New Zealand election: Labour would rethink US alignment and recognise Palestine

New Zealand’s opposition Labour Party would rethink the country’s close alignment with the United States if it wins the general election on Saturday, 7 November. Its foreign affairs spokesperson, Vanushi Walters, set out the position in an interview with Australian Associated Press (AAP), published on 31 October.

“New Zealand must restore our independent foreign policy,” Walters said. She said relations with the United States and China were “equally important” to New Zealand, and criticised Prime Minister Chris Luxon for describing New Zealand as a “force multiplier” for the US in the Pacific.

Walters said Labour would review last year’s NZ$12 billion defence capability review, which would almost double the defence budget to 2 per cent of GDP. On Palestine, she said a Labour-led government would recognise a Palestinian state, impose sanctions on Israel and join South Africa’s case at the International Court of Justice, which alleges Israel’s military actions in Gaza breach the Genocide Convention. Labour would also aim to lift foreign aid to the UN target of 0.7 per cent of gross national income, up from 0.27 per cent — about NZ$1.1 billion a year.

The governing coalition disagrees. Foreign Minister Winston Peters called Labour’s position “silly” and out of touch with “the most uncertain times in 80 years”. The National Party proposes cutting foreign aid by 10 per cent to help pay for medicines at home, while its coalition partner ACT promises a 27 per cent cut. Polls point to a tight race.

Why it matters

New Zealand has long prided itself on an independent foreign policy, but the coalition has moved the country closer to the United States and Australia, including through combat-capable defence cooperation with Canberra. The election will decide whether that direction continues or is reversed — and with it, New Zealand’s stance on Palestine, its defence spending and how much aid it gives.

What happens next

New Zealanders vote on Saturday, 7 November. If Labour wins, Walters is expected to become foreign minister, and her first tests would be the defence review, the Palestine recognition decision and the aid budget. If the coalition is returned, Peters has said he will keep resisting cuts to the foreign ministry’s budget and aid.

This article is for general information and education only. It is not legal or financial advice.

Sources

• https://aapnews.aap.com.au/news/palestine-defence-aid-in-dispute-this-nz-election (AAP, 31 October 2026)
• https://annafifieldnz.substack.com/p/labour-led-government-would-join (Anna Fifield, 29 October 2026)