With approximately 30 percent of the cocaine entering the United States coming through the Caribbean transit zone, cocaine trafficking is a major threat to the United States. During the past several years, Caribbean traffickers have shifted their operations from primarily air-related activities to maritime activities. Also, traffickers are using improved technologies, such as global positioning systems, to counter efforts by U.S. agencies to identify and monitor their activities. A major part of the U.S. strategy in the Caribbean is to strengthen the host Nations' capabilities to support U.S. international counternarcotics objectives. The State Department has made some progress in implementing the strategy through new agreements with Caribbean countries and islands that promote increased air and maritime cooperation; however, U.S. officials generally believe that a number of host Nations lack the capabilities needed to conduct effective antidrug operations and are also inhibited by corruption. Budgetary reductions for interdiction efforts in the entire transit zone have reduced the ability of the Department of Defense and law enforcement agencies to identify, track, and intercept drug traffickers. The executive branch has not developed a regional action plan to implement the cocaine strategy in the transit zone, has not fully staffed interagency organizations with key roles in the interdiction program, and has not fully resolved issues on intelligence sharing. 1 figure and 3 tables