Summary:
Australia and Vanuatu have signed the Nakamal Agreement, a strategic bilateral treaty formalised in Canberra on 29 June 2026. The accord establishes a ten-year framework for cooperation in security, economic transformation, climate resilience, infrastructure protection, and people-to-people ties. Australia has committed approximately AUD 500 million over the next decade in associated support to underpin the partnership. The agreement explicitly prohibits foreign military bases and the militarisation of Vanuatu’s critical infrastructure, while recognising Australia as Vanuatu’s primary policing partner. Vanuatu retains the right to pursue development partnerships with other countries, subject to consultation on critical infrastructure. In parallel, Vanuatu is advancing the Namele Agreement with China, which remains unsigned as of 30 June 2026. Vanuatu officials have described it as a development-focused arrangement with no security provisions and have committed to transparency once finalised. These developments reflect Vanuatu’s policy of balanced, non-aligned international engagement.
Detailed Report
1. Scope of the Nakamal Agreement
On June 29, 2026, Australian Prime Minister Anthony Albanese and Vanuatu Prime Minister Jotham Napat signed the Nakamal Agreement in Canberra. The Nakamal Agreement builds upon and significantly broadens the 2022 Bilateral Security Agreement previously signed by the two countries. It establishes a broad, multidimensional partnership covering security, economic development, climate resilience, and people-to-people ties. The agreement is designed to respect Vanuatu’s sovereignty and non-aligned foreign policy, while deepening bilateral cooperation.
2. Security and Sovereignty Provisions
A central feature of the Nakamal Agreement is its explicit prohibition on the establishment of foreign military bases or military infrastructure on Vanuatu’s territory. The accord ensures that Vanuatu’s critical infrastructure—including ports, airports, telecommunications, and energy facilities—remains free from militarization and foreign interference. Australia is recognized as Vanuatu’s primary policing partner, but Vanuatu retains the right to maintain policing ties with other countries and must consult Australia before engaging third parties on critical infrastructure projects. The final text does not grant Australia veto power over Vanuatu’s foreign partnerships.
3. Economic Commitments and Funding
Australia has committed approximately AUD 500 million over the next decade in associated development, security, and climate support to underpin the partnership. This funding is allocated to infrastructure development, digital connectivity (including the construction of major data centers), transport, energy, and communications projects. Additional resources are earmarked for security assistance, budget support, and initiatives to promote economic growth and resilience.
4. Skills Development and People-to-People Ties
The Nakamal Agreement establishes an Australian traineeship program offering recognised qualifications aligned with Vanuatu’s labour market needs. It also provides for enhanced mobility arrangements to facilitate travel by Vanuatu citizens to Australia, with Vanuatu committing to strengthen mechanisms distinguishing citizenship-by-investment schemes. The agreement further acknowledges historical and cultural connections between the two peoples, including the legacy of blackbirding, and commits both parties to dialogue to strengthen community links.
5. Climate Adaptation and Disaster Response
A significant portion of the funding is dedicated to climate adaptation and resilience, including coastal protection, disaster risk reduction, and community-based projects. The agreement institutionalizes mechanisms for rapid disaster response, such as pre-positioned humanitarian supplies and technical assistance, to enable swift recovery from future shocks.
6. Labour Mobility and Trade
The Nakamal Agreement supports ongoing dialogue on labour mobility and economic integration. Vanuatu remains the largest participant in Australia’s Pacific Australia Labour Mobility scheme, and the agreement aims to further expand trade and investment flows by improving the enabling environment for private sector development.
7. Implementation and Oversight Mechanisms
The agreement establishes joint oversight structures, including regular high-level meetings and technical working groups, to monitor progress and adapt priorities as needed. Both governments have emphasized transparency, mutual respect, and alignment with Vanuatu’s sovereign interests.
8. Vanuatu’s Pursuit of the Namele Agreement with China
In parallel with the Nakamal Agreement, Vanuatu is pursuing the “Namele Agreement” with China. As of June 30, 2026, the Namele Agreement remains unsigned. Prime Minister Napat has confirmed that he is awaiting clearance from Beijing and has pledged to make the agreement public once finalized. Both Vanuatu and Chinese officials have described the Namele Agreement as a comprehensive development cooperation pact focused on infrastructure and capacity building, with no security or military provisions.
Conclusion
The Nakamal Agreement marks a significant milestone in Australia–Vanuatu relations, establishing a robust framework for security, economic, and development cooperation while respecting Vanuatu’s sovereignty. Simultaneously, Vanuatu’s pursuit of the Namele Agreement with China reflects its commitment to a balanced, non-aligned foreign policy and transparent international engagement.