This report describes the structure and development of the narcotics trade in Afghanistan and explores its relevance to Afghan, U.S., and international security interests, including the 9/11 Commission’s recommendation that the United States make a long term commitment to the stability and security of Afghanistan. The report provides current statistical information on the opium trade, profiles its various participants, explores alleged narco-terrorist linkages, and reviews the U.S. and international policy response since late 2001. The report also considers current policy debates regarding the role of the U.S. military in future counternarcotics operations in Afghanistan; planned opium poppy eradication; and funding issues for Congress.

In 2004 and 2005, Afghanistan adopted a permanent constitution and elected a president and a parliament. The parliament is emerging as a significant force in Afghan politics, as shown in debates over a new cabinet and the 2006 budget. See CRS Report RL30588, Afghanistan: Post-War Governance, Security, and U.S. Policy, by Kenneth Katzman.

Since October 2001, Improvised Explosive Devices (IEDs, or roadside bombs) have been responsible for many of the more than 2,000 combat deaths in Iraq, and 178 combat deaths in Afghanistan. IEDs are hidden behind signs and guardrails, under roadside debris, or inside animal carcasses, and encounters with these bombs are becoming more numerous and deadly in both Iraq and Afghanistan. Department of Defense (DOD) efforts to counter IEDs have proven only marginally effective, and U.S. forces continue to be exposed to the threat at military checkpoints, or whenever on patrol. IEDs are increasingly being used in Afghanistan, and DOD reportedly is concerned that they might eventually be more widely used by other insurgents and terrorists worldwide.