What is Executive Order 13 303 and What Does It Have to Do with Iraq?

What is Executive Order 13 303 and What Does It Have to Do with Iraq? 

On February 5, 2024, a viewer left a comment saying that Executive Order 13 303 is the problem in the IQD revaluation. This article shares insight into exactly what Executive Order 13 303 is and is not. 

On May 22, 2003, United States President George W. Bush released Executive Order 13303. This order aims to safeguard the Development Fund for Iraq and US interests in Iraqi oil from legal attachments or liens. 

It supersedes previous sanctions outlined in EO 12722, EO 12724, and EO 13290 related to the development fund. Additionally, it provides a broad legal shield for contractors and mercenaries working on behalf of US corporations involved in any oil-related projects in Iraq. The order also declares a national emergency to address potential threats to the peaceful reconstruction of Iraq, which has been renewed annually by US Presidents, most recently in May 2023.

Its full title is Executive Order Protecting the Development Fund for Iraq and Certain Other Property in Which Iraq Has An Interest.

EO 13303's Effects

In EO 13303, the Bush administration exerts control over Iraqi oil revenues by protecting US oil companies. EO 13303 is a major part of the Bush administration's efforts to protect US oil companies. With advice from the World Bank and the International Monetary Fund (IMF), the United Nations created and nominally controlled the Development Fund for Iraq. A second part of the plan is EO 13303, which provides legal protection for US interests in Iraqi oil.

The Controversy Over Executive Order 13 303

The new Iraq Development Fund is believed to accrue new Iraqi debt, according to critics of EO 13303. Because it offers little illuminating context and has a tone that suggests the language should be read broadly, they say it will open the door to grave abuses. The fund appears likely to be used to leverage US government and corporate interests, which raises these concerns.

On May 22, 2003, the United Nations Security Council passed Resolution 1483, which lifted economic sanctions on Iraq and allowed for the transfer of over US$1 billion from the Oil-for-Food program as initial funding for a development fund. Concerns have been raised by critics about all profits from Iraqi oil and gas sales being funneled into this fund, citing past instances where developing countries have accrued large debts in exchange for giving up their natural resources to powerful corporations. These critics argue that this approach masks corporate welfare and neocolonialism under the guise of "poverty alleviation" or, in Iraq's case, "humanitarian assistance."

A court may hold that implementation of EO 13303 is overbroad due to differences between the original text (UN Security Council Resolution 1483) and EO 13303.

In other words, Iraq is protected from legal liens or other attachments to its revenue when covered by EO 13 303.  If Iraq were to come from under this umbrella, the country could be sued into bankruptcy.