According to the terms of the nearly 30-year old deal with the islands region, the move will take effect in 12 months.
It is likely to hurt budgets of the island countries involved who had benefited from the annual payment of over US$80 million from the US government and industry.
The US State Department this week advised the Forum Fisheries Agency (FFA)that it had officially communicated to the Papua New Guinea government - which is the depository for the treaty - that it is withdrawing from the treaty.
