Australian Prime Minister Anthony Albanese has left Vanuatu without signing a major security and infrastructure agreement, after Vanuatu's government raised concerns about its ability to seek funding from other countries, including China. The Nakamal agreement, worth up to $500 million over a decade, was intended to bolster climate resilience, security, and economic ties, and to counter Chinese influence in the Pacific.
Speaking in Port Vila on Tuesday, Albanese expressed confidence the deal would be signed soon, respecting Vanuatu's processes. However, Vanuatu Prime Minister Jotham Napat said more discussions were needed, particularly regarding wording on critical infrastructure and the nation's freedom to pursue funding from other nations.
The setback comes despite senior Australian ministers visiting Vanuatu last month to finalise negotiations. A previous 2022 security agreement with Vanuatu was never ratified, amid concerns over consultation and non-alignment. China has funded major projects in Vanuatu, including roads, government buildings, and a sports stadium.
Albanese emphasised Australia's respect for Vanuatu's sovereignty, stating that delaying the deal for proper process was acceptable. He will travel with Napat to Honiara for the Pacific Islands Forum, where China's regional influence is expected to dominate discussions.
