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|   | |
|  Palau |  United Kingdom | 
|---|---|
| Diplomatic mission | |
| Honorary Consulate of the Republic of Palau, London | Embassy of the United Kingdom, Manila | 
Palau–United Kingdom relations are the foreign and bilateral relations between Palau and the United Kingdom. The two countries established diplomatic relations on 16 August 1996. [1]
Both countries share common membership of the United Nations, and the World Health Organization.
Palau’s relations with the United Kingdom originates in 1783, when the British East India Company packet ship Antelope, commanded by Captain Henry Wilson, was wrecked on a reef near Ulong, one of the Rock Islands situated between Koror and Peleliu. Assisted by Koror’s High Chief Ibedul, Wilson and his crew remained in Palau for three months while rebuilding their vessel. During this time, Palau’s Prince Lee Boo travelled to England with Wilson but sadly died of smallpox six months after arriving, and was buried at St. Mary’s, Rotherhithe. This meeting laid the foundation for a trading relationship that developed into a strong historical bond between the United Kingdom and Palau. Over the years, European contact increased, with Britain serving as Palau’s primary trading partner until Spain asserted control over Palau in 1885. Following this, numerous foreign explorers visited Palau, further exposing the islands to European influence. [2]
Trade and investment between the United Kingdom and Palau remain limited. In the year ending March 2025, total trade in goods and services was valued at £10 million, a 16.7% decrease from the previous year, with the UK recording a trade deficit of the same amount due mainly to service imports from Palau. The UK accounted for virtually none of Palau’s total imports in 2024, reflecting a minimal commercial presence. At the end of 2023, UK foreign direct investment in Palau stood at £694 million, representing less than 0.1% of the UK’s total outward investment, while Palauan investment in the UK was negligible, at under £500,000. [3]
Palau is eligible to accede to the Pacific States–United Kingdom Economic Partnership Agreement, a free trade agreement with the United Kingdom. [4]
Following the withdrawal of the United Kingdom from the European Union, the UK and Pacific States signed the Pacific States–United Kingdom Economic Partnership Agreement on 14 March 2019. The Pacific States–United Kingdom Economic Partnership Agreement is a continuity trade agreement, based on the EU free trade agreement, which entered into force on 1 January 2021. [5] [6] Trade value between the Pacific States and the United Kingdom was worth £286 million in 2022. [7]