It is hoped a new government in the Marshall Islands will trigger greater political will to combat human trafficking.
In its annual human trafficking report, the US State Department gave the Marshall Islands its worst possible ranking.
It said the Marshall Islands was a source and destination country for women and children who are subjected to sex trafficking, and local girls who are forced into prostitution, mainly for docking foreign fishing vessels.
It acknowledged efforts by the government to conduct education about trafficking, but said the country was not making significant efforts to eliminate it.
Our correspondent in Majuro, Giff Johnson, said political will had been an issue in the past.
"There was a lot of antagonism toward the report, criticising the US observation. So, there's a relatively new government that came in in January, so they may be taking a different look at this report and we may see some different types of action as a result."