SYDNEY (Reuters) -New Zealand said on Thursday it would strengthen economic and diplomatic ties with Niue, a self-governing island nation in “free association” with it, after their leaders met in Auckland.
The move follows a deterioration in relations with Cook Islands, with which New Zealand has similar ties. This week, Foreign Minister Winston Peters said New Zealand was extending until June 2026 its suspension of direct budget payments to the Cook Islands.
New Zealand suspended funding of NZ$18.2 million ($10.43 million) in June, over concerns about a lack of transparency in Cook Islands’ growing ties with China. The suspension amounts to NZ$30 million in two years of aid payments.
($1=1.7443 New Zealand dollars)
(Reporting by Renju Jose in Sydney; Editing by Clarence Fernandez)
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