Australia heralds deal with Vanuatu as a 'transformational breakthrough' in the Pacific

Prime Minister of Vanuatu Jotham Napat and Australian Prime Minister Anthony Albanese sign the Nakamal agreement during the Australia–Vanuatu Leaders’ Meeting at Parliament House in Canberra, Monday, June 29, 2026. (AAP Image/Lukas Coch) NO ARCHIVING Source: AAP / LUKAS COCH/AAPIMAGE

Australia and Vanuatu have signed a 500 million dollar strategic agreement - the first ever inked between the two countries. It positions Australia as the Pacific country's security partner of choice, but it's a weaker treaty than the Australian prime minister originally hoped for. China has expressed concern the deal targets China, warning Australia against playing "geopolitical games".

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