The Fin Australia's defence deals in the Pacific and why they matter
Sep 24, 2025
Nicola Smith, a Canberra bureau chief specializing in Australian politics, and Jessica Gardner, a Washington correspondent focused on US relations, discuss the implications of Anthony Albanese's upcoming meeting with Donald Trump. They examine Australia’s diplomatic setbacks in securing defense treaties with PNG and Vanuatu, highlighting growing Chinese influence in the Pacific. The duo also offers insights into the strategic stakes of these issues, emphasizing how they could shape regional power dynamics and Australia's role in Pacific security.
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China's Growing Leverage In The Pacific
- China has temporarily outmanoeuvred Australia in recent Pacific diplomacy, stalling Canberra's proposed deals.
- These setbacks show Beijing's growing influence and ability to shape Pacific choices.
Nakamal Deal Collapses At The Airport
- Albanese flew to Vanuatu expecting to sign a $500 million Nakamal deal but Vanuatu pulled back at the last minute.
- Officials feared Australia would have veto rights over Vanuatu's third-party relationships, especially critical infrastructure with China.
A Landmark But Contentious PNG Treaty
- The proposed PNG defence treaty would have been Australia's third alliance and integrated PNG forces with the ADF.
- PNG initiated the treaty, reflecting its choice to deepen security ties with Australia despite domestic hesitation.