AGP Executive Report

Vanuatu–Australia Nakamal Agreement: Vanuatu has signed the long-delayed Nakamal pact in Canberra, locking in deeper cooperation on policing, maritime security, intelligence, critical infrastructure, mobility, workforce training and renewable energy, while requiring Port Vila to keep its territory free of foreign military bases and to consult Australia on third-party involvement in critical infrastructure. Pacific Mobility Update: Vanuatu’s 150 places in Australia’s Pacific Engagement Visa were restored after the security deal, with permanent residency applications reopening—though questions remain about how balanced the arrangement is. Trade & Consumer Protection: Australia’s National Measurement Institute donated fuel measurement trolleys to Vanuatu and five other Pacific nations via the Pacific Islands Forum to help regulators verify pump accuracy and protect fair fuel transactions. Climate Resilience Funding: The Global Environment Facility approved new climate adaptation projects for Fiji, FSM, Tuvalu and Vanuatu, with about US$14m in grants and over US$43m in co-financing to tackle flooding, sea-level rise and coastal erosion. Business & Legal Sector Note: Vanuatu’s prominent lawyer Marie-Noelle Ferrieux Patterson has transferred her practice to associates, rebranding as Ferrieux Patterson & Partners. Regional Business Signals: A major Pacific export survey reports its highest participation in more than a decade, suggesting exporters are diversifying markets and adopting digital tools despite tighter access to finance.

Pacific Mobility & Visas: Vanuatu’s 150 places in Australia’s Pacific Engagement Visa were restored after the Nakamal Agreement, with permanent residency applications reopening—DFAT says Australia is still working to match Vanuatu’s priorities while Vanuatu had refused to sign the earlier deal. Security & Economic Partnership: Australia and Vanuatu signed the long-delayed Nakamal Agreement in Canberra, locking in “no foreign military base” and keeping Vanuatu’s critical infrastructure free from militarisation, while expanding Australian support for policing, maritime security, cyber and disaster response; China warned the pact shouldn’t target third parties or fuel geopolitical games. Trade Resilience: The Pacific’s biggest-ever export survey recorded its strongest participation in more than a decade, with early signs of exporters diversifying markets and adopting digital tools despite tougher access to finance. Climate Adaptation Funding: The GEF approved four new Pacific climate adaptation projects, including Vanuatu, totaling about US$14m in grants plus over $43m co-financing to tackle flooding, sea-level rise and coastal erosion. Business & Governance: Vanuatu’s Ferrieux Patterson Lawyers restructured into Ferrieux Patterson & Partners, marking a major transition after decades of leadership in law and anti-corruption. Regional Diplomacy: US Congresswoman Uifa’atali Amata urged the Pacific to build economic resilience against China-linked debt, while Solomon Islands PM Matthew Wale called for a stronger, more effective Melanesian Spearhead Group.

Nakamal Security & Economic Pact: Australia and Vanuatu finally signed the long-delayed Nakamal Agreement in Canberra, locking in “no foreign military base” on Vanuatu soil and keeping critical infrastructure free from militarisation, while Australia boosts policing, maritime security, cyber support, disaster response and renewable energy; Vanuatu will consult Australia on third-party involvement in critical infrastructure, a key sovereignty sticking point that softened the earlier draft. China Pushback: China warned the deal shouldn’t target third parties or be used for geopolitical rivalry, after Australia said the pact helps counter China’s growing security footprint in the Pacific. Climate Funding Moves in: The Global Environment Facility approved new Pacific climate adaptation projects, including for Vanuatu, to help communities and critical infrastructure handle flooding, sea-level rise and coastal erosion. Disaster Readiness Training: SPC and WFP ran a Humanitarian Warehouse Exchange in Brisbane for Pacific disaster management offices, including Vanuatu, to strengthen logistics and warehouse skills for faster relief delivery. Youth Climate Voice: Save the Children’s NextGen youth ambassadors urged Pacific leaders to put children at the centre of climate decisions at Vanuatu’s Pacific Innovation Forum on Climate and Environment.

Australia–Vanuatu Nakamal Agreement: Australia and Vanuatu have finally signed the long-delayed Nakamal Agreement in Canberra, locking in no foreign military bases on Vanuatu soil and keeping critical infrastructure free from militarisation. The deal also expands cooperation on policing, maritime security, intelligence, cybersecurity, disaster response, workforce training and renewable energy, with Australia reportedly providing about A$500m over coming years and Vanuatu agreeing to consult Australia on third-party involvement in critical infrastructure. China reacts: China warned the pact should not “target third parties” or be used for geopolitical games, after Canberra framed the move as part of wider regional competition. Climate finance for Vanuatu: The GEF has approved new Pacific climate adaptation projects, including support for Vanuatu, to help communities and infrastructure withstand flooding, sea-level rise and coastal erosion. Youth-led climate push: At Vanuatu’s Pacific Innovation Forum on Climate and Environment, youth advocates are calling for child-centred power in climate decisions. Disaster readiness training: The SPC and WFP ran a Pacific humanitarian warehousing exchange in Brisbane, training logistics officers from Vanuatu and other countries to move relief supplies faster when disasters hit.

Nakamal Agreement Signed: Vanuatu and Australia have finally inked the long-delayed Nakamal Agreement in Canberra, locking in a A$500m partnership and making Australia Vanuatu’s primary policing and disaster-response partner, while requiring Port Vila to consult Australia on any third-party involvement in critical infrastructure and keeping that infrastructure free from militarisation or unauthorised access. China Pushback: China’s foreign ministry warned the pact should not target third parties or be used for geopolitical “games,” after Australia and Vanuatu moved to block foreign military bases on Vanuatu’s soil. Climate Funding Moves: The Global Environment Facility approved four Pacific climate adaptation projects, including Vanuatu, with about US$14m in grants and over US$43m in expected co-financing to help communities and infrastructure handle flooding, sea-level rise and coastal erosion. Disaster Readiness Training: SPC and WFP trained logistics and warehouse officers from six Pacific disaster management offices in Brisbane, including Vanuatu, to speed up relief supply handling during emergencies. Youth Voice on Climate: Pacific youth leaders at a Vanuatu forum urged governments to put children at the centre of climate decisions, calling for real power and platforms to lead solutions. Tourism & Markets: Vanuatu Tourism Market Forum coverage highlights a push to grow lifeline markets and tourism opportunities for 2026–2028.

Nakamal Agreement Signed: Australia and Vanuatu have finally inked the long-delayed Nakamal Agreement in Canberra, locking in “no foreign military base” on Vanuatu soil and keeping critical infrastructure free from militarisation, foreign interference and unauthorised access. Economic Support & Infrastructure: Australia will provide major economic backing (reported as A$500m over time, with AFP citing A$345m) and will help with ports, aviation, energy and digital infrastructure, while Vanuatu will consult Australia on third-party engagement in critical infrastructure. China Reacts: China warned the pact should not be used for “geopolitical games” and said cooperation must not target third parties, as the deal is widely seen as aimed at limiting China’s security footprint. Regional Business Lens: The agreement also reinforces Australia as Vanuatu’s primary policing and security partner—an important signal for investors weighing stability, logistics and risk in the Pacific. Tourism Deals: A fresh wave of cruise and tour promotions includes Vanuatu-focused packages, pointing to continued marketing push into 2026/27.

Australia–Vanuatu Nakamal Agreement: Australia and Vanuatu signed a long-delayed economic and security pact in Canberra that bars any foreign military base on Vanuatu soil and keeps the country’s critical infrastructure free from militarisation, foreign interference and unauthorised access. Funding & infrastructure: The deal commits Australia to A$500 million in support for Vanuatu, with Australia to be consulted on third-party investment in critical infrastructure—an attempt to balance security concerns with Port Vila’s need to attract funding. China reaction: China warned Australia against “geopolitical games,” saying cooperation should not target third parties or be used to fuel rivalry. Business & finance angle: In parallel, Pacific leaders met in Majuro to push ahead with efforts to strengthen correspondent banking links—key for trade, tourism payments and remittances—while tackling anti-money laundering and financing of terrorism measures. Local economy spotlight: Titan FX marked the second year of its brand partnership with Keisuke Honda, launching “Dream Beyond Borders 2.0,” with a new commercial series aimed at boosting its presence in Vanuatu’s market.

Pacific Finance: Pacific nations met in Majuro to push ahead on correspondent banking links, so international payments, trade, remittances and tourism can keep flowing despite tighter global compliance. Cybercrime & Scams: Blue Pacific “scam centres” are expanding, using forced labour and coercion to run romance and crypto fraud—Vanuatu is urged to treat it as a serious security and economic risk. Vanuatu-Australia Deal: Vanuatu and Australia are set to sign a revised Nakamal/“Nakamal Agreement” strategic pact in Canberra, after months of sovereignty and critical-infrastructure concerns; key clauses aimed at limiting third-party involvement in sensitive ports, airports and telecoms have been softened. Tourism Growth: Vanuatu launched its 2026–2028 Tourism Marketing Strategy, targeting 120,000 overnight arrivals by end-2026 and 150,000 visitors by 2028, with a focus on aviation, cruise and stronger market positioning. Climate Resilience: Vanuatu joined a Pacific Climate Summit pushing shared adaptation and resilience plans, linking climate action to business and public-budget stability. Water Access Map: A global data map highlights how far safe drinking water still is from reach in many low-income countries—relevant for Vanuatu’s infrastructure and health planning.

Vanuatu–Australia Deal Watch: Prime Minister Jotham Napat is set to visit Canberra on 29 June as Australia prepares to discuss and potentially lock in a major $500 million partnership covering infrastructure, climate adaptation, budget support and economic growth. Nakamal Agreement Update: Vanuatu is pushing ahead with a revised Nakamal Agreement after sovereignty, security and critical infrastructure concerns delayed signing; the updated pact is now endorsed by Australia, with talks still focused on sensitive wording. Tourism Growth Plan: Vanuatu Tourism Office has launched its 2026–2028 Tourism Marketing Strategy, aiming to move from recovery to sustainable growth with targets of 120,000 overnight arrivals by end-2026 and 150,000 annual visitors by 2028, alongside stronger aviation and cruise links. Climate Resilience Push: Vanuatu joined a Pacific Climate Summit and also rolled out nature-based solutions tools under the PPIN project, giving new guidance to integrate forests, mangroves, reefs and seagrass into national adaptation planning. Regional Security Context: Australia’s Pacific minister says strategic competition with China is permanent and warns Beijing is seeking a lasting security presence, while Vanuatu’s broader regional diplomacy continues to shape how partners engage Port Vila.

Vanuatu–Australia Deal Watch: Vanuatu Prime Minister Jotham Napat is set to visit Canberra as Australia and Vanuatu move toward signing a revised Nakamal Agreement, with a reported $500 million partnership on the table covering infrastructure, climate adaptation, budget support and economic growth. Tourism Growth Plan: Vanuatu Tourism Office launched the 2026–2028 Tourism Marketing Strategy at the 3rd Vanuatu Tourism Market Forum in Port Vila, aiming to shift from recovery to sustainable growth and target 120,000 overnight arrivals by end-2026 and 150,000 annual visitors by 2028. Climate Resilience Push: Vanuatu is rolling out nature-based solutions through PPIN project policy tools, including guidance to integrate nature-based solutions into the National Adaptation Plan and coastal resilience/forestry planning. Regional Climate Cooperation: The inaugural Pacific Climate Summit ended with a joint commitment to strengthen regional adaptation and resilience, with Vanuatu among participating jurisdictions. Energy Cost Pressure (Pacific-wide): A timeline review shows how the fuel crisis drove sharp increases in diesel and electricity costs across Pacific economies, pushing governments toward renewable energy support. Regional Security & Trade Context: Australia’s Pacific minister says strategic competition with China is permanent, while Vanuatu’s broader regional diplomacy continues alongside talks on Pacific security and economic cooperation.

Pacific Climate Summit: California, Fiji, Guam, Hawaiʻi, Kiribati, Vanuatu and Weno wrapped the inaugural Pacific Climate Summit with a joint commitment to boost regional climate adaptation and resilience, warning rising heat is hitting households, businesses and public budgets across the Pacific. Vanuatu–Australia Deal: Vanuatu PM Jotham Napat is set to visit Canberra ahead of signing next week’s revised Nakamal Agreement, a $500m partnership expected to fund infrastructure, climate adaptation, budget support and growth—after sovereignty concerns delayed the earlier ceremony. Tourism Growth Plan: Vanuatu Tourism Office launched the Tourism Marketing Strategy 2026–2028 in Port Vila, aiming to move from recovery to sustainable growth with targets of 120,000 overnight arrivals by end-2026 and 150,000 visitors by 2028, supported by aviation and cruise focus. Nature-Based Climate Resilience: Vanuatu is handing over new policy tools under the PPIN project to embed nature-based solutions—forests, mangroves, reefs and seagrass—into national adaptation planning and coastal resilience. Regional Cooperation (PNG–Solomons): Papua New Guinea and Solomon Islands signed a 2026–2030 framework covering trade, investment, infrastructure, security and economic development, with leaders also discussing climate and Pacific stability. Fuel Crisis Impact: A Pacific-wide timeline shows how the fuel crisis drove sharp diesel and electricity cost increases and pushed leaders to seek renewable energy support to reduce future shocks.

Vanuatu Tourism Push: The Vanuatu Tourism Office launched its 2026–2028 Tourism Marketing Strategy, aiming to lift overnight arrivals to 120,000 by end-2026 and 150,000 by 2028, with a focus on aviation and cruise growth and stronger marketing in key markets like Australia. Climate Adaptation & Nature-Based Solutions: Vanuatu officially handed over three policy tools under the PPIN project to help embed nature-based solutions (forests, mangroves, reefs, seagrass) into national adaptation planning and coastal resilience. ADB Financing for Delivery & Resilience: The Asian Development Bank approved a USD10m Vanuatu Sustainable Economic Transformation Facility to strengthen project delivery, disaster resilience, private sector growth, and sustainable development, including support for the project management unit and finance systems. Pacific Fuel Shock Fallout: A new regional look at the fuel crisis shows sharp diesel and electricity price ceilings rising across Pacific islands, pushing costs up and slowing activity—renewables like solar are being pushed as a hedge. Regional Trade & Security Links: PNG and Solomon Islands signed a 2026–2030 Framework Agreement covering development, economic cooperation, trade, investment, security and infrastructure, with talk of tailored free trade and wider regional security ideas. Geopolitics in the Pacific: Australia and the US both signal continued strategic competition with China, while Vanuatu continues negotiations with France over the disputed Matthew and Hunter Islands.

PNG–Solomon Trade & Security Roadmap: Papua New Guinea and the Solomon Islands signed a Framework Agreement on Development and Economic Cooperation for 2026–2030, covering trade, investment, security, infrastructure and economic development after PM James Marape met Matthew Wale in Port Moresby. Vanuatu–France Islands Dispute: Vanuatu is pressing France to hand back the remote Matthew and Hunter Islands, tying the sovereignty fight to cultural and spiritual links and broader Pacific decolonisation politics. Pacific Geopolitics & Security: Australia’s Defence Industry and Pacific Affairs Minister Pat Conroy says strategic competition with China is permanent, while the US is expanding Pacific diplomatic, economic and security engagement to build resilience and reduce reliance on Beijing. Vanuatu Tourism Push: The Vanuatu Tourism Office launched its 2026–2028 marketing strategy after the Tourism Market Forum, targeting 120,000 overnight arrivals by end-2026 and 150,000 annual visitors by 2028, with a focus on aviation and cruise growth. ADB Support for Delivery: Vanuatu will receive USD 10m from the Asian Development Bank to strengthen project delivery, disaster resilience, private sector growth and sustainable economic development via a flexible financing facility. Nature-Based Climate Planning: Vanuatu formally handed over new policy tools under the PPIN project to embed nature-based solutions into national adaptation, coastal resilience and forestry planning. Regional Finance Access: Pacific leaders met on correspondent banking to protect access to global banking, remittances and trade, including work on a Pacific payments mechanism and anti-money laundering support. Fuel Crisis Lessons: A review of the Pacific fuel crisis shows how diesel and electricity price spikes triggered a region-wide slowdown, pushing leaders to seek renewable energy options like solar to reduce future shocks.

Pacific Security: Australia’s Pat Conroy says China is seeking a permanent security presence in the Pacific, pointing to policing cooperation as a key avenue, while stressing security should be provided “from the Pacific” through Pacific-led approaches. Climate & Resilience: The First Pacific Climate Summit ended with a joint commitment to regional resilience, with Vanuatu among the jurisdictions backing stronger adaptation and shared action. Tourism Growth: Vanuatu Tourism Office launched its 2026–2028 Tourism Marketing Strategy, targeting 120,000 overnight arrivals by end-2026 and 150,000 visitors by 2028, with a focus on aviation and key source markets. Nature-Based Adaptation: Vanuatu is rolling out new policy tools under the PPIN project to embed forests, mangroves, reefs and seagrass into national adaptation planning and coastal resilience. Energy & Cost Pressure: Pacific ministers meeting in Majuro flagged a “triple shock” of fuel insecurity, import costs and food vulnerability, with energy prices driving household and business strain. Finance Access: Pacific countries are pushing to strengthen correspondent banking links to keep trade moving and remittances flowing, supported by the World Bank and the Pacific Islands Forum. Vanuatu–Australia Link: Ni-Vanuatu applicants face uncertainty after Vanuatu was excluded from Australia’s 2026–27 Pacific Engagement Visa ballot, amid ongoing talks on a proposed long-term security partnership. ADB Support: Vanuatu will receive USD 10m from the Asian Development Bank to strengthen project delivery, disaster resilience, and private sector growth through a flexible transformation facility.

Tourism Growth Plan: Vanuatu Tourism Office has officially launched its 2026–2028 Tourism Marketing Strategy after the 3rd Vanuatu Tourism Market Forum, aiming to move from recovery to strategic growth with targets of 120,000 overnight arrivals by end-2026 and 150,000 annual visitors by 2028, supported by aviation and cruise focus and stronger market push in Australia. Climate Resilience Funding: The Asian Development Bank will provide Vanuatu with USD10m via a new Sustainable Economic Transformation Facility to strengthen project delivery, disaster resilience, private sector growth and sustainable economic development, including early support for project management and finance systems. Nature-Based Adaptation: Vanuatu is also rolling out practical nature-based solutions for climate planning, handing over new policy tools under the PPIN project to help integrate healthy forests, mangroves, reefs and seagrass into national adaptation, coastal resilience and forestry decisions. Pacific Fuel Shock Timeline: A new regional review shows how the fuel crisis drove sharp increases in fuel and electricity costs across Pacific economies, squeezing households and slowing activity—highlighting the urgency of renewable energy options. Visa Policy Watch: Ni-Vanuatu applicants are seeking answers after Australia excluded Vanuatu from the latest Pacific Engagement Visa ballot, with the timing raising questions amid ongoing regional security discussions. Regional Finance Links: Pacific nations are pushing to secure correspondent banking access, with a steering meeting in Majuro reviewing next steps on payments mechanisms and anti-money laundering support to keep trade and remittances flowing. El Niño Preparedness: SPREP is urging Pacific communities to prepare for El Niño impacts after it was declared underway, while PNG’s PM has ordered provinces and districts to plan for a potentially severe dry season.

ADB Funding Boost: Vanuatu is set to receive USD 10m from the Asian Development Bank to strengthen project delivery, disaster resilience, and private-sector growth, with an initial USD 2.5m earmarked to build capacity in the Project Management Unit and the Ministry of Finance and Economic Management. Climate Adaptation & Nature-Based Solutions: Vanuatu has officially launched and handed over three policy tools under the PPIN project, giving government guidance to embed forests, mangroves, reefs and seagrass into national adaptation planning and coastal resilience decisions. Pacific Economic Planning: Forum Economic Ministers meeting in Majuro put energy insecurity at the centre of talks, warning the region must shift from reacting to crises to preparing for the next one—potentially “twice or three times more severe.” Fuel Crisis Lessons: A new timeline shows how the Pacific fuel crisis drove sharp increases in diesel and electricity costs, forcing governments to scramble for supply and pushing renewed interest in solar and other renewables. Visa & Mobility Shock: Ni-Vanuatu applicants are seeking answers after Australia excluded Vanuatu from the Pacific Engagement Visa ballot for 2026–27, amid ongoing negotiations on a proposed long-term security partnership. Regional Finance Connectivity: Pacific nations are working to secure correspondent banking links to keep trade and remittances flowing, with a feasibility study and anti-money laundering support planned. El Niño Preparedness: SPREP is urging Pacific communities to prepare early as an El Niño event is declared underway, with impacts expected to vary by country.