Vanuatu’s government has stoked concern in Canberra and Wellington by moving to expel all foreign advisors and police officers working on national security from government buildings, declaring that it is taking the step to protect its sovereignty.

The decision could complicate implementation of the long-delayed and still unsigned Nakamal Agreement, although Vanuatu’s government has struck an optimistic note on the pact, saying it is likely to be inked by both countries before too long.

What is the Australia-Vanuatu Nakamal agreement?

Under the Nakamal agreement Australia will pour about $500 million into Vanuatu over a decade to help fund some of its key climate, security and economic priorities.

Earlier this week, Vanuatu’s parliament passed an amendment making several potentially significant changes to its national security architecture — including a clause which says foreign advisors working on national security “must be stationed at neutral venues or at his or her respective embassy”, and “can only access government premises with authorisation by the Minister subject to appropriate security clearances and oversight”.

While the amendment does not single out any country and will apply across the board, the change — if implemented — will have the biggest impact on Australia and New Zealand.

Both countries have multiple police and defence personnel working in Vanuatu. While some of Australia’s personnel are based at the high commission in Port Vila, others are embedded directly in Vanuatu police headquarters and other government institutions.

The Prime Minister Jotham Napat told parliament that the ruling would also apply to Chinese police officers providing training programs in Vanuatu — suggesting that at least some Chinese personnel were also now permanently embedded at police headquarters.

Six people sit behind a white long table looking at documents being signed

Vanuatu said its decision to restrict foreign advisors’ access to government buildings was to “maintain its sovereignty”. (ABC News: Lillyrose WelWel)

Mr Napat said Vanuatu was “seeing outside influence coming in” and the government had “issued an advisory to remove police officers from main police headquarters, (to) remove Chinese police officers and Australian (officers) because we don’t want them to come in to influence our decisions”.

“We have to make it neutral as much as possible, so the amendment is there to address that,” he said.

Vanuatu government spokesperson Kiery Manassah said foreign advisors would still be able to access police and government buildings but could not be based there permanently, saying the change would help Vanuatu “maintain its sovereignty”.

“For so long we’ve allowed our advisors to come in and share the same premises as the government, particularly in institutions like police and others,” he said.

“This amendment ensures there’s a bit of separation there.”

But there are concerns that the new rules could undermine Australia’s police training and expert assistance programs, hobbling the Pacific nation’s efforts to fight sophisticated international criminal syndicates increasingly targeting the Pacific.

Six people sit behind a table signing a document with smoke rising from a crater behind them

Senior ministers from Australia and Vanuatu initialed the Nakamal Agreement earlier this year. (ABC News: Lillyrose WelWel)

In September, Vanuatu police found 450 kilograms of cocaine hidden in compartments on board a luxury yacht — only the second major drug bust in the country’s history.

‘Going it alone’

Mihai Sora from the Lowy Institute said that embedded advisors working alongside local government counterparts “is one of the most effective ways that trusted partners can contribute to building the resilience of Pacific countries’ institutions”.

“Having Australian and New Zealand advisors working directly with Ni-Vanuatu counterparts actually helps that country strength its sovereignty,” he said.

“The key elements there are trust and the skills and knowledge to provide advice aligned with Vanuatu’s national security priorities.”

Men greet each other while smiling and shaking hands

Australia’s Deputy Prime Minister Richard Marles attends a ceremony in Vanuatu. (ABC News: Lillyrose WelWel)

There are also questions over how Australia would be able to implement its plan to substantially expand security assistance to Vanuatu under the Nakamal Agreement if its officials, police and military personnel are not able to work side by side with counterparts from Vanuatu.

Mr Sora said “kicking out foreign advisors” would “limit effective implementation of Nakamal and other support being provided”.

“It’s actually self-defeating. Sovereignty doesn’t mean going it alone,” he said.

A spokesperson for the Department of Foreign Affairs and Trade (DFAT) declined to say how many Australian officials, police officers or military personnel could be impacted by the directive.

“Australia is proud to be Vanuatu’s primary security and policing partner, including through the Vanuatu-Australia Policing and Justice Program,” they said.

“We are discussing the amendment with relevant partners in the Government of Vanuatu.”

Four women wearing colourful flowers in their hair look sternly at the camera

Australian officials were given a ceremonial welcome on arriving in Vanuatu to sign the Nakamal Agreement in August. (ABC News: Lillyrose WelWel)

A spokesperson for New Zealand’s Ministry of Foreign Affairs and Trade said the country “has a number of Police and Defence Force staff working in close collaboration with Vanuatu agencies, at the request of the Government of Vanuatu”.

“We will work to understand the impacts of the new bill, which are not yet known,” they said.

“Should we need to raise concerns, we will do so privately in respect of our longstanding and deep partnership.”

Vanuatu at ‘delicate point’

The move comes as Australia and Vanuatu continue protracted negotiations on the Nakamal Agreement.

The federal government suffered a rare public setback in its Pacific diplomacy when the Prime Minister Anthony Albanese failed to land the agreement during his visit to Vanuatu in September.

Mr Napat said at the time that some members of his governing coalition had problems with clauses limiting investment in Vanuatu’s critical infrastructure, but Mr Manassah told the ABC that both countries had since made good progress on discussions.

Vanuatu has suggested both countries are on track for signing the agreement this year, but the ABC has been told that while negotiations have been constructive, there is not yet an agreed timeline to finalise the pact.

“It’s something that has taken a while, (but) both Vanuatu and Australia are confident that progress has (gone) well and we’re looking forward to signing the agreement.”

Earlier this week, Foreign Minister Penny Wong said Australia had a “very strong” relationship with Vanuatu, and the government would “continue to engage with them” on the pact.

Penny Wong and Jotham Napat

Penny Wong maintains Australia’s relations with Vanuatu remain strong. (DFAT)

Mr Sora said Vanuatu was at a “delicate point”.

“The government is on the cusp entering into a partnership with Australia that would unlock new levels of support for core national security priorities in that country,” he said.

“This would be a huge step for a political system that has vehemently defended its non-alignment with any international partners.”

“Not everyone is prepared to make that commitment. The contradictory impulses reflect the internal contestation within Vanuatu’s political system.”

The latest controversy also comes in the wake of China’s announcement last week that it would provide Vanuatu with a grant of $86 million to help repair several buildings badly damaged by the December 2024 earthquake.

That includes buildings which were built or funded by Chinese companies and which sustained particularly serious damage in the quake — drawing criticism of the quality of the infrastructure on local social media.

There has been speculation that China made the donation as part of a concerted push to sink the Nakamal Agreement, but one government source in Vanuatu denied that, saying that China was simply intent on bolstering its credentials by fixing the buildings which it had built.