Australia and Vanuatu sign security deal blocking foreign military bases

Australia and Vanuatu signed the Nakamal Agreement on June 29, 2026, committing A$500 million over 10 years and barring foreign military bases on the Pacific island. The deal, delayed since September 2025 over Vanuatu's concerns about restricting investment, makes Australia Vanuatu's preferred security partner with consultation rights on third-party infrastructure. China, Vanuatu's largest creditor, expressed concern the pact targets it, while Vanuatu pursues a separate economic deal with Beijing.

Australia-Vanuatu security agreement

• ▪The Nakamal Agreement recognizes Australia as Vanuatu's longstanding primary policing partner and says Vanuatu will prioritize policing requests to other members of the Pacific Islands Forum regional bloc
• ▪Australia remains Vanuatu's preferred security and policing partner under the Nakamal Agreement
• ▪Vanuatu has agreed to differentiate foreign-born Vanuatu citizens who gained a passport through a controversial investment scheme under the Nakamal Agreement
• ▪Under the Nakamal Agreement, Australia will be consulted on any third-party investment in Vanuatu's critical infrastructure
• ▪Australia and Vanuatu signed a development and security pact on June 29, 2026, known as the Nakamal Agreement
• ▪Vanuatu has agreed to turn to Australia, New Zealand or France first in the case of a major natural disaster
• ▪Australia has committed A$500 million ($344.50 million) over 10 years in funding for the Nakamal Agreement
• ▪The Nakamal Agreement elevates assistance in police training and equipment, policing, maritime security, cybersecurity, intelligence cooperation, and infrastructure between Australia and Vanuatu
• ▪The Nakamal Agreement was originally scheduled to be signed in September 2025 but was delayed for months over Vanuatu's concerns that it could restrict the country's ability to secure infrastructure funding from other countries

Foreign military base prohibition

• ▪The Nakamal Agreement encapsulates Vanuatu's sovereign decision not to permit its territory to be used for any foreign military base or infrastructure
• ▪The Nakamal Agreement commits Vanuatu to keeping its critical infrastructure free from militarization

China's Pacific presence

• ▪Vanuatu is currently pursuing its own economic deal with China that was awaiting approval from Beijing as of June 29, 2026
• ▪Guo Jiakun, a spokesperson for China's Ministry of Foreign Affairs, expressed concern that the Australia-Vanuatu agreement may be targeted at China
• ▪China funded the expansion of a wharf in Luganville, Vanuatu, once the largest US military base in the South Pacific, fueling concern in Canberra and Washington that China wanted a navy base
• ▪Chinese police have maintained a presence in Solomon Islands since signing a secret security pact in 2022
• ▪China and Vanuatu formed policing ties in 2023, with Beijing donating equipment including drones, patrol boats and vehicles to Vanuatu's police force

Infrastructure development commitments

• ▪Australia will help Vanuatu develop ports, digital, aviation and energy infrastructure under the Nakamal Agreement
• ▪The Nakamal Agreement does not stop Vanuatu partnering with China on infrastructure, but requires the Pacific nation to consult Australia when it engages a third-party
• ▪Vanuatu will keep infrastructure developed under the Nakamal Agreement free from foreign interference or militarization

Regional influence competition

• ▪The Vanuatu treaty is the latest in a string of agreements Australia has struck with Pacific island nations, seeking to curb China's expanding security influence