AUSTRALIA and Nauru have elevated their long-standing relationship to an integrated economic, social and security partnership by signing the Nauru–Australia Treaty.
Nauru faces significant economic challenges due to its limited natural resources, connectivity, geographic isolation, narrow economic base, and small exclusive economic zone – vulnerabilities that are compounded by de-banking and climate change risks.
Through the Treaty Australia will ensure Nauru will not risk being without a bank. The Commonwealth Bank of Australia (CBA) has agreed to provide banking services, including a physical presence in Nauru, following the departure of Bendigo Bank in 2025.
Under the Treaty, Australia will provide $100 million over five years in direct budget support to further strengthen Nauru’s economic security and resilience.
Australia will also invest $40 million over five years to respond to Nauru’s policing and security needs.
This support from Australia will help give the Government of Nauru fiscal certainty to invest in Nauru’s future, including by making deeper and long-term investments in education, health and social services to enhance the well-being of the Nauruan people.
Australian Prime Minister, The Hon Anthony Albanese MP, said Australia was
committed to a peaceful, prosperous, and secure region.
“Our new partnership is about contributing to that — for our people, our countries and our region. We will do this by expanding and deepening our security cooperation and committing to consult on developments that threaten our sovereignty, peace or stability.”
Under the commitment, both countries will mutually agree on any engagement by others in Nauru’s security and key critical infrastructure sectors, and have agreed that critical infrastructure shall not be used by any third party for security purposes.
“This reflects our understanding that as Pacific countries our interests are intertwined and decisions taken by one can affect the interests of the other,” Prime Minister Albanese said.
President of the Republic of Nauru, David Adeang, said the signing of the Treaty reaffirms Nauru and Australia’s deep friendship and shared commitment to building a peaceful, prosperous and secure future for both nations and the region.
“To Nauru, Australia it’s not just a friend, but family bound by shared history and values. This Treaty strengthens our own economy, enhances also our mutual security and addresses critical challenges like banking and ensuring inclusive growth and resilience for our own people,” President Adeang said.
Work is underway to establish a joint committee to support the Treaty’s implementation and regular consultation and dialogue between our nations. We share an intention for the Treaty to enter into force at the earliest possible date in 2025.
