France and New Caledonia Sign Historic Accord to Establish New State Within French Republic

In a landmark development, France has announced a historic autonomy deal with New Caledonia, its South Pacific overseas territory, which will see the archipelago declared a “State of New Caledonia” within the French Republic. The accord, finalized after high-stakes negotiations in Paris, marks a significant step toward greater self-governance for the territory, while maintaining its political ties to France.

The 13-page agreement, hailed by French President Emmanuel Macron as a “bet on trust,” proposes the creation of a new constitutional status for New Caledonia. This includes recognition of a Caledonian nationality, to exist alongside French nationality, and a constitutional inscription of the new status into French law. Macron said the agreement sets the stage for “respect, stability, and goodwill to build a shared future.”

Under the deal, New Caledonia will immediately assume control over its foreign policy, and can, through future referendums, seek additional powers in areas such as defense, justice, currency, and internal security. This opens a potential pathway toward future recognition as a United Nations member state, though full independence is not granted at this stage—a key disappointment for many Indigenous Kanaks who have long sought complete sovereignty.

Flag of the Kanak and Socialist National Liberation Front political party, used by New Caledonia alongside the flag of France. (Source: wikipedia)

The Kanak people, who are Indigenous to the archipelago and make up about 40% of New Caledonia’s population of nearly 300,000, have historically pushed for independence from France. The territory was colonized by France in the 1850s, and Kanaks were granted French citizenship only in 1957, a century later. After World War II, New Caledonia became an overseas territory, and its political future has remained a contentious issue, especially in recent decades.

Tensions escalated in May 2024, when violent unrest broke out in response to a proposed law from Paris that would allow thousands of non-Indigenous long-term residents to vote in local provincial elections. This move was seen as undermining the 1998 Nouméa Accord, which had restricted voting rights in order to protect Indigenous political representation. Kanak leaders feared that loosening voter eligibility would permanently marginalize their communities, weakening the pro-independence vote. The violence left 14 people dead and inflicted economic damage estimated at €2 billion ($2.3 billion)—a loss equal to 10% of the territory’s GDP, according to France’s overseas territories minister, Manuel Valls.

The newly announced agreement seeks to end this “spiral of violence,” as Kanak lawmaker Emmanuel Tjibaou described it. He, along with representatives from both pro- and anti-independence factions, took part in the negotiations that led to what many are calling an “intelligent compromise.” The deal maintains New Caledonia’s link to France but allows for a new level of autonomy and identity, which lawmaker Nicolas Metzdorf, who supports remaining in France, described as a “real concession.”

Another major component of the deal is an economic and financial recovery pact, which includes plans to revitalize the territory’s critical nickel industry. New Caledonia holds one of the world’s largest reserves of nickel—a metal essential for batteries and clean energy technologies—and its economy has suffered from volatility in global markets and recent political instability.

The proposed agreement still requires approval through multiple stages. Both chambers of the French Parliament are expected to vote on the accord in late 2025, and a referendum in New Caledonia is planned for 2026, giving the population a final say on the changes.

This is not the first time New Caledonians have voted on independence. The most recent independence referendum in 2021 was boycotted by pro-independence groups, who argued that the COVID-19 pandemic had disproportionately affected Kanak communities, making a fair vote impossible. Since then, the territory has been in a political deadlock, with sharp divisions between Indigenous groups seeking independence and loyalists advocating continued French oversight.

Located approximately 17,000 km (10,600 miles) from mainland France, New Caledonia has long been seen as a strategically important territory, both economically and militarily. The new agreement is a bold attempt to redefine its relationship with France in a way that balances the desire for self-determination with the realities of global geopolitics and economic dependency.

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