By Jonathan Beale
BBC News, Washington
Opium production in Afghanistan reached record levels last year, the United States has said.
Poppy production was up 25%, the US said
The US State Department's annual report on narcotics also said the flourishing drugs trade was undermining the fight against the Taleban.
It warned of a possible increase in heroin overdoses in Europe and the Middle East as a result.
Poppy production rose 25% in 2006, a figure US Assistant Secretary of State Ann Patterson described as alarming.
Four years after the US and its British allies began combating poppy production, Afghanistan still accounts for 90% of the world's opium trade.
The US has recently given the Afghan government more than $10bn in assistance, but most of that money will be spent in security rather than encouraging alternative sources of income.
The report also criticised South America's left-wing leaders such as Venezuela's Hugo Chavez and Bolivia's Evo Morales, for failing to do enough to fight the drugs trade.