Australia and Vanuatu have signed a long-delayed security and development agreement, ending months of negotiations that had stalled over concerns about the Pacific nation’s relationship with China. According to Bloomberg and ABC News Australia, the new Nakamal Agreement strengthens Australia’s role as Vanuatu’s principal security and development partner while preserving Vanuatu’s sovereignty and allowing it to maintain economic ties with other countries, including China. The agreement was signed in Canberra by Australian Prime Minister Anthony Albanese and Vanuatu Prime Minister Jotham Napat.
The pact commits Australia to providing A$500 million (about US$345 million) in development and security assistance over the next decade. It also establishes Australia as Vanuatu’s preferred policing and security partner and requires consultation on third-party involvement in critical infrastructure projects. Unlike earlier drafts, however, the final agreement does not grant Australia veto power over foreign investments, reflecting compromises reached after Vanuatu raised concerns that previous provisions could undermine its independence.
The agreement comes amid growing strategic competition in the Pacific, where China has expanded its economic and diplomatic presence through infrastructure financing and development partnerships. Prime Minister Napat reiterated that Vanuatu’s separate cooperation agreement with China is focused on economic development rather than security and pledged to make it public once it receives Beijing’s approval. The Nakamal Agreement also reaffirms Vanuatu’s longstanding policy prohibiting foreign military bases and the militarisation of its critical infrastructure.
AP News views the deal as a significant diplomatic win for Australia as it seeks to deepen partnerships across the Pacific while responding to China’s growing regional influence. By balancing enhanced security cooperation with respect for Vanuatu’s sovereign decision-making, the agreement is expected to strengthen regional stability, improve development cooperation, and reinforce Australia’s strategic engagement in the South Pacific.
