New Zealand has stopped its financial aid to the Cook Islands. This move came after the Pacific nation unexpectedly signed a major agreement with China.

According to a spokesperson for Foreign Minister Winston Peters, New Zealand will not resume aid unless the Cook Islands takes “concrete steps” to rebuild trust.

China Deal Took New Zealand by Surprise

In February, the Cook Islands signed a Comprehensive Strategic Partnership with China. This agreement included cooperation on deep-sea mining, regional policies, and economic issues.

However, New Zealand said it had not been consulted before the deal. As a result, Peters’ office raised concerns about trust and transparency.
“Trust and meaningful engagement are fundamental to free association,” the spokesperson said.

Long-standing Ties Now Under Strain

The Cook Islands, which has a population of about 17,000, is self-governing. Still, it shares a special “free association” agreement with New Zealand. This gives New Zealand responsibility for areas like foreign affairs, defence, and budgetary support.

Over the past three years, New Zealand gave the Cook Islands nearly US$116 million in aid. Now, it has paused a US$11 million payment planned for the next financial year.

Moreover, New Zealand said it would not approve any major new funding until the Cook Islands works to restore the strained relationship.

Luxon Heads to China Amid Tensions

Interestingly, the aid suspension comes just before Prime Minister Christopher Luxon visits China. He is expected to meet President Xi Jinping in Beijing on Friday.

Despite the timing, Peters said the aid freeze was unrelated. He also revealed that he had discussed the Cook Islands’ agreement with China’s Foreign Minister Wang Yi earlier this year.

Cook Islands Leader Accuses NZ of Control

Meanwhile, Cook Islands Prime Minister Mark Brown has not responded to the latest development. But back in February, he defended the China deal after surviving a no-confidence vote in his parliament.

At the time, Brown accused New Zealand of spreading misinformation. “It becomes very clear this is not about consultation. This is about control,” he said.

Analysts Weigh In on Security and Strategy

Former Australian diplomat Mihai Sora said the Cook Islands acted deliberately and confidently. “It’s not surprising that New Zealand has reacted in such a way,” he told AFP.

He explained that New Zealand wants to keep China from expanding its influence in the Pacific.
“If Cook Islands pushes closer to China in a way that threatens New Zealand’s national security, it’s really not possible to have such intimate ties,” he added.

Kiribati Also Faces New Zealand Review

In a related move, New Zealand is reviewing its aid to Kiribati, a Pacific nation closely aligned with China. The review came after Kiribati’s president canceled a planned meeting with Peters at the last minute.

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

Since 2021, New Zealand has provided US$57 million to Kiribati for economic growth and climate projects.