Why does Palau have no armed forces?

Palau does not maintain its own armed forces because the United States is responsible for the country's external security and defense.12

This arrangement is established under the Compact of Free Association, a formal agreement between the two nations that also provides for U.S. financial assistance. While Palau lacks a military of its own, some Palauans choose to volunteer for service in the U.S. armed forces, and Palauan troops have previously served as part of the U.S. military in international conflicts.21