Australia has announced a $600 million investment to combat transnational drug trafficking flowing through the Pacific, a move aimed at curbing the flow of illicit drugs into Australian markets and addressing the destabilising effects of the trade on Pacific communities. The package, to be delivered over the next 10 years, was announced by Prime Minister Anthony Albanese at the Pacific Islands Forum in Palau, according to reports from ABC Australia and The Canberra Times.

The funding will support enhanced aerial surveillance across the Pacific, as well as additional training and support for police and border forces in the region, the outlets reported. The plan is designed to help police across the Pacific improve coordination to tackle the illicit drug trade, including through better information-sharing and the use of existing patrol boats. A coordination centre in Samoa would receive and analyse intelligence and surveillance, while a Fiji-based maritime body would put out interdiction requests for individual countries to act on, according to PerthNow.

Pacific Minister Pat Conroy said the initiative responds to regional leaders' calls for more action. "Drug trafficking is having a devastating impact on Pacific communities," he said, adding, "This initiative responds to the calls of regional leaders to do more, and to step up regional coordination to address this scourge."

Rising drug flow and regional impact

The announcement comes as authorities report a significant increase in drug trafficking through the Pacific. Australian Federal Police data cited in the reports shows that in the first five months of this year, 17 tonnes of illicit drugs — mostly cocaine — were seized in the region. This follows about 4.6 tonnes of illicit drugs seized in 2025, according to The Canberra Times and PerthNow.

The surge has been linked to increased gang activity in Samoa and Tonga, as well as a sharp rise in the HIV rate in Fiji, the outlets reported. Officials have expressed concern about the drug trade's contribution to social breakdown and police corruption in parts of the region, as reported by ABC Australia. The trade also "ravaging some Pacific communities" is fed by Australian demand for illegal drugs, with smugglers targeting lucrative markets in cities like Sydney, Brisbane and Melbourne, according to the same outlet.

Australian Federal Police have declared the surge in drug smuggling a serious national security threat to both Australia and the Pacific region, ABC Australia reported. The new package also bolsters cooperation with South and Central American countries to target the source of the drugs, it added.

Albanese, speaking in Palau, said the Pacific was Australia's "home and family," adding, "That's why it's in Australia's interests to work with our Pacific partners to combat organised crime," as quoted by ABC Australia.

The 'Waqa Moana' partnership

Leaders at the Pacific Islands Forum are expected to consider the "Waqa Moana" partnership, which builds on Australia-led security infrastructure in the region. The initiative would improve coordination among Pacific nations, which officials say is lacking and is being exploited by crime syndicates, according to PerthNow. The partnership is seen as a way to enhance surveillance of the vast Pacific Ocean and intercept smuggling vessels, including so-called narco subs, ABC Australia reported.

The proposal comes two years after Australia announced a similar investment in the Pacific Policing Initiative, which created training hubs for regional police and a multi-country force that can deploy on request, according to PerthNow.

Diplomatic tensions with China

The announcement coincided with diplomatic friction over Taiwan. China's envoy to the Pacific, Qian Bo, threatened that including Taiwan would have "consequences," according to ABC Australia. Chinese Foreign Ministry spokesman Guo Jiakun said the "Taiwan authorities will only end up bringing humiliation upon themselves," the outlet reported.

In response, Taiwan's Foreign Minister Lin Chia-Lung issued a sharp rebuke, comparing China to "a guest at a party who acts like a host" and creates an unpleasant atmosphere, as reported by ABC Australia. "We should not make compromises because of China's bullying," he said.

The Pacific Islands Forum in Palau is set to run through the week, with leaders expected to endorse the Waqa Moana initiative.