Australia and Vanuatu signed the Nakamal Agreement after months of delay, with Vanuatu committing not to host foreign military bases or infrastructure and to keep critical infrastructure free from militarization, according to treaty text published by Australia's Department of Foreign Affairs and Trade on June 29. The agreement also prioritizes security and policing cooperation with Pacific Islands Forum (PIF) members, expands cooperation on maritime security, cyber security, intelligence and infrastructure, and gives Australia a consultative role in third-party engagement in Vanuatu's critical infrastructure.

The signing followed months of ambivalence in Vanuatu over whether the agreement would restrict Chinese and other foreign financing outright by giving Australia veto rights similar to clauses Canberra has secured with Tuvalu and Nauru, a sensitive issue because China is Vanuatu's largest external creditor. The text settled on consultation rather than Australian approval authority, extending a regional trend that includes similar clauses and broader security cooperation with PIF countries.