When Vanuatu signs a Bilateral Security Agreement with Australia, many celebrate it as a step toward regional cooperation and safety. Yet some worry: does this kind of deal risk dragging Vanuatu into the growing rivalry between the United States and China?

Australia is one of America’s closest allies. So when Vanuatu aligns its security with Australia, critics argue it could be seen as indirectly taking sides in the global contest between the two superpowers. In a conflict, Vanuatu might not be perceived as neutral, but as part of one camp.

Historically, Vanuatu has championed an independent, non-aligned foreign policy. Since independence in 1980, the country has consistently defended neutrality, supporting peace, climate justice, and development partnerships with all nations without being tied to any bloc. That principle remains central to Vanuatu’s diplomacy today.

Meanwhile, Pacific-wide diplomacy is making headlines. Australia’s Foreign Minister Penny Wong has been splashing cash across the region: $20 million AUD for the Solomon Islands to host the Pacific Forum, $500 million AUD for Vanuatu under the Nakamal Agreement, and $600 million AUD for rugby in PNG. Big sums, big questions about priorities—and even bigger questions about the content of the Nakamal Agreement itself, which remains unclear.

Just days after the Nakamal signing on Mt. Yasur, Vanuatu’s Deputy Prime Minister and Minister of Finance Hon. Johnny Koanapo addressed the Pacific Infrastructure Conference in Brisbane, urging development partners to avoid exploiting Pacific “vulnerabilities” for strategic gain. He stressed that financing must be “fair, sustainable and free from conditions that undermine national sovereignty or regional unity,” highlighting the importance of infrastructure projects that reflect island nations’ priorities rather than outside agendas.

The key question for Vanuatu is whether it can maintain its neutral stance while deepening security ties with a major US ally. Agreements like the Nakamal deal may strengthen resilience and cooperation, but they also raise concerns about transparency, perception, and geopolitical risk.

At the end of the day, this is not just about security—it’s about sovereignty. Vanuatu must carefully balance relationships to ensure its independence and neutrality remain clear, even while building partnerships for peace and prosperity.

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Disclaimer: The views expressed in this article are for informational and discussion purposes only. They do not necessarily reflect the official position of the Government of Vanuatu or any other organization. Readers should exercise their own judgment and consult official sources before making decisions based on the content provided.