Australia Secures Veto Rights Over Nauru's Foreign Deals

Australia has secured a multimillion-dollar agreement with Nauru, granting it veto rights over the Pacific nation's foreign deals, including those with China. In exchange for $89 million in funding, Nauru agrees to let Australia approve third-country engagements in its security, banking, and telecom sectors.

On Monday, Australia announced a multimillion-dollar pact with Nauru, allowing it veto power over the island nation's external agreements, notably with China.

Under this treaty, which takes effect next year, Australia will provide AU$ 140 million ($89 million) over five years to aid Nauru's 12,000 residents. This includes AU$ 40 million ($26 million) dedicated to enhancing policing and security. Australian Prime Minister Anthony Albanese and Nauru President David Adeang emphasized the treaty's significance in a joint statement, highlighting how intertwined their nations' security interests are.

The deal resembles a recent agreement with Tuvalu, another Pacific island nation. It's a strategic move to counter China's growing influence in the region, especially after its 2022 security agreement with the Solomon Islands, raising fears of a Chinese naval presence in the South Pacific. Under the agreement, Nauru will keep an Australian bank, with the Commonwealth Bank of Australia set to open next year, reinforcing economic stability and mutual security for Nauru.

(With inputs from agencies.)