Sept. 17 (Bloomberg) -- Bolivian President Evo Morales called U.S. charges that his country isn't cooperating in global efforts to combat illegal drugs ``blackmail.''

U.S. President George W. Bush cited Bolivia, Venezuela and Myanmar in an annual report submitted to Congress yesterday, saying they ``failed demonstrably'' in the past year to fulfill obligations to fight narcotics trafficking. Bolivia is the world's third-biggest producer of coca, the main ingredient for cocaine; the U.S. is the world's largest cocaine consumer.

``There should be a certification process for those who are fighting drug trafficking by eliminating the consumer market,'' Morales, 48, said during a speech in La Paz. ``Drug trafficking responds to the market.''

Relations between the U.S. and Bolivia, South America's poorest country, have soured over the past week after Morales expelled the U.S. ambassador for allegedly helping foment violence in eastern Bolivia that led to as many as 30 deaths in clashes between pro- and anti-government protesters. Washington reciprocated by expelling Bolivia's ambassador.

The U.S. evacuated 113 Peace Corps volunteers from Bolivia to Peru yesterday and is offering flights to U.S. citizens who want to leave. U.S. foreign aid and anti-narcotics programs in Bolivia's Chapare region ended earlier this year after coca growers objected, said David Johnson, U.S. assistant secretary of state for international narcotics and law enforcement.

Coca Cultivation

``The expansion of cultivation and the lack of controls on coca leaf resulted in a 14 percent increase in the area of coca under cultivation and an increase in potential cocaine production of 115 to 120 metric tons,'' Johnson said yesterday.

Morales, citing a June 18 United Nations report, said coca cultivation expanded by 5 percent in Bolivia last year and by 27 percent in Colombia, an ally of the Bush administration in South America.

`These are political decisions,'' Morales said. ``We're not afraid of these campaigns against the government using black lists.''

U.S. and Bolivian authorities recognize legal uses of the coca leaf in Bolivia, where it has been chewed for religious and cultural purposes for centuries. Coca tea is widely sold in the Andean nation and Morales, who serves as president of the country's main coca growers union, keeps a portrait of himself made from coca leaves in the presidential palace.

To contact the reporter on this story: Bill Faries in Buenos Aires at wfaries@bloomberg.net

Last Updated: September 17, 2008 11:09 EDT