United States threatens sanctions against UAE over Syria embassy

(June 20) US Special Envoy, James Jeffrey, has warned the US will not tolerate the United Arab Emirates opening an embassy In Damascus, Syria.

US threatens UAE with sanctions

The US is threatening to impose broad sanctions on the UAE under the terms of the Caesar Act as it claims the UAE is defying the act through opening an embassy in Damascus, the Syrian capital. The Caesar Act named after an individual who documented some of Assad's atrocities is part of what the US calls the maximum pressure campaign against Syria in an attempt to promote regime change. The act is designed to frustrate any attempts to support the Assad government's reconstruction campaign by imposing sanctions on them.

James Jeffrey the US Special Representative for Syria Engagement made it clear that the US vehemently opposes any country having embassies in Syria. Many embassies were closed because of the civil war. There are no signs that other nations with embassies are being threatened by the US. Both Russia and China have embassies in Syria. No doubt the UAE is being threatened because it is a weaker power and could be hurt by US sanctions. US policy is to use sanctions wherever it can to force countries to follow its policies.

Extraterritorial application of US sanctions

The US tries to impose its own sanction laws on countries that are not directly subject to them by using its economic trading clout to force compliance out of fear of retaliation.

The Caesar Act is mainly used to target private companies involved in Syrian reconstruction many of these are Lebanese companies. The warning directed to the UAE is the first time that the US has targeted embassies.

US uses influence in SWIFT to ensure countries follow US sanctions

The US has clout in international financial arrangements as well which cannot make it difficult for enemies to carry on trade by forcing them to find other means of settling accounts. Recently Iran and Venezuela settled a large shipment of gasoline etc. using gold as the exchange medium.

The EU is already developing an alternative system to SWIFT that is dominated by the US. The US dollar is also the dominant currency for international trade. However, countries are beginning to expand the use of domestic currencies in trade as a way of avoiding payment systems using the US dollar.

The US is threatening its own dominance in international finance by using this dominance to enforce its own policies rather than making international trade efficient no matter what countries are involved. Even US allies are beginning to create alternative systems that avoid the politicization of existing systems such as SWIFT that are dominated by the US.

Although the US sanctions on Syria are directed at the Assad regime their effect is not to further democracy or the welfare of the Syrian people. Sanctions make conditions worse for the Syrian people and hinder reconstruction. No doubt other countries such as Russia and even Iran will use helping with reconstruction as a way of cementing good relations with Syria.

Previously published in the Digital Journal