Vanuatu: Renegotiated bilateral agreement demonstrates to Pacific states how to negotiate with larger actors

26 Aug

On 14 August, Vanuatu and Australia concluded negotiations on an agreement covering security, economic support, infrastructure, climate resilience, and labour mobility. The “Nakamal Agreement” is worth $NZD550million over ten years, and will be formally signed by the two countries’ prime ministers in September 2025. Vanuatu PM Jotham Napat described the deal as “win-win”. Media have reported that the agreement will not give Australia veto rights on security as similar agreements with Tuvalu and Nauru have done, nor will there be a provision for visa free travel. In March 2025, PM Napat indicated that liberalisation of travel between the two countries and a greater focus of climate change were two key issues to be addressed before Vanuatu made any security agreement with Australia (See SPI #17 of 13-26 March 2025).

Assessment: A previous security agreement was made between the countries in 2022 but never ratified. Vanuatu’s renegotiation of the terms illustrates to other Pacific states that concessions can be won around their key issues who enter similar negotiations with Australia and non-regional actors. Confirmation of details will almost certainly be released when the Prime Ministers meet in September to formally sign the Nakamal Agreement. While total visa free travel will not be part of the agreement, it is almost certain that some visa classes will be opened up by Australia, including increasing the total numbers for seasonal work in Australia under the Pacific Australia Mobility scheme (PALM).

Sources: Nicholas Mwai, “Nakamal Agreement a ‘Win‑Win’ for Vanuatu and Australia — PM Napat,” Daily Post Vanuatu, August 13, 2025; Nicholas Mwai, “Australia and Vanuatu Seal Initial Deal on Mt. Yasur; Final Signing Ahead,” Daily Post Vanuatu, August 14, 2025; Stephen Dziedzic and Lillyrose Welwel, “Australia and Vanuatu Agree to $500 m Deal, but Details Remain Scarce,” RNZ, August 13, 2025; Théo Rouby, “L’Australie signe un accord à 33 milliards de francs avec le Vanuatu pour contrer l’influence de la Chine,” La 1ère (Franceinfo), August 17, 2025; Prianka Srinivasan, “New Vanuatu PM Says He Will ‘Revisit’ 2022 Security Agreement with Australia,” The Guardian, March 13, 2025.