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Pacific DiplomacyExplainerJun 29, 2026, 8:14 PM· 6 min read· in world

Australia and Vanuatu Sign Security Pact Banning Foreign Military Bases

The Nakamal Agreement legally bars foreign military infrastructure in Vanuatu while replacing a controversial Australian veto clause with a consultation requirement.

By Anaya Sharma

Australian Strategic Planners 40%Vanuatu Sovereignty Advocates 40%Chinese Diplomatic Corps 20%
Australian Strategic Planners
Focus on securing the region and preventing foreign military bases.
Vanuatu Sovereignty Advocates
Focus on maintaining independence and securing development funds from multiple partners.
Chinese Diplomatic Corps
Focus on economic development and warning against geopolitical rivalry.

Australia and Vanuatu have officially signed a sweeping bilateral security and economic treaty that legally bars the establishment of any foreign military bases within the Pacific archipelago. The Nakamal Agreement, signed in Canberra on Monday by Australian Prime Minister Anthony Albanese and Vanuatu Prime Minister Jotham Napat, marks a significant diplomatic milestone in a region where Western allies and Beijing are engaged in a quiet contest for influence. Named after the traditional Vanuatu meeting places where community leaders gather to resolve disputes, the pact cements Australia's role as the island nation's primary security partner while respecting Port Vila's economic autonomy.[1]

The core of the treaty explicitly prohibits Vanuatu from permitting its territory to be used for any foreign military base or military infrastructure. Under Article 8 of the agreement, Vanuatu has also committed to keeping its critical infrastructure—including ports, telecommunications networks, and aviation facilities—free from militarization, foreign interference, or unauthorized access. This provision serves as a targeted legal countermeasure against the potential conversion of commercial port expansions into dual-use naval replenishment facilities, a scenario that has heavily preoccupied strategic planners in Canberra and Washington over the past several years.[4][5]

Crucially, the final text of the Nakamal Agreement requires Vanuatu to "consult" Australia on any proposed third-party engagement in its critical infrastructure. This consultation framework replaces a highly controversial veto clause that had derailed earlier negotiations. In September 2025, Prime Minister Napat abruptly canceled a planned signing ceremony for the original draft, arguing that granting Australia outright approval authority over domestic infrastructure projects fundamentally undermined Vanuatu's national sovereignty. The revised text ensures that while Canberra will provide technical advice and practical support, ultimate decision-making power remains firmly in Port Vila.[3]

The removal of the veto clause represents a significant diplomatic compromise by the Albanese government, which recognized that forcing the issue could push Vanuatu away entirely. Vanuatu's Council of Ministers had steadfastly refused to sign any document that restricted their ability to secure foreign investment for vital national projects. By settling for a mandatory consultation mechanism, Australia maintains a formal avenue to review and advise on major infrastructure developments without violating the political independence of its Pacific neighbor.[3][5]

Key provisions of the Nakamal Agreement between Australia and Vanuatu.

In exchange for these binding security guarantees, Australia has committed approximately $344 million—or 500 million Australian dollars—in economic, development, and policing support. While the funding will be distributed over a longer timeline than the originally proposed ten-year window, it represents a massive influx of capital for the nation of 350,000 people. The financial package is designed to support Vanuatu's economic transformation, enhance climate and disaster resilience, and fund the transition to both on-grid and off-grid renewable energy solutions across the country's 80 islands.

The treaty also entrenches Australia as Vanuatu's primary policing partner, stipulating that Port Vila will prioritize the 18-member Pacific Islands Forum for any law enforcement assistance requests. Australia will provide additional training, equipment, and operational support to the Vanuatu Police Force, while expanding bilateral cooperation on maritime security, intelligence sharing, and cyber defense. This deepens an already robust institutional relationship and ensures that Australian technical standards remain the baseline for Vanuatu's domestic security apparatus, effectively crowding out competing offers for police training from outside the region.[4]

However, the agreement stops short of explicitly banning Chinese police personnel, who established formal ties with Vanuatu in 2023 and have previously donated drones, patrol boats, and vehicles to the island's authorities. Because Vanuatu retains its sovereign right to engage with multiple partners, Chinese police contingents can still visit the archipelago. The Nakamal Agreement merely ensures that Pacific Island Forum members are given the first opportunity to fulfill any major policing or internal security requirements before Port Vila looks further afield.[1][4]

Because Vanuatu retains its sovereign right to engage with multiple partners, Chinese police contingents can still visit the archipelago.

In the event of a major natural disaster, the Nakamal Agreement formalizes a tiered response protocol. Vanuatu has agreed to seek humanitarian assistance first from the FRANZ arrangement—a longstanding disaster relief coalition comprising France, Australia, and New Zealand. Only if the FRANZ coalition formally conveys that it cannot fulfill the request will Vanuatu seek emergency assistance from other third parties. This clause effectively positions Western allies as the guaranteed first responders in a region highly vulnerable to cyclones and climate-driven emergencies.[4]

Vanuatu has committed to keeping its critical infrastructure, including ports and telecommunications, free from foreign militarization.

The signing of the Nakamal Agreement comes as China, Vanuatu's largest external creditor, continues to expand its economic footprint in the South Pacific. Beijing previously funded the major expansion of a wharf in Luganville, Vanuatu's second-largest city, which fueled initial anxieties in Canberra regarding potential naval ambitions. To balance its geopolitical relationships and maintain its "friends to all, enemies to none" foreign policy, Vanuatu is concurrently negotiating a separate bilateral pact with Beijing known as the Namele Agreement.[1]

Prime Minister Napat has characterized the upcoming Namele Agreement as a comprehensive development cooperation deal focused entirely on economic infrastructure, explicitly denying that it contains any security provisions. This dual-track diplomatic strategy allows Vanuatu to legally cap its security alignment with Western allies—reassuring Canberra and Washington—while simultaneously utilizing the Chinese treaty to maintain access to liquid development capital and debt financing. Napat has promised to make the text of the Chinese agreement public once it receives final clearance from Beijing.[3]

Following the signing ceremony in Canberra, China's Ministry of Foreign Affairs responded cautiously to the Nakamal Agreement. A ministry spokesperson expressed hope that cooperation between relevant countries and Pacific Island nations would contribute to regional development and stability, rather than targeting any third party or serving as a tool for geopolitical rivalry. Beijing has consistently maintained that its engagement in the Pacific is based on mutual respect and non-interference, rejecting Western characterizations of its infrastructure loans as a security threat.[3]

Vanuatu's strategic location in the South Pacific has made it a focal point for regional diplomacy.

Security analysts note that the revised Australian treaty establishes a new strategic precedent for the broader Pacific region. By abandoning the demand for an outright veto over foreign investment, Australia successfully secured a binding prohibition on foreign military bases without alienating the host nation. The Nakamal Agreement offers a pragmatic blueprint for how middle powers can achieve vital geographic denial objectives while fully respecting the economic autonomy and sovereign decision-making of smaller, developing nations navigating an era of intense superpower competition.[5]

Key points

  1. Australia and Vanuatu signed the Nakamal Agreement, legally barring foreign military bases from the Pacific archipelago.
  2. Vanuatu committed to keeping its critical infrastructure free from militarization and will consult Australia on third-party investments.
  3. The treaty replaces a controversial 2025 draft by removing an Australian veto clause that Vanuatu felt undermined its sovereignty.
  4. Australia will provide approximately $344 million in economic, development, and policing support over an extended period.
  5. Vanuatu is concurrently negotiating a separate development cooperation pact with China, known as the Namele Agreement.

How we got here

  1. 2023

    China and Vanuatu establish formal policing ties, with Beijing donating equipment to the island's police force.

  2. September 2025

    Vanuatu's Prime Minister Jotham Napat cancels a planned signing ceremony for the original security pact, citing sovereignty concerns over an Australian veto clause.

  3. May 2026

    Vanuatu's parliament confirms it will move forward with revised agreements with both Australia and China.

  4. June 29, 2026

    Australian Prime Minister Anthony Albanese and Prime Minister Napat officially sign the Nakamal Agreement in Canberra.

Sources

Source coverage

5 outlets

3 viewpoints surfaced

Australian Strategic Planners 40%Vanuatu Sovereignty Advocates 40%Chinese Diplomatic Corps 20%
  1. [1]Al JazeeraChinese Diplomatic Corps

    Australia and Vanuatu sign deal to block foreign military bases

    Read on Al Jazeera
  2. [2]The Washington PostAustralian Strategic Planners

    Australia and Vanuatu sign security pact

    Read on The Washington Post
  3. [3]Islands BusinessVanuatu Sovereignty Advocates

    Vanuatu, Australia to sign strategic pacts

    Read on Islands Business
  4. [4]Department of Foreign Affairs and TradeAustralian Strategic Planners

    Vanuatu – Australia Nakamal Agreement

    Read on Department of Foreign Affairs and Trade
  5. [5]StratforAustralian Strategic Planners

    What Happened: Australia and Vanuatu signed the Nakamal Agreement

    Read on Stratfor

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