Sydney, Aug. 14 -- Australia and Vanuatu have agreed to a ten-year deal, aimed at strengthening security and economic ties, worth ASD 500 million (USD 328,000; £241,000).
The so-called Nakamal agreement - the result of months of negotiations - will transform Australia's relationship with its Pacific neighbour, leaders from both countries said on Wednesday, reports BBC.
"We are family," Australia's deputy prime minister Richard Marles said: "Our future is very much bound together". Vanuatu's leader Jotham Napat described the deal as "win-win situation" for both nations.
The deal, to be officially signed in September, comes as Australia tries to grow its influence in the region, to counter China's increased spending and power.
While ...