The pact also ordered the renegotiation of certain terms of the agreement after a certain period of time. These negotiations took place in 2003 and culminated in the 2003 Amendment Act. President Bush signed it on December 17, 2003. On 26 May 2004, after the four WSF member countries ratified the amendments, the WSF Congress approved the amended pact. The Compact of Free Association is the agreement that established relations between the Federated States of Micronesia and the United States. Under the terms of the Covenant, the United States provides economic assistance, defence and other services and benefits to the WSF. In return, the WSF grants the United States certain rights to operate in the WSF, the denial of access to WSF territory by other nations, and other agreements. As Beijing makes the effort to put Pacific states into orbit, the United States appears determined to maintain the pacts as part of a new engagement in the Pacific. While U.S. President Donald Trump may not understand the importance of the country`s network of alliances and agreements, he instinctively understands China`s rise and the challenge it poses to the United States. There was broad consensus within Washington that the Pacific is now the greatest place for the United States and its security commitments.
This allows “Blob” to add substance to Trump`s splendour instead of being left out by his daily whims. In 2003, the compacts with RMI and FSM were renewed for 20 years. The new pacts provided $3.5 billion to both countries. In addition, US$30 million is paid annually to American Samoa, Guam, Hawaii and the Northern Mariana Islands for a compact impact amount. These funds help the governments of these municipalities bear the costs of providing services to immigrants from the RMI, WSF and Palau. The use of Kwajalein Atoll by the United States for missile tests was renewed for the same period.  The new pacts have also changed some immigration rules. Citizens of the RMI and WSF who travel to the United States must now have a passport. The US Postal Service has had the opportunity to apply international port rates for U.S.-RMI/FSM postal relations (progressively in more than five years).
The USPS began implementing the amendment in January 2006, but decided to resume domestic services and rates in November 2007.  The Compact of Free Association (COFA) is an international agreement establishing and regulating free trade relations between the United States and the three Pacific sovereign states of the Federated States of Micronesia (FSM), the Republic of the Marshall Islands (RMI) and the Republic of Palau. As a result, these nations are sometimes referred to as freely associated states. The pact was created by expanding the territorial trust agreement between the United States and the United Nations, which committed the U.S. federal government to “promote the development of the people of the fiduciary territory toward autonomy or independence, depending on the particular circumstances of the fiduciary territory and its peoples and the freely expressed wishes of the people concerned.”  Under the pact, the U.S. federal government provides guaranteed financial assistance over a 15-year period, managed through its Office of Insular Affairs in exchange for international defence authority and responsibility. These compacts are an integral part of Washington`s military primacy in the Indo-Pacific space. They allow the United States to maintain lines of communication in both the East and South China Seas and in the railways, which account for the bulk of the commodity trade that flows through Asia.