Australia and Vanuatu have signed the Nakamal Agreement, a new economic and security pact that includes a ban on foreign military bases in Vanuatu.

The deal, signed by Prime Ministers Anthony Albanese and Jotham Napat in Canberra, also expands Australian economic support and requires consultation with Australia on critical infrastructure investments.

Albanese said the agreement strengthens regional security and ensures no foreign military presence in the Pacific island nation.

Vanuatu emphasized its commitment to sovereignty and a peaceful Pacific while confirming it would not allow militarisation of key infrastructure, Al-Jazeera has reported.

China criticized the deal, saying such agreements should not be used for geopolitical rivalry.