New Zealand said it will strengthen economic and diplomatic ties with Niue, a self-governing island nation in “free association” with it, after a meeting between the two countries’ leaders 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.

Prime Minister Christopher Luxon and his Niue counterpart Dalton Tagelagi agreed to adhere to a "foundational politicaldeclaration".

Luxon said, "By establishing the first enduring politicaldeclaration with Niue today, we are celebrating our relationship of free association and setting out our responsibilities to eachother, as well as our shared goals."

The talks covered Pacific regionalism, security and defence, climate, economy and governance issues.

Niue, known informally as the Rock of Polynesia, has ties with New Zealand to provide economic aid, and foreign affairsand defence assistance if sought.

In 2023, the United States recognised Niue as a sovereign, independent state but it is regarded as a realm country of New Zealand within the British Commonwealth.

In a joint statement, both countries pledged to maintainopen communication and mutual respect if any disputes arise withother members of the realm of New Zealand.

Neither will engage in activities, pacts or schemes withthird parties that would compromise their commitments in thedeclaration, they added.

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