Vanuatu Removes Limits on China in Pact with Australia

Jotham Napat and Anthony Albanese haven't signed the Nakamal Agreement yet.

Summary

Vanuatu's cabinet approved a new Nakamal Agreement after long talks with Australia.

The Nakamal Agreement is a big deal between Australia and Vanuatu, with Australia investing a lot of money.

Next steps

The new agreement doesn't limit China's influence as much as before.

Vanuatu's cabinet agreed to the new Nakamal Agreement with Australia, which could lead to a deal after difficult talks.

The ABC learned that Vanuatu's ministers signed the updated pact, which now needs Australia's final approval.

Prime Minister Jotham Napat didn't sign the agreement in September, saying it could hurt Vanuatu's independence.

This is happening while Australia and China are competing for influence in the Pacific.

The two leaders met in Port Vila last year.

The exact words of the new Nakamal Agreement aren't clear yet.

The new agreement doesn't limit Chinese investment in Vanuatu as much as before.

But it still makes Australia Vanuatu's main security partner, without stopping Vanuatu from working with other countries like China.

Mr. Napat might visit Australia to sign the agreement soon if Australia agrees.

A Vanuatu government spokesperson didn't answer questions about the Nakamal Agreement.

A spokesperson for Australia's foreign affairs department said they're still working on the agreement.

Long negotiations

If the two countries sign the pact, it will end long and difficult talks over security agreements.

Foreign Minister Penny Wong made a short-lived security deal with Vanuatu's previous prime minister, but it failed.

Senior ministers from Australia and Vanuatu signed the Nakamal Agreement on Mount Yasur last year.

Australian officials were frustrated when Mr. Napat didn't sign the agreement last year.

There was a disagreement last month when an Australian official expressed concerns about Vanuatu's deal with China.

Australia's competition in the Pacific

The details of Vanuatu's deal with China aren't clear yet.

Mr. Napat said the deal with China is about economics, but another minister called it a strategic partnership.

Vanuatu wants to balance its relationships with Australia and China.

Under the Nakamal pact, Australia would invest about half a billion dollars in Vanuatu.

The competition between Australia and China can be seen in the gifts they give to Pacific countries.

Australia sees China as a rival in the Pacific.

Pacific Minister Pat Conroy said Australia is in a permanent competition with China in the Pacific.

Many countries, including China, want to influence the Pacific region.

Australia wants to be the region's partner of choice.

Australia thinks security should be provided by Pacific nations themselves.

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