Australia and Vanuatu have announced a landmark 10-year agreement reportedly worth A$500 million ($328 million), designed to bolster security and economic connections between the two nations. Coined the Nakamal agreement, this initiative comes after extensive negotiations and seeks to redefine the relationship between Australia and its Pacific neighbor.
Deputy Prime Minister of Australia, Richard Marles, expressed the belief that "we are family" and emphasized the interdependent future of both countries. Vanuatu's Prime Minister Jotham Napat heralded the agreement as a "win-win situation," reflecting optimism for mutual benefits.
Set to be formally signed in September, the deal comes amid Australia’s efforts to enhance its influence in the Pacific region in light of China's growing presence. While details of the agreement remain sparse, reports from the Australian Broadcasting Corporation have indicated that it will include funding for the construction of two major data centers in Port Vila and Santo, Vanuatu's largest island.
Substantial funds are also earmarked to assist Vanuatu in adapting to climate change impacts and enhancing the nation's security infrastructure. Discussions on the potential for visa-free travel for Vanuatu citizens surfaced during earlier negotiations, though Napat commented that this aspect would be part of a separate agreement yet to be established.
The commitment from Vanuatu to Australia, in return for the benefits of this deal, remains unclear. Previous negotiations on agreements had faltered, such as a similar pact that collapsed in 2022 due to last-minute security concerns from the then-prime minister.
As discussions were held at a picturesque location beside a volcano on Tanna Island, Marles highlighted the "shared destiny" entwined between the two countries, asserting their mutual commitment to a secure environment. Australia’s Foreign Minister Penny Wong articulated the importance of considering the long-term implications of the agreement, focusing on where the partnership will lead in three, five, and even ten years.
Prime Minister Napat foresees that the new agreement will yield significant advantages for both nations, spotlighting areas such as economic transformation, labor mobility, and financial assistance. The signing of this agreement marks a continuation of Australia’s strategic partnership efforts across the Pacific, which have included similar accords with the Solomon Islands, Tuvalu, and Papua New Guinea recently.
