CANBERRA — Australia and Vanuatu have finalized a comprehensive economic and security agreement designed to prevent the establishment of foreign military bases on the Pacific island nation, directly addressing rising geopolitical competition in the region.
According to reports by the Associated Press (AP) and Agence France-Presse (AFP) published through Al Jazeera, the “Nakamal Agreement” was officially signed on Monday, June 29th, by Australian Prime Minister Anthony Albanese and Vanuatu Prime Minister Jotham Napat during a ceremony at Parliament House in Canberra.
The pact establishes a framework ensuring that no foreign military infrastructure will be built in Vanuatu, while also requiring the island nation to consult Australia regarding any third-party investments in its critical infrastructure. In return, Australia has pledged increased economic support.
Prime Minister Albanese emphasized the strategic importance of the deal, telling reporters that it provides vital certainty for Australia. According to the Australian leader, the agreement is designed to “protect our collective and individual security and our sovereignty.”
Vanuatu’s Prime Minister Napat reaffirmed his country’s commitment to regional stability, noting that Vanuatu’s parliament had previously passed legislation explicitly blocking the militarization of its critical infrastructure. According to Napat, the pact strengthens a partnership founded on “mutual respect, trust and our common vision for a peaceful, stable and prosperous Pacific.”
The agreement comes amid intense competition between Western allies and Beijing for influence in the South Pacific. According to Chinese Ministry of Foreign Affairs spokesperson Guo Jiakun, Beijing has expressed concern that the security deal may be targeted at China. Guo stated that China hopes cooperation in the region will contribute to stability and “not target any third party or be used as a tool for geopolitical rivalry.”
According to the reports, Vanuatu had rejected a previous draft of the agreement in September due to sovereignty concerns that it might restrict its ability to attract foreign infrastructure funding. While the final version maintains that Vanuatu will consult Australia over third-party infrastructure engagements, it notably removes an outright power of veto that had been initially proposed.
Financial specifics of the finalized deal remain unreleased, though an earlier draft included an Australian commitment of 500 million Australian dollars (345 million USD) over ten years. According to Albanese, the exact funding figures will be disclosed during Australia’s end-of-year budget update.
Despite the new pact, Vanuatu maintains deep economic ties with Beijing and is expected to sign a separate economic agreement with China. Over the past decade, China has heavily financed infrastructure in Vanuatu through its Belt and Road Initiative, funding roads, government buildings, and a wharf expansion in Luganville. Additionally, Beijing established policing ties with Vanuatu in 2023, donating patrol boats, drones, and vehicles.
However, according to AFP, the newly signed Nakamal Agreement firmly establishes Australia as Vanuatu’s “longstanding primary policing partner.” Under the agreement, the two nations will deepen cooperation in intelligence sharing, maritime security, cybersecurity, and police training. Vanuatu has also agreed to prioritize Australia, New Zealand, or France as first responders in the event of major natural disasters.
