Australia pays hefty price for security agreement with Vanuatu
A ‘transformational’ pact with Vanuatu, worth hundreds of millions of dollars, comes amid the Pacific Island nation’s growing ties with China.
The federal government has finalised what it claims is a “transformational” security deal with Vanuatu believed to be worth at least $500m across a decade to the Pacific Island nation whose growing ties with China first sparked Canberra’s intense geopolitical competition for regional influence with Beijing.
Vanuatu Prime Minister Jotham Napat announced the Nakamal Agreement alongside no fewer than three senior Australian ministers, three years after a previous deal the Albanese government believed it had secured with Vanuatu was scuppered.
That the deal was concluded on the slopes of an active volcano seems an appropriate metaphor given the leverage the nation of about 335,000 people has wielded in negotiations, and how it has held Australia’s feet to the fire to claw out a better deal.
For the federal government, Vanuatu represents a site of intense geostrategic competition with China and a risk for Australia alongside Solomon Islands, whose secretive security deal with China in 2022 also sparked concerns in Canberra that Beijing was gaining influence and potentially key port access in Australia’s backyard.
China’s rising presence in those two nations was what first prompted Australia’s Pacific step-up policy aimed at strengthening ties in the region and ensuring it is the security partner of choice.
But whether the Nakamal Agreement has done this is unknown given both sides have refused to release any details so far.
Defence Minister Richard Marles told a joint press conference on Wednesday the agreement would “transform the relationship between our two countries” and made clear that it was “core business for Australia to be engaged in the human development of Vanuatu”.
“It acknowledges that as neighbours we have a shared security environment and a commitment to each other,” he said. The deal is expected to be signed in September, potentially on the sidelines of the Pacific Island Forum summit in the Solomons.
Under the pact, Australia is expected to provide around $120m to help Vanuatu build two “large data centres” in Port Vila and Santo, $100m in security assistance, budget support worth $55m and more than $110m to help Vanuatu deal with the impacts of climate change, the ABC reported ahead of the announcement.
Mr Napat said on Wednesday the agreement also included visa-free travel to Australia for Vanuatu citizens which, if true, would represent a concession by the federal government given the tiny nation has a “golden passport” citizenship-for-sale scheme, including potentially to international criminals. The Vanuatu leader had declared previously he would not sign unless “visa-free” travel was included in the deal.
Lowy Institute Pacific program director Mihai Sora told The Australian that while the original 2022 deal included closer security and disaster response co-operation, policing assistance, provision for intelligence sharing and a reference to Australia being Vanuatu’s “principle security partner”, it was unclear whether that language had survived the ruthless renegotiation.
“I don’t think this means Australia has headed China off. I would be really surprised if there was wording committing to consult Australia (on security issues) or rejection of China in the wording (as both Tuvalu and Nauru have agreed to do). I just don’t see that as realistic for what we would get out of (non-aligned) Vanuatu,” Mr Sora said.
“I would expect Mr Napat would be looking to have the best of both worlds: maintain the security relationship with China while getting the best deal it can from Australia, and realistically that’s the best Australia can do with Vanuatu right now.”
China has made significant infrastructure investments in Vanuatu with new roads, government office buildings and a new palace for the country’s President. Early this year video footage showed Chinese police providing training assistance and equipment to its Vanuatu counterparts.
Vanuatu’s agreement to closer security ties is a victory for Australia. But, says Sora, it has come with a “hefty price tag”, underscoring the rising cost of Pacific diplomacy to Australia as it seeks to bed down its role as the security partner of choice.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout