Australia and Vanuatu Sign A$500M Security and Economic Agreement

Sydney, Australia — Australia and Vanuatu have reached a significant 10-year agreement, worth A$500 million ($328 million), aimed at reinforcing security and economic relations between the two nations. The deal, termed the Nakamal agreement, was announced on Wednesday after months of negotiations.

Australia’s Deputy Prime Minister Richard Marles expressed the close bond between the two countries, stating, “We are family. Our future is very much bound together.” Vanuatu’s Prime Minister Jotham Napat described the agreement as a “win-win situation” for both nations.

The agreement, set to be officially signed in September, is part of Australia’s effort to bolster its influence in the Pacific amidst China’s increasing presence. Although the Australian government did not release specific details, reports from the Australian Broadcasting Corporation suggest that funds will be allocated for constructing two major data centers in Vanuatu’s capital, Port Vila, and on the island of Santo.

Murray’s statements emphasized that the deal would also focus on assisting Vanuatu in tackling climate change challenges and enhancing its security infrastructure. Earlier negotiations included discussions about visa-free travel for Vanuatu citizens, a topic that Napat indicated will feature in a potential subsidiary agreement.

Details about any commitments from Vanuatu in exchange for the deal remain unclear. A previous agreement fell through in 2022 when Vanuatu’s former prime minister withdrew due to security issues.

During a press conference on Tanna island, Marles reiterated the sentiment of mutual dependence, emphasizing that the agreement acknowledges their shared security environment. Australia’s Foreign Minister Penny Wong remarked that the deal is focused on the long-term future, saying, “The most important thing [about the deal] is where we will be in three and five and ten years.”

Napat added that this agreement is expected to bring significant benefits to both countries, particularly in terms of economic transformation and labor mobility. The new deal follows several similar agreements Australia has made with other Pacific nations, including a A$190 million security pact with the Solomon Islands last December.