Australia and Vanuatu have reached a landmark 10-year, A$500 million ($328m; £241m) “Nakamal” agreement to deepen security, economic, and climate cooperation. Announced Wednesday after months of negotiations, the deal will be formally signed in September.
Australian Deputy PM Richard Marles called the nations “family” with “shared destiny,” while Vanuatu’s Prime Minister Jotham Napat hailed the pact as a “win-win.” According to the Australian Broadcasting Corporation, the package includes funding for two major data centres in Port Vila and Santo, climate adaptation projects for the low-lying islands, and enhanced security capacity.
Visa-free travel for Vanuatu citizens—discussed earlier—will be addressed in a future subsidiary agreement. Details of Vanuatu’s commitments remain unclear. A similar 2022 deal collapsed over security concerns.
Speaking beside a volcano on Tanna island, Marles emphasised the shared security environment. Vanuatu’s leader highlighted benefits including labour mobility and financial support.
The deal is part of Australia’s strategy to counter China’s influence in the Pacific, following recent pacts with the Solomon Islands (A$190m), Tuvalu, and Papua New Guinea. Canberra says the focus is on the “long-term future” of Pacific partnerships, aiming for tangible gains over the next decade in technology, climate resilience, and regional stability.
