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.
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