Anthony Albanese says he is “confident” Pacific Island countries have picked Australia over China as their partner of choice, while unveiling a $600m package to fight drug trafficking in the region.
Relations between Australia and its smaller Pacific neighbours have improved rapidly since 2022, with the Albanese government prioritising people-to-people ties and locking in security and economic deals.
The approach has yielded two mutual defence pacts and opened dialogue with countries that previously leaned toward China.
On the other hand, Beijing’s influence has slipped, with its nuclear-capable missile test in July sparking widespread condemnation.
The Prime Minister on Wednesday formally announced Canberra’s latest play – a $600m pledge to crack down on “criminal elements in the region”.
“Many Pacific nations spoke during that session about grappling with illicit drug trafficking, because it’s really having an impact as well on social cohesion in those communities,” Mr Albanese told reporters at the Pacific Island Forum (PIF) in Palau.
Trafficking through the Pacific has soared in recent years due to demand for cocaine in Australia and New Zealand.
Australian and international law enforcement agencies seized more than 17 tonnes in the region this year alone.
That is almost four times the amount seized in 2025.
“Pacific leaders have asked for Australia to do more and we will do more,” Mr Albanese said.
The $600m pledge would underpin the Waqa Moana initiative and go towards boosting aerial surveillance to track suspected drug-running boats ferrying narcotics across the Pacific.
It would also support training other Pacific countries’ police forces and bolstering Australian Federal Police efforts to fight the cartels producing the drugs in Central and South America.
Speaking alongside Mr Albanese, Pacific Affairs Minister Pat Conroy warned that transnational crime “is the biggest security threat to the Pacific after climate change”.
“We know that crime is becoming multinational in nature and that means a solution must be multinational as well,” he said.
“This is an example of a Pacific-led approach supported by Australian action to tackle the scourge of drug trafficking that is a challenge not just for Pacific Island nations but for Australia as well.”
He stressed that Waqa Moana would be “opt-in”, and that the Canberra is “conscious always of the sovereignty of each nation”.
“That is important – sovereignty above all else,” he said.
“This is another example … of Australia turning up, listening and acting on the priorities of the Pacific in a way that is respectful to sovereignty, that tackles collective issues collectively.”
Taiwan welcome at PIF
Taiwan’s presence at the PIF has ruffled feathers in Beijing, drawing threats of “consequences” from China’s Pacific envoy, Qian Bo.
He told reporters after Tuesday’s opening ceremony that he had “serious concerns”.
“We have made our position very clear to the government of Palau and the secretariat,” he said.
Mr Albanese pushed back against Mr Qian’s comments when asked about them later, saying that the “Pacific Island Forum determines what happens here, not any other country”.
During an interview on Wednesday, Mr Conroy echoed Mr Albanese and said that the PIF members had agreed more than 30 years ago that “Taiwan can attend the PIF as a development partner while the People’s Republic of China attends as a dialogue partner”.
“And that’s the consensus that’s existed in the PIF since 1992,” Mr Conroy told ABC’s Radio National.
“It was confirmed last year and it’s what Australia supports.”
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