Australia has unveiled a multimillion-dollar agreement with Nauru, granting Canberra the power to veto agreements the tiny Pacific island might pursue with third countries, including China.
As per the reports of Leaders team, under the treaty, Australia has pledged 140 million Australian dollars ($89 million) over five years to support Nauru’s population of just 12,000. This includes 40 million Australian dollars ($26 million) earmarked for bolstering policing and security.
Highlighting the significance of the pact, Australian Prime Minister Anthony Albanese stated, “Recognizing the security of one of us affects the security of both of us, the treaty provides that Nauru and Australia will jointly agree to any engagement by other countries in Nauru’s security, banking, and telecommunications sectors.” He made this announcement in a joint statement with Nauru President David Adeang at Australia’s Parliament House.
Adeang emphasized the critical nature of their relationship, calling Australia’s partnership “vital” for Nauru, which was once an Australian-administered territory.
A Strategic Move to Counter Influence
According to the reports received by Leaders team, this agreement mirrors a similar deal Australia struck earlier this year with Tuvalu, another small Pacific island nation. Both agreements are part of a broader Australian strategy to limit China’s growing influence in the Pacific, particularly after China’s 2022 security pact with the Solomon Islands raised fears of potential Chinese naval expansion in the region.
According to Meg Keen, director of the Pacific Island Program at the Lowy Institute, Nauru’s agreement represents a calculated trade-off. “Nauru has sacrificed its ability to strike security, banking, and infrastructure deals with China and other third parties in return for a significant increase in Australian funding,” Keen noted.
She described the treaty as a strategic move by Australia to “cement its leading role as the development and security partner of choice” while curbing Chinese influence in the Pacific.
Banking on Security and Stability
A critical component of the deal involves ensuring banking services in Nauru, a country that has faced challenges in maintaining financial connectivity. The Commonwealth Bank of Australia will open a branch in Nauru next year, filling the gap left by Bendigo Bank’s impending withdrawal.
President Adeang highlighted the benefits of the partnership: “This treaty strengthens our own economy, enhances our mutual security, and addresses critical challenges like debanking, ensuring inclusive growth and resilience for our people.”
With this new agreement, Australia reinforces its role as a key player in the Pacific, prioritizing regional stability, economic development, and strategic alliances in the face of growing competition from other global powers.
