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Australia and Vanuatu Finalize Nakamal Agreement Amid Parallel Talks with China

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Nakamal Agreement Signed: Australia and Vanuatu Forge Revised Security Pact

"Friends to all, and enemies to none." — Vanuatu Prime Minister Jotham Napat, reaffirming his nation's non-aligned stance.

Australia and Vanuatu signed the Nakamal Agreement in Canberra on Monday, concluding nearly 10 months of negotiations. Vanuatu Prime Minister Jotham Napat and Australian Prime Minister Anthony Albanese were the signatories. The agreement was revised from an earlier version that Vanuatu declined to sign in September 2024 due to sovereignty concerns.

Key Provisions of the Nakamal Agreement

The signed pact includes the following provisions:

  • Critical infrastructure: Vanuatu will consult Australia on any proposed third-party engagement in its critical infrastructure. Australia does not have veto power. The original clause that would have limited Chinese investment in ports, airports, and telecommunications was removed during renegotiation.

  • Militarization: Vanuatu commits that its critical infrastructure will remain free from militarization and foreign interference. Prime Minister Napat noted that Vanuatu's existing legislation already prohibits the militarization of critical infrastructure.

  • Policing: Australia is recognized as Vanuatu's "longstanding primary policing partner." Vanuatu will prioritize Pacific Islands Forum members for policing assistance.

  • Humanitarian response: Vanuatu will first approach Australia, New Zealand, and France for humanitarian disaster response.

  • Mobility: The agreement mentions "enhanced mobility arrangements" for ni-Vanuatu citizens and commits to a review of current travel arrangements. No visa-free travel provisions were included.

  • Citizenship: Vanuatu will develop mechanisms to differentiate citizenship by investment from other forms.

Financial Commitments

The financial commitment under the agreement has not been formally disclosed. The original version of the pact signed at Mount Yasur in August 2023 committed Australia to approximately $500 million over a decade for development and security priorities. Sources indicate the current funding is understood to be approximately $500 million spread over a longer period than originally planned. Australia's specific funding details are expected to be announced in the budget update at the end of the year.

Statements from Leaders

Prime Minister Anthony Albanese (Australia) stated that the agreement is "balanced" and will protect collective and individual security and sovereignty. He said it provides certainty that there will be no foreign military base in Vanuatu and that Australia is the security partner of choice in the Pacific.

Prime Minister Jotham Napat (Vanuatu) stated the agreement reflects a shared commitment to strengthening the comprehensive partnership. He downplayed the significance of the critical infrastructure commitments, noting existing legislation. He reiterated Vanuatu's non-aligned stance, stating the nation is "friends to all, and enemies to none."

Vanuatu-China Agreement

Vanuatu is also pursuing a separate pact with China, the Namele Agreement. Vanuatu's Council of Ministers has approved this agreement, which Prime Minister Napat described as focused on "strategic cooperation" with no security elements. He stated the final text will be released once clearance from Beijing is obtained.

China's position: Chinese Embassy spokesperson Guo Jiakun expressed concern that the Nakamal Agreement may be targeted at China, stating that cooperation should not target any third party or be used for geopolitical rivalry. China's embassy in Vanuatu previously stated that claims of a security agreement are "untrue" and that cooperation focuses on infrastructure development and capacity building.

Negotiation History

The Nakamal Agreement was initialled by senior ministers from Australia and Vanuatu at Mount Yasur, an active volcano, in August 2023. A scheduled signing ceremony in September 2024 was cancelled by Prime Minister Napat after coalition ministers raised sovereignty concerns. Negotiations continued over the following months, with Vanuatu's Council of Ministers approving the revised version before the final signing.

Broader Regional Context

The agreement is part of a series of strategic pacts Australia has signed with Pacific island states, including treaties with Tuvalu, Nauru, and Papua New Guinea. Australia is also pursuing agreements with Tonga and Solomon Islands, and Prime Minister Albanese is scheduled to visit Fiji to sign a new treaty.

Australia excluded Vanuatu from the 2024 Pacific Engagement Visa ballot, a decision that drew criticism in Vanuatu. Some Vanuatu officials accused Australia of using the visa as leverage in negotiations.

In 2018, reports emerged that China had approached Vanuatu about establishing a permanent military presence, prompting concern from Australia. China and Vanuatu established policing ties in 2023, with China donating equipment.