Washington Moves to End Syria’s 47-Year Terrorism Designation

Syria is set to be removed from the US State Sponsors of Terrorism list after nearly 47 years, marking one of the most significant steps yet in Washington’s effort to reset relations with Damascus following the fall of Bashar al-Assad.

The 45-day congressional review period triggered by President Donald Trump’s notification to Congress expired on August 22. Formal completion of the rescission is the remaining step.

Syria has been on the list since December 29, 1979, when Washington designated the government of Hafez al-Assad over its support for international terrorism. The designation remained throughout the rule of his son Bashar and more than a decade of civil war, becoming part of a wider system of sanctions and restrictions that sharply limited Syria’s access to the US and international financial system.

Trump informed Congress on July 8 that he had decided to rescind the designation, following earlier moves by his administration to unwind sanctions imposed on the Syrian state during the Assad era.

Secretary of State Marco Rubio described the decision at the time as a “historic step”, arguing that lifting restrictions would help open Syria to international trade and investment and give the country an opportunity to rebuild.

The decision reflects the speed with which relations have changed since Assad was overthrown in December 2024.

President Ahmed al-Sharaa’s government has sought closer ties with Washington and other Western capitals while expanding counter-terrorism co-operation. Syria joined the US-led Global Coalition to Defeat ISIS in November 2025, part of an effort by the new authorities to establish Damascus as a security partner after decades of US isolation.

For Washington, sanctions intended to weaken the Assad government risked becoming an obstacle to stabilising its successor, particularly as the US sought Syrian co-operation against ISIS and supported efforts to rebuild the country’s economy.

The Trump administration began dismantling much of that framework in 2025. Broader restrictions on Syria were lifted while measures remained in place against Assad and his associates, terrorist organisations, human-rights abusers and others deemed a threat to regional security.

Removal from the terrorism list would take that process further.

For Damascus, the economic consequences may be as important as the diplomatic significance.

Syria faces a costly reconstruction after more than a decade of war damaged its energy networks, housing, transport infrastructure and industrial base. The terrorism designation has added to the legal and compliance risks facing international companies and financial institutions considering business in the country.

Its removal will not immediately resolve those difficulties. Banks that spent years limiting their exposure to Syria are likely to remain cautious, particularly over financial transparency, sanctions compliance and political risk.

But it would remove another obstacle to Syria’s reintegration into international markets and reinforce the government’s argument that restrictions imposed in response to Assad-era policies should not automatically apply to the state that succeeded him.

Al-Sharaa has made economic reintegration a central part of his foreign policy. His government has sought investment from Gulf Arab states while rebuilding relations with the US and Europe, a marked departure from Syria’s reliance on Iran under Assad.

Those changes also have strategic implications for Washington. A government in Damascus that co-operates with the US against ISIS, draws investment from Gulf states and maintains relations with Western capitals would occupy a very different regional position from the Syria that was closely aligned with Tehran.

There are nevertheless limits to the rapprochement.

Washington has continued to emphasise counter-terrorism and regional security, while Syria’s treatment of religious and ethnic minorities and the conduct of its security forces remain under scrutiny. The decision to preserve targeted sanctions even as broader restrictions were lifted reflected some of those concerns.

The change in Syria’s status will also place greater attention on al-Sharaa’s own record. As restrictions associated with Assad are dismantled, the new government will increasingly be judged on the institutions it builds, its treatment of minorities and opponents, and its ability to provide security without reproducing the practices of the previous state.

That presents Washington with its own challenge. Economic restrictions accumulated during decades of confrontation provided leverage over Damascus, even as they contributed to Syria’s isolation. As those restrictions are removed, the relationship will depend increasingly on diplomacy, security co-operation and economic incentives.

If the rescission is formally completed, Syria will become the first country removed from the State Sponsors of Terrorism list since Sudan in 2020. Iran, North Korea and Cuba would remain designated.

Removal would mark another stage in Syria’s rapid return to international diplomacy. It would also formalise a shift in Washington already well under way, from a policy built around isolating the Syrian state to one increasingly based on engagement with its new government.

How far that relationship develops will depend in large part on Damascus’s record on security, political stability and the commitments that helped make its removal from the list possible.