"The struggle to end discrimination against lesbian, gay, bisexual, and transgender persons is a global challenge, and one that is central to the United States' commitment to promoting human rights," Obama said in a statement.
Gay rights groups praised the order as a significant step for ensuring that gays and lesbians are treated equally around the world.
"Today's actions by President Obama make clear that the United States will not turn a blind eye when governments commit or allow abuses to the human rights of LGBT people," said Joe Solmonese, president of the Human Rights Campaign, a gay advocacy organization.
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