New Zealand Halts Funding to Cook Islands Over China Agreements

New Zealand has suspended millions of dollars in funding to the Cook Islands due to concerns over the agreements the smaller Pacific nation made with China. This decision was announced by officials from the New Zealand Foreign Minister’s office. New Zealand, a major financial supporter of the Cook Islands, will not consider new funding until the relationship improves.

The move reflects growing tensions between the two countries, which have strong constitutional ties. The Cook Islands is self-governing but shares military and passport arrangements with New Zealand. The funding halt of 18.2 million New Zealand dollars was revealed in a government budget document.

The suspended funds were intended for "core sector support," which includes health, education, and tourism in the Cook Islands. This funding is part of a larger 200 million New Zealand dollar commitment over the past three years, stemming from a long-standing free association compact. This compact requires the Cook Islands to consult with New Zealand on agreements with other countries that could impact New Zealand.

The agreements with China have become the first serious test of these rules. The Cook Islands, with a population of 15,000, has a significant exclusive economic zone and is exploring deep-sea mining. Cook Islanders can freely live and work in New Zealand, which raised national security concerns in Wellington when officials learned of the agreements signed by Cook Islands Prime Minister Mark Brown.

The agreements with China included increased funding for infrastructure projects and educational scholarships. The spokesperson for New Zealand's Foreign Minister stated that the agreements revealed a "gap in understanding" regarding the requirements of their special relationship, including consultation to protect shared interests. The "breadth and content" of the deals and the lack of consultation prompted a review of funding. New Zealand has paused payments and will not consider new funding until the Cook Islands takes steps to repair the relationship and restore trust.