**Australia and Vanuatu Sign Agreement to Block Foreign Military Bases**
On June 29, 2026, Australia and Vanuatu formalized a significant economic and security agreement aimed at preventing the establishment of foreign military bases on the Pacific island. The agreement, known as the Nakamal Agreement, was signed by Australian Prime Minister Anthony Albanese and Vanuatu's Prime Minister Jotham Napat during a ceremony at Parliament House in Canberra.
Prime Minister Albanese emphasized the importance of the agreement, stating that it provides assurance to Australia regarding the absence of foreign military bases in Vanuatu. He noted that the deal is designed to enhance both nations' security and sovereignty. "What this does do is to provide certainty for Australia that there will be no foreign military base," Albanese remarked, highlighting the collaborative nature of the agreement.
The Nakamal Agreement includes provisions for increased economic support from Australia to Vanuatu while explicitly barring the establishment of foreign military bases or related infrastructure on the island. Furthermore, Vanuatu has committed to consulting with Australia regarding any third-party investments in critical infrastructure. Prime Minister Napat reinforced this commitment, stating, "As a country, we have in fact passed an act in parliament not to allow any militarization to actually be used for our critical infrastructure."
The agreement aims to strengthen the partnership between Australia and Vanuatu, which is based on mutual respect and a shared vision for a peaceful, stable, and prosperous Pacific region. However, the deal has drawn attention from China, which expressed concerns that the agreement may be aimed at limiting its influence in the Pacific. Guo Jiakun, a spokesperson for China’s Ministry of Foreign Affairs, stated, "We hope that cooperation between relevant countries and Pacific Island countries will contribute to the development and stability of the island region, not target any third party or be used as a tool for geopolitical rivalry."
Prior to the signing of the Nakamal Agreement, Vanuatu had rejected an earlier draft of the deal in September 2025, citing concerns that it would restrict the country's ability to attract infrastructure investments. The revised agreement allows for consultation with Australia regarding third-party engagements without granting Australia a veto power over such investments, addressing some of Vanuatu's earlier apprehensions.
In the earlier draft, Australia had proposed a financial commitment of AUD 500 million (approximately USD 345 million) over a ten-year period to support Vanuatu. Prime Minister Albanese indicated that the financial details of the latest agreement would be disclosed in the upcoming budget update at the end of the year.
In addition to the Nakamal Agreement, Vanuatu is also set to sign a separate economic agreement with China. Over the past decade, China has been actively involved in financing infrastructure projects in Vanuatu and other South Pacific nations as part of its Belt and Road Initiative. This involvement includes the construction of roads and buildings, as well as the expansion of a wharf in Luganville, Vanuatu's second-largest city.
The growing presence of China in the South Pacific has led to increased scrutiny from Australia and other Western nations, who are concerned about China's expanding influence in the region. In 2023, Vanuatu established policing ties with China, receiving donations of drones, patrol boats, and vehicles for its police force. Despite this, the Nakamal Agreement designates Australia as Vanuatu's "longstanding primary policing partner," with plans to enhance cooperation in areas such as police training, maritime security, cybersecurity, and intelligence sharing.
Furthermore, Vanuatu has agreed to prioritize assistance from Australia, New Zealand, or France in the event of a major natural disaster, further solidifying its ties with these nations.
The signing of the Nakamal Agreement marks a significant step in Australia’s efforts to strengthen its influence in the Pacific region amid rising concerns about China's activities. As Australia continues to secure agreements with Pacific island states, it aims to foster stability and security while countering potential geopolitical rivalries.