Australia’s ‘shameful’ cocaine habit prompts $600m Pacific package

Koror City, Palau: Prime Minister Anthony Albanese will pledge $600 million for a new Pacific-wide initiative to combat the surge of illicit drug smuggling in the region, especially cocaine bound for Australia.

The major funding commitment came as Albanese pushed back against China’s Pacific envoy for threatening retaliation and lodging complaints over Taiwan’s presence at the Pacific Islands Forum in Palau, declaring it was up to Pacific nations to determine their own affairs.

Tensions between Taiwan and China escalated as officials traded barbs, with Taiwan accusing Beijing of bullying smaller nations and China accusing the self-governing territory of humiliating itself.

As they struggle to cope with a dramatic rise in transnational crime fuelling the illegal drug trade, Pacific leaders are preparing to endorse a new regional initiative known as Waqa Moana to beef up maritime patrols and intelligence sharing.

The $600 million package Albanese will announce on Wednesday would fund enhanced aerial surveillance to help track suspected drug vessels and provide extra support to police in Fiji, among the nations hardest hit by the rise in drug smuggling.

The Waqa Moana initiative – named after a large, sturdy canoe – would include greater co-ordination of existing resources to combat transnational crime, including the 23 Guardian-class patrol boats Australia has given to Pacific countries.

Federal police would also increase their co-operation with South and Central American countries to target the drug trade at its source.

“The Pacific is our home and our family. That’s why it’s in Australia’s interests to work with our Pacific partners to combat organised crime,” Albanese said.

“For the good of every country in the region, including our own – we need to work together to stamp out the illicit drug trade.”

Pacific leaders are expected to officially endorse the initiative at the end of the week.

Australian Federal Police Commissioner Krissy Barrett declared in May that “it is our nation’s shame that Australians consume too many illicit drugs and pay high prices for them”.

At the same time, Barrett revealed that 17 tonnes of illicit drugs, mostly cocaine, had been seized by authorities in the Pacific since January, up from less than five tonnes in all of 2025.

Barrett warned that “greedy and ruthless narco-gangs are trying to make more money by identifying new ways to traffic illicit drugs”, including by sending semi-submersible vehicles (widely known as narco-submarines) to cross the Pacific.

“The magnitude and endless maritime trafficking of illicit drugs to, and through the Pacific, has become a serious national security threat for the Pacific and Australia,” she said.

A multinational police investigation implicating 11 Fijian police officers in collusion with drug traffickers was also handed over to prosecutors in May.

A month later, Fijian police confirmed that 76 parcels that washed up in the country had been found to contain cocaine.

Pacific Minister Pat Conroy said: “Drug trafficking is having a devastating impact on Pacific communities.

“This initiative responds to the calls of regional leaders to do more, and to step up regional coordination to address this scourge.”

Speaking after the forum’s opening ceremony, China’s special envoy for the Pacific Qian Bo said he had “serious concerns” about the level of access being granted to Taiwan, a self-governing island that China claims as an integral part of its territory.

“We have made our position very clear to the government of Palau and the secretariat,” he told reporters.

Chinese Foreign Ministry spokesman Guo Jiakun doubled down on Tuesday, telling reporters in Beijing that Taiwan “has no standing whatsoever” to participate in PIF activities.

“By sending ‘Taiwan independence’ separatists like [Taiwan Foreign Minister] Lin Chia-lung around to scheme for attention and clout, the Taiwan authorities will only end up bringing humiliation upon themselves,” Guo said.

He also rejected New Zealand Foreign Minister Winston Peters’ claim that the non-attendance of several leaders was “highly suspicious”, insisting it was “completely groundless” to blame China for the no-shows.

Lin urged Pacific leaders to hold firm against Beijing’s demands as he accused Qian of practicing an aggressive form of “wolf warrior diplomacy”.

“We should not be making concessions just because of China’s bullying,” he said.

He told reporters Taiwan had been a PIF development partner since 1993, and he had “every confidence” it would participate in next year’s conference in New Zealand. Blocking Taiwan from participating would “violate the spirit of the Pacific way”, he said.

China, the United States and other countries serve as official dialogue partners of the PIF, while Taiwan attends as a development partner.

Palau is one of a handful of remaining countries in the world that still recognise Taiwan, rather than Beijing, as the legitimate government of China.

Saying he believed China had the support of most Pacific nations over the issue, Qian said that “there will always be consequences” when China is unhappy about a decision.

Asked about Qian’s comments on Tuesday, Albanese told reporters: “The Pacific Islands Forum determines what happens here, not any other country.”

Albanese, who has previously holidayed in Palau, rejected the Chinese tourism ministry’s warnings of robberies, describing the Micronesian nation as a “paradise”.

Asked about China’s warning of consequences, Foreign Minister Penny Wong said: “I think the Pacific should be able to determine its own relationships.”

Opposition foreign affairs spokesman Ted O’Brien called Beijing’s behaviour “intimidating” and called for Albanese to be more outspoken about China’s attempted coercion.

“The prime minister’s continued reluctance to confront increasingly concerning behaviour by Beijing risks projecting weakness and undermining Australia’s national interests,” he said.

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