The United States has removed Malaysia but kept Middle East allies Bahrain, Kuwait, Oman, Qatar and Saudi Arabia on a blacklist of countries trafficking in people.

Fiji, Moldova and Papua New Guinea were added to the 2008 blacklist of the State Department annual 'Trafficking in Persons Report', which analysed efforts in more than 150 countries to combat trafficking for forced labour, prostitution, military service and other purposes.

Also remaining on the 'Tier 3' list for another year as the worst offenders in human trafficking were Sudan, Syria, Algeria, Iran, Burma, and Cuba, according to the Congressionally-mandated report.

US Gulf Arab ally Bahrain and trading partner Malaysia as well as Venezuela, Uzbekistan and Equatorial Guinea were all elevated from the blacklist last year to the 'Tier 2' watch list this year.

Countries on the blacklist could face sanctions, including the withholding by the United States of non-humanitarian, non-trade related foreign aid.

Countries that receive no such assistance would be subject to withholding of funding for government officials to participate in educational and cultural exchange programmes.