Vanuatu's cabinet has approved a landmark security agreement with Australia known as the Nakamal Agreement, but the deal has been stripped of provisions that would have placed significant limitations on China's influence in the Pacific nation, the ABC has revealed.
After months of difficult and at times fractious negotiations, Vanuatu has formally approved a new bilateral agreement with Australia — a development that represents both a diplomatic achievement and a notable compromise for Canberra.
The Nakamal Agreement, named after the traditional Vanuatuan meeting place, was approved by Vanuatu's cabinet, according to reporting by the ABC's Stephen Dziedzic and Lillyrose Welwel. However, the final text omits what Australian officials had hoped would be key constraints on China's ability to expand its footprint in the strategically important archipelago nation.
The agreement's approval marks the conclusion of a prolonged negotiation process that tested the relationship between the two Pacific neighbours. Australia has long regarded Vanuatu as a critical partner in its broader effort to maintain influence across Melanesia, a region where China has been actively deepening economic and diplomatic ties.
The omission of anti-China clauses is significant. Australian officials had reportedly sought language that would have restricted Vanuatu from entering certain arrangements with Beijing — particularly around security cooperation and infrastructure — but Vanuatu's government resisted provisions it viewed as infringing upon its sovereign right to manage its own foreign relationships.
Vanuatu, like many Pacific Island nations, has pursued a policy of engagement with multiple major powers, accepting development assistance and investment from both Western nations and China. Port Vila has been reluctant to formally align itself with any single great power, a stance that complicated Australia's negotiating position.
Despite the concessions, Australian officials are likely to welcome the agreement as a positive step in bilateral relations. The pact is expected to cover areas including defence cooperation, disaster response, and economic development — priorities that align with Canberra's broader Pacific Step-Up strategy.
The deal comes against a backdrop of intensifying geopolitical competition in the Pacific, where the United States, Australia, New Zealand, and their allies have grown increasingly concerned about China's growing presence. The Solomon Islands' 2022 security pact with Beijing sent shockwaves through the region and accelerated Western efforts to shore up relationships across Melanesia.
Vanuatu's decision to proceed with the agreement, even in modified form, signals that Port Vila remains committed to its relationship with Australia, its largest aid donor and a significant trading partner. Whether the absence of China-related limitations will prove consequential in practice remains to be seen.
Analysis
Why This Matters
- The watered-down agreement illustrates the limits of Australia's influence in the Pacific, as even close partners resist being drawn into explicit anti-China arrangements.
- The deal's approval still deepens Australia–Vanuatu defence and development ties, which remain strategically important for Canberra's regional posture.
- The outcome could set a precedent for how other Pacific Island nations negotiate with Australia, potentially emboldening similar resistance to China-limiting clauses.
Background
The Pacific has become one of the most contested diplomatic arenas of the 21st century, as China's Belt and Road Initiative and expanding security ambitions have challenged decades of Western — and particularly Australian — dominance in the region. Australia launched its Pacific Step-Up policy in 2018 to reinvigorate engagement, but progress has been uneven.
The pivotal moment came in April 2022, when the Solomon Islands signed a security framework agreement with China, allowing Chinese police and military vessels to operate from its ports. The agreement alarmed Canberra and Washington and triggered an urgent reassessment of Pacific strategy across allied governments.
Vanuatu has long occupied a delicate position, accepting significant Australian aid while also welcoming Chinese investment in infrastructure such as roads and government buildings. The country suffered catastrophic damage from Cyclone Pam in 2015 and Tropical Cyclone Harold in 2020, increasing its reliance on external assistance and giving multiple donors leverage in the relationship.
Key Perspectives
Australian Government: Canberra views the Nakamal Agreement as a necessary step to cement a bilateral relationship with strategic importance, even if the final text fell short of its original ambitions. Australia is likely to frame the deal as a win for Pacific partnership while quietly acknowledging the compromise on China-related provisions.
Vanuatu's Government: Port Vila has consistently asserted its right to maintain independent foreign policy and engage with all major powers on its own terms. The decision to remove China-limiting language reflects the government's resistance to being instrumentalised in broader great-power competition, as well as domestic political sensitivities.
Critics and Analysts: Observers may question whether an agreement without meaningful constraints on Chinese influence achieves Australia's core strategic objectives. Some analysts will argue the deal represents a diplomatic half-measure that signals weakness; others contend that maintaining any formal security relationship is preferable to allowing the bilateral relationship to deteriorate further.
What to Watch
- Whether China responds to the agreement with increased diplomatic or economic overtures toward Vanuatu, seeking to test or undermine the new pact's provisions.
- The specific terms of the finalised Nakamal Agreement text, which has not yet been publicly released in full detail.
- How other Melanesian nations — particularly Papua New Guinea and the Solomon Islands — interpret this outcome and whether it influences their own negotiations with Australia.