A State Department report this month accused the junta of direct involvement in trafficking people for forced labor and sexual exploitation.

"The military junta's economic mismanagement, human rights abuses, and its policy of using forced labor are driving factors behind Burma's large trafficking problem," it said.

Myanmar, formerly known as Burma, rejected the report, saying it was making efforts to combat human trafficking.

The US report "once again unjustifiably classified Myanmar in the list of countries assessed as neither complying with the minimum standards nor making significant efforts in combating trafficking in persons," the foreign ministry said in the official New Light of Myanmar newspaper.

Myanmar would continue to fight human trafficking "regardless of negative views and responses from those who blindly refuse to recognize the ongoing commendable efforts," it said.

The US report said people from Myanmar were mainly trafficked to Bangladesh, China, Malaysia and Thailand for sexual exploitation, domestic service and forced labor.

Myanmar was listed along with North Korea and Laos in the State Department's "Tier 3" list of worst offenders of human trafficking.

Countries in the blacklist could face sanctions if they do not take immediate measures within 90 days.

But Myanmar is already under US sanctions to pressure it to make democratic reforms and to improve its human rights record.