Australia, Vanuatu Sign Security Pact Amid Pacific Influence Competition

Australia and Vanuatu have officially signed a long-awaited development and security agreement, reinforcing their strategic partnership while highlighting the growing geopolitical competition for influence in the Pacific region. The pact, known as the Nakamal Agreement, strengthens cooperation on security, infrastructure, and economic development while affirming Vanuatu’s sovereignty over its national decisions.

Under the agreement, Australia will be consulted regarding any third-party investments involving Vanuatu’s critical infrastructure and will remain the island nation's preferred partner for security and policing matters. Canberra has committed A$500 million (approximately $344.5 million) over the next decade to support the implementation of the agreement and deepen bilateral cooperation.

Australian Prime Minister Anthony Albanese described the deal as a reflection of Vanuatu’s commitment to ensuring its territory is not used for foreign military bases or military-related infrastructure. He emphasized that the agreement protects Vanuatu’s critical infrastructure from militarization while respecting the country's sovereign right to determine its own future.

The agreement had originally been scheduled for signing in September but was postponed after Vanuatu Prime Minister Jotham Napat said coalition partners expressed concerns that the pact could limit the country's ability to attract infrastructure investment from other nations.

Those concerns come as China remains Vanuatu’s largest external creditor. Chinese banks have financed major infrastructure projects across the Pacific nation, including the presidential office complex, parliament building, and extensive road construction, with Chinese contractors carrying out much of the work.

Despite signing the security agreement with Australia, Vanuatu continues to pursue closer economic ties with Beijing. Napat confirmed that his government is awaiting approval from Chinese authorities for a separate economic cooperation agreement.

Addressing questions over whether the proposed China deal contains security-related provisions, Napat said the agreement would be made public once finalized, adding that "there is nothing to hide."

The signing of the Nakamal Agreement underscores Australia's broader strategy to strengthen partnerships across the Pacific as regional competition with China intensifies. By expanding investment, security cooperation, and development assistance, Canberra aims to reinforce long-term stability while supporting Pacific nations in safeguarding their sovereignty and critical infrastructure.