New Zealand Foreign Minister Winston Peters’ frustration over a last-minute snub by Kiribati’s President and Foreign Minister Taneti Maamau has led to a review of aid arrangements that risks pushing the small Pacific nation even closer to Beijing.
Peters had intended to visit every Pacific country early in the new government’s term, and was scheduled to meet with Maamau in Tarawa on Jan. 21–22, which would have been the first visit to the country by a New Zealand Foreign Minister in five years.
A spokesperson for Peters said in a statement that about a week before the trip, the Ministry of Foreign Affairs and Trade (MFAT) was informed that Maamau would no longer be available.
“This was especially disappointing because [it] was the result of a months-long effort to travel there,” the spokesperson said.
“New Zealand has been a long-standing partner to Kiribati. The lack of political-level contact makes it very difficult for us to agree joint priorities for our development programme, and to ensure that it is well-targeted and delivers good value for money.
“That’s important for both the people of Kiribati and for the New Zealand taxpayer. For this reason, we are reviewing our development programme in Kiribati. The outcomes of that review will be announced in due course.
“Other aspects of the bilateral relationship may also be impacted.”
Between 2021 and 2024, New Zealand spent $102 million (US$57.7 million) on health, education, fisheries, economic development, and climate resilience in Kiribati.
The review’s terms of reference are still being finalised, and it remains unclear whether funding will be cut or projects already underway will be affected. Peters’ office says no decisions will be made until the review is complete.
For now, Kiribatians will remain eligible for the Recognised Seasonal Employer (RSE) scheme. RSE visas allow people to temporarily work in New Zealand’s horticulture and viticulture industries.
Peters’ office said New Zealand deeply valued the contribution that RSE workers made to the country and was committed to working alongside its Pacific partners to ensure the scheme led to positive outcomes for all parties.
“However, without open dialogue, it is difficult to meet this commitment.”
The spokesperson said the wellbeing of the Kiribati people was central to the terms of reference, which would reflect this.
New Zealand Wants Engagement
According to Alexander Teabo, education minister in Maamau’s government, the meeting didn’t take place because the president had “a pre-planned and significant historical event”—his first state visit to Fiji.“This important event’s date was established by the Head of the Catholic Church several months prior,” Teabo said.
But Peters, in an unusually blunt statement to reporters today, said he doesn’t believe that excuse.
“It was the President who set the date [of] 21, 22 of January. Now, if he set the date, then how can the pre-book statement be correct?” Peters said.
New Zealand Defence Minister Judith Collins said she will be speaking with Peters about the issue later today.
“I think we need to be very careful about where our aid goes, how it’s being used and I agree with him, we can’t have a disrespectful relationship,” she said.
Prime Minister Christopher Luxon said he did not know if the lack of communication was due to Kiribati and the Chinese Communist Party (CCP) getting closer.
“The foreign minister has tried several times to make sure that as a new government, we can have a conversation with Kiribati and have a relationship there. As a result, it’s quite right that we say, well we’re sending taxpayer money to a place where we don’t have an engagement, we want to have an engagement, we need to be able to do that,” he said.
Luxon said decisions on what will happen to aid would be made after the review.
Will This Push Kiribati Towards Beijing?
The risk for New Zealand—and its allies, including the United States and Australia—is that the current diplomatic row could escalate Kiribati’s move away from traditional aid partners, bringing it even closer to Beijing.In 2019, at Maamau’s urging, the country switched diplomatic ties from Taiwan to China, which has since assumed a greater role in Kiribati’s development.
According to the Sydney-based Lowy Institute, Beijing became the third-largest donor in 2022, providing $23.8 million in direct aid compared to $27.1 million from Australia and $11.7 million from New Zealand.
The CCP has also built roads, supplied small farms with agricultural equipment, and dispatched teams of police to help train local officers.
In 2019, before the change in allegiance and the signing of several bilateral deals, it contributed nothing.
In December 2024, Lowy listed Vanuatu, along with the Marshall Islands, Papua New Guinea, Samoa, Tonga, and Tuvalu, as one of seven countries in the Pacific “at high risk of debt distress.” These countries are dependent on overseas aid to remain solvent, as government spending routinely exceeds revenues.
Kiribati is one of the world’s most aid-dependent nations. In 2022, foreign assistance accounted for 18 percent of its national income.
It is also built on an atoll and is among the most at risk from rising sea levels. Its proximity to Hawaii and its vast exclusive economic zone—the world’s 12th largest—make it of considerable strategic importance.
Officials in Wellington and Canberra have expressed growing frustration over Tarawa’s lack of engagement regarding development projects.
So far, Australia has taken a softer approach in response than its neighbour.
Defence Minister Richard Marles travelled to Kiribati earlier this month to deliver a patrol boat. Despite bearing gifts, he did not get to meet with Maamau and was instead fobbed off to his deputy.
However, Australia’s foreign ministry said in a statement this week that the country “remains committed to its longstanding partnership with Kiribati.”
