At first glance, Australia’s new treaty with Nauru seems to be a win-win. But questions remain

At first blush, today’s announcement that Australia and Nauru have signed a security treaty offers something for both countries. Australia increases its influence in a region in which it feels threatened by China. Nauru receives economic assistance and reliable banking services.

But important questions remain unanswered.

For the past decade, Australia has been concerned about China’s ambitions in the Pacific Islands region. It is also conscious that the diplomatic landscape of the region has become more “crowded and complex”, as Australia now cooperates – and competes – with a wider range of partner countries in the region.

Australia has therefore ramped up its development assistance, infrastructure lending, security initiatives, labour mobility and migration opportunities, as well as other policies in the region.