The Marshall Islands and the United States have signed a new Compact of Free Association after nearly four years of negotiations.
The deal is worth 3-point-1 billion US dollars and was signed in Majuro by the foreign minister, Gerald Zackios, and the US negotiator, Albert Short.
The deal is valid for 20 years and includes a pact for the extension of use of the Kwajalein missile testing range by the US military until the year 2066.
The deal is now to go to the US Congress which according to Mr Short is likely to approve it before the current Compact expires at the end of September.
The two sides say the agreement ushers in a new era of cooperation although it is being opposed by some Kwajalein landowners who regard the rental hike to 15 million US dollars a year as not adequate.
The new compact has retained the Marshall Islanders' right to live and work in the US visa-free.
