Washington  - President George W Bush on Tuesday added Bolivia to a drugs blacklist after concluding the South American country has failed to cooperate in stemming the production and trafficking of illegal narcotics.

Bolivia joins Venezuela and Myanmar - also known as Burma - for failing to meet international obligations to curb drug trafficking, Bush said in a statement released by the White House.

"I hereby designate Bolivia, Burma, and Venezuela as countries that have failed demonstrably during the previous 12 months to adhere to their obligations under international counter-narcotics agreements," Bush said.

Bush did not cut financial assistance to Bolivia, a move that could come with the designation. Bush said the United States will continue to fund organizations committed to strengthening democratic institutions in Bolivia and Venezuela.

US relations with Bolivia and Venezuela have hit their lowest point in years. Last week, Bolivian President Evo Morales expelled the US ambassador to the poor Andean nation, accusing him of fomenting political opposition.

The expulsion touched off a diplomatic crisis. Washington responded by ordering the Bolivian ambassador out of the United States.

Venezuelan President Hugo Chavez, citing his support for his leftist ally in Bolivia, requested the departure of the US ambassador to Caracas. The United States did the same to the Venezuelan envoy in Washington.

Also on Tuesday, the US government announced Peace Corps activities in Bolivia have been temporarily suspended because of the security environment in the country mired in political turmoil.

"We believe that this was a prudent step, based on the situation on the ground in Bolivia," State Department spokesman Sean McCormack said Tuesday. Peace Corps personnel have been moved out of the country to Peru.

McCormack said the suspension of the Peace Corps work was for security reasons, but also said the United States was reviewing its relationship with Bolivia.

"We're going to reserve the right to take a look at our relationship with Bolivia and, where we feel appropriate, to take steps that reflect the current state of that relationship," McCormack said.

The Peace Corps is a US government volunteer outfit established in 1961 to help underdeveloped countries improve in their agriculture, business, environment, health, youth outreach and technological sectors. The Peace Corps has been in Bolivia since 1962.

Meanwhile, the State Department said it was arranging to fly American citizens out of Bolivia because of clashes between Morales' government and some local governors opposed to his socialist policies.

The State Department also advised US citizens to avoid travel to the country and has authorized the departure of non-essential personnel at the embassy in La Paz. (dpa)