The Bush Administration is reported to have decided not to impose sanctions on Bolivia, because the South American country has done enough to fight the production of illegal narcotics.
The Associated Press obtained a copy of a report to be released Monday by the State Department listing countries that failed to stop the trade of cocaine and other drugs.
Bolivia - which has been on the list in the past - is reported to have seized more cocaine this year than last, prompting the White House to waive sanctions.
The Bolivian ambassador in Washington, Gustavo Guzman, told Reuters news agency the report recognizes Bolivia's attempts to crack down on the illegal drug trade.
Under U.S. law, the Bush administration can cut off certain aid to countries that fail to crack down on the production and transit of illegal drugs.
Bolivia is the world's third-leading producer of cocaine.
Some information for this report was provided by AP and Reuters.