New Zealand halts aid to Cook Islands over China deals

New Zealand has taken a drastic step towards one of its close partners amid a row with the self-governing nation of 17,000 people.

New Zealand’s government halted aid to close partner the Cook Islands on Thursday because of a row over agreements the Pacific island nation struck with China.

New Zealand “paused” the payments and would not resume them until the Cook Islands took “concrete steps” to restore trust, a spokesman for Foreign Minister Winston Peters said in a statement.

The self-governing Cook Islands, a country of 17,000 people, has a “free association” relationship with its former colonial ruler New Zealand, which provides budgetary assistance as well as help on foreign affairs and defence.

Cook Islands caught New Zealand off guard in February when it signed a Comprehensive Strategic Partnership agreement with China covering deep-sea mining, regional co-operation and economic issues.

New Zealand Foreign Minister Winston Peters. Picture: Mark Tantrum/AP

Mr Peters’ spokesman pointed to the “lack of consultation” surrounding the “agreements signed by the Cook Islands and China” as a reason for the aid pause.

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

Cook Islanders hold New Zealand citizenship.

New Zealand provided $180 million ($NZ194 million) to the Cook Islands over the past three years, according to government figures.

It has paused a planned $17 million ($NZ18.2 million) development assistance payment for the next financial year.

Cook Islands Prime Minister Mark Brown. Picture: Charlotte Graham-McLay/AP

“New Zealand will also not consider significant new funding until the Cook Islands Government takes concrete steps to repair the relationship and restore trust,” Mr Peters’ spokesman 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.”

The pause in funding comes as New Zealand’s Prime Minister Christopher Luxon is scheduled to meet with Chinese President Xi Jinping in Beijing on Friday.

Ahead of the meeting, Mr Luxon said he would seek to “build and develop” New Zealand’s relationship with China.

Cook Islands Prime Minister Mark Brown did not immediately respond to a request for comment.

Tourists relax at a resort on Rarotonga, Cook Islands. Picture: William West/AFP

Mr Brown survived a no-confidence vote in February over the deal with China, blaming “misinformation” from New Zealand for destabilising his country.

Mr Brown said he had consulted “for months” with New Zealand about the China deal, “but the messaging that goes out is that we never consult”.

“It becomes very clear this is not about consultation. This is about control.”

New Zealand also announced this year it would review aid to climate-threatened Pacific nation Kiribati, one of China’s warmest friends in the region.

The review came after Kiribati’s president brushed off a planned meeting with Mr Peters at the last minute.

“This was especially disappointing because the visit was to be the first in over five years by a New Zealand minister to Kiribati,” Mr Peters’ office said at the time.

“For this reason, we are reviewing our development programme in Kiribati.”

New Zealand had given some $88 million ($NZ95 million) in aid to Kiribati since 2021, according to official figures, including money for “economic development and climate resilience”.

Originally published as New Zealand halts aid to Cook Islands over China deals