Tokelau is facing a major financial crisis after its membership in a crucial regional fisheries body was abruptly terminated.
The three‑atoll Aotearoa New Zealand territory, home to around 1,600 people, is now poised to lose as much as two‑thirds of its government revenue after being excluded from the Vessel Day Scheme (VDS) operated by the Parties to the Nauru Agreement (PNA).
The PNA is an alliance of eight Pacific nations — Federated States of Micronesia, Kiribati, Marshall Islands, Nauru, Palau, Papua New Guinea, Solomon Islands, and Tuvalu. Tokelau had been a participating party until earlier this year.
Under the VDS, PNA members sell tuna purse‑seine vessels the right to fish in their exclusive economic zones. A single vessel day typically sells for between US$8,000 and US$10,000, and the scheme collectively generates around US$500 million annually for its members.
Tokelau has never publicly disclosed its VDS income, but with an allocation of 1,000 vessel days, available pricing indicates Tokelau earned about US$8 million per year — roughly 46 percent of its NZ$30 million (US$17.39 million) annual budget.
Why Tokelau was expelled remains unclear. The PNA headquarters in Majuro has not responded to questions.
In Wellington, a spokesperson for the Ministry of Foreign Affairs and Trade — which oversees Tokelau’s administration — confirmed the termination in a statement to Pacific Newsroom: “New Zealand understands from Tokelau that its participation in the PNA Vessel Day Scheme was terminated in February 2026. We also understand that the Government of Tokelau is trying to reverse this decision as a matter of priority. New Zealand stands ready to support Tokelau.”
No further comment was provided.
On 01 June, while visiting Samoa, New Zealand Foreign Minister Winston Peters met with Tokelau Ulu (head of government) Alapati Tavite and other Tokelauan leaders.
Posting on X, Peters said: “The Minister remarked on the deep significance of this year for our relationship, with 2026 marking the centenary of New Zealand’s administration of Tokelau. We are proud to stand beside Tokelau as its primary partner… a responsibility to which we remain seriously committed.”
He made no mention of the PNA issue.
Meanwhile, Global Fishing Watch data shows that since Tokelau’s expulsion in February, virtually no legal fishing has occurred in Tokelau’s EEZ, indicating a substantial and immediate loss of revenue.
Fisheries income accounts for around 95 percent of Tokelau’s own‑source revenue, derived from the VDS, bilateral fishing licences, vessel‑day transfers, and the United States Tuna Treaty.
New Zealand’s annual support grant to Tokelau typically ranges between NZ$15 million (US$8.69 million) and NZ$25 million (US$14.49 million), meaning the loss of VDS income would leave a severe funding gap even with increased assistance.
