Australia, Vanuatu Seal $328m Pact to Boost Security and Economic Ties
Australia and Vanuatu have reached a landmark 10-year agreement worth A$500 million (US$328 million), aimed at deepening cooperation on security, climate resilience, and economic development.
Announced on Wednesday after months of negotiations, the so-called “Nakamal Agreement” marks a significant step in Canberra’s efforts to strengthen ties with its Pacific neighbours amid growing Chinese influence in the region.
At a joint press event, Australia’s Deputy Prime Minister Richard Marles described the two nations as “family” with a “shared future,” while Vanuatu’s Prime Minister Jotham Napat called the deal a “win-win” for both sides. The agreement is due to be formally signed in September.
Although full details have not been released, the Australian Broadcasting Corporation reports that funding will go toward building two major data centres in Port Vila and on Santo island, bolstering Vanuatu’s digital infrastructure. Additional investment will target climate adaptation projects for the low-lying island nation, as well as strengthening its security capacity.
Visa-free travel between the two countries, previously discussed during talks, will be handled in a separate arrangement yet to be finalised. It remains unclear what commitments Vanuatu has made in return.
A previous deal collapsed in 2022 when Vanuatu’s then-prime minister withdrew over security concerns. This time, however, leaders emphasised mutual trust and long-term vision.
Speaking on the volcanic island of Tanna, Marles said the agreement reflects “a shared security environment and a commitment to each other.” Foreign Minister Penny Wong highlighted its decade-long scope, stressing the importance of where the partnership will be “three, five, and ten years” from now.
Prime Minister Napat said the partnership would spur economic transformation, expand labour mobility opportunities, and deliver financial support.
The Vanuatu agreement follows similar deals Canberra has signed with other Pacific states, including a A$190 million security pact with the Solomon Islands in December, and arrangements with Tuvalu and Papua New Guinea.
