Prime Minister Anthony Albanese has left Vanuatu empty-handed after a $500 million security and climate deal stalled over disagreements between the countries on China.

Port Vila

Australian Prime Minister Anthony Albanese visited Vanuatu to advance a proposed $500 million agreement focused on climate security and economic support over ten years. The deal, intended to reinforce Australia as Vanuatu's primary security partner, has not yet been finalised due to concerns from Vanuatu's leadership about maintaining access to funding from other countries and preserving national sovereignty.

Discussions are ongoing, with Albanese expressing confidence that the agreement will be signed soon. The visit comes amid broader regional tensions, particularly regarding China's growing influence in the Pacific. The Pacific Islands Forum, hosted in the Solomon Islands, is also drawing attention for its exclusive guest list, reportedly shaped by geopolitical considerations.

$500 million security agreement with Vanuatu stalled

Military might and an almighty scent bag. Anthony Albanese welcomed with honour to Vanuatu the first leg of his Pacific pilgrimage... ..where he'd been planning to sign a $500 million deal to fund Vanuatu's climate security and economic needs over a decade, shoring up Australia as its major security partner over China. Australia, they are very good friends. But it didn't get over the line. It requires more discussions to... ..particularly on some of the specific wordings in the agreement. PM Jotham Napad confirming he's concerned about being blocked from accessing funding from other countries. When it comes to the critical infrastructure... Vanuatu's non-aligned and borrows heavily from China for infrastructure. We don't want to either do or be seen to... ..for anything to occur that undermines the sovereignty of Vanuatu. The deal was brokered, celebrated on a volcano by senior ministers just weeks ago. Anthony Albanese insists the pact's still active. I'm very confident that it will be able to be signed soon. Though previous attempts to counter China's influence have fallen through. It was always going to be the case that Vanuatu was going to be a tricky one. They want to be able to work with as wide a range of partners as possible. Next stop, Solomon Islands. The Prime Minister will be here tomorrow for the Pacific Islands Forum, which is the big dance of regional politics. And this year, the guest list is much more exclusive. The host nation's controversial decision to exclude partner nations is suspected to be at China's request to keep out Taiwan. Solomon Islands is the front line of the Pacific power struggle. And Chloe Burrus joins us now live from Honiara. Chloe, where to now for this deal between Australia and Vanuatu? Well, Vanuatu's known to push back, but the Prime Minister will continue to make his case in Port Vila tonight at a dinner reception. We're told that Aussie rock band King Stingray is in town and will be performing. And tomorrow morning, Anthony Albanese will give the Vanuatu PM and his wife a ride to Honiara on his plane for the summit. Here on the ground, you can really notice those competing forces. Both Australia and China gifted Solomon Islands a fleet of cars for the event, which tomorrow will focus on security and climate. In Honiara, Chloe Burrus, thank you.

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