DistantNews
Support us
Tokelau loses nearly two-thirds of revenue after fisheries pact expulsion
🇵🇬 Papua New Guinea /Economy & Trade

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

From Post-Courier · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Tokelau has lost over 60% of its fishing revenue between February and June after being expelled from the Parties to the Nauru Agreement's Vessel Day Scheme.
  • The expulsion's cause remains unclear, but Tokelau has had to revise its budget and is now more dependent on New Zealand's financial aid.
  • New Zealand is lobbying for Tokelau's readmission to the scheme, but concerns exist about New Zealand's influence over Tokelau's fisheries.

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. This drastic revenue drop stems from its expulsion from the Vessel Day Scheme (VDS) of the Parties to the Nauru Agreement (PNA), a crucial pact that allows Pacific nations to license fishing in their waters.

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

— New Zealand Foreign Minister Winston Peters and Ulu o Tokelau Alapati Pita TaviteMinutes from a meeting discussing Tokelau's expulsion from the VDS.

New Zealand officials confirmed the significant financial blow, noting that Tokelau has been forced to revise its government budget. Offshore fisheries represent Tokelau's sole source of independent income. The OECD estimated Tokelau's 2024 revenue from its Exclusive Economic Zone at approximately NZ$15 million (US$8.91 million), suggesting the recent loss could be as high as NZD$9 million (US$5.34 million).

While the exact reason for Tokelau's expulsion remains undisclosed, correspondence suggests New Zealand is actively working to understand the situation and support Tokelau's bid for readmission. However, PNA officials have reportedly expressed concern over the extent of New Zealand's influence on Tokelauan fisheries, as New Zealand is not a member of the PNA. Minutes from a PNA summit indicated regret over Tokelau's situation with New Zealand but offered no clear path for readmission.

Tokelau’s position was not likely to change, which meant that Tokelau could no longer operate as it used to.

— Tokelau government spokespersonDescribing the impact of New Zealand's stance on Tokelau's ability to operate within the PNA.

A Tokelau government spokesperson declined to comment, labeling the matter "sensitive." Meanwhile, the New Zealand Ministry of Foreign Affairs and Trade stated it is voicing support for Tokelau at regional forums and that Tokelau is directly engaging with PNA members. The situation has increased Tokelau's reliance on New Zealand's financial assistance, with the government budgeting $138 million (US$81.95 million) for the territory between June 2024 and 2027, though this does not account for the revenue shortfall.

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

— MFAT spokespersonStating New Zealand's official position on Tokelau's readmission efforts.
DistantNews Editorial

Originally published by Post-Courier. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog