Australia signs A$500m security, business deal with Vanuatu

Australia and Vanuatu, a South Pacific nation of about 80 islands stretching 1,300 kilometers, have agreed to a 10-year deal worth A$500 million (approximately US$328 million) to strengthen security and economic ties. The “Nakamal Agreement,” the result of months of negotiations, is expected to transform Australia’s relationship with its Pacific neighbor, leaders from both countries said on Wednesday. Foreign Minister Penny Wong, Deputy Prime Minister Richard Marles, and Pacific Minister Pat Conroy met with Vanuatu’s leaders on Mount Yasur to initial the agreement ahead of its formal signing

Australia and Vanuatu, a South Pacific nation of about 80 islands stretching 1,300 kilometers, have agreed to a 10-year deal worth A$500 million (approximately US$328 million) to strengthen security and economic ties. The “Nakamal Agreement,” the result of months of negotiations, is expected to transform Australia’s relationship with its Pacific neighbor, leaders from both countries said on Wednesday. Foreign Minister Penny Wong, Deputy Prime Minister Richard Marles, and Pacific Minister Pat Conroy met with Vanuatu’s leaders on Mount Yasur to initial the agreement ahead of its formal signing by both prime ministers next month. “We are family,” Deputy Prime Minister Marles said, adding, “Our future is very much bound together.” Vanuatu’s Prime Minister Jotham Napat described the deal as a “win-win situation” for both nations. The agreement, set to be signed in September, comes as Australia seeks to expand its influence in the Pacific to counter China’s growing presence. According to the Australian Broadcasting Corporation (ABC), the deal will fund the construction of two large data centers, one in the capital Port Vila and another on Vanuatu’s largest island, Santo. Millions will also be invested in climate change adaptation for the low-lying nation and in strengthening its security capabilities. Earlier in the talks, visa-free travel for Vanuatu citizens was discussed as a key part of the deal. However, Napat said on Wednesday that this would be addressed in a separate agreement that is yet to be confirmed. It is still unclear what commitments Vanuatu has made to Australia under the deal. A similar agreement collapsed in 2022 when Vanuatu’s former prime minister withdrew over security concerns, according to ABC. At a press conference on Tanna Island, Marles highlighted the “shared destiny” of the two countries, saying, “This agreement recognizes that as neighbors, we share a security environment and a commitment to each other.” Foreign Minister Wong said the deal focuses on long-term cooperation: “The most important thing is where we will be in three, five, and ten years.” Prime Minister Napat said the agreement will deliver major benefits, including security cooperation, economic growth, expanded labor mobility, and financial support. This agreement follows similar pacts Australia has signed in recent months with other Pacific nations, including a A$190 million security deal with the Solomon Islands in December, and agreements with Tuvalu and Papua New Guinea.