Australia inks $518m rugby deal with PNG to combat China's influence

Canberra can withdraw support if Papua New Guinea signs security pact with China or other countries

- Jonathan Pearlman

SYDNEY - Australia and Papua New Guinea (PNG) have announced a deal worth A$600 million (S$517.7 million) to include a PNG team in Australia's National Rugby League, but with a caveat that the unusual arrangement will be scrapped if PNG signs security pacts with China or other countries.

The deal announced in Sydney on Dec 12 by the prime ministers of both countries marks a dramatic win for Canberra in its battle with Beijing for influence in the Pacific.

To try to counter Beijing's efforts to form a security partnership with PNG, the rugby league deal includes a confidential clause that reportedly enables Canberra to withdraw support for the new team if PNG fails to keep Australia as its primary security partner.

Welcoming the deal during a visit to Sydney, PNG Prime Minister James Marape said it would be "pivotal in anchoring the PNG-Australia relationship".

He said PNG had committed to having Australia as its primary security partner before the rugby league deal was confirmed.

"Is Australia pushing this on us? Far from it," he added. "It's in our interest to have a secure PNG, a secure border, a secure relationship - (the new) team is a benefactor of the security arrangements."

Australian Prime Minister Anthony Albanese, an avid rugby league fan, confirmed that he had committed A$600 million over 10 years to support the inclusion of a PNG team, which will be based in PNG's capital Port Moresby, and will compete from 2028.

"We work together, and part of that working together is because of our common values," he told reporters.