WASHINGTON (Reuters) - The United States, acknowledging its own record is in question, criticized Iraq on Tuesday in its annual report on human rights abuses, listing death squads with government links, kidnapping and torture.

“We do not issue these reports because we think ourselves perfect but rather because we know ourselves to be deeply imperfect,” said U.S. Secretary of State Condoleezza Rice, in announcing the annual report on human rights worldwide.

“Our democratic system of governance is accountable but it is not infallible,” she told reporters.

Iraq was listed among the most problematic nations when it came to human rights abuses listed in the 2006 report, which covered more than 190 countries.

The United States invaded Iraq in 2003, partly to end abuses committed by then-president Saddam Hussein, but the State Department’s report said worsening sectarian violence and terrorism undercut any progress in human rights last year.

“On one side, predominantly Sunni Arab groups such as al Qaeda in Iraq, irreconcilable remnants of the Baathist regime, and insurgents waging guerrilla warfare violently opposed the government and targeted Shi’a communities,” the report said.

It also highlighted the role of Shi’ite militias and security forces attached to some ministries “nominally allied with the government who committed torture and other abuses.”

“Predominantly Shi’a militias with some ties to the Iraqi Security Forces (ISF), targeted Sunnis in large’scale death squad and kidnapping activities,” it said.

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