Australia and Vanuatu signed a bilateral security and economic treaty Monday, effectively preventing China from establishing a military base on the South Pacific island nation. Australian Prime Minister Anthony Albanese and his Vanuatuan counterpart, Jotham Napat, formalized the Nakamal Agreement in Canberra. This pact comes nine months after Vanuatu rejected an earlier draft, citing concerns it would limit its ability to attract crucial infrastructure investment.
Under the new agreement, Vanuatu commits to prohibiting any foreign military base or infrastructure within its territory. It will also maintain its critical infrastructure free from militarization, foreign interference, or unauthorized access. Prime Minister Albanese stated that the agreement “reflects and confirms Australia’s role as Vanuatu’s largest and most comprehensive economic, security and development partner,” a responsibility he claims Australia takes seriously.
Imperial Maneuvers in the Pacific
This treaty is part of a broader strategy by Australia to counter China’s expanding security influence across the Pacific region. Australia is actively negotiating or has already struck similar agreements with other regional neighbors. China, through its Ministry of Foreign Affairs spokesperson Guo Jiakun, expressed concern that the agreement might be specifically aimed at Beijing. Guo stated, “We hope that cooperation between relevant countries and Pacific Island countries will contribute to the development and stability of the island region, not target any third party or be used as a tool for geopolitical rivalry.”
The Nakamal Agreement stipulates that Vanuatu will consult with Australia when considering third-party engagement in its critical infrastructure. However, a previously proposed power of veto for Australia was removed from the final text. Vanuatu has also committed to prioritizing policing cooperation with members of the Pacific Islands Forum, which includes Australia, though Chinese police are not explicitly excluded. Chinese police personnel frequently visit the nation of 350,000 people, though China does not maintain a permanent presence. Additionally, Vanuatu agrees to approach Australia, New Zealand, and France first in response to major natural disasters.
Vanuatu's Economic Bind
Vanuatu's Prime Minister Napat described the pact as reaffirming a “shared commitment to continuing and strengthening the comprehensive partnership between our two countries, founded on mutual respect, trust and our common vision for a peaceful, stable and prosperous Pacific.” This rhetoric of partnership masks the underlying economic pressures faced by smaller nations. An earlier draft of the agreement had proposed AUD 500 million ($344 million) from Australia over a decade. The cost of the latest agreement is expected to be made public by December.
Meanwhile, Vanuatu is also negotiating a separate bilateral agreement with China, known as the Namele Agreement, which Napat has characterized as a “comprehensive development cooperation” deal, not a security pact. Vanuatu has historically received substantial loans and aid from China for various infrastructure projects, including buildings and wharves. Napat indicated that the Namele Agreement would be made public once it receives “clearance from Beijing,” and that he had received clearance from Albanese to share the Nakamal Agreement with China. China has not yet confirmed whether it will reveal the details of its agreement with Vanuatu.