- 'It's a message to allies and to other countries that the US considers this a priority and that they should be careful not to engage with this organization. They should join the US fight against this organization,' expert Brian Phillips tells Anadolu
- US allies in Latin America can follow suit to impose similar sanctions, experts say
ISTANBUL
The US decision to designate Venezuela-based Cartel de los Soles as a Foreign Terrorist Organization (FTO) is expected to have implications well beyond Washington and Caracas, raising concerns that some countries may now face diplomatic, financial, and security-related pressure linked to the move.
The designation, signed by US Secretary of State Marco Rubio and published Monday in the Federal Register, accuses the group of inciting “terrorist violence” and smuggling narcotics into the US and Europe.
Washington also accuses Venezuelan President Nicolas Maduro and other senior officials of leading the Cartel de los Soles. However, Venezuela rejected the move as “ridiculous,” saying the cartel does not exist.
Experts believe that the US designating the terrorist organization is symbolic, both internally and externally.
"It's a message to allies and to other countries around the world that the US considers this a priority and that they should be careful not to engage with this organization...that they should join the US fight against this organization," Brian Phillips, a reader in the Department of Government at the University of Essex, told Anadolu.
Phillips, a researcher on the organizational dynamics of terrorism, civil conflict, and crime, believes it also sends a message to US government agencies about who to focus on and who to prioritize.
The US move comes at a time when it is expanding military deployments across Latin America, fueling speculation of potential escalation even as President Donald Trump says he may soon speak directly with Maduro, who has signaled readiness for face-to-face dialogue.
Financial and trade complications
The impact on third countries may include financial and trade risks such as asset freezes, criminal penalties, and civil lawsuits for any foreign firms providing "material support," which could prevent them from doing business with Venezuela, some analysts say.
In July, the US Treasury announced sanctions against the designated Cartel de los Soles, freezing and blocking its assets in the country and forbidding all individuals from engaging in transactions with them. It added that violations of the sanctions may result in the imposition of civil or criminal penalties on US and foreign persons.
In a statement on its website, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) also warned of secondary sanctions on non-US banks, saying those engaging in certain transactions involving the cartel may risk their imposition.
"OFAC can prohibit or impose strict conditions on opening or maintaining, in the United States, a correspondent account or a payable-through account of a foreign financial institution that knowingly conducts or facilitates any significant transaction on behalf of a person who is designated."
Expert Phillips pointed out that, while most countries do not see the cartel as being led by the Venezuelan government, it remains to be seen how strongly the US will pressure other countries to avoid doing business with Venezuela.
Political, diplomatic implications
While the US move is symbolic, Phillips says most governments are unlikely to adopt the US designation of declaring the cartel as a terrorist organization.
He highlighted that this year, the US declared several criminal organizations on its terrorist list, which is "unusual."
"Most countries have not followed this. Even traditional US allies like the United Kingdom have not put any criminal organizations on their terrorist lists."
On the other hand, some Latin American allies, including Argentina, have previously followed Washington’s lead, while Canada aligned with certain US designations in the context of tariff negotiations.
"I think it's a lot less likely for European allies, Australia, or other countries to list this cartel, which is not in their region and really does not affect them. I don't anticipate a lot of other countries outside of the Americas labeling Cartel de los Soles as a terrorist organization."
In August, a motion to include the criminal group Cartel of the Suns on the EU's list of terrorist organizations was presented.
"My understanding of the European Parliament vote is that this is basically a recommendation that the European Union should impose sanctions on Cartel de los Soles, but it's not a binding vote.
"It does not force the European Union to put sanctions on this cartel, and it's unclear if the European Union will put sanctions on the cartel," he said.
Concerns over escalation with other countries
With Washington expanding its regional military footprint and tightening pressure on Caracas, there are concerns that third countries will face similar actions.
Last month, the US Department of the Treasury imposed sanctions on Colombian President Gustavo Petro and his family.
Phillips highlighted that, under the foreign terrorist organization law, declaring an entity a foreign terrorist organization does not legally justify war or military action but rather imposes sanctions, making providing material support to the entity illegal.
"However, it does seem that the Trump administration is using this justification, suggesting that this is a terrorist organization and it's led by President Maduro, as a potential justification for some military action against Venezuela."
Phillips said that the US has used similar accusations in past interventions. "It's difficult to know with the Trump administration. I'll reiterate that a foreign terrorist organization designation does not legally authorize a war.
"We have seen the United States intervene in other countries with justifications like this in the 1989 invasion of Panama, which was justified by the United States because the leader of the country was said to be involved in drug trafficking."
