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2d ago

New Zealand Suspends NZ$18.2 Million Funding to Cook Islands Over China Partnership

Winston Peters says the halt will stay in place until the Cook Islands addresses consultation breaches under their free association

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A fisherman casts his net into the lagoon on the main island of Rarotonga, in the Pacific Ocean state of the Cook Islands on June 13, 2025.
A view from the ocean of a small town, boats at dock and forest-covered hills.
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Overview

  • New Zealand halted NZ$18.2 million in core sector support funding in early June after the Cook Islands signed deep-sea mining and scholarship agreements with China without prior consultation.
  • Under the free association arrangement, New Zealand commits to defend the Cook Islands if asked and requires consultation on foreign policy, defence and security matters.
  • The funding freeze suspends support for health, education and tourism projects until Wellington is satisfied that the Cook Islands has restored trust in their bilateral relationship.
  • Prime Minister Christopher Luxon’s first official visit to China and meeting with President Xi Jinping now faces added strain from the funding dispute.
  • Over the past three years, New Zealand has provided NZ$194.2 million to the Cook Islands through its development programme.