New Zealand has suspended millions of dollars in budget funding to the Cook Islands, it said on Thursday, as the relationship between the two constitutionally-linked countries continues to deteriorate amid the island group’s deepening ties with China.
A spokesperson for Foreign Minister Winston Peters said in a statement that New Zealand had decided in early June to suspend payment of NZ$18.2 million (RM46.61 million) in core sector support funding for 2025-26 as this “relies on a high trust bilateral relationship”.
New Zealand and Australia have both become increasingly cautious about China’s growing presence in the Pacific region and the potential threat it poses to their national security.
In January, New Zealand also halted new development funding to the Republic of Kiribati, an island in Micronesia.
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.”
The Cook Islands Ministry of Foreign Affairs and Immigration (MFAI) said in a statement the country is committed to restoring its high-trust relationship with New Zealand and appreciated the funding support received from Wellington.
China views both New Zealand and the Cook Islands as important partners, Chinese Foreign Ministry spokesperson Guo Jiakun said at a news conference in Beijing.
He added that China, which has a comprehensive strategic partnership with the Cook Islands, was supporting its economic development. Those actions were not targeting any third party and should therefore not be interfered with, Guo said.
The Cook Islands is a self-governing country in free association with New Zealand, and Cook Islanders are New Zealand citizens. New Zealand commits to defend the South Pacific nation if asked, and the two countries 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 a development programme, according to government data.
In February, Cook Islands Prime Minister Mark Brown visited China and signed a strategic partnership spanning areas from deep-sea mining to education scholarships but excluding security ties.
New Zealand says the Cook Islands did not properly consult on the documents ahead of the signing, thereby breaching the arrangement between the two countries. Brown was told of its funding decision in early June in a letter, New Zealand said.
MFAI said there had been a “breakdown and difference in the interpretation of the consultation requirements” and this was being addressed as a matter of urgency.
The two countries have established a formal dialogue mechanism and have met twice, it said, making progress in identifying risk mitigation in regard to the agreements the Cook Islands signed with China.
