Key facts
- Australia and Fiji signed the 'Ocean of Peace Alliance,' a mutual defence treaty.
- The alliance is Fiji's first formal mutual defence treaty and Australia's fourth.
- Australia will invest over A$1 billion in Fiji over a decade through the Vuvale Union economic treaty.
- China is reportedly preparing to test-fire a nuclear-capable ballistic missile in the South Pacific.
- Australia has expressed concerns that China's military buildup lacks transparency.
Australia and Fiji have formalized a new bilateral defence alliance, the 'Ocean of Peace Alliance,' alongside an economic treaty known as the Vuvale Union. Australian Prime Minister Anthony Albanese and Fijian Prime Minister Sitiveni Rabuka signed the agreements in Suva on July 6, 2026. The defence pact establishes a mutual defence obligation and is Fiji's first such treaty, while it marks Australia's fourth, following existing alliances with the United States, New Zealand, and Papua New Guinea. Under the Vuvale Union, Australia commits to investing over A$1 billion in Fiji over the next decade.
The signing occurred on the same day that Chinese state media reported a submarine had conducted a test launch of a long-range ballistic missile in the South Pacific, a move criticized by Australia. The missile test was described as part of routine training and carried a dummy warhead. Australian Foreign Minister Penny Wong stated that Australia views the test as destabilizing and has informed China of its concerns regarding the rapid military buildup lacking transparency.
Fijian Prime Minister Rabuka expressed that he does not anticipate severe pushback from Beijing and believes China will welcome the understanding between Australia and Fiji, asserting that the new treaties do not threaten Fiji's or Australia's relationships with China. Australia has been actively strengthening its security partnerships in the region, particularly since China established a security treaty with the Solomon Islands in 2022, which raised concerns about a potential Chinese naval base. Australia also recently signed a security and economic treaty with Vanuatu that prevents China from establishing a military base there.