Australia and Vanuatu signed a long-awaited development and security agreement on Monday, according to Arab News.
The deal represents a significant milestone as it comes after months of talks driven by Vanuatu’s concerns that the pact could hinder investment from other nations.
According to the pact, Australia, which competes with China over influence across the Pacific, will be consulted on third-party investments in Vanuatu’s critical infrastructure, while retaining its pivotal role as the nation’s preferred security and policing partner.
Known as the Nakamal Agreement, the pact is also supported by a major financial commitment, as Canberra has pledged A$500 million ($344.5 million) over the next decade.
Speaking at a news conference, Australian Prime Minister Anthony Albanese said that the deal reaffirms Vanuatu’s commitment to protecting its sovereignty by barring the hosting of any foreign military bases or infrastructure and ensuring its critical infrastructure remains non-militarized.
Initially slated to be signed in September, the agreement was postponed after Vanuatu Prime Minister, Jotham Napat, raised the concerns of his coalition partner.
China has become Vanuatu’s largest external creditor after providing loans through Chinese banks that funded Chinese-built infrastructure projects, such as the presidential office complex, parliament building as well as the road network.
In this regard, Vanuatu is seeking to finalize a separate economic deal with China, with Napat stating on Monday that the deal is subject to Beijing’s approval.
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