Competition between the US and China for access to this valuable real estate in the middle of the Indian Ocean persists. The lack of UK support for the US/Israeli war on Iran has sealed the fate of Keir Starmer’s Chagos Islands Deal. President Trump has withdrawn his support. Diego Garcia is an important part of the US military empire, which encompasses 800 military bases around the world.
Jihane Karimou
16 April 2026
President Trump has emphasized the need for U.S. military installations abroad. He withdrew his support for the Chagos Island Deal on 14 April 2026. This decision was not unexpected, but also due to Trump’s frustrations with Keir Starmer’s initial refusal to allow the US to use Diego Garcia and British bases to strike Iran on 28 February. Although the UK later had a change of heart, the damage vis-à-vis its powerful ally across the Atlantic had been done.
The agreement regarding the transfer of the Chagos Islands from the United Kingdom to Mauritius has quickly become more than just a legal dispute. It has made clear the limits of decolonization and the irrelevance of international law.
For Washington, this is not about law, but about strategy. Although the US was initially in favour of signing, Trump calling it “very strong and powerful”, concerns have risen about what will happen in the long-term if sovereignty is transferred to Mauritius. Now that Trump has pulled the plug – the deal is off the table indefinitely.
In 2025, the UK agreed to transfer sovereignty of the islands to Mauritius, all while retaining control of Diego Garcia, the largest islands of the archipelago and home to a UK-US joint military base. Under the terms of the now tabled agreement, the UK was to pay around GBP 101 million annually for a 99 year lease of the base. However, the deal that seemed quite straightforward, has quickly become too complex to solve.
The dispute started in 1965, when the UK separated the Chagos Islands from Mauritius before the country became independent. Britain paid GBP 3 million to buy the islands, but Mauritius says it was coerced into the deal. In the late 1960s, thousands of Chagossians were forced to leave their homes to make space for the construction of a military base on Diego Garcia.
For decades, displaced Chagossians fought unsuccessfully for their right to return. A right recognized by many in the international community for the Jews to return to Palestine after 2000 years.
However, in 2019, the International Court of Justice (ICJ) ruled that the UK’s continued authority over the archipelago was unlawful and that the process of decolonization had not been completed. This ruling was supported by the United Nations General Assembly. Although not binding, this UNGA Resolution A/RES/73/295 increased the pressure on the UK government. The proposed and now tabled agreement is, in part, a response to this pressure.
Diego Garcia is at the center of this dispute. The base represents a key strategic US military installation that supports long-range strikes, intelligence and logistics. Its location in the Indian Ocean allows rapid deployment to the Middle East, East Africa and Asia. In fact, during the US-led interventions in Afghanistan and Iraq, the base played a critical role.
Diego Garcia is one of the key US military bases. According to the WSJ, Iran launched two ballistic missiles towards military airbase on the Indian Ocean island. The report was later confirmed by the British government, but denied by Iran, which characterized it as a ‘false flag’ operation. However, little further information has come to light about the incident.
Diego Garcia hosts some of the world’s most advanced military and logistical equipment, which include B-52 bomber aircraft, radar installations, and fuel storage facilities. The US relied heavily on the base for air and maritime operations during the two Gulf Wars and after the 9/11 attacks.
Trump’s change of mind is also linked to his desire to aquire Greenland. Experts believe that the US President aims to use the Chagos Deal as leverage against the UK, which opposed his bid to acquire Greenland. Similarl disputes exist in the Falkland Islands, where sovereignty remains contested between the UK and Argentina. In each case, historical claims and national security interests collide, making decolonization for the UK undesirable.
The Chagos deal has been criticised for leaving out the people it affects most: the Chagossian people themselves. Many of the Chagossian diaspora argue that they were not properly consulted during negotiations. While the agreement included financial compensation and the possibility of resettlement on some other islands, it does not guarantee a full right of return. This raises questions about whether the deal addresses historical injustice or merely restructures control to fit the needs of the colonizers.
The Maldives has recently made a claim over the Chagos Islands, which has escalated tensions with Mauritius. In response, Mauritius has suspended diplomatic relations, adding a new layer of political tension to an already complex dispute.What began as a bilateral negotiation has now evolved into a broader regional contest over sovereignty and maritime boundaries.
In yet another example, France has recently denied that it plans to return uninhabited Pacific islands. While geographically isolated, these territories provide access to vast exclusive economic zones, thus enabling states to exercise control over maritime resources and strategic space.
The China factor is playing an ever increasing role. President Trump wants to counter China’s foothold in the Indian Ocean. Beijing is strengthening its regional security presence with its bilateral relationship with Mauritius. In 2019, the island nation signed the China-Mauritius Free Trade Agreement with China. The FTA came into effect in 2021. Although, Mauritius has not yet taken action in the direction of granting access to China on Diego Garcia, the now cancelled Chagos Deal would have prevent this possibility.
In February 2025, the UK Minister for Overseas Territories, Stephen Doughty, cautioned that China or Russia could build a spy base on Diego Garcia or the archipelago’s outer islands if the deal to cede them to Mauritius does not go through. It is telling that the UK in 2026 still has a minister with this title.
Recent reports indicate that thousands of Mauritian officials had traveled to China for “specialized courses” ahead of the planned handover. China is certainly waiting for its chance and continues to do what it does best – playing the longterm game.
