Australian Foreign Minister Penny Wong has announced a $30 million (US$21.66 million) budget support package for Fiji to help respond to the global fuel crisis, while confirming Australia and Fiji will establish a new Vuvale Union to deepen ties between the two countries.
Speaking at a joint press conference in Suva alongside Prime Minister Sitiveni Rabuka, Wong said Australia remained committed to standing with Pacific nations during a period of global instability driven by conflict in the Middle East.
Wong praised Rabuka’s regional leadership and reaffirmed the close relationship between the two countries.
“I want to again acknowledge and thank and express our respect for Prime Minister Rabuka’s leadership in the region and Fiji’s leadership in the region.”
Wong said the worsening global fuel crisis was having a major impact on Pacific economies because of the region’s heavy dependence on oil supplies passing through the Strait of Hormuz.
“The Prime Minister spoke about the challenge of the moment. Which is, of course, the unprecedented consequences for fuel prices and the stability of global energy markets, resulting from the conflict in the Middle East.”
“As you know, 20 per cent of global oil passes through the Strait, but 80 per cent of the oil, into our region. So we are proportionally affected.”
She said Australia was actively engaging with major energy suppliers in Asia to keep fuel flowing into the Pacific.
“I spoke about the work Australia is doing with the Pacific and other partners to strengthen regional security and my message remains clear: Australia is a committed partner. We are a reliable partner.”
“We have stood with the Pacific family through challenging times in the past and we stand with you today.”
Wong said she had recently travelled to Japan, China and South Korea, while Australian Prime Minister Anthony Albanese had also visited Southeast Asian nations critical to regional energy supply chains.
“I have just come back from a visit to North Asia, the economies, the countries of Japan, China and Korea and prior to that, the Prime Minister and I were in Southeast Asia, including Malaysia, Singapore and Brunei.”
“All critical countries for our region and also critical countries for energy markets.”
“And we used those opportunities to advocate to those key suppliers, those key trading partners, the importance of keeping fuel supplies flowing to our region.”
She said Australia would continue providing both advocacy and technical assistance to Fiji and other Pacific nations.
“And we will continue to provide that advocacy and technical assistance to Fiji and other Pacific partners to respond to the current energy shock.”
Wong then announced direct financial support for Fiji’s fuel response measures.
“I also advised the Prime Minister that Australia will provide $30 million (US$21.66 million) in targeted budget support to assist with Fiji’s fuel response.”
“We understand the extent to which this is being felt as a price shock in Fiji and we want to provide our assistance.”
“It also will reinforce your role as a supply and storage hub for so many Pacific nations.”
She said Australia supported Pacific-led solutions to regional crises.
“We want a Pacific-led response to global shocks that we can all back in because that is what makes our economies stronger and more resilient.”
Wong and Australian Minister for Pacific Affairs and Defence Industry Pat Conroy also met Fiji’s Cabinet during the visit, with discussions focusing heavily on the proposed Vuvale Union.
“And I am very pleased to confirm, as Prime Minister Rabuka has said, that we have agreed that we will establish a Vuvale Union.”
“And I thank Prime Minster Rabuka again for his vision, for his leadership and his stewardship in his proposal that we are taking forward to develop a bilateral Treaty.”
Wong said the Vuvale Union would formalise and strengthen the relationship between Fiji and Australia under three pillars.
“Vuvale, of course, the best translation in English is ‘family, under one roof’, and it is a union that will rest on our shared trust, respect and responsibility.”
“It will have 3 pillars: security, economic, and people, and it will be guided by durability, sovereignty and regionalism.”
She said the agreement reflected the need for closer cooperation in an increasingly contested world.
“This reflects our shared understanding, that in a world that is challenging, and in a world that is more contested, we are stronger together.”
“We are stronger together in an agreement that is grounded in a Pacific way, and gives practical expression to the Ocean of Peace Declaration endorsed by all of the Pacific.”
Wong said the new union would deliver long-term benefits for both countries and the wider Pacific region.
“This Union will benefit our people and our region, for generations to come,” she said.
