Sydney: Australia and Vanuatu have agreed to a ten-year deal, aimed at strengthening security and economic ties, worth ASD 500 million (USD 328,000; £241,000).
The so-called Nakamal agreement – the result of months of negotiations – will transform Australia’s relationship with its Pacific neighbour, leaders from both countries said on Wednesday, reports BBC.
“We are family,” Australia’s deputy prime minister Richard Marles said: “Our future is very much bound together”. Vanuatu’s leader Jotham Napat described the deal as “win-win situation” for both nations.
The deal, to be officially signed in September, comes as Australia tries to grow its influence in the region, to counter China’s increased spending and power.
While the Australian government did not provide further details of the deal, the Australian Broadcasting Corporation (ABC) reports it will provide funds to build two large data centres in the capital, Port Vila, and Vanuatu’s largest island, Santo.
Millions will also be poured into helping the low-lying island to deal with the impacts of climate change, as well as building up its security.
In earlier stages of the negotiations, visa-free travel for citizens of Vanuatu was also discussed and considered a key part of the deal. However, Napat told the media on Wednesday that this issue would be covered in a “subsidiary” agreement, yet to be confirmed.
It is unclear what, if any, commitments Vanuatu has given Australia as part of the deal.
A similar agreement fell through in 2022, after Vanuatu’s previous prime minister pulled out at the last minute over security concerns, according to the ABC.
