$500m security agreement in Vanuatu still unsigned

Earlier this week, Prime Minister Anthony Albanese travelled to Vanuatu with the intention of securing a multimillion-dollar security deal.

However, he left the Pacific Island nation without signing an agreement.

Vanuatu Prime Minister Jotham Napat flagged concerns that the contract could interfere with the nation’s relationship with other countries, including China.

The deal is one of several agreements Australia hopes to sign with Pacific nations this month, as part of efforts to counter China’s influence in the region.

The deal

Earlier this year, Australia and Vanuatu announced they had reached an in-principle agreement on a $500 million infrastructure, climate, and security deal.

The agreement is designed to help the island nation “drive sustainable progress, uphold sovereignty and enhance regional stability.”

At the time of the announcement, Vanuatu indicated it would formally sign the agreement during the Prime Minister’s trip this week. However, the country has since walked back its commitment to finalise the deal.

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Delays

In a press conference this week, Napat said the delays stemmed from concerns raised by parties in his coalition.

He said MPs had raised issues around the agreement potentially stifling “critical infrastructure” funding from other countries.

China and Australia have both sought to boost relationships with Pacific Island nations in recent years.

Former Solomon Islands PM Manasseh Sogavare once accused Australia of having a “coercive” approach to Pacific nations’ relationship with China.

Albanese said the delay was a matter of wording and emphasised the importance of both countries being confident in the deal.

“We don’t want to either do, or be seen [to do], anything that undermines the sovereignty of Vanuatu,” he said.

The Prime Minister added he remains confident an agreement will be reached, saying he was “reassured by the discussion” with his counterpart.