The United States has thrown down the gauntlet in the Pacific revealing it’s to develop a deep sea port on a former military base in the Cook Islands – with New Zealand playing a core role and contributing to the cost.

Alongside Cook Islands Prime Minister Mark Brown and New Zealand’s Foreign Minister, US Deputy Secretary of State Christopher Landau has announced the US$60 million (NZ$101 million) port development on the atoll of Penrhyn – once home to a World War II military base.

The move, announced at the Pacific Islands Forum in Palau, comes as geoplitical tensions rise in the Pacific, with the US and China both exerting their influence.

In an exclusive interview with 1News, Peters called the partnership to build the major port a “landmark decision”, describing it as “a seminal moment that we are back in the game looking after our part of the world”.

He said it’s the first time in years that New Zealand has partnered up with the US in such a significant project.