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At close · Thu, Sep 3, 2026
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HomeGlobal MarketsTrade & TariffsAustralia reaches in-principle deal with Solomon Islan…

Australia reaches in-principle deal with Solomon Islands on treaty

The pact effort comes as Australia has pledged A$980 million in extra funding for the Solomon Islands government, and Canberra aims to reset ties as China influence becomes a concern.

Australia is nearing a treaty with the Solomon Islands, with the national broadcaster reporting that Canberra has reached an in-principle agreement with the Pacific nation. The two countries are expected to work toward signing the deal in the coming weeks, according to Australian Broadcasting Corporation, citing unidentified government officials.

The development follows recent political upheaval in the Solomon Islands, with Prime Minister Matthew Wale fending off an internal cabinet challenge after a rival withdrew over the weekend. The shift aligns with a broader change in diplomatic direction for Australia, after new Prime Minister Albanese took office and began reversing earlier efforts tied to China.

Australian funding for the Solomon Islands is also in focus, after Australia pledged A$980 million in extra support for the Solomon Islands government, according to a leaked text message from the Australian ambassador reported by the ABC. The report says Albanese’s administration has prioritized closer coordination with the United States and Australia over engagement tilted toward Beijing, after a prior Solomon Islands-China agreement was revealed.

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