Australia and Vanuatu have reached a transformative 10-year agreement valued at A$500 million ($328 million; £241 million), aimed at bolstering security and economic relations. Dubbed the Nakamal agreement, this pact is a culmination of extensive negotiations and signifies a significant shift in Australia's approach towards its Pacific neighbor, with both nations expressing optimism about the partnership.
"This is a historic moment for us, as we are essentially family," stated Australia’s Deputy Prime Minister Richard Marles, highlighting the intertwined futures of both nations. Vanuatu’s Prime Minister Jotham Napat echoed this sentiment, calling the agreement a "win-win situation" that promises mutual benefits.
Official signing of the deal is anticipated in September. The arrangement comes as Australia seeks to amplify its influence in the region, particularly in light of China's expanding presence and investments in the Pacific. While specific details of the agreement are still under wraps, media reports suggest funding will be allocated for the development of two major data centers in the Vanuatu capital, Port Vila, and on the island of Santo.
In addition to technological infrastructure, the deal includes significant investments aimed at helping Vanuatu combat climate change impacts and strengthen its security framework. Earlier discussions regarding visa-free travel for Vanuatu citizens were noteworthy but have been set aside for future negotiations as part of a separate agreement.
The prior attempt to solidify a similar arrangement in 2022 fell apart when the previous Vanuatu Prime Minister withdrew over heightened security concerns. At a recent press event on Tanna Island, one of Vanuatu’s numerous volcanic islands, Marles reiterated the "shared destiny" of the two nations, stating, "This agreement acknowledges our mutual security commitments."
Australia's Foreign Minister emphasized the long-term vision of the agreement, remarking that it is crucial to consider where the countries aim to be in three, five, and ten years. Napat commented on the substantial benefits expected from the collaboration, outlining areas of focus that include economic transformation, labor mobility, and financial assistance.
The agreement comes on the heels of similar security partnerships Australia has forged with several Pacific neighbors, including a recent A$190 million agreement with the Solomon Islands and ongoing collaborations with Tuvalu and Papua New Guinea.
