Australia and Vanuatu formalised a long-awaited bilateral security and economic agreement on 29 June 2026, aimed at prohibiting any foreign military bases on the Pacific island nation. The agreement, known as the Nakamal Agreement, was signed in Canberra by Australian Prime Minister Anthony Albanese and Vanuatu Prime Minister Jotham Napat. This pact seeks to enhance cooperation on critical infrastructure while limiting the influence of external powers, particularly China, in the region.

The agreement was reached nine months after Vanuatu rejected an earlier draft over concerns that it may have curtailed the country’s ability to attract necessary infrastructure investments. Under the revised terms, Vanuatu commits to consulting with Australia when considering third-party involvement in critical infrastructure, although Australia will not hold the veto power included in the original proposal.

In his remarks, Albanese emphasised Australia’s commitment to being Vanuatu’s leading economic, security, and development partner, viewing this role as a significant responsibility. Napat echoed this sentiment, highlighting that the agreement reinforces the enduring partnership between the two nations built on mutual respect and a joint vision for a peaceful and prosperous Pacific region.

Security and Infrastructure Safeguards

The Nakamal Agreement stipulates that Vanuatu will not permit any foreign military bases or infrastructure developments on its territory. The deal includes provisions to ensure Vanuatu’s critical infrastructure remains free from militarisation, foreign interference, or unauthorised access. Additionally, Vanuatu has pledged to prioritise cooperation with police forces from Pacific Islands Forum members, which includes Australia, while not excluding engagement with Chinese police as well.

Currently, China does not maintain a permanent police presence in Vanuatu but sends police personnel on visits. The agreement aims to establish a framework for enhanced collaboration on law enforcement issues, balancing the interests of the involved parties. This aspect is significant as it underscores Vanuatu’s ability to navigate its relationships with major powers without yielding to exclusive influence.

Furthermore, the agreement highlights that in the face of major natural disasters, Vanuatu will prioritise collaboration with Australia, New Zealand, and France. This commitment reflects not only a strategic partnership but also a recognition of Australia’s role in regional disaster response and humanitarian assistance.

Future Relations with China

The pact concludes a period of uncertainty following the rejection of the initial draft last September, just before Albanese’s planned visit to Vanuatu. Napat confirmed that a separate deal, labelled the Namele Agreement, is currently under negotiation with China and will be made public once it receives approval from Beijing. He described this agreement as a “comprehensive development cooperation” arrangement rather than a security pact, indicating a focus on infrastructure and economic development.

While Vanuatu’s government has received significant loans and aid from China for various infrastructure projects, Napat has assured that there is no intention to compromise the nation’s sovereignty through these engagements. He stated that Vanuatu’s government remains transparent and committed to sharing the details of both the Nakamal and Namele agreements once clearance is obtained.

As discussions continue, the financial implications of the Nakamal Agreement are expected to be disclosed by December. The previous draft had proposed a substantial investment of 500 million Australian dollars over a decade, a potential investment that remains a point of interest for both nations as they move forward in strengthening their partnership.

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