Australia and Vanuatu strike $325 million security and economic deal amid China’s influence
Australia and Vanuatu have agreed on a A$500 million ($326.5 million) deal to boost economic and security ties, as competition from China, Vanuatu’s largest external creditor, intensifies.
The agreement, called the Nakamal Agreement, will see Australia invest the funds in Vanuatu over the next decade. Vanuatu Prime Minister Jotham Napat described it as a “win-win” arrangement, highlighting trade benefits, economic transformation, and labour mobility between the two nations, News.Az reports, citing Reuters.
Australia’s Deputy Prime Minister Richard Marles said the pact reflects a “shared destiny,” noting that both countries have a shared security environment and mutual commitments. The deal is set to be formally signed by Napat and Australia’s Prime Minister Anthony Albanese in the coming weeks.
The agreement also includes funding for climate resilience initiatives following a December earthquake in Vanuatu’s capital, Port Vila, which killed at least 14 people and injured hundreds. In recent years, Vanuatu has strengthened ties with China, making this deal a strategic move for Australia in the Pacific region.
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