Australia has signed a security treaty with Nauru, granting Canberra a veto over foreign partnerships in the Pacific island nation’s key sectors.
The move, announced on Monday by Prime Minister Anthony Albanese and Nauru’s President David Adeang, marks Australia’s latest effort to counter China’s influence in the region.
“The treaty provides that Nauru and Australia will jointly agree to any engagement by other countries in Nauru’s security, banking, and telecommunications sectors,” Albanese said. “This treaty will make our region stronger and it will make it safer.”
Australia will provide A$100 million in budget support over five years to bolster Nauru’s economy, alongside A$40 million to enhance its security forces.
The Commonwealth Bank of Australia is set to establish operations in Nauru in 2025, replacing Bendigo Bank.
This agreement follows a similar pact with Tuvalu in 2023, which included migration support for climate-affected citizens.
The Nauru treaty, however, lacks such provisions, sparking questions about its scope.
Australia has intensified its Pacific diplomacy since China’s controversial security agreement with the Solomon Islands in 2022.
Albanese described the new partnership with Nauru as taking bilateral ties “to a new level.”