Australia signs long-awaited Vanuatu security deal. Here's what's in it

After ten months, the lucrative deal between Australia and Vanuatu has been signed. What does it mean for the Pacific?

The Prime Ministers signed the Nakamal agreement during the Australia–Vanuatu Leaders’ Meeting at Parliament House in Canberra. Source: AAP / LUKAS COCH/AAPIMAGE

IN BRIEF:

• Australia and Vanuatu have signed an agreement, ten months after the original was abandoned.
• The agreement comes as Australia is negotiating a deal with Fiji, and Vanuatu with China.

After months of negotiations, Australia and Vanuatu have signed a watered-down $500 million security deal.

The Nakamal Agreement was signed by Prime Minister Anthony Albanese and Vanuatu Prime Minister Jotham Napat in Canberra on Monday.

The deal was inked almost ten months after Napat pulled out of a signing ceremony due to concerns that Vanuatu's sovereignty would be undermined.

Albanese said the agreement "reflects and confirms" Australia's role as Vanuatu's "largest and most comprehensive economic security and development partner, a responsibility that we take seriously."

"This agreement advances a consensus that security is the shared responsibility of the Pacific family ... and encapsulates Vanuatu's sovereign decision not to permit its territory to be used for any foreign military base or infrastructure."

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.

---

For the latest from SBS News, download our app and subscribe to our newsletter.