement itself makes clear the hard issues are still unresolved, and that talks will continue in the weeks ahead.”
Brown met Peters at his private residence, where both delegations discussed the challenges affecting the Cook Islands-New Zealand relationship.
Tensions between the two nations began in late 2024 and escalated after the Cook Islands signed a comprehensive strategic partnership and other agreements with China in February last year.
The move raised concerns in Wellington over what it described as a lack of consultation on the agreement.
New Zealand subsequently suspended approximately $29.8 million (US$17 million) in funding to the Cook Islands.
A joint statement issued following the informal meeting confirmed that both sides discussed “the fundamental challenges facing the New Zealand-Cook Islands relationship over the past 18 months and possible ways forward.”
Political dialogue between the two countries is expected to continue in the coming weeks.
Browne said the Prime Minister must now focus on restoring trust and resolving the funding issue.
“My advice to the Prime Minister is simple: treat this as a starting point, not a result. The focus now has to move from headlines to outcomes,” she said.
“That means rebuilding trust, agreeing on a proper consultation process on major issues, and moving quickly to formal leader-to-leader engagement.”
She said the funding pause has already affected government finances.
“It also means setting out a clear pathway to resolve the funding pause, because that has already put real pressure on government finances. Our people deserve more than confirmation that a meeting happened. They deserve clarity on what this meeting will actually deliver for the Cook Islands.”
Browne added that strengthening the Cook Islands’ independence should not come at the cost of weakening its relationship with New Zealand.
“I have always believed the Cook Islands can become more self-reliant without weakening a relationship that matters deeply to our people. Those are not competing ideas,” she said. “What the country needs now is steady leadership, more transparency and a lot less confusion.”
Brown has described his recent visit to New Zealand as successful, highlighting engagements with Cook Islands communities and partners across Wellington, Auckland and Ngāruawāhia.
Reflecting on his meeting with Peters, Brown said the discussion reflected the importance of maintaining engagement between the two countries.
“Our people remain at the centre of everything we do. Whether at home or abroad, we are one nation, connected through our language, our culture, and our shared responsibility to one another,” he said.
“This visit has reaffirmed that connection, and we move forward with confidence in what we can achieve together.”
According to the statement, political dialogue between the two countries will continue in the coming weeks to determine how these matters can be progressed.
Brown also said that the visit focused on strengthening ties with Cook Islanders living in New Zealand and advancing key partnerships.
“This visit has been about our people, our partnerships, and our future,” Brown said.
“We have connected directly with our communities, listened to their priorities, and taken practical steps to ensure they remain supported and engaged as part of our nation.”
During the visit, Brown announced several initiatives aimed at supporting Cook Islanders abroad, including expanded student support, new internship pathways into government, improved access to public services and progress toward delivering Cook Islands status stamp services in New Zealand.
“These are practical actions that respond to what our people have asked for. It is about making it easier to stay connected, to access services, and to contribute back home.”
Brown also held discussions with the Cook Islands Development Agency New Zealand (CIDANZ) to formalise a partnership aimed at improving support for Cook Islanders living overseas.
In Wellington, he reaffirmed the importance of the Cook Islands’ relationship with New Zealand.
“This is a relationship we value deeply. It continues to evolve as both countries grow and as our expectations of partnership mature,” Brown said.
As part of the programme, Brown also attended the 130th Tūrangawaewae Royal Regatta at the invitation of Te Arikinui Kuini Nga wai hono i te pō, where he was hosted at Tūrangawaewae Marae alongside iwi leaders and partners from across New Zealand…. PACNEWS
FIJI – POLITICS: FIJI TIMES PACNEWS 2: Fri 27 Mar 2026
Lawyer Tupou Draunidalo to lead proposed FijiansFirst party, Koya among founders
SUVA, 27 MARCH 2026 (FIJI TIMES)—Lawyer Tupou Draunidalo is set to lead the proposed FijiansFirst political party, with former minister Faiyaz Koya listed among its founding members.
Documents submitted as part of the party’s registration show Draunidalo named as president, while Koya is identified as a founding member of the new political movement.
The application, signed by several officials, also lists Ravindran Kumaran as general secretary and Sanjay Kirpal as treasurer, alongside other founding members.
According to the party’s draft constitution, FijiansFirst aims to “serve the best interests of Fijians” and promote equality, democratic governance and economic development. It also outlines objectives such as upholding the Constitution, fostering national unity and encouraging sustainable growth.
The proposed party intends to contest seats in Parliament with the aim of forming government and appointing a Prime Minister.
Draunidalo, a former Member of Parliament and past president of the National Federation Party, has previously led political movements including the HOPE Party.
Koya, a lawyer and former Cabinet minister, has held key portfolios including commerce, trade and tourism and previously served as Attorney-General.
The emergence of the proposed FijiansFirst party follows the deregistration of the former FijiFirst party in 2024, leaving space for new political alignments ahead of the next general election.
The party’s application is currently part of the formal registration process, which requires approval before it can officially operate and contest elections….PACNEWS
FIJI – DIPLOMACY: PACNEWS/EMBASSY OF FRANCE PACNEWS 2: Fri 27 Mar 2026
New Caledonia strengthens ties with Fiji through new Delegation in Suva
SUVA, 27 MARCH 2026 (PACNEWS/EMBASSY OF FRANCE)— New Caledonia has reinforced its regional engagement with the appointment of an official representative to Fiji, aimed at strengthening political, economic and regional cooperation.
The move is grounded in the Nouméa Accord of 09 May 1998 and the subsequent Organic Law of March 1999, which provide the constitutional framework for New Caledonia’s governance.
The establishment of delegations across the Pacific — including in Australia, New Zealand, Fiji, Papua New Guinea and Vanuatu — follows a 2012 agreement between New Caledonia and France allowing the placement of official representatives within the French diplomatic network in the region.
On 02 February 2026, Yves Lafoy was appointed Official Representative of New Caledonia to Fiji. He is based at the Embassy of France in Fiji in Suva.
The delegation’s role focuses on three key areas: strengthening political dialogue between New Caledonia and Fiji; expanding cooperation in trade, culture, education, science and innovation; and contributing to regional initiatives.
It will also support engagement with regional bodies such as the Pacific Islands Forum and the Pacific Community (SPC), including implementation of the 2050 Strategy for the Blue Pacific Continent.
Lafoy brings extensive regional experience to the role. He previously served as New Caledonia’s representative to Australia from 2019 and to New Zealand from 2012.
Since 2009, he has represented New Caledonia in regional forums and played a key role in the territory’s admission as a full member of the Pacific Islands Forum in 2016.
In 2026, the delegation will work closely with Fiji’s Ministry of Foreign Affairs and the French Embassy to implement the Joint Declaration on future cooperation between Fiji and New Caledonia, signed in February 2023.
The establishment of the delegation is expected to deepen bilateral ties and strengthen New Caledonia’s role in regional cooperation….PACNEWS
PAC – IMMIGRATION BILL: PMN PACNEWS 2: Fri 27 Mar 2026
NZ Immigration bill passes first reading amid rising concerns for Pasifika
WELLINGTON, 27 MARCH 2026 (PMN)—A Cabinet paper released by the New Zealand government on the Immigration (Enhances Risk Management) Amendment Bill warns Pacific nationals are historically more likely to be liable for deportation.
The paper also notes that expanding immigration officers’ powers to request identification “may be liable for disproportionate impact” on Pacific people.
The document highlights this risk because groups more likely to be subject to immigration enforcement may be more affected by the proposed changes.
The bill passed its first reading in Parliament on Thursday. Academic and Polynesian Panther, Lupematasila Misatauveve Dr Melani Anae, says the move reflects a troubling continuity in the way Pacific people are framed in immigration politics.
“The overstay crisis of the 1970s reveals how immigration can become a powerful symbolic issue in national politics,” Lupematasila told PMN News. “What I’m really wanting to focus on is trying to demolish the stigma of the Pacific overstayer.”
The Cabinet paper, dated June 2025, sets out six key proposals for the bill. This includes giving immigration officers the power to request identification from suspected overstayers, extending deportation rules, and increasing penalties for migrant exploitation.
The paper says it would make it easier for officers to seek identity information in “situations of concern”, including during site visits.
The paper adds the expanded powers could therefore fall disproportionately on Pacific people.
Immigration Minister Erica Stanford rejected the idea that the bill targets Pacific communities. She described it as a “really small technical change”.
“We have immigration officers who are going about their daily business, they will come across people who are hiding, who are jumping out windows or escaping at the moment, they technically are unable to ask them for their identification documents,” Stanford says.
“This is not about randomly stopping people on the street or targeting them because of their ethnicity. This is a particular behaviour in a particular situation and it was a request from immigration officials for that change.”
Stanford said safeguards had been strengthened under her watch, including requiring warrants for out-of-hours compliance visits and she welcomed scrutiny through the select committee process where the bill will now be examined in more detail.
But Green Party MP Ricardo Menéndez March described the bill as scapegoating migrant communities, including Pacific people who still carry the intergenerational legacy of the Dawn Raids.
“The government is taking a Trump-like approach to immigration by targeting undocumented migrants, including our Pacific communities who have already faced the intergenerational damage of the dawn raids,” March told PMN News.
“We need to dump this bill and focus on honouring the human rights of our migrant communities.”
He also rejected political claims suggesting overstayers are straining schools and hospitals.
“Luxon needs to take a history book and learn about our history,” he said. “The dawn raids were a shameful part of our New Zealand history.
“We need to do better than to try and copy Trump-like approaches to immigration that have divided communities and separated families.”
Lupematasila pointed to the 2021 Heron Report, which dismantled the old rationale for aggressive immigration crackdowns.
“Its findings are unequivocal,” she told PMN News. “Overstaying in contemporary Aotearoa is neither large in scale nor concentrated within Pacific communities.
“Those who do overstay are overwhelmingly low risk and their non-compliance is typically administrative and short-term.”
For Lupematasila, the first reading should now serve as a call for Pacific communities to engage with the select committee process and challenge the assumptions underlying the legislation.
“Racism lives in legislation,” she said. “So this is one example of how the apology, the dawn raid apology, was toothless because the legislation didn’t follow.
“Nothing’s changed. Institutional racism still exists until we change the laws and policies which are harmful to some groups of people.”…..PACNEWS
AUST – GENDER: AAP PACNEWS 2: Fri 27 Mar 2026
Gender equality in focus as national security priority
CANBERRA, 27 MARCH 2026 (AAP)—Gender equality is being positioned as vital to Australia’s national and economic security, but experts say too many structures are allowing inequality to persist.
Federal parliament is examining gender equality as a national and economic security imperative, and will hold its first public hearing on Friday.
A committee will hear from government departments responsible for Australia’s foreign policy, defence and national security.
In a submission to the inquiry, the Department of Foreign Affairs and Trade notes Australia’s approach to embedding gender equality in foreign policy is critical to building trust with regional partners and ensuring stability in the Indo-Pacific.
“Failing to integrate gender equality and social inclusion into Australia’s strategic posture risks undermining our influence and credibility in the region,” DFAT’s submission states.
“Amid intensifying geopolitical competition, climate driven disasters and economic volatility across the IndoPacific, countries with inclusive societies are better equipped to maintain stability, protect development gains, prevent conflict and build resilient economies.”
Yet experts say previous policies to address gender inequality concentrated on managing its impacts rather than addressing structures that allow inequality to persist.
“Evidence consistently demonstrates that gender inequality is driven by deeply embedded gender roles and stereotypes that shape expectations about care, work, leadership, economic value, health and safety,” Australian Gender Equality Council chair Coral Ross said.
“The current global environment makes it imperative that there is intervention at these foundational levels, and without it progress toward gender equality will remain slow and uneven and may even go backwards.”
The Global Institute for Women’s Leadership also warned women faced a “diplomatic glass cliff”, despite reaching parity within Australian diplomacy.
Power and resources in Australia’s international affairs had shifted toward agencies such as defence and home affairs, where women were least represented, institute deputy director Elise Stephenson said in a submission to the committee.
“This creates a gendered imbalance: women occupy leadership roles in diplomacy just as its functional power declines, while men continue to dominate the growing national security and intelligence sectors,” Dr Stephenson said.
“The result is a ‘diplomatic glass cliff’ where the securitisation of Australia’s international affairs reinforce men’s access to power and limit the impact of women’s progress in foreign affairs, trade and defence.”
The inquiry also marks 25 years since the United Nations Security Council adopted the Women, Peace and Security agenda and aims to explore how Australia can better contribute to efforts to achieve gender equality worldwide…..PACNEWS
UN – CLIMATE CHANGE/OCEANS: THE FINANCIAL TIMES PACNEWS 2: Fri 27 Mar 2026
Oceans take in a lot of heat as Earth’s energy imbalance hits record
GENEVA, 27 MARCH 2026 (THE FINANCIAL TIMES)—The Earth’s energy imbalance reached record levels last year, as the rate of solar radiation that entered the planet exceeded the amount leaving the system at a faster rate, the World Meteorological Organisation said.
The measure was included for the first time in the UN agency’s State of the Climate annual report, as the rate had more than doubled in the past 20 years while greenhouse gases continued to accumulate.
Under a balanced system, incoming heat from the sun is about the same as outgoing energy. The levels are measured by satellite data, collected since 2000, as well as a host of land, ice and sea monitors used since 1960.
The oceans had absorbed most of the excess heat, storing about 91 percent of the energy. Another 5 percent had warmed the land, 3 percent heated the ice and 1 percent warmed the air, the report said.
The 2015-2025 period was the warmest 11 years since observations started, with ocean heat and acidification at record levels, and continuing rises in sea levels and the retreat of glaciers.
In 2025, ocean heat reached the highest level in the observational record, beating the previous high set in 2024.
Karina von Schuckmann, ocean scientist at French research group Mercator Ocean International, said there were not yet signs of the oceans weakening as a heat sink, but the warmth had increased in deeper layers.
This meant the heat now stored at lower levels was likely to have been “captured” for hundreds or thousands of years, she said.
Ocean warming is measured in zettajoules, and the data showed more than 11ZJ of heat energy had been added annually since 2005 — estimated as the equivalent of 18 times the total human energy use for one year.
“These are huge quantities of energy — the 2025 increase alone was about 39 times the annual human energy use,” explained John Kennedy, lead author of the report.
The authors noted that apart from rising greenhouse gases, other contributors to stored heat in the planet were reduced aerosols in the atmosphere, less solar reflection from reduced ice coverage and less long-wave radiation emitted to space from the top of the Earth’s atmosphere because of trace gases and water vapour.
WMO deputy secretary-general Ko Barrett said that despite concerns about cuts in climate science funding — led by the Trump administration — “we’re seeing that actually a lot of that funding was put back into budgets. So the challenge is not as dire as we would have worried about.”
“We’re not seeing any kind of a sign that would point to a decline in interest in the information that we’re providing or even in a decline in contributions to the report,” she said.
If anything, Barrett added, there was greater demand for its data and credible information on climate change……PACNEWS
PACNEWS BIZ
AUST – PRF: AUST GOVT PACNEWS BIZ: Fri 27 Mar 2026
Australian Joint Standing Committee on Treaties backs Pacific Resilience Facility deal
CANBERRA, 27 MARCH 2026 (AUST GOVT) — The Australian Joint Standing Committee on Treaties (JSCOT) has recommended that Australia ratify the Agreement to Establish the Pacific Resilience Facility(PRF).
The agreement sets up the Pacific Resilience Facility as an international funding organisation aimed at supporting projects and grants to help Pacific countries respond to the growing impacts of climate change.
The Committee found the agreement is in line with Australia’s regional priorities to strengthen resilience and stability across the Pacific.
Committee Chair Lisa Chesters said the initiative represents a new approach to climate support in the region.
“This is an innovative agreement for the Pacific and efforts targeting the effects of climate change. Australia is a longstanding member of the Pacific Islands Forum and supports Pacific initiatives. The Agreement will allow Australia to increase its regional support in an organisation that is Pacific-designed, implemented and led.”
The Committee conducted public hearings as part of its review and received submissions from a range of stakeholders.
Australia has indicated its support for ratifying the treaty, with the Committee recommending that binding treaty action be taken.
The Pacific Resilience Facility is expected to play a key role in strengthening regional capacity to manage climate risks and support long-term resilience efforts…PACNEWS
FIJI – IRAN CRISIS/FUEL PRICE: FIJI TIMES PACNEWS BIZ: Fri 27 Mar 2026
Fuel price pressures to push inflation higher, warns RBF
SUVA, 27 MARCH 2026 (FIJI TIMES) —The Reserve Bank of Fiji (RBF) has warned that rising global fuel prices are expected to drive inflation higher and weigh on economic activity in the near term.
According to the central bank, fuel and gas account for 6.9 percent of the average household budget in Fiji, meaning about seven cents of every dollar spent by families goes toward these essentials. As global prices increase, households are likely to face higher transport and utility costs.
The broader economic impact is expected to be significant, as fuel is a key input across multiple sectors including transport, manufacturing, agriculture and retail.
Higher fuel costs typically translate into increased operating and freight expenses for businesses, which are often passed on to consumers.
The RBF noted that Fiji experienced a similar trend in 2022 when global crude oil prices remained above US$100 per barrel, pushing annual headline inflation to an average of 6.1 percent.
Prior to the recent volatility, inflation was projected to range between 2.5 percent and 3.0 percent by year-end, but this outlook has now shifted upward.
Higher input costs are also expected to raise production expenses and dampen domestic demand, potentially slowing overall economic activity.
The central bank further cautioned that continued volatility in global fuel prices and heightened geopolitical tensions could affect travel demand and increase airfares, which may moderate visitor arrivals if conditions persist.
Looking ahead, the RBF said the balance of risks remains tilted to the downside, with global uncertainty and elevated oil prices likely to place upward pressure on inflation, constrain economic growth, and put downward pressure on foreign reserves.
Meanwhile, the Fiji Government has reassured Fijians that fuel supply across the country remains stable, while thanking the public for staying calm and acting responsibly.
In a statement, the Government acknowledged the orderly behaviour of motorists and consumers, noting that it had helped ensure the smooth distribution of fuel nationwide.
It also commended individuals and families who have adopted fuel-saving measures such as using renewable energy, carpooling, public transport, cycling, walking, or reducing unnecessary travel.
Authorities say a dedicated Fuel Advisory Committee is closely monitoring the situation in coordination with key agencies, including the Fiji Commerce Commission, the Reserve Bank of Fiji, and the Ministry of Finance.
The committee is tracking fuel supply levels, assessing the impact of global developments, and working to ensure that economic activity and daily life are not disrupted.
As part of contingency measures, the Permanent Secretary for Public Works has been appointed Fuel Controller under the Fuel and Power Emergency Act 1974, centralising oversight of the national fuel situation.
Government also confirmed that the Ministry of Information will serve as the official source of updates, urging the public to rely on verified information.
“Fuel remains available, and there is no need to change your normal daily routine,” the statement said.
Officials added that Fiji is preparing for any potential changes arising from global events, including developments in the Middle East, to safeguard national fuel security.
The Government has urged the public to continue acting calmly and responsibly as monitoring efforts continue…..PACNEWS
GUAM – EMPLOYMENT: PACIFIC ISLAND TIMES PACNEWS BIZ: Fri 27 Mar 2026
Guam employment and earnings on the rise, but global conflict poses threats to local economic gains
HAGATNA, 27 MARCH 2026 (PACIFIC ISLAND TIMES)—More residents are back on the job and taking home higher pay, signaling an incremental improvement in the local economy, according to the latest employment report from the Guam Department of Labor’s Bureau of Labor Statistics.
While noting a positive movement in Guam’s labor market, Labor Director David Dell’Isola acknowledged that local businesses are still operating in a tough environment.
Just as Guam’s post-Covid economy started to bounce back from the pandemic-triggered recession, a new global menace is threatening to offset local gains.
“We must brace for global uncertainty and the war in Iran that could create additional challenges for our economy and tourism,” Dell’Isola said.
Global economists have assessed the ramifications of the Iran war for the world economy following a week of heightened attacks on energy infrastructure.
The World Trade Organisation has predicted that if oil and gas prices remain high for the rest of the year, this could reduce the forecast 2026 global GDP growth by 0.3 percent.
The December 2025 preliminary statistics show an increase of 750 jobs over the latest quarter, going from 67,690 to 68,440 persons employed.
The greatest private-sector employment gains over the quarter were 440 in construction, which is no surprise, and 180 in hotels. The majority of the construction job increases were in H-2B workers.
The last quarter of 2025 showed that rising tourism numbers led to increased hotel employment. Alongside this growth, average weekly hours worked rose, going from 33.5 to 36.2.
The hotel industry’s average hourly rate also increased in the latest quarter from US$11.96 to US$12.26. On a weekly basis, hotel workers are earning about US$43.63 more in the latest quarter.
“We’re seeing more residents back at work, some modest wage increases and job gains,” Dell I’sola said. “While our tourism industry remains below pre-pandemic levels, it’s encouraging to see some growth in the hotel sector.”
Gary Hiles, chief economist, noted that while the private sector job count increased, federal and the government of Guam employment declined in 2025.
Private-sector jobs increased by 15.3 percent, from 45,010 in March 2021 to 51,900 in March 2025.
Government of Guam jobs increased from 11,750 in March 2021 to 11,890 in March 2025. However, it went back down to 11,750 by December 2025.
Although federal jobs increased from 3,920 in March 2021 to 4,010 in March 2025, the number dipped to 3,870 in December 2025.
“Voluntary and involuntary federal agency downsizing resulted in a 4 percent reduction in federal employment on Guam, substantially lower than the 10.3 percent decline in the U.S federal workforce,” Hiles said.
“Federal grant programme cuts resulted in the loss of some federally funded jobs in the local government, which declined 1.9 percent, less than previous estimates,” he added……PACNEWS
PACNEWS In Focus
The views expressed in PACNEWS are those of agencies contributing articles and do not necessarily those of PINA and/or PACNEWS
Understanding the Ongoing France-Vanuatu Negotiations About Matthew and Hunter Islands
By Lili Song, Géraldine Giraudeau, Morsen Mosses
PORT VILA, 27 MARCH 2026 (THE DIPLOMAT)—In November 2025, France and Vanuatu concluded their first round of new formal negotiations, a bid to solve their longstanding territorial dispute over Umaenupne (Matthew) and Umaeneg/Leka (Hunter) islands (collectively “the MHIs”), two islets located near Vanuatu and New Caledonia, a French territory. A second round of discussions is scheduled for the first half of 2026.
According to the Vanuatu and French government press releases, the negotiations were on the sovereignty of the MHIs and permanent maritime boundaries between Vanuatu and New Caledonia. The latest developments surrounding the dispute have sparked controversy in France, with some politicians expressing concern about a “possible transfer” of the MHIs to Port Vila, in response to which French authorities stated that “no cession of territory or renunciation of our sovereignty was discussed” with Vanuatu.
The MHIs are two small, uninhabited volcanic islets. From a pragmatic perspective, their value mostly lies in their potential to generate vast exclusive economic zones (EEZs) around them. Vanuatu and France both claim sovereignty over the MHIs and have also declared a 200-nm EEZ around them, (although such a declaration may not be merited under UNCLOS article 121, which we have discussed elsewhere).
For the Indigenous people of Vanuatu, known as the Ni-Van, the MHIs also carry significant spiritual, cultural, and emotional value. It is commonly believed that the Ni-Van had traditional connections with the MHIs before Europeans discovered them in the 18th century.
The competing French and Vanuatu sovereignty claims over the MHIs have long been a constant strain on bilateral relations. For example, in 2005 and again in 2014, Vanuatu threatened to take the dispute to the United Nations. In June 2023, when French President Emmanuel Macron visited Vanuatu, members of the Vanuatu Parliament and local customary leaders vocally urged him to address the MHIs dispute. Macron’s visit was the first time a French presidential trip passed through non-French islands in the South Pacific region. The fact that the MHI issue came up during his visit clearly signals the issue’s political significance in France-Vanuatu relations.
The dispute has also had a bearing on Vanuatu’s relations with other countries in the South Pacific region. In August 2017, Vanuatu made an official complaint to New Zealand after a New Zealand research ship sought permission from New Caledonia to conduct marine research near the MHIs. When Fiji signed a boundary delimitation agreement with France in 1983 assuming French sovereignty over the MHIs, Vanuatu protested. As recently as 2019, Vanuatu leaders questioned why Fiji signed the 1983 agreement with France.
Historical Background
To fully understand the French-Vanuatu MHIs dispute, it is necessary to examine the historical events that led to the dispute. Vanuatu was formerly an Anglo-French condominium known as the New Hebrides before gaining independence in 1980. Europeans had little interest in the MHIs until 1962, when an Australian living in the New Hebrides, Bob Paul, and a Frenchman living in New Caledonia, Henri Martinet, declared themselves the joint owners of Matthew Island, believing it had not been annexed by any country. They sought to register their ownership via a New Hebridean Court. The court then asked the British and French Resident Commissioners in the New Hebrides to advise whether Matthew Island was part of the New Hebrides.
The Commissioners submitted the matter to London and Paris. The British and French governments conducted extensive research for three years and found no definitive evidence as to whether Matthew or Hunter had been annexed by France, Britain, or any other sovereign state. The British also consulted Australia, which assured that it had no intent to claim either islet. No evidence, though, shows that Britain or France consulted the Indigenous peoples of the New Hebrides or New Caledonia.
In 1965, Britain and France reached an agreement and advised the court accordingly in a letter. Effectively, they agreed on two things:
*The MHIs were part of the French colony of New Caledonia.
* The MHIs were not part of the Anglo-French Condominium of the New Hebrides.
The 1965 Agreement is important because, if it were lawful and binding, it arguably had the effect of renouncing the title or claims to title of the MHIs on behalf of the New Hebrides. In that case, even if the MHIs were administered under the New Hebrides before 1965, they were not part of its territory as a result of the 1965 Agreement. Vanuatu is thus unlikely to be able to claim the MHIs on the basis of succession.
However, the principle of self-determination merits discussion in determining if the 1965 Agreement is, in fact, lawful and binding.
The Self-determination Principle
Arguably, the lawfulness of the 1965 Agreement in international law can be assessed based on the principle of self-determination. According to the 2019 Chagos Advisory Opinion delivered by the International Court of Justice, it flows from the right to self-determination that the people of a non-self-governing territory have the right to territorial integrity. That means the integrity of their territory as a whole must be respected by the administering power (even uninhabited parts of that territory). Any detachment by the administering power of part of a non-self-governing territory, unless based on the freely expressed and genuine will of the people of the territory concerned, is contrary to the right to self-determination.
In that specific opinion, the ICJ found that the United Kingdom’s separation of the Chagos Islands from the rest of Mauritius in 1965 was contrary to the right to self-determination and therefore unlawful, because the agreement between the U.K. and Mauritius separating the Chagos Islands from Mauritius was not the “free and genuine expression of the will of the people concerned.”
Applied to the case of the MHIs, this legal principle means that France and Britain, as administering powers of the New Hebrides, were obliged to respect the New Hebrides’ territorial integrity in 1965.
The principle of self-determination requires consultation with the colonized people in relation to any detachment of part of their territory. Multiple U.N. Assembly Resolutions recognise that the expression of the will of the peoples concerned is a cornerstone of the right of peoples to decide on their political status. The International Court of Justice has also recognised that the application of the right of self-determination requires a free and genuine expression of the will of the peoples concerned.
If the colonized people are not even consulted in the lead-up to the detachment of part of their territory, it can hardly be said that they have freely expressed their genuine will.
As mentioned earlier, no evidence shows that France and Britain consulted the Ni-Van or the Kanak (indigenous to New Caledonia) in the process of reaching the 1965 Agreement. Therefore, it is possible to argue that the 1965 Agreement was contrary to the principle of self-determination and therefore unlawful under international law.
On the other hand, it is worth noting Judge Ronny Abraham’s comment on timing and the purpose of the obligation to respect territorial integrity in the 2019 Chagos opinion:
What this obligation seeks to prevent is amputation of part of the territory under colonial administration by a unilateral decision of the administering power, at the time of or in the period immediately preceding that territory’s accession to independence, for the sake of convenience, for strategic or military interests, or, more generally, because of the political or economic interests of the colonial Power itself.
The detachment of the MHIs took place 15 years before the New Hebrides’ independence. Arguably, that was not in the period immediately preceding that territory’s accession to independence. This is an issue a judge may take into consideration if the dispute goes to court.
If the 1965 Agreement is unlawful, France cannot rely on it to justify its sovereign claim to the MHIs. However, other potentially relevant legal issues would need to be considered to answer the question of who owns the MHIs today, including acquisition of territorial sovereignty through effective control and Indigenous people’s rights.
For example, Indigenous groups from the southern parts of Vanuatu used to travel to the two islets not only to perform cultural ceremonies, but also for fishing purposes. New Caledonia’s FLNKS, the pro-independence political group that represents the Kanaks, recognised that the MHIs traditionally belong to Vanuatu and not New Caledonia through the Keamu Declaration.
Toward a Possible Solution
France and Vanuatu have strong bilateral relations and are interested in negotiating a solution. In a Joint Communique issued in July 2025, Vanuatu and French leaders agreed to maintain an open and constructive dialogue, aiming for an amicable resolution of the MHIs dispute.
Beyond the general obligation of states to negotiate in good faith, to what extent is it possible to negotiate solutions that avoid the pitfall of binarity?
Co-management arrangements could be an option, notably based on environmental considerations. In 2021, the president of the government of New Caledonia proposed the creation of a “park of peace” around the MHIs. The creation of the marine protected area around New Caledonia certainly has strategic implications in terms of asserting French sovereignty. However, it also highlights genuine environmental issues, which can potentially serve as a concrete basis for developing co-management between Vanuatu and France/New Caledonia. …. PACNEWS
PACNEWS DIGEST
The views expressed in PACNEWS are those of agencies contributing articles and do not necessarily those of PINA and/or PACNEWS
Dire fertiliser shortage a lurking threat due to Hormuz crisis
GENEVA, 27 MARCH 2026 (UN NEWS CENTRE) —Since the start of the Middle East conflict with Israeli and U.S strikes on Iran on 28 February, concerns have been growing over rising oil and commodity prices.
At the centre of it lies the Strait of Hormuz – one of the world’s most critical maritime chokepoints – which carries around a quarter of global seaborne oil, along with significant volumes of liquefied natural gas and fertilisers, according to a recent UN report.
To better understand the implications of this disruption, and the findings of the report published on 10 March, UN News spoke to Frida Youssef, Chief of Transport Section at UN Trade and Development (UNCTAD).
Worldwide consequences
Youssef explained that the traffic in the Strait where the Persian Gulf narrows has fallen from around 130 ships a day before the crisis to single digits in early March, a decline of more than 95 percent.
Today, the Strait is not formally closed, but severely constrained, amid multiple Iranian attacks on shipping since war erupted that have spooked global energy markets and driven up prices.
Spillovers beyond Hormuz
“The disruption is no longer confined to the Strait of Hormuz; it is spreading across regional shipping routes and affecting critical supply lines” Youssef explained.
The knock-on effects of this disruption are being felt across the Red Sea and beyond, with vessels rerouted, journeys extended and costs rising. This is adding pressure to global trade and humanitarian agencies who face slower, more expensive and less predictable aid shipments.
Impact on economies and citizens
While the immediate fallout of the Hormuz Strait crisis has meant higher energy costs, more expensive transport, rising food prices and delays in supply chains, the drop in regional fertiliser exports threatens to have extremely serious consequences, too.
UNCTAD underlines rising production costs for fertilisers and particularly nitrogen-based ones, which depend heavily on gas originating from Gulf States.
This is already putting pressure on agricultural production and productivity, with likely consequences for global food prices. “Timing is critical,” says UNCTAD’s Youssef.
Least-able to cope
“It is now the spring planting season, when countries and farmers typically purchase fertilizers for the next harvest. If they are unable to secure enough supply — or if prices are too high — crop yields could decline.”
The world’s least developed economies have “the least capacity to absorb shocks (and) are the ones that will feel the effects most strongly”, she continues.
For them, higher costs for fuel, food, fertilisers and transport could quickly translate into pressure on public finances and household budgets. This can reduce food production and increase food insecurity, particularly where import dependence is high.
How the UN can help
Despite all these challenges, “there is a shared global interest in keeping trade routes open, because disruptions of this scale affect all economies”, Youssef insists. UNCTAD is monitoring developments closely and providing data and analysis to support governments, she explains.
The UN agency also helps to bring together national governments and partners to share information and coordinate their actions, while stressing the importance of keeping maritime transport secure and predictable, in line with international law….PACNEWS