Australia’s bid to win battle with China for Pacific influence hits a snag

1 week ago 3

Prime Minister Anthony Albanese’s plans to sign a sweeping $500 million security and economic agreement with Vanuatu have been dealt a blow in a setback for Australia as it fiercely competes with China for influence in the Pacific.

Albanese had hoped to kickstart a major fortnight of Pacific diplomacy by signing the long-awaited deal with his Vanuatuan counterpart during a visit to the capital of Port Vila, but he revealed before departing that he did not believe the agreement would be finalised on Tuesday.

Prime Minister Anthony Albanese last week.

“I wouldn’t expect that it will be signed today, but what we will do is to progress it today to have that conversation,” Albanese told ABC radio, adding that Vanuatuan politics can be “very complex”.

“I’ll be meeting with Prime Minister [Jotham] Napat today, and we have committed to working towards upgrading our relationship. There’s still some work to do, but we’re making good progress and I look forward to progressing that face to face, which is why I’m travelling to Vanuatu this morning.”

Defence Minister Richard Marles, Foreign Minister Penny Wong and Pacific Minister Pat Conroy travelled to Vanuatu last month, where they participated in a lavish ceremony on a volcano to mark the conclusion of negotiations on what is to be known as the Nakamal Agreement.

Declaring that the 10-year pact would “transform the relationship between our two countries”, Marles said Albanese and Napat were hoping to finalise the agreement “in the coming weeks”.

Deputy Prime Minister Richard Marles (centre), Minister for Foreign Affairs Penny Wong (to his left) are met by Vanuatu Prime Minister Jotham Napat (red tie) to discuss an economic and security agreement.

The agreement would see Australia pour $500 million into Vanuatu to help fund its economic, security and climate needs while locking in Australia as the nation’s main security and development partner.

Australia and Vanuatu agreed on a security deal in 2022, but it was blocked by Vanuatu before finally going ahead after it became mired in domestic political debate.

After Vanuatu, Albanese will travel on Wednesday to the Pacific Islands Forum in the Solomon Islands, where Australia and China’s rivalry has been underscored by duelling gifts of vehicles to be used by delegates during the event.

Napat will travel with Albanese to the Solomon capital of Honiara, allowing the pair more time to discuss any sticking points over the deal.

Solomon Islands Prime Minister Jeremiah Manele announced in late August that Australia would provide a fleet of 61 vehicles – including 40 Ford Rangers, 10 Nissan Navaras and 11 Toyota Hilux pick-up trucks – valued at $5.2 million.

These would be used to ferry around leaders and other dignitaries during the forum, before they are given to the police force.

On the same day, Manele announced that the Solomons had begun receiving a fleet of 40 vehicles from China.

Albanese will attend Papua New Guinea’s 50th anniversary independence celebrations next week, where he and counterpart James Marape are expected to sign a landmark security treaty that will see PNG nationals serve in the Australian Defence Force.

Mihai Sora, program director of the Pacific Islands Program at the Lowy Institute, said there would be “definite disappointment” in the government about the apparent delay in reaching an agreement with Vanuatu.

“Australia was looking to celebrate the finalisation of this deal,” he said.

Sora said Napat could be prevaricating after coming under pressure from pro-Beijing politicians in Vanuatu who are worried about their nation giving too much away to Australia.

“This could also be a shrewd negotiating tactic to extract more concessions from Australia or try to walk back commitments Vanuatu has made,” he said.

He said the deal was “not dead” as it was still in the interests of both countries to strike an agreement, even if the details prove difficult to finalise.

“Australia will keep trying,” he said.

Sora said he was more optimistic about the bilateral security agreement Australia and PNG are set to sign next week. As part of the agreement, PNG nations will be allowed to serve in the Australian Defence Force as the two nations move to integrate their military operations.