WELLINGTON: New Zealand has formally declined an invitation to join a NATO-backed defence and security bank, saying its defense industry could benefit more from other policies and initiatives.
New Zealand’s Ministry of Foreign Affairs confirmed that Wellington had rejected the offer to join the bank, which was launched with Canadian support.
The institution is intended to provide financing to help equip NATO member states and partner countries.
According to a local broadcaster citing the New Zealand Ministry of Defence, available data and assessments showed that the country’s defense industry would gain greater benefits from other measures and policies.
The government said the decision was based on an assessment of the potential advantages available through alternative approaches, including measures aimed at improving access to open markets.
The move comes as NATO and its partner countries seek to expand defense financing and strengthen the alliance’s industrial capacity amid growing security concerns.
New Zealand maintains close defense and security ties with NATO despite not being a member of the alliance. It is one of NATO’s Indo-Pacific partners, alongside Australia, Japan and South Korea.