Australian Prime Minister Anthony Albanese confirmed that a landmark security and development agreement with Vanuatu will not be signed as originally planned. Speaking to the Australian Broadcasting Corporation before departing for Vanuatu, Albanese said the pact will instead be progressed at a later stage, noting that “Vanuatu politics can be very complex.”
The proposed agreement, known as the Nakamal Agreement, was expected to be finalized this month after Vanuatu’s government declared in August that the deal was complete. The pact, worth A$500 million (US$326 million), aims to deepen economic and security ties between the two nations. Last month, ministers from both countries initialed the agreement in a symbolic ceremony held on the side of a volcano.
Vanuatu’s stance has drawn international attention, as the nation has strong ties with China, its largest external creditor. Chinese banks have financed major infrastructure projects in Vanuatu, including government buildings and roads, raising concerns in Canberra about Beijing’s growing influence in the Pacific.
The delay comes as Australia seeks to counter China’s expanding security footprint in the region. A 2022 security pact between Australia and Vanuatu was previously blocked after failing to gain domestic approval, while China had already signed a controversial agreement with Solomon Islands.
Albanese is expected to join Vanuatu Prime Minister Jotham Napat at the Pacific Islands Forum summit in the Solomon Islands this week, where he will emphasize that regional security should remain “within the Pacific family.” He will then travel to Papua New Guinea for the 50th anniversary of its independence, where a new defence treaty between Australia and PNG is set to be signed.
The outcome of Australia’s negotiations with Vanuatu will be closely watched, as Pacific nations remain a strategic battleground for influence between Canberra and Beijing.