Security Pact Signed After Months of Delay
Australia and Vanuatu on Monday signed a development and security pact that had been delayed for months over Vanuatu’s concerns that it could stifle investment from other countries. The agreement, known as the Nakamal Agreement, was signed by Australian Prime Minister Anthony Albanese and Vanuatu Prime Minister Jotham Napat at Parliament House in Canberra.
Under the pact, Australia will be consulted on any third-party investment in Vanuatu’s critical infrastructure and remain the country’s preferred security and policing partner. Canberra has previously unveiled funding of A$500 million ($344.50 million) over 10 years for the agreement.
Key Provisions and Sovereignty
“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 militarization,” Albanese said at a news conference with Napat. The agreement was to be signed in September 2025 but was delayed after Napat said his coalition partner had raised concerns that it could restrict Vanuatu’s ability to secure infrastructure funding from other countries.
China's Role in Vanuatu
China is Vanuatu’s largest external creditor, having provided loans through Chinese banks that financed Chinese contractors to build major infrastructure projects, including the presidential office complex, parliament building and road network. Vanuatu is currently pursuing its own economic deal with China that Napat said on Monday was awaiting approval from Beijing.
“We will share the agreement, there is nothing to hide,” Napat said, responding to a question about whether the deal would contain security elements. The signing marks a significant step in Australia’s efforts to counter Chinese influence in the Pacific region.
