Designating Venezuela as insufficient in counterterrorism automatically prompts a ban of arms shipments and forbids third countries from selling US-made military equipment to Venezuela.
'US sales and licenses for the export of defence articles and services to Venezuela, including the re-transfer of defence articles, will not be permitted,' the State Department said.
The arms embargo was the latest sign of deteriorating relations between the United States and Venezuelan President Hugo Chavez, who was in London on Monday calling US President George W Bush a 'genocidal assassin.'
The United States had previously raised objections about Russian and Spanish arms sales to Venezuela over concerns that Chavez has been eroding democratic institutions in the country and allows leftist Colombian rebels to operate on Venezuelan soil.
'It's a hard-eyed assessment of whether or not a country is cooperating with the United States in fighting terrorism,' State Department spokesman Sean McCormack said. 'And in this case, the answer came back 'no'.'
