The Media Line: US Begins Process To Remove Syria From Terrorism List, Signaling Major Shift in Relations 

US Begins Process To Remove Syria From Terrorism List, Signaling Major Shift in Relations 

Syrian political analyst Abdul Karim told TML the notification “included a commitment to remove the obstacles preventing Syria’s reconstruction, while also confirming that American companies are prepared to invest in the country” 

By Rizk Alabi / The Media Line 

[DAMASCUS] The United States on Wednesday officially began the process of removing Syria from its list of State Sponsors of Terrorism after President Donald Trump notified Congress of his decision to rescind the designation, which had been in place since 1979. The move could mark a major turning point in relations between Washington and Damascus and pave the way for increased American investment and economic engagement in Syria. 

Under US law, Congress now has a 45-day review period before the decision can take effect. In a formal letter addressed to Syrian President Ahmed al-Sharaa, President Trump said Washington intends to remove the “obstacles” preventing Syria’s reconstruction, adding that American companies are now “ready to invest” in the country. 

The decision represents one of the most significant shifts in US policy toward Syria in decades. It ends a designation that has shaped bilateral relations for nearly 47 years and follows a series of gradual American steps in recent months, including easing certain restrictions and expanding engagement with Syria’s new government following the country’s political transition. 

Although the move does not lift all US sanctions imposed on Syria, it removes one of the most significant legal and political barriers that has discouraged international banks and foreign companies from reentering the Syrian market. 

Syria was first designated a State Sponsor of Terrorism on December 29, 1979, becoming one of the earliest countries placed on the list following its establishment under the US Export Administration Act. At the time, Washington justified the designation by accusing Damascus of supporting organizations that the United States classified as terrorist groups, as well as hosting leaders of Palestinian and Lebanese factions included on US terrorism lists. 

For more than four decades, Syria remained on the list despite changes in successive US administrations, making it one of the longest-serving countries under the designation. During that period, Washington imposed a broad range of restrictions, including bans on arms exports, limitations on US economic assistance, tighter controls on dual-use exports, and additional financial and banking restrictions. 

Syrian political analyst Abdul Karim believes that notifying Congress was far more than a legal procedure required before removing a country from the terrorism list. 

“The notification reflects profound political and economic implications that signal a shift in Washington’s approach toward Damascus,”l Karim told The Media Line. 

He said President Trump’s letter to al-Sharaa went beyond simply announcing the beginning of the legal process. 

“It included a commitment to remove the obstacles preventing Syria’s reconstruction, while also confirming that American companies are prepared to invest in the country. This is the first official indication at this level linking a change in US policy toward Damascus with direct economic engagement,” he told The Media Line. 

Karim added that the decision follows a series of steps taken by the US administration in recent months, including easing several restrictions on Syria and opening channels of communication with the country’s new government, as part of a broader policy that differs from the one that governed bilateral relations for decades. 

From a legal standpoint, Syrian legal expert Ibrahim Hussein said the decision does not mean Syria will be removed from the list immediately, as US law grants Congress a 45-day review period before the measure can take effect. 

“The removal of the designation does not automatically lift the other US sanctions imposed on Syria, many of which are based on separate laws and executive orders,” Hussein told The Media Line. “However, it removes one of the most politically significant classifications affecting how international financial institutions and companies engage with Damascus.” 

For more than four decades, Syria’s designation as a State Sponsor of Terrorism served as one of the principal obstacles limiting its economic ties with the United States and Western countries. The designation-imposed restrictions on US assistance, exports, financial transactions, and significantly increased the legal and commercial risks facing banks and companies considering business with Syria. 

Syrian economist Osama Qadi said that completing the removal process would give international financial institutions and foreign companies greater confidence to explore opportunities in Syria, even if other sanctions remain in place. 

“The State Sponsor of Terrorism designation carried legal and psychological consequences that extended far beyond the direct sanctions themselves,” Qadi told The Media Line. 

He added that the US president’s explicit reference to American companies being ready to invest in Syria represents a notable shift in US rhetoric. 

“For years, official US statements focused primarily on sanctions, counterterrorism, and humanitarian assistance,” he said. “The current message is the first to present a vision in which the American private sector could participate in rebuilding Syria’s economy, provided the necessary legal and political procedures are completed.” 

Qadi argued that these messages are directed not only at Damascus but also at international banks, financial institutions, and American and European companies. 

“They are intended to demonstrate that US policy toward Syria has entered a new phase based on gradual engagement rather than comprehensive isolation,” he told The Media Line. 

Meanwhile, Syrian political analyst Abdullah al-Abdoun said Damascus views the decision as one of its most significant diplomatic achievements since the formation of the new government. 

“The decision provides Syria with an important opportunity to advance its efforts to reintegrate into the global economy, attract foreign investment, and convince Western governments that the country’s political landscape has fundamentally changed,” al-Abdoun told The Media Line. 

At the same time, he cautioned that Syria’s full return to the international financial system remains a long-term process. 

“The success of this step will ultimately depend on the future of the remaining sanctions, as well as Syria’s ability to implement economic and institutional reforms and provide the legal and security environment necessary to attract investors,” he said. 

If the process is completed following Congress’ review period, Syria would become the first country to be removed from the US State Sponsors of Terrorism list since Sudan in 2020. Iran, North Korea, and Cuba would remain on the list, highlighting the significance of Washington’s changing approach toward Damascus. 

Despite the importance of the decision, it does not mark the end of the broader US sanctions regime on Syria. Rather, it represents one step within a wider legal and political process that has gradually emerged following Syria’s political transition. Understanding the significance of the move requires looking back at the evolution of US sanctions policy over the past four decades. 

Following the outbreak of Syria’s uprising in 2011 and the subsequent civil war, Washington dramatically expanded its sanctions regime against Damascus. Then-President Barack Obama signed a series of executive orders targeting former President Bashar Assad, senior government officials, and key state institutions. The measures included asset freezes, restrictions on financial transactions, a ban on new US investment in Syria, and sanctions targeting the country’s oil, energy, and banking sectors. 

In 2019, Congress passed the Caesar Syria Civilian Protection Act, which took effect in June 2020. The legislation significantly broadened the scope of US sanctions by targeting individuals, companies, and foreign governments that provide financial, technical, or engineering support to the Syrian government or participate in reconstruction projects without US authorization. 

The Caesar Act became one of Washington’s most powerful economic pressure tools against Damascus, discouraging many international companies and financial institutions from entering the Syrian market for fear of becoming subject to secondary US sanctions. 

Despite its political and legal significance, removing Syria from the State Sponsors of Terrorism list does not automatically eliminate the broader US sanctions regime. Most of the restrictions imposed over the past decade are rooted in separate legislation and executive orders, particularly the Caesar Act. As a result, removing Syria from the terrorism list would eliminate one of the most consequential legal and political obstacles facing the country, but it would not dismantle the wider framework of US sanctions. 

For that reason, many analysts view the Trump administration’s decision as the beginning of dismantling one of Washington’s oldest pressure mechanisms against Syria rather than the end of the sanctions architecture that has evolved over several decades and intensified after 2011. 

While removing Syria from the State Sponsors of Terrorism list does not mark the end of US sanctions, it does bring to a close one of the longest-standing instruments of American pressure on Damascus, dating back to the late 1970s. 

The real test now is whether Washington will follow the decision with additional legal and economic measures capable of reopening Syria to international finance and investment, or whether the move will remain a significant political gesture without being matched by broader policy changes that fundamentally reshape US-Syrian relations.