The Government has done little to help victims and with prosecuting traffickers, according to a US State Department report.
The 2019 Trafficking in Persons report, released this morning, also demoted Saudi Arabia and Cuba to the worst human traffickers list for failing to meet US anti-trafficking standards.
According to the report, New Zealand fully met minimum standards for elimination of trafficking, but that the Government had initiated just two trafficking investigations and failed to identify or assist any sex trafficking victims.
"The Government reported identifying few victims and prosecuting low number of suspected traffickers," it said.
Despite being on the top tier, New Zealand remained a destination country for labour and sex trafficking, where domestic and foreign victims were being exploited by human traffickers.