$327 Million Australia-Vanuatu Agreement Strengthens Security and Economic Cooperation Amid China Concerns

The Nakamal Agreement, set to be finalized in September, comes as China’s influence in Vanuatu draws growing attention.

Australian Deputy Prime Minister Richard Marles (L) and Vanuatu Prime Minister Jotham Napat (C) at a press conference on Tanna Island, Vanuatu, on Aug. 13, 2025, in a still from video. Australian Department of Foreign Affairs and Trade via Reuters/Screenshot via The Epoch Times

Australia and Vanuatu announced on Wednesday a $327 million security and economic pact, a move that could affect China’s role as the island’s biggest external creditor.

Prime Minister of Vanuatu Jotham Napat applauded the deal, formally called the Nakamal Agreement, as a “win-win situation.”