By Tess Ikonomou in Canberra

Australia and Vanuatu have signed a watered-down security deal amid a battle with China for influence in the Indo-Pacific.

Prime Minister Anthony Albanese and his Vanuatu counterpart Jotham Napat signed the Nakamal agreement in Canberra on Monday.

It entrenches Australia as the primary policing partner for the Pacific nation.

“Our agreement reflects and confirms Australia’s role as Vanuatu’s largest and most comprehensive economic security and development partner, a responsibility that we take seriously,” Mr Albanese said.

“This agreement advances a consensus that security is the shared responsibility of the Pacific family … and encapsulates Vanuatu’s sovereign decision not to permit its territory to be used for any foreign military base or infrastructure.

“The Pacific is our home, and together with Vanuatu, we want a resilient, sovereign, and connected region that benefits us all.”

Under the agreement, critical infrastructure in Vanuatu will not become militarised.

The breakthrough comes after Port Vila pulled back from the pact in September over concerns among some ministers about the deal’s impact on Vanuatu’s sovereignty.

Mr Napat said the deal strengthened ties with the Pacific region.

“Today marks a significant step in the Vanuatu-Australia relationship,” he said.

“With the signing of the long-awaited Nakamal agreement, Australia and Vanuatu are close neighbours, trusted partners.”

Mr Albanese is expected to travel to Fiji and the Solomon Islands within weeks to progress negotiations on a treaty with Honiara and to ink a deal with Suva.

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