Washington ? The Bush administration has decided to waive penalties against the world’s third-leading producer of coca, finding that Bolivia has done enough to fight the production and sale of the cocaine precursor to warrant a reprieve.

The decision came in a report sent to Congress on Friday that lists 20 nations, including Bolivia, as “major drug transit” or “major drug producing” countries that can be subject to punitive measures from the U.S.

But, it finds that Bolivia, which has long been a concern, has taken adequate steps to stave off the sanctions.

The report, to be released Monday by the State Department, was obtained by The Associated Press ahead of its official release. It concludes that the same 20 countries as in 2006 are the world’s leading producers or transit points for drugs.

Apart from Bolivia, the others are Afghanistan, the Bahamas, Brazil, Colombia, Dominican Republic, Ecuador, Guatemala, Haiti, India, Jamaica, Laos, Mexico, Myanmar, Nigeria, Pakistan, Panama, Paraguay, Peru and Venezuela.

Under U.S. law, countries on that list found to have “demonstrably failed” in efforts to combat the spread of illicit narcotics may be punished with cut-offs in certain aid.

For the third year in a row, only Myanmar and Venezuela were identified as having met that failing standard this year, according to the report.

It says Myanmar continues to be the largest producer of methamphetamine in Asia, has done little or nothing to crack down on the trade and remains a leading source of opium.

Venezuela is accused of failing to take steps to curb the transit of narcotics through its soil to the United States and Europe, the report says.