AFTER months of stalled negotiations and diplomatic friction, Vanuatu’s cabinet has approved a revised version of the proposed Nakamal Agreement with Australia, bringing the two countries closer to a landmark deal.
The approval on May 12 follows a period of “bumpy momentum” in talks that had exposed deep-seated tensions in the bilateral relationship, according to a new analysis from the Lowy Institute.
The anticipated AU$500 million, ten-year agreement—named after the Vanuatu nakamal, a traditional meeting place, aims to move beyond Australia’s historically “hyper-securitised” approach to the Pacific. A Lowy Institute paper published May 17, argues that Canberra’s strategic anxiety over China’s regional presence has often dominated affairs, risking neglect of deeper historical and economic ties.
A key sticking point in negotiations was Australia’s initial focus on traditional security threats, while Vanuatu has consistently pushed for climate change to be recognized as the primary security priority. The revised agreement reportedly reflects this, alongside Vanuatu’s firm commitment to a non-aligned foreign policy—“friends to all, enemies to none”—which clashed with earlier Australian drafts seeking to limit Vanuatu’s engagements with other partners.
The analysis calls on Australia to take concrete steps to resolve “unresolved grievances,” including a formal, high-level acknowledgment of the 19th-century blackbirding trade, during which more than 62,000 ni-Vanuatu were forced to work on Australian plantations. It also urges Canberra to publicly recognize the substantial contribution of ni-Vanuatu labour to Australia’s economy—estimated at supporting an AU$18 billion annual horticulture industry—and to streamline travel and trade.
For its part, Vanuatu has demonstrated the “nakamal way” of patient, inclusive dialogue, delaying the agreement until its sovereignty concerns were addressed. The Lowy Institute concludes that embracing this model of a “critical friendship,” will build a more resilient partnership for both countries.
Source: Lowy Institute
