The United Kingdom is reconsidering its agreement to transfer sovereignty of the Chagos Islands to Mauritius following renewed opposition from United States President Donald Trump.
Defence Secretary Wes Streeting said the arrangement must be examined again because Washington does not support the agreement in its present form.
His comments followed President Trump’s description of the deal as “terrible” during a meeting with British Prime Minister Andy Burnham at the United Nations General Assembly in New York.
Under the proposed settlement, Mauritius would gain sovereignty over the Chagos Archipelago, while Britain would retain access to the strategically important Diego Garcia military installation through a 99-year lease.
The arrangement was estimated by the British government to cost about £3.4 billion over the period, including annual payments averaging roughly £101 million.
The agreement was signed by the UK and Mauritius in May 2025 but has not taken effect because the necessary parliamentary process remains incomplete. Its implementation was also put on hold after President Trump withdrew his backing.
Streeting said Britain would now work with Washington and other partners to seek an arrangement that secures the long-term future of the Diego Garcia facility, which is regarded as strategically important to both countries.
The Prime Minister, who met President Trump in New York, said his administration would continue efforts to find a settlement acceptable to the parties involved. He stressed that maintaining the military facility remained important for British and American security interests.
The Chagos dispute dates back decades. Britain separated the islands from Mauritius in 1965, shortly before Mauritius became independent.
In 2019, the International Court of Justice issued an advisory opinion stating that the UK’s continued administration of the territory should end as rapidly as possible. The opinion strengthened Mauritius’ position in subsequent negotiations.
The original agreement followed negotiations that began in 2022 and sought to resolve the sovereignty dispute while guaranteeing continued British and American military operations on Diego Garcia.
However, opponents in Britain have criticised the financial implications and raised concerns about the potential strategic consequences of transferring sovereignty.
The latest review is not understood to have a fixed timetable. Streeting also said no payment would be made to Mauritius at this stage while officials reconsider the terms.
The British government has indicated that its priority is finding a revised arrangement that provides long-term certainty for Diego Garcia while addressing the concerns raised by Mauritius and the United States.
By Magdalene Agyeiwaa Sarpong