Tokelau loses nearly two-thirds of revenue after fisheries pact expulsion

Tokelau, a small self-governing territory, is facing a severe financial crisis after losing more than 60 percent of its fishing revenue in just five months. The territory was expelled from the Vessel Day Scheme (VDS) of the Parties to the Nauru Agreement (PNA), a crucial pact that allows Pacific member countries to license fishing activities in their waters. The exact reason for Tokelau's expulsion remains unclear.

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NZ officials are working to better understand the matter in detail with a view to supporting Tokelau to seek readmission.

This significant loss of income has compelled Tokelau to revise its government budget, as offshore fisheries represent its sole source of independent revenue. The estimated annual revenue from its Exclusive Economic Zone was around NZ$15 million, meaning the loss since February could be close to NZ$9 million. Consequently, Tokelau's reliance on financial assistance from New Zealand has intensified.

New Zealand officials are actively working to understand the situation and support Tokelau's bid for readmission into the VDS. However, the PNA, a coalition of Pacific nations administering the VDS, may be hesitant to readmit Tokelau. Concerns have been raised regarding the extent of New Zealand's influence over Tokelauan fisheries, particularly since New Zealand is not a member of the PNA.

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Tokelau is seeking readmission to the PNA Vessel Day Scheme as a priority and is engaging with PNA members directly.

Minutes from a PNA summit indicated "regret at Tokelau's situation with New Zealand," but offered no clear path for readmission. A Tokelau government spokesperson declined to comment, deeming the matter "sensitive." Meanwhile, the New Zealand Ministry of Foreign Affairs and Trade (MFAT) continues to advocate for Tokelau at regional forums, emphasizing Tokelau's priority to rejoin the VDS.

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The decision on Tokelau's readmission to the VDS is a matter for PNA Ministers.