Following extensive talks, Australia and Vanuatu have finalized a $500 million security accord, though the agreement has been described as less robust than anticipated.
Known as the Nakamal Agreement, this pact was officially signed by Australian Prime Minister Anthony Albanese and his Vanuatu counterpart, Prime Minister Jotham Napat, during a ceremony held in Canberra on Monday.
The signing marks nearly a year since Prime Minister Napat withdrew from an earlier ceremony, citing fears that the deal might threaten Vanuatu’s sovereignty.
Prime Minister Albanese emphasized that the new agreement “reflects and confirms” Australia’s position as Vanuatu’s “largest and most comprehensive partner in economic security and development—a role we embrace with great responsibility.”
He further noted, “This accord promotes a shared understanding that security is a collective responsibility within the Pacific family, and it underscores Vanuatu’s sovereign choice to prohibit any foreign military bases or infrastructure on its land.”
Napat said it was a “significant step” in the nation’s relationship.
“With the signing of the long-awaited Nakamal Agreement, Australia and Vanuatu are close neighbours, trusted partners,” he said.
What’s the agreement?
The Nakamal Agreement cements Australia as the Pacific island nation’s primary aid and policing partner.
It’s a bid to steer the nation away from China, which is currently pursuing a deal with Vanuatu, known as the Namele Agreement.
It’s a refurbished version of the 2025 agreement, which gave Australia the power to veto Chinese involvement in Vanuatu’s critical infrastructure, including ports, telecommunications, digital, aviation, and energy.
That agreement, which was set to be finalised in September 2025, was abandoned by Vanuatu after members of the government raised concerns for the nation’s sovereignty.
Albanese was already in Vanuatu to sign the agreement when it was cancelled.
Australia originally pledged $500 million across ten years to support Vanuatu’s government. Now, that money will be spread across a longer, unspecified period.
The agreement requires the Nakamal committee to convene at least every six months to address and resolve any issues or disputes between the two nations.
What are the terms?
The agreement requires Vanuatu to consult Australia on “proposed third-party engagement in Vanuatu’s critical infrastructure”.
Any critical infrastructure must also remain free from “militarisation, any form of foreign interference or unauthorised access”.
It also requires Vanuatu to prioritise the Pacific Forum, an alliance of 18 Pacific nations, for policing requests.
In the event of a humanitarian disaster, Vanuatu will first request foreign aid from FRANZ — a humanitarian coalition comprising France, Australia and New Zealand.
Australia and Vanuatu will collaborate on cyber infrastructure and renewable energy transition and Australia will support shortfalls in Vanuatu’s workforce.
Albanese is expected to travel to Fiji and the Solomon Islands within weeks to progress negotiations on a treaty with Honiara and ink a deal with Suva.