Australia and Vanuatu are close to signing an “ambitious” new strategic pact that will see the federal government plough about half a billion dollars into the Pacific island country over the next decade.<\/p>\n
Vanuatu’s Council of Ministers is widely expected to endorse the Nakamal Agreement later today after months of negotiations between the two countries.<\/p>\n
Foreign Minister Penny Wong, Defence Minister Richard Marles and Pacific Minister Pat Conroy will then join Vanuatu’s Prime Minister Jotham Napat and other senior leaders on the island of Tanna tomorrow to give their initial agreement to the pact, ahead of a formal signing next month.<\/p>\n
Mr Napat’s office said in a statement the development and security agreement would “cover a wide range of bilateral issues, including infrastructure planning, economic development, and climate resilience initiatives in light of the devastating December 17 earthquake of 2024”.<\/p>\n
“The partnership between Vanuatu and Australia remains strong, especially as Vanuatu continues its recovery efforts,” it said.<\/p>\n
One Australian government source said Vanuatu had driven “quite a hard bargain”, but insisted the pact would boost Vanuatu’s development while buttressing Australia’s strategic position in the country \u2014 which is also being energetically courted by China.<\/p>\n
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The agreement follows discussions over visa-free travel to Vanuatu last month. (ABC: Stephen Dziedzic)<\/p>\n
Travel and migration under wraps<\/p>\n
Under the pact, Australia is expected to make substantial commitments worth up to $500 million over a decade \u2014 or $50 million a year.<\/p>\n
For example, Australia would provide approximately $120 million to help Vanuatu deliver its plan to build two “large data centres” in both Port Vila and Santo.<\/p>\n
Australia is also expected to deliver around $100 million in security assistance and budget support worth $55 million, and more than $110 million to help Vanuatu deal with the impacts of climate change.<\/p>\n
The federal government is also expected to make smaller financial contributions to boosting labour mobility, fostering cultural connections and improving digital connectivity.<\/p>\n
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Vanuatu faces challenges rebuilding after last year’s earthquake. (ABC News: Hugo Hodge, file)<\/p>\n
But several details in the agreement remain under wraps.<\/p>\n
For example, it is not yet clear whether Australia will offer any concessions to Vanuatu on travel and migration, which is an issue likely to be closely watched by other Pacific nations.<\/p>\n
Last month Mr Napat declared he would not sign the Nakamal Agreement<\/a> unless Australia agreed to offer “visa-free” travel to his country, saying the pact had to be “win-win” for both countries.<\/p>\n Successive Australian governments have been unwilling to relax visa and travel rules for Pacific nationals, partly due to fears a large proportion would remain in Australia illegally.<\/p>\n Relaxing travel restrictions for the Pacific could also be politically contentious.<\/p>\n Australian officials have previously raised deep concerns about Vanuatu’s contentious “Citizenship By Investment” scheme \u2014 sometimes called the Golden Passport program \u2014 which critics say has drawn oligarchs and criminals seeking to evade foreign law enforcement.<\/p>\n Security commitments unclear<\/p>\n It is not yet clear what commitments Vanuatu has made to Australia on the security front.<\/p>\n