Blocking Property of Additional Persons in Connection With the National Emergency With Respect to Syria

Overview

Purpose and Scope

Executive Order 13460, issued by President George W. Bush on February 13, 2008, aims to extend existing U.S. sanctions on Syria by blocking the property and assets of additional individuals and entities engaged in public corruption and actions that destabilize Iraq. Building on Executive Order 13338, it targets those facilitating Syrian government actions that compromise the stability and security of regional geopolitics. This order reflects an intensification of U.S. policy towards isolating Syria economically and diplomatically due to the Assad regime's controversial activities.

Mechanism of Action

The order authorizes the Secretary of the Treasury, in consultation with the Secretary of State, to identify and act against individuals involved in corruption that benefits the Syrian government or its supporters. It specifically targets those exploiting Syrian public assets or misusing public authority, thus widening the scope of previously implemented sanctions focused mainly on terrorism and regional destabilization. The mechanism includes freezing assets within U.S. jurisdiction and prohibiting transactions with U.S. persons or entities.

Strategic Context

In the broader context of U.S. foreign policy, this order is part of efforts to exert maximum economic and diplomatic pressure on Syria, seen as a violator of international norms. By focusing on corruption, the order aims to undermine the financial underpinnings that allow the Syrian government to maintain its controversial activities. It reflects concerns that were prevalent within international policy discussion at the time, particularly regarding Iraq's stabilization post-Saddam Hussein and the influence of Syrian interests therein.

Legal and Policy Implications

Constitutional and Statutory Basis

Executive Order 13460 is issued under the authority granted by the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act, which enable the president to regulate commerce after declaring a national emergency in response to any extraordinary foreign threat. It does not represent new legal ground but rather an expansion of existing powers exercised under similar previous circumstances.

Amendment of Prior Orders

This order amends EO 13338 by expanding the criteria for targeting individuals and altering the definition of activities deemed to undermine the stabilization of Iraq. It also redefines public corruption within the Syrian context, emphasizing its systemic linkage to broader regional instability issues. The amendment signifies a change from a primary focus on terrorism to targeting more systemic economic activities enabling regime operations.

Interagency Coordination

The order necessitates close cooperation between the Department of the Treasury and the Department of State, consolidating the U.S. Government's multi-pronged approach to foreign sanctions enforcement. Additionally, it involves interagency directives to further align U.S. foreign policy objectives with actualized economic measures, signifying a comprehensive utilization of executive branch resources.

Implications for U.S. Economic Policy

The broader implications for U.S. policy include a reinforced message of economic isolation for nations engaged in activities counter to U.S. interests. By targeting financial bases, it signifies the importance the U.S. places on economic tools to achieve geopolitical outcomes. This order exemplifies a strategy where economic reform of contentious regimes is seen as a pathway to achieving broader international security objectives.

Who Benefits

Regional Stability Advocates

The primary beneficiaries of Executive Order 13460 are regional actors and international organizations interested in the stabilization of Iraq and the broader Middle East. By isolating and targeting those that destabilize the region through corrupt practices, the order seeks to marginalize actors thriving on instability.

U.S. Foreign Policy Initiatives

Entities and organizations advocating for robust American foreign policy measures against states like Syria would find this order favorable. It serves their interests by reinforcing the U.S. position against corruption-influenced political systems that counterbalance American and allied geopolitical narratives.

International Trade and Economic Security Circles

For international bodies focused on protecting global financial systems from being manipulated by illicit operations linked to sanctioned entities, this executive order provides additional legal basis to scrutinize and refuse transactions that might otherwise take advantage of gaps in national and international controls.

Human Rights Campaigners

Activists and organizations focused on human rights abuses see indirect benefits. By disrupting the financial flows gestating under corrupt regimes, the hope is to pressure systemic reforms that might alleviate some abuses arising from consolidated power under compromised administrations.

Policy Reformation Entities

U.S. and international think tanks advocating for comprehensive policy reform that addresses both geopolitical instability and related economic implications will also benefit. The executive order enables further study and argumentation of policy actions requiring a multipronged focus, balancing economic levers with diplomatic and military strategies.

Who Suffers

Syrian Government and Proxies

The principal targets of this executive order are individuals and entities within the Syrian government or those closely connected to it who engage in corruption. Their operations become significantly restricted, impacting their ability to use U.S.-based systems for financial and logistical transactions.

Regional Business Entities Linked to Syria

Businesses operating in the Middle East with ties to Syrian government activities, especially those facilitating public corruption or benefitting from it, face the risk of asset freezes and sanctions. This could impact their operational capacities and strategic alignment in the region.

International Banking and Finance Networks

Entities operating within global financial systems are negatively impacted if they inadvertently facilitate transactions with sanctioned individuals. The increased scrutiny and compliance burdens imposed by executive orders like this one require significant operational adjustments, potentially affecting service delivery and profitability.

Humanitarian Organizations Operating in Syria

Some humanitarian organizations may find themselves caught in the complex regulatory web, especially those providing aid that inadvertently benefits designated entities. Sanctions sometimes lead to overcompliance, hindering legitimate aid efforts due to fear of legal repercussions.

Syrian Civil Society

The broader Syrian public and diaspora, often already suffering under a beleaguered regime, may face collateral impacts of sanctions. When economic conditions worsen due to increased external pressures, local populations often find their situations deteriorating further, exacerbating social and economic challenges.

Historical Context

U.S. Policy on Middle Eastern Stability

Executive Order 13460 fits into a decade-long strategy emphasizing U.S. interests in Middle Eastern stability post 9/11. The Bush administration's focus was on combating terrorism and quelling any state sponsorship or promotion of instability, particularly around strategic areas like Iraq and Israel.

Broader Sanctions Strategy

Economic sanctions have been a crucial tool for the Bush administration in responding to foreign policy challenges—a strategy focused on diplomatic and economic penalization over military intervention. Such executive orders underscore the use of economic isolation as a method to achieve political aims in adversarial geopolitical settings.

Corruption as a Security Threat

Targeting public corruption reflects a notable era when corruption was increasingly recognized as a security threat. This approach highlighted a growing recognition within U.S. foreign policy that corrupt practices were not just domestic issues but had transnational implications, especially when entwined with rogue states.

The Role of Executive Orders

Executive orders like 13460 signal the flexibility and discretion U.S. presidents have in swiftly addressing international threats without immediate legislative oversight. This order reflects an executive willing to leverage presidential powers to enforce foreign policy outside conventional diplomatic channels.

Bilateral and Multilateral Relations

The order reflected the complex nature of international relations. It coincided with a period where the U.S. was working in diplomatic arenas to rally allies and sustain broad-based sanction applications—illustrating how unilateral executive actions often laid groundwork for multilateral policy endorsements.

Potential Controversies or Challenges

Legal Challenges to Executive Power

Executive orders that expand sanction regimes often face scrutiny concerning the president's expansive use under IEEPA and the National Emergencies Act. Critics argue that such powers could bypass legislative consent, prompting legal challenges regarding the overreach of executive authority.

Enforcement and Compliance Issues

Enforcing intricate sanctions like those in EO 13460 involves significant compliance requirements for U.S. businesses and international financial entities. The compliance complexity can lead to inadvertent violations, warranting reassessments of protocols and potential legal challenges concerning liability and enforcement processes.

Congressional Oversight Concerns

While executive orders provide agility in policy responses, they sometimes ignite congressional concern or opposition. Orders perceived to potentially harm U.S. economic interests or international relations might face legislative pushback questioning their necessity or efficacy within overarching national strategies.

Impact on Diplomatic Relations

This executive order may complicate diplomatic engagements not just with Syria but also with its allies who face potential entanglement in sanctions due to bilateral ties. Such actions can strain U.S. relations with countries maintaining diplomatic, economic, or strategic partnerships with Syria.

Humanitarian and Ethical Concerns

The humanitarian fallout from comprehensive sanction regimes often reiterates ethical debates on the collateral effects of economic policies. History suggests sanctions contribute to human suffering by exacerbating poverty and limiting access to essential goods, fueling calls for balanced approaches prioritizing human impacts.