Australia and Vanuatu on Monday signed a long-delayed development and security agreement, formalising Canberra’s role as the Pacific island nation’s preferred security and policing partner.
The deal, known as the Nakamal Agreement, had been delayed for months after Vanuatu raised concerns that it could limit investment from other countries.
Australia to Be Consulted on Key Infrastructure
Under the agreement, Australia will be consulted on third-party investment in Vanuatu’s critical infrastructure and will remain the country’s preferred security partner.
Canberra has already committed A$500 million ($344.5 million) over the next decade to support the agreement.
Australian Prime Minister Anthony Albanese said the pact reflects Vanuatu’s sovereign decision not to allow its territory to host foreign military bases or military infrastructure.
“It encapsulates Vanuatu’s sovereign decision not to permit its territory to be used for any foreign military base or infrastructure and that Vanuatu’s critical infrastructure remains free from militarisation,” Albanese said.
Deal Delayed Over Investment Concerns
The agreement was originally expected to be signed in September but was postponed after Vanuatu Prime Minister Jotham Napat said members of his coalition government feared it could restrict the country’s ability to secure infrastructure funding from other partners.
China remains Vanuatu’s largest external creditor, financing major infrastructure projects through Chinese-backed loans, including the presidential office, parliament building and road network.
Vanuatu Also Pursuing China Deal
Despite signing the agreement with Australia, Vanuatu is continuing negotiations on a separate economic agreement with China.
Napat said the deal is awaiting approval from Beijing and insisted there was “nothing to hide”.
Responding to questions about whether the agreement with China would include security provisions, he said: “We will share the agreement, there is nothing to hide.”
The agreement underscores Australia’s efforts to deepen its influence in the Pacific as strategic competition with China continues across the region.
(with inputs from Reuters)
