New Zealand’s Deputy Prime Minister Winston Peters says the country must increase its defense spending or risk being judged negatively by its trading partners.
Speaking from Seoul, Korea, where he met with Foreign Minister Cho Tae-yul, the deputy premier told Radio New Zealand that the government needs to surpass its current 2 percent target. He criticized the spending over the previous three years as insufficient, saying, “Two percent doesn’t cut it now. We’ve got to step up and play our role in a very changed and challenging world.” The official emphasized that New Zealand’s economic future depends on this increased investment as neighboring nations and European countries watch Wellington’s commitment closely.
Peters also hinted at potential South Korean involvement in modernizing NZ’s defense capabilities, referencing a previous defense investment with Seoul in 2016. Additionally, the deputy premier confirmed that NZ is working on a comprehensive strategic partnership deal with South Korea, aiming to finalize it by the time Seoul hosts the APEC summit later this year.
The deputy prime minister’s comments come as the United Kingdom announced it will raise its defense spending to 2.5 percent of GDP by 2027.
NZ Prime Minister Christopher Luxon and Defence Minister Judith Collins also recently expressed intent to spend more on defense, with Collins set to release a defense capability plan in the coming months. The plan, which was delayed last year, is expected to outline defense allocations for major capabilities in the air, maritime, land and information domains. In June, Reuters reported that New Zealand’s defense budget for this year will be cut by 6.6 percent, reducing spending from $3.25 billion to $3.03 billion.