Geopolitical Struggles in the South Pacific: Concerns Over Third-Country Funding Affecting the Agreement Between Vanuatu and Australia

Vanuatu had originally planned to sign a landmark bilateral security and economic agreement with Australia. However, the South Pacific island nation is concerned that infrastructure funding provided by third countries may be restricted, so it has postponed signing the agreement with Australia.

Australian Prime Minister Albanese visited Port Vila, the capital of Vanuatu, on Tuesday, September 9, to sign a 500 million Australian dollar agreement. Australia hopes to prevent China from increasing its security influence in the region through this.

However, just hours before departing from Australia, Albanese told the Australian Broadcasting Corporation that he did not expect to sign this landmark agreement on Tuesday.

Vanuatu's Prime Minister Napa said at a press conference after meeting with Albanese that the Vanuatu government "feels that more discussion is needed, especially regarding certain specific wording in the agreement."

When asked if he was concerned that the agreement might limit Vanuatu's access to critical infrastructure funding from other countries, Napa replied, "Yes."

Beijing is Vanuatu's largest external lender. Chinese banks provide loans to Vanuatu to support Chinese companies in building infrastructure, including the presidential office building, the national parliament, and roads.

Albanese stated that he is confident the agreement will be signed soon. "The Prime Minister and I confirmed that we will continue to work towards a new agreement that will upgrade our relationship. Today, we have made good progress toward this goal," he said.

Sensitive Political Balance

Keen, head of the Pacific Research Program at the Australian National University, said that Vanuatu wants to maintain a close relationship with Australia while not excluding China.

Vanuatu receives a large amount of loans and aid from China for infrastructure such as buildings and docks.

"The Prime Minister of Vanuatu needs to maintain a sensitive political balance. If he wants to sustain the agreement, he needs the support of political supporters," Keen analyzed.

On Wednesday, Albanese will join Napa to attend the Pacific Island Forum meeting in Solomon Islands. This is the annual meeting of the forum's 18 member states. Papua New Guinea, Australia's neighboring country, is also a member state.

Albanese will visit Papua New Guinea next week to attend the 50th anniversary celebration of its independence on September 16. At that time, the two countries will sign a new defense treaty.

Albanese said he will tell the forum leaders that the security of the Pacific needs to be maintained "within the Pacific family."

Source: DW, translated from Associated Press and Reuters

Original: www.toutiao.com/article/1842786969119755/

Statement: The article represents the views of the author.