NEW ZEALAND HALTS COOK ISLAND FUNDING AMIDST CHINA ROW from Vajirao & Reddy Institute

NEW ZEALAND HALTS COOK ISLAND FUNDING AMIDST CHINA ROW

• On June 19, 2025, New Zealand suspended NZ$18.2 million ($11.0 million) in core sector support funding to the Cook Islands for 2025-26.
• This decision reflects deteriorating relations, primarily due to the Cook Islands' deepening ties with China and New Zealand's concerns over lack of consultation.

• Special Relationship: The Cook Islands is a self-governing nation in free association with New Zealand, sharing citizenship and New Zealand's defence commitment if requested.
• The 2001 Joint Centenary Declaration mandates consultation on security, defence, and foreign policy.
• New Zealand has been the Cook Islands' primary development partner, providing significant financial support (NZ$194.2 million over 3 years).
• China's Pacific Influence: New Zealand (and Australia) are increasingly cautious about China's growing presence in the Pacific, perceiving it as a potential national security threat.
• New Zealand previously halted development funding to Kiribati in January, indicating broader concerns.
• China-Cook Islands Strategic Partnership: In February 2025, Cook Islands PM Mark Brown signed a strategic partnership with China covering deep-sea mining, education, and economic cooperation, excluding security ties.
• New Zealand's grievance is the lack of proper consultation before this signing, breaching their established arrangement.

• Funding Suspension: New Zealand halted core sector funding, citing reliance on a "high trust bilateral relationship."
• Conditions for Resumption: New Zealand will resume significant funding only when the Cook Islands takes "concrete steps to repair the relationship and restore trust."
• Diplomatic Message: This move aims to emphasize the importance of consultation and adherence to the free association principles.
• Broader Context: The announcement coincided with New Zealand PM Christopher Luxon's visit to China, where he intended to raise concerns about China's Pacific engagements.

• Commitment to Repair: The Cook Islands Ministry of Foreign Affairs and Immigration (MFAI) expressed commitment to restoring the high-trust relationship and appreciated New Zealand's past support.
• Security Stance: The Cook Islands reiterated that New Zealand remains its "closest partner for security and defence."

• Location: 15 small islands in the South Pacific Ocean, spread over 2 million sq. km. Positioned in the center of the Polynesian Triangle, roughly halfway between Hawaii and New Zealand.
• Neighbors: East of Niue, Tonga, and Samoa; northeast of New Zealand; south of Kiribati; west of French Polynesia.
• Total Land Area: 240 sq. km.

• Island Groups: Divided into two main groups separated by a vast distance:
  • Northern Group (6 islands): Mostly low-lying, sparsely populated coral atolls (e.g., Manihiki, Penrhyn, Pukapuka). Known for light vegetation and white sand beaches.
  • Southern Group (9 islands): Generally larger, higher islands of volcanic origin, more densely populated (e.g., Rarotonga, Aitutaki, Mangaia).
• Highest Point: Te Manga (652 m) on Rarotonga Island.
• Capital & Population Centre: Avarua, located on Rarotonga Island, which hosts most of the population.

• Self-Governing: A self-governing island country.
• Free Association with New Zealand: An arrangement dating from August 1965. This unique relationship implies:
  • Citizenship: Cook Islanders hold New Zealand citizenship.
  • Free Access: They enjoy the right of free access to New Zealand and, by extension, Australia.
  • Defence & Foreign Policy: New Zealand commits to defend the Cook Islands if asked, and the two countries consult on security, defence, and foreign policy.
• System of Government: Parliamentary democracy under a constitutional monarchy.
• Currency: New Zealand Dollars (NZD).

• Naming: Named after Captain Cook, who explored them in 1773.
• Ancestry: Historically autonomous, home to tribes of mixed Polynesian ancestry.