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Anthony Albanese's approach of countering China's influence in the Pacific region has faced another setback, with a major defence treaty with Papua New Guinea postponed due to sovereignty concerns.

Agreement Finalization Delayed Amid Autonomy Negotiations

An agreement was anticipated to be signed this week, but the prime minister is leaving Port Moresby without concluding the mutual defence treaty with his PNG Prime Minister, James Marape.

Albanese minimized the postponement, suggesting that cabinet deliberations were interrupted by commemorations of PNG's 50th year of sovereignty. Instead, the two nations agreed to a shared statement and committed to continue talks on the wider defence agreement.

Second Setback in Recent Weeks

This marks the second postponement in recent weeks for Albanese. Earlier this month's regional summit, the government of Vanuatu paused the signing of a joint agreement with Australia, citing that more work was needed on resource investment from China.

Main Components of the Planned Agreement

The proposed treaty is intended to create shared security measures in the event of a security threat, and would allow nationals of both countries to serve in the defence forces of the partner nation.

• Joint training exercises
• Improved equipment compatibility
• New cooperation on digital defence

Negotiation Context and Next Steps

The Prime Minister has pushed for a deal for PNG to enter the NRL in 2028, which serves as a significant incentive within the wider $600m partnership. He emphasized that there was no delay to the PNG team joining the league.

Addressing media at a press conference in Port Moresby, Albanese stated that the text of the security treaty had been confirmed, but both sides required further discussion to finalize their internal approvals.

"This is very positive. There is no downside in this whatsoever. This is all upside for Australia and for PNG."

PNG's Perspective

Marape noted that the country's military capacity was inadequate to protect the nation and its people, making shared security settings with Australia essential.

He emphasized that the proposed agreement was PNG's proposal, not Australia's, and that it would not affect PNG's independence.

"A security treaty for Papua New Guinea would be the most significant level of secure relations we have established with any country."

Response from Opponitions

The Liberal senator Jane Hume called the delay as "a real failure for the PM", stating that it is "really important that these deals are approached appropriately and with a guarantee that they will be finalized."

Regional Context

China has used development loans and loan agreements to expand its presence with nations in the Pacific, undercutting Australia's ties with the area and straining the country's diplomatic reach.

The Australian government believes that the two treaties can yet be finalized in the coming months.