Vanuatu and New Caledonia have signed a free trade agreement.
The deal was signed on Tuesday by Vanuatu Prime Minister Charlot Salwai and his counterpart Philippe Germain.
According to New Caledonia Trade Invest, it will lift taxes and duties on forty products in both countries.
A committee has been charged with reviewing and updating the list each year.
Vanuatu's Foreign Ministry said on Facebook it was an historic agreement.
