Anthony Albanese's approach of pushing back against China's influence in the Pacific region has been dealt another blow, with a key security agreement with Papua New Guinea delayed due to sovereignty concerns.
A deal was anticipated to be finalized this week, but the Australian leader is set to depart Port Moresby without concluding the so-called Pukpuk defence treaty with his counterpart, James Marape.
Albanese minimized the postponement, suggesting that cabinet deliberations were affected by celebrations of PNG's 50th year of sovereignty. In place of a treaty, the two governments agreed to a shared statement and pledged to continue talks on the broader defence agreement.
It is the second such delay in recent weeks for Albanese. Prior to this month's Pacific Islands Forum, the government of Vanuatu halted the finalization of a bilateral deal with Australia, stating that more work was needed on critical minerals funding from China.
The PNG deal is intended to create shared security measures in the case of a security threat, and would enable nationals of both nations to enlist in the defence forces of the other.
The Prime Minister has also promoted a deal for PNG to enter the National Rugby League in 2028, which acts as a major diplomatic sweetener within the wider $600m agreement. He emphasized that there was no delay to the PNG team joining the league.
Speaking at a media briefing in Port Moresby, the Australian leader said that the wording of the defence agreement had been agreed upon, but both sides required additional time to finalize their respective cabinet processes.
"This is very positive. There is no downside in this at all. It is entirely advantageous for Australia and for Papua New Guinea."
The PNG Prime Minister noted that PNG's defence capability was not sufficient to defend the nation and its population, making shared security settings with Australia essential.
He emphasized that the proposed agreement was PNG's proposal, not from Australia, and that it would not compromise PNG's sovereignty.
"This defence pact for Papua New Guinea would be the highest level of secure relations we have given to any country."
The Liberal senator Jane Hume called the postponement as "a real failure for the PM", adding that it is "really important that these deals are approached appropriately and with a assurance that they will actually come through."
China has employed development loans and financial partnerships to expand its presence with Pacific Island countries, challenging Australia's relationships with the area and straining the country's foreign policy efforts.
The Australian government believes that the two treaties can yet be finalized in the next few months.