Australia and Vanuatu signed the Nakamal Agreement on 29 June 2026, a development and security pact under which Australia committed A$500 million ($345 million) over ten years in development and security funding, in exchange for consultation rights over any third-party investment in Vanuatu’s critical infrastructure and continued status as Vanuatu’s preferred security and policing partner, Reuters reported.
The agreement enshrined Vanuatu’s pledge not to permit any foreign military base or militarized infrastructure on its territory, a clause directed against China’s geopolitical ambitions in the region.
Efforts Category: Australia’s Aid Inducement of Vanuatu