Australia and Vanuatu have announced a landmark security and business agreement worth A$500 million, aimed at strengthening their long-term partnership. At a recent press conference held on Tanna Island, Australia’s Foreign Minister Richard Marles dropped a major bombshell. Against the backdrop of the island’s breathtaking volcanic topography, he underscored the “shared destiny” of the two nations.
The deal, called the Nakamal agreement after the Nakamal in Port Vila, Vanuatu’s capital, is the result of months of negotiation. It is intended to supersede and deepen Australia’s relations with Vanuatu through an increase of security and economic engagement. In a joint press conference on the release of the AUKUS agreement, Deputy Prime Minister Marles said, “our fate is inextricably linked,” emphasizing the importance of this partnership.
Vanuatu’s Prime Minister Jotham Napat expressed his excitement about the treaty. He thinks it produces a “win-win-win” for both countries and their respective ecosystems. He highlighted that the deal would bring “a lot of great benefits between the two countries,” focusing on areas such as security cooperation and economic transformation. The memorandum aims to support Vanuatu in addressing the increasing impacts of climate change. This matter has grown more urgent for the island nation than ever before.
Besides the security improvements, the agreement provides big investments in public works projects. Australia has committed to building two new, larger data factories in Port Vila and Santo. These centres are poised to greatly improve Vanuatu’s capacity in science and technology. At that stage of negotiations, visa-free access for Vanuatu passport holders turned into a central goal for the talks. So far, no concrete settlement on this point has been struck.
The agreement, slated to be formally signed in September, would open a new chapter in bilateral relations. Australia’s Foreign Minister emphasized the long-term vision behind the agreement, stating, “The most important thing [about the deal] is where we will be [in] three and five and ten years.” This commitment is a positive sign of both countries’ sincere interest in developing a more mutually beneficial partnership.
The Nakamal deal will be remembered, particularly when compared to the similar proposal that went bust in 2022. During the campaign two years ago, Vanuatu’s then-prime minister had to withdraw over security threats. Leaders from both countries have voiced optimism that this new deal will provide a more sustainable footing for cooperation going forward.
Richard Marles reiterated that “as neighbours, we have a shared security environment and a commitment to each other,” highlighting the importance of mutual support in addressing regional challenges.