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New Zealand Halts Funding To Cook Islands Over China Ties

A spokesperson for New Zealand Foreign Minister Winston Peters said in a statement that the country's core sector support funding relies on a high trust bilateral relationship and New Zealand decided in early June to pause the funding.
New Zealand Cook Islands
New Zealand's Prime Minister Christopher Luxon arrives at the National Cemetery in Seoul, South Korea, September 4, 2024. REUTERS/Kim Hong-Ji/File Photo

New Zealand on Thursday announced the suspension of NZ$18.2 million ($10.97 million) in budget support to the Cook Islands, as ties between the two constitutionally linked nations strain further over the Cook Islands’ growing engagement with China.

A spokesperson for New Zealand Foreign Minister Winston Peters said in a statement that the country’s core sector support funding relies on a high trust bilateral relationship and New Zealand decided in early June to pause the funding.

No Funding Till Trust Restored

We “will also not consider significant new funding until the Cook Islands Government takes concrete steps to repair the relationship and restore trust”, the spokesperson said.

“New Zealand hopes that steps will be taken swiftly to address New Zealand’s concerns so that this support can be resumed as soon as possible.”

China’s Potential Threat

New Zealand along with Australia has become increasingly cautious about China’s growing presence in the Pacific region and the potential threats it poses to the country’s national security. In January, the government halted new development funding to the Republic of Kiribati, an island in Micronesia.

The Cook Islands is a self-governing country in free association with New Zealand. New Zealand commits to defend the South Pacific nation if asked, Cook Islanders are New Zealand citizens, and the two countries commit to consult on security, defence and foreign policy issues.

Over the past three years, New Zealand has provided NZ$194.2 million to the Cook Islands through the development programme, according to the government.


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Gap In Understanding

In February, Cook Islands Prime Minister Mark Brown visited China and signed a strategic partnership that spanned areas from deep-sea mining to education scholarships but excluded security ties.

This concerned New Zealand, which says the Cook Islands did not properly consult on the documents ahead of the signing, which breached the arrangement between the two countries.

The Cook Islands government had not responded to a request for comment at the time of publishing. The New Zealand government said Brown was told of the decision in early June by letter.

Peters’ spokesperson said that the agreements signed by the Cook Islands and China and the lack of consultation with New Zealand about them, illustrate a gap in understanding between the Cook Islands and New Zealand governments about what their special relationship of free association requires.

“Trust and meaningful engagement are fundamental to free association,” he said.

($1 = 1.6589 New Zealand dollars)

(With inputs from Reuters)