Australia and Vanuatu signed a comprehensive economic and security agreement on Monday that bans the establishment of any foreign military bases in the Pacific nation.
Vanuatu is at the center of strategic rivalry between China and US allies in the South Pacific, and Australia has expressed concern that Beijing is seeking a permanent security presence in the region.
The deal commits Australia to A$500 million (US$345 million) in support of Vanuatu, whose biggest external creditor is China, and it bars a foreign military power from establishing a base there.
“What this does is provide assurance to Australia that there will be no foreign military base,” Prime Minister Anthony Albanese told reporters after signing the deal in Canberra with his Vanuatu counterpart Jotham Napat.
“We have concluded a balanced agreement that will protect our collective and individual security and our sovereignty,” he said.
China’s navy has made repeated port calls to Vanuatu.
Beijing also financed the expansion of a pier at Luganville, once the largest US military base in the South Pacific, fueling concern in Canberra and Washington that China wanted a naval base.
China and Vanuatu previously said the pier was for cruise ships.
Beijing warned Australia not to play “geopolitical games” after the deal was signed.
“We hope that relevant countries will carry out cooperation with Pacific island countries that is truly beneficial to the development and stability of the island nation region,” foreign ministry spokesman Guo Jiakun said at a press conference.
“They should not target third parties and should not use this to engage in geopolitical games,” he said when asked about the deal.
The Nakamal Agreement commits Vanuatu to reject the militarization of infrastructure, Napat said.
Military infrastructure
The agreement, seen by AFP, states that “Vanuatu will not allow its territory to be used for any foreign military base or infrastructure”.
Australia will help Vanuatu develop ports, digital, aviation and energy infrastructure, with Vanuatu agreeing to keep such infrastructure free from “foreign interference” or militarization.
It also recognizes Australia as Vanuatu’s “main senior policing partner” and says Vanuatu will prioritize policing requests over other members of the Pacific Islands Forum regional bloc.
China established police ties with Vanuatu in 2023 and has donated equipment including drones, patrol boats and vehicles to its police force.
The agreement says Australia and Vanuatu will increase assistance in “police training and equipment, policing, maritime security, cyber security, intelligence cooperation and infrastructure”.
The Vanuatu treaty is the latest in a string of deals Australia has reached with Pacific island nations, seeking to curb China’s growing security influence.
Chinese police have maintained a presence in the Solomon Islands since the signing of a secret security pact in 2022.
Vanuatu has said it is separately negotiating an economic deal with China, which has been building roads and government buildings in the South Pacific nation for a decade.
Race for influence
The Nakamal agreement does not ban Vanuatu’s partnership with China on infrastructure, but says the Pacific nation will consult with Australia when engaging a third party.
A former Australian diplomat in the Pacific, James Batley, said the race for influence between Beijing and Canberra would continue.
“Vanuatu’s long tradition of non-alignment means it will not simply abandon its relationship with China. Nor will China abandon its efforts to undermine Australia’s interests in Vanuatu,” he told AFP.
Anna Naupa, a Pacific security researcher with the Australian National University, said the signing was “an important milestone” after a prolonged period of uncertainty since the agreement remained unsigned during Albania’s visit to Vanuatu last year.
Vanuatu has demanded better access for its citizens to Australia for travel and work, and has agreed to recognize foreign-born Vanuatu citizens who have acquired a passport through a controversial investment scheme.
