Vanuatu said Tuesday it was not ready to sign a security and economic treaty with Australia after some members of the island nation’s government raised concerns the agreement could limit its ability to obtain infrastructure funding from third countries.
Australian Prime Minister Anthony Albanese had hoped to sign the AU$500 million ($330 million) deal during a visit to Port Vila, but Vanuatu Prime Minister Jotham Napat said more discussion was needed on specific wording in the pact. Asked directly whether the government feared the agreement would restrict access to financing from other countries, Napat replied, "Yes."
Speaking at a joint press conference after their meeting, Albanese said he was confident the agreement would be finalised soon and described talks as making "good progress" toward an upgraded treaty-level relationship. He had told the Australian Broadcasting Corp. hours earlier that he did not expect to sign the landmark pact on Tuesday.
Vanuatu’s hesitation reflects the broader political balancing act faced by Pacific island governments that accept Chinese loans and investment while maintaining traditional ties with Australia. Vanuatu has received significant financing from China for projects including government buildings, wharves and other infrastructure.
Meg Keen, director of the Australian National University’s Pacific Research Program, said Vanuatu’s leadership seeks to preserve a close relationship with Australia without excluding China, and must manage domestic political support for any agreement.
The proposed treaty is one of several Australia is pursuing with Pacific nations intended to reduce the scope for foreign security influence in the region. Albanese accompanied Napat to the Pacific Islands Forum in the Solomon Islands on Wednesday; officials said the two countries were expected to announce a separate bilateral security deal next week timed near Papua New Guinea’s 50th anniversary of independence from Australia on Sept. 16.
Both leaders said they remained committed to continuing negotiations. Vanuatu’s government requested further clarification of certain clauses to ensure the country could continue to pursue infrastructure funding from other partners while deepening ties with Australia. Discussions are expected to continue in the days ahead as officials work toward a final agreement.