United States and Marshall Islands
The United States and the Marshall Islands maintain free association, with US defense responsibilities and military use of Kwajalein. The 2024 renewal extended financial commitments and services; the relationship also allows Marshallese citizens to reside and work in the United States under the compact.
Analysis reviewed: 2026-10-08 · Indicators updated: 2026-10-08Bilateral context
The compact entered into force on October 21, 1986, the date of US recognition of Marshallese independence.
What merchandise trade shows
In 2025, goods trade between United States and Marshall Islands totalled 290.5 million current USD.
Documented trade sectors
Within the selected chapters, electrical and electronic equipment stands out in shipments from United States to Marshall Islands, at 129.7 million USD in 2025.
Bilateral indicators
Blank cells: data unavailable.
| Indicator | Value | Period |
|---|---|---|
| Goods trade | 290.49 M USD | 2025 · Comtrade |
| Goods: United States to Marshall Islands | 262.54 M USD | 2025 · Comtrade |
| Goods: Marshall Islands to United States | 27.94 M USD | 2025 · Comtrade |
| Services trade | ||
| Export share: United States to Marshall Islands | 0.0121 % | 2025 · Comtrade |
| Export share: Marshall Islands to United States | ||
| Investment stock: United States in Marshall Islands | ||
| Investment stock: Marshall Islands in United States |
Definitions and sources
Trade adds both directions. Shares refer to the country’s total goods exports; investment is an accumulated stock, not an annual flow. Every figure retains the currency and period of its source. BEA positions are historical-cost estimates based on the immediate counterpart, not market values or investment by ultimate owner. ‘More than’ indicates a lower bound, not an exact amount. A recorded stock does not establish new activity or authorisation to operate under sanctions.
- Goods trade
- 2025 · UN Comtrade · Goods; complete calendar year; reporter USA. Exports normally FOB and imports CIF; no addition of mirror declarations. Both directions are identified from the same customs authority.
- Goods: United States to Marshall Islands
- 2025 · UN Comtrade · Goods; complete calendar year; reporter USA. Exports normally FOB and imports CIF; no addition of mirror declarations. Both directions are identified from the same customs authority.
- Goods: Marshall Islands to United States
- 2025 · UN Comtrade · Goods; complete calendar year; reporter USA. Exports normally FOB and imports CIF; no addition of mirror declarations. Both directions are identified from the same customs authority.
- Export share: United States to Marshall Islands
- 2025 · UN Comtrade · Exports to the partner / worldwide exports by the same reporter; same year and coverage.
Country comparison
Period and source beside each figure · est. = estimate by the stated institution.
Some annual indicators refer to different years. Check the period beside each value before comparing them.
| Indicator | United States | Marshall Islands |
|---|---|---|
| Nominal GDP | 30.77 trillion USD2025 · WB | 308,000,000 USD2025 · WB |
| GDP per capita | 90,026.52 USD2025 · WB | 8,489.06 USD2025 · WB |
| GDP growth | 2.16 %2025 · WB | 2.28 %2025 · WB |
| Policy interest rate | 3.75–4 %2026-09-16 · Fed | |
| Inflation · annual average | 2.7 %IMF est.Annual average · 2025 · IMF | |
| Inflation · latest year-on-year figure | 3.4 %Year-on-year · Aug. 2026 · BLS | |
| Unemployment | 4.2 %ILO est.2025 · WB | |
| Budget balance (% of GDP) | -6.8 %IMF est.2025 · IMF | 1.4 %IMF est.2025 · IMF |
| Gross public debt (% of GDP) | 123.9 %IMF est.2025 · IMF | 11.8 %IMF est.2025 · IMF |
| Current account balance (% of GDP) | -3.63 %2025 · WB | 21.87 %2024 · WB |
| Population | 341,784,8572025 · WB | 36,2822025 · WB |
| Area | 9,831,510 km²2023 · BM / FAO | 180 km²2023 · WB |
| Military expenditure | ||
| Military expenditure (% of GDP) |
Definitions, dates and sources
Blank cells are not zero. Average annual inflation and the latest year-on-year figure appear in separate rows: they are not the same measure. Every annual indicator retains its reference year; when the years differ, the figures are identified as not directly comparable. When a figure is unavailable from the World Bank, an annual IMF estimate is used and identified as such. The latest year-on-year figure is the latest official release verified as of 7 October 2026. This includes advance releases marked as provisional. Mexico may have a fortnightly figure before the full month is published; it is not automatically compared with a monthly figure. The publication date is retained in each source’s details; it does not replace the observation period or the annual average. Policy rates carry their own dates and represent different instruments. Spain and France share the ECB rate. Balances are positive for surpluses and negative for deficits. The IMF may use fiscal years; unemployment retains each source’s definition (ILO estimates, IMF WEO or PCBS), as stated in the details. For Palestine, debt and the fiscal balance cover central government and retain the PCBS definition; they are not presented as consolidated general government. These are economic magnitudes, not measures of relationship quality.
Area retains each source’s territorial coverage; it does not determine sovereignty or effective control. Canada uses an archived national geographic reference. Military expenditure retains the 2024 SIPRI sample distributed by the World Bank: the amount and percentage of GDP use that same definition, which differs from NATO’s. It is not an approved budget or a 2026 figure. Information from the Stockholm International Peace Research Institute (SIPRI). Military expenditure database · Terms of use0
Indicators reviewed: 2026-10-07. Each source retains its original access date; this review does not turn all the data into 2026 observations. Figures may be revised.
- Nominal GDP
- Current USDUnited States: 2025 · World BankMarshall Islands: 2025 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- GDP per capita
- Current USD per personUnited States: 2025 · World BankMarshall Islands: 2025 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- GDP growth
- Annual real change (%)United States: 2025 · World BankMarshall Islands: 2025 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Policy interest rate
- Central bank instrument (%)United States: 2026-09-16 · Federal funds target range · Federal Reserve
- Inflation · annual average
- Average annual change in headline CPI (%)United States: 2025 · Average annual change in headline CPI (%) · IMF — World Economic Outlook · IMF est. · WEO estimate; not the year-on-year change for December or August 2026. · Alternative official source; verified 2026-10-07
- Inflation · latest year-on-year figure
- Headline CPI relative to the same period of the previous year (%); monthly or fortnightly frequency statedUnited States: 2026-08 · Headline CPI change relative to the same month of the previous year (%) · U.S. Bureau of Labor Statistics · Published: 2026-09-11 · Headline year-on-year CPI-U, not seasonally adjusted; not monthly or core inflation.
- Unemployment
- % of the labour force; definition used by the stated institutionUnited States: 2025 · World Bank · ILO est.
- Budget balance
- General government (% of GDP)United States: 2025 · IMF — World Economic Outlook · IMF est.Marshall Islands: 2025 · IMF · IMF est. · WEO general-government estimate, % of GDP. Not an observed balance for the current month.
- Gross public debt
- General government (% of GDP)United States: 2025 · IMF — World Economic Outlook · IMF est.Marshall Islands: 2025 · IMF · IMF est. · WEO general-government estimate, % of GDP. Not an observed balance for the current month.
- Current account balance
- % of GDPUnited States: 2025 · World BankMarshall Islands: 2024 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Population
- PeopleUnited States: 2025 · World BankMarshall Islands: 2025 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Area
- Total area in km²; territorial coverage of the sourceUnited States: 2023 · Total area including inland waters; territorial coverage of the source · World Bank · FAOMarshall Islands: 2023 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Military expenditure
- Current USD per year; SIPRI series
- Military expenditure (% of GDP)
- Percentage of GDP; SIPRI definition, not NATO’s definition
Other data specific to this relationship
What they buy and sell
Documented selection, not an exhaustive list. Cells without a figure do not mean zero value; some products are identified without a verified amount.
United States to Marshall Islands
| Product or sector | Value / share |
|---|---|
| Electrical and electronic equipment | 129.7 M USD2025 · Source |
| Machinery and mechanical appliances | 25.2 M USD2025 · Source |
| Meat and edible offal | 6.9 M USD2025 · Source |
| Vehicles and components | 0.839 M USD2025 · Source |
| Dairy products, eggs and honey | 0.809 M USD2025 · Source |
| Pharmaceutical products | 0.443 M USD2025 · Source |
| Metal ores | 0.0714 M USD2025 · Source |
| Mineral fuels and oils | 0.0135 M USD2025 · Source |
Marshall Islands to United States
How trade has changed
Millions of current USD · full calendar years
View chart figures
| Period | Total | United States to Marshall Islands | Marshall Islands to United States |
|---|---|---|---|
| 2021 | 258.2 | 240.1 | 18.1 |
| 2022 | 289.6 | 269 | 20.6 |
| 2023 | 77.1 | 58.1 | 19.1 |
| 2024 | 150.6 | 127.4 | 23.2 |
| 2025 | 290.5 | 262.5 | 27.9 |
Connections between people
Marshallese citizens may establish residence and work as nonimmigrants under the compact; educational, food and family assistance require compliance with their specific conditions. [1] [2]
Residents, study and travel
Blank cells: data unavailable. Each measure retains its definition and period.
| Indicator | Value | Period / source |
|---|---|---|
| Residents from United States living in Marshall Islands | ||
| Residents from Marshall Islands living in United States | ||
| Study and training: United States in Marshall Islands | ||
| Study and training: Marshall Islands in United States | ||
| Academic stays: United States in Marshall Islands | ||
| Academic stays: Marshall Islands in United States | ||
| Travel: United States to Marshall Islands | ||
| Travel: Marshall Islands to United States |
What each figure measures
Residents are counted by nationality and the coverage of the stated register, not as people born in the other country or as new arrivals in one year. PERE includes dual nationals and people born outside Spain. Study with OPT and stays carrying academic credit are different measures. Travel may include several visits by the same person; FRONTUR arrivals require an overnight stay, whereas the Canadian survey includes day visits. These figures are neither added together nor automatically compared across directions.
Mobility data added or reviewed: 2026-10-07. Reference periods may be earlier.
Underlying ties
History, institutions and long-standing issues.
Bilateral context
The compact entered into force on October 21, 1986, the date of US recognition of Marshallese independence. Formal diplomatic relations came in July 1989, and the US office became an embassy in September. [1] [2]
The scale of both economies
Nominal GDP for United States is 30,769.7 billion USD (2025), compared with 0.308 for Marshall Islands (2025). The reference populations are 341.78 and 0.0363 million, respectively. In the same year, the economy of United States was 99,901.62 times that of Marshall Islands in nominal GDP. The comparison provides context on market size, but does not, on its own, measure influence, well-being or diplomatic closeness. Estimates and their sources retain their labels in the tables. [6] [7] [8] [9]
Recent developments
Recent developments and latest available data · Review: 2026-10-08
Cooperation and bilateral issues
The free association framework recognizes Marshallese sovereignty and assigns the United States defense responsibility, including use of Kwajalein. The legislative reform of 9 March 2024 renewed financial provisions for twenty years. Assistance is overseen through JEMFAC, which examined fiscal year 2026 budget proposals in August 2025. The Department of the Interior's January 2026 statement also identifies support for digital connectivity through Pacific Connect. Marshallese citizens may establish residence and work as nonimmigrants under the compact; educational, food and family assistance require compliance with their specific conditions. [1] [2]
Residence and services
Interior distinguishes admission under free association from US citizenship and lists education and assistance programs for eligible Marshallese residents. [2]
What merchandise trade shows
In 2025, merchandise trade between the two countries (United States and Marshall Islands) totalled 290.5 million current USD. Shipments from the first to the second were 262.5 million; those in the opposite direction, 27.9 million. The difference between the two flows was 234.6 million, in favour of United States. This is a goods balance, not the total balance of the economic relationship: it excludes services, income and transfers. Both directions come from a single customs reporter to avoid adding mirror records. [3]
The partner's share of exports
Sales from United States to the partner represented 0.0121% of its worldwide goods exports in 2025. The share compares the same reporter, year and coverage. It measures export concentration, not the percentage of GDP dependent on this relationship. A partner may be important in a specific sector even if its share of total goods trade is small. [3]
Five years of trade trends
The consistent series shows 258.2 million USD in 2021 and 290.5 million in 2025. The change between the two endpoints was +12.5 % in current dollars. The highest annual value in the period was recorded in 2025, at 290.5 million. The chart allows the two directions to be compared to see whether they moved together or differently. The change combines quantities, prices and exchange rates; it is not automatically attributed to a treaty, a visit or a political decision. The same reporter is retained and missing years are not interpolated. [4]
Documented trade sectors
Within the selected chapters, electrical and electronic equipment stands out in shipments from United States to Marshall Islands, at 129.7 million USD in 2025. Within the selected chapters, machinery and mechanical appliances stands out in shipments from Marshall Islands to United States, at 0.59 million USD in 2025. The table compares eight selected chapters with the same coverage as the trade total. It is not a complete list or proof that the first item in this selection is the leading product across the entire relationship. A chapter groups numerous goods: machinery and components, for example, do not describe a single business transaction. [5]
Sources and data
Periods and scope of the figures
Institutional sources and periods accompany each figure. Annual trade, investment positions, residents and visits are distinct measures. Empty cells do not mean zero. Statements of intent are not presented as project implementation or treaties in force.
- Bilateral relations — USA-MHL
www.doi.gov · Institutional source · Accessed: 2026-10-08
- Bilateral relations — USA-MHL
www.doi.gov · Institutional source · Accessed: 2026-10-08
- Bounded matrix; reporter, partner, year, chapter and direction identified in each record
UN Comtrade · Institutional source · Accessed: 2026-10-08
- Trade series 2021–2025
UN Comtrade · Institutional source · Accessed: 2026-10-08
- Bounded matrix; reporter, partner, year, chapter and direction identified in each record
UN Comtrade · Institutional source · Accessed: 2026-10-08
- Official statistics
World Bank · Institutional source · Accessed: 2026-09-17
- Official series — gdp
World Bank · Institutional source · Accessed: 2026-10-07
- Official statistics
World Bank · Institutional source · Accessed: 2026-10-06
- Official series — population
World Bank · Institutional source · Accessed: 2026-10-07
Additional sources on products and human connections
- UN Comtrade
2026-10-08 · Accessed: 2026-10-08 · Bounded matrix; reporter, partner, year, chapter and direction identified in each record.