New Zealand is strengthening its border security capabilities through major new investments announced under Budget 2026, aimed at combating drug trafficking, illegal tobacco trade, and transnational organized crime.
Casey Costello said the government is responding to growing threats posed by international criminal networks targeting New Zealand and the wider Pacific region.
The government will invest NZ$70.7 million over four years to strengthen domestic border operations. The funding will support upgraded cargo X-ray systems, enhanced security at ports and airports, additional defensive equipment and staff training, and increased storage capacity for seized illicit goods.
Officials said the move comes amid rising levels of drug and tobacco smuggling. In 2025, customs authorities seized nearly 15 million illegal cigarettes and eight tonnes of illicit loose tobacco at the border. Authorities also reported a sharp rise in cocaine trafficking across the Pacific, with more than 14 tonnes seized in the first two months of 2026 through international enforcement efforts.
The investment package includes NZ$15.3 million in new operational funding and NZ$19.5 million in capital funding, alongside additional third-party revenue contributions.
A second initiative under Budget 2026 will allocate NZ$10.8 million over four years to expand New Zealand Customs’ international operations. The funding will establish four new overseas liaison posts in the Pacific, South America, the Middle East, and Europe to strengthen intelligence gathering and cooperation with international agencies.
According to Minister Costello, the overseas posts will help disrupt drug trafficking routes and organized crime networks before illegal goods reach New Zealand. The first deployments will focus on the Pacific and South America due to increasing smuggling activity in those regions.
The government stated that the new investments are intended to improve both border protection and trade facilitation by equipping customs officers with advanced tools, improved training, and stronger international partnerships.
Officials say the measures reflect growing concern over the evolving scale and sophistication of transnational criminal operations affecting the Pacific region and New Zealand’s national security.
