Australia and Vanuatu have finalized a 10-year, A$500 million (US$328m) security and economic agreement, a significant move in Canberra’s strategy to bolster its influence across the Pacific.
The “Nakamal agreement,” concluded after months of negotiations, is designed to transform the relationship between the two nations. It comes as Australia actively works to counter China’s increasing investment and power in the region.
Leaders from both countries announced the pact on Wednesday, with Australian Deputy Prime Minister Richard Marles declaring, “We are family… Our future is very much bound together.” Vanuatu’s leader, Jotham Napat, described the arrangement as a “win-win situation” for both nations. The agreement is scheduled to be formally signed in September.
While the Australian government has not released full details, reports indicate the funds are earmarked for two large data centers—one in the capital, Port Vila, and another on Vanuatu’s largest island, Santo. The funding will also support the low-lying island nation’s efforts to combat the impacts of climate change and build up its security infrastructure.
A key point from earlier negotiations, visa-free travel for Vanuatu citizens, will be addressed in a separate “subsidiary” agreement that is yet to be confirmed, Napat told the media. It remains unclear what commitments Vanuatu has made to Australia as part of the deal.
This successful negotiation follows a similar agreement that collapsed in 2022 after Vanuatu’s former prime minister withdrew at the last minute, citing security concerns.
Speaking at a press conference on Tanna island, Marles emphasized the two countries’ “shared destiny,” noting that the deal “acknowledges that as neighbours, we have a shared security environment and a commitment to each other.”
Australian Foreign Minister Penny Wong highlighted the long-term vision behind the partnership. “The most important thing [about the deal] is where we will be in three and five and ten years,” she said.
The accord with Vanuatu is the latest in a series of strategic pacts Australia has recently secured with its Pacific neighbors, including similar security agreements with Tuvalu, Papua New Guinea, and the Solomon Islands.
Source link
