Kudos to New Zealand for making the gutsy call to cease funding altogether to the Cook Islands. Nonetheless, this decision is in context of the island nation increasingly aligning itself with China. In February, the Cook Islands entered what they termed a Comprehensive Strategic Partnership with China. This agreement features an initial $4 million, one-time grant to increase collaboration on trade, investment, and the development of seabed minerals. Winston Peters, New Zealand’s Foreign Minister, told Cook Islands Prime Minister Mark Brown of the funding pause in early June. That announcement was a watershed moment in the bilateral relations between their two countries.
The immediate impact of the suspension of funding will be most strongly felt in FY 2025-26. It additionally halts $16.9 million in economic support for this fiscal year. In the last three years, New Zealand has spent more than $179 million on these initiatives. This substantial funding is life changing for the Cook Islands. Even though the Cook Islands are self-governing in free association with New Zealand, they’re not without their struggles. Recent developments have raised alarm over what their rapidly expanding relationship with China might mean.
Growing Concerns Over China Partnership
The Cook Islands and China have since agreed on a Comprehensive Strategic Partnership. This collaborative relationship, a five-year, $174 million partnership, is aimed at improving trade and investment between the two countries. New Zealand’s government understandably had a lot of fears about this partnership, especially because of its absence of security or defense clauses.
Winston Peters’s spokesperson articulated that the suspension was necessary because “the Cook Islands government did not engage with New Zealand in advance of their discussions and agreements with China to ensure our shared interests were not put at risk.” This statement highlights New Zealand’s desire to maintain oversight and collaboration regarding any international agreements that could affect both nations.
New Zealand’s Prime Minister Mark Brown strongly defended the partnership, claiming that it is not about security or defense matters. Nevertheless, he voiced disappointment that New Zealand’s choice to suspend funding gives the impression of a localized lack of consultation. “The messaging that goes out is that we never consult,” he stated. Brown continued, “It’s very obviously apparent that this isn’t about consultation. This is about control.”
The Reaction from Local Leaders
Reactions from local leaders have poured in, often emphasizing their disappointment at the funding suspension. Tina Browne, a prominent figure in the region, conveyed her dismay: “I’m horrified, I’m really disappointed for our people because of the decision that this government made without being transparent with our people at the time last year.” Her comments resonate with the sentiments of countless residents. Not surprisingly, they’re the first to feel the pain of bad decisions made at the state or federal levels.
Yet, for as much as she had hoped to see a different outcome, Browne recognized the logic of New Zealand’s stance. “I do understand the reasons why, they (New Zealand) can’t keep feeding us and then we’re running away and straying,” she expressed. Local leaders know that the best way to avoid that scenario is with firm accountability. Simultaneously, they face the impact of global affairs.
Future Implications and Next Steps
As New Zealand’s Prime Minister Christopher Luxon embarks on a visit to China to meet President Xi Jinping, he aims to strengthen and develop relationships between the two countries. Yet this visit comes against a backdrop of heightened tensions, brought on by the Cook Islands’ strategic pivot towards China. New Zealand has doubled down on its public concerns over the Cook Islands’ growing partnership with China.
New Zealand calls on the Cook Islands to move with greater speed in dealing with areas of concern. Through these efforts, they hope to regain trust and restart the flow of philanthropic support. How these discussions play out will be crucial in shaping how the two countries manage their relationship in the years ahead.
