New Zealand beefs up ties with Niue amid Cook Islands row

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.

* Prime Minister Christopher Luxon and his Niue counterpartDalton Tagelagi agreed to adhere to a "foundational politicaldeclaration". * Luxon said, "By establishing the first enduring politicaldeclaration with Niue today, we are celebrating our relationshipof free association and setting out our responsibilities to eachother, as well as our shared goals." * The talks covered Pacific regionalism, security anddefence, climate, economy and governance issues. * Niue, known informally as the Rock of Polynesia, has tieswith New Zealand to provide economic aid, and foreign affairsand defence assistance if sought. In 2023, the United Statesrecognised Niue as a sovereign, independent state but it isregarded as a realm country of New Zealand within the BritishCommonwealth. * 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.

($1=1.7443 New Zealand dollars)

(Reporting by Renju Jose in Sydney; Editing by Clarence Fernandez)

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