Lawyer: End of Syria Sanctions Law Is ‘Significant,’ but Hurdles Remain
The U.S.'s recent repeal of the Caesar Syria Civilian Protection Act of 2019 “will be a significant step towards greater investment and economic activity” in the war-torn country, but challenges persist more than a year after the ouster of President Bashar Assad, a trade lawyer said in an interview Jan. 8.
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The Caesar Act, whose demise was included in the FY 2026 National Defense Authorization Act (NDAA) that President Donald Trump signed into law last month (see 2512080048), was one of two main legal restrictions blocking U.S. and non-U.S. corporate investment in Syria, said Luciano Racco, co-chair of Foley Hoag's international trade and national security practice. The remaining one is Syria’s designation as a state sponsor of terrorism, which the Trump administration is reviewing (see 2512230010).
Sectors that could benefit from the removal of Syria restrictions include agriculture, banking, construction, oil and gas, and telecommunications. Rebuilding Syria’s battered infrastructure probably will require “imports of materials into the country, which is going to have to be facilitated by financial institutions [through] letters of credit, etc.,” Racco said.
Whether Syria is secure enough yet to attract foreign investment remains unclear, however. Recent clashes between Syrian government forces and the Kurdish-led Syrian Democratic Forces have underscored the country's instability.
Racco said many companies continue to take a “wait-and-see approach” toward Syria due to the country’s internal unrest, as well as its terrorism designation. “They’re waiting to see how events on the ground unfold, whether the new government is actually pursuing reforms and adhering to respect for religious minorities in the country.”
The NDAA authorizes “targeted sanctions” on individuals if Syria’s new government doesn’t meet certain conditions, such as “upholding religious and ethnic minority rights.” The U.S. president is required to regularly report to Congress on Syria's progress in meeting those conditions.