Australia to invest $600 million in Pacific drug smuggling crackdown

The federal government is expected to tip $600 million into a new Pacific scheme designed to tackle the surge of drug smuggling into the region, including into Australia.

It comes as leaders grapple with increasingly sophisticated and determined criminal cartels trafficking cocaine and methamphetamines into the country.

Prime Minister Anthony Albanese is set to announce the investment at the Pacific Islands Forum in Palau today, as leaders prepare to endorse the Waqa Moana initiative aimed at bolstering surveillance of the vast Pacific Ocean and helping authorities to intercept smuggling vessels and so-called narco subs.

The new funding package, which will be spread over several years, will see Australia spend more on aerial surveillance across the Pacific, as well as additional training and support for police in the region.

The new plan is also designed to help police across the Pacific region improve coordination to tackle the trade, while also bolstering Australian Federal Police cooperation with South and Central American countries in an attempt to target the source of the illegal drugs.

Drug smuggling in Pacific fuelled by Australian demand for illicit drugs

Australian and Pacific authorities have become increasingly concerned by the way the drug trade has contributed to social breakdown and police corruption in parts of the region, as well as its contribution to serious health problems like the HIV crisis in Fiji.

The government is also conscious that the drug smuggling trade ravaging some Pacific communities is being fed by Australia's appetites for illegal drugs, with smugglers keen to reach the lucrative markets of major cities such as Sydney, Brisbane and Melbourne.

Mr Albanese said the Pacific was Australia's "home and family".

"That's why it's in Australia's interests to work with our Pacific partners to combat organised crime," he said.

Earlier this year, Australian Federal Police declared the surge in drug smuggling a serious national security threat to both Australia and the region, with more than 17 tonnes of illicit cocaine and methamphetamine seized so far this year.

That is up from 5.5 tonnes in 2025.

Drug smuggling to be on agenda at Pacific Islands Forum

The announcement comes as Pacific leaders prepare for their major meetings at the Pacific Islands Forum in Palau, with the plenary session today and a private retreat on Thursday.

The early stages of the gathering were disrupted by another diplomatic stoush; between China and Taiwan. Palau has given Taiwan a more prominent role at this year's meeting, as one of its three remaining Pacific allies.

China's envoy to the Pacific, Qian Bo, threatened that including Taiwan would have "consequences", while Chinese Foreign Ministry spokesman Guo Jiakun said the "Taiwan authorities will only end up bringing humiliation upon themselves".

But Taiwan's Foreign Minister, Lin Chia-Lung, issued a sharp response on Tuesday, saying China was trying to "squeeze our international space and coerce our allies".

He also compared China to a guest at a party who acted like a host and created an unpleasant atmosphere for everyone.

"We should not make compromises because of China's bullying," he said.