President Bush banned all U.S. exports to Syria except for food and medicine and banned flights between the two nations after long-standing complaints the Middle Eastern nation was supporting terrorism and undermining U.S. efforts in Iraq.

Trade between the two countries is valued at about $300 million. There currently are no flights between them.

Ahmed Haj Ali, media adviser to the Syrian information minister, said the sanctions will have little economic impact "but their political effects are much bigger."

"In the international atmosphere today of open borders and international agreements, it appears that sanctions could cause problems for both sides," he told The Associated Press.

Trade and political negotiations between Syria and the European Union could be further affected by American pressure, Haj Ali said. The negotiations have been delayed for several months because of concerns by Britain, Germany and the Netherlands about Syria's alleged weapons of mass destruction.

Haj Ali stressed that Syria was still committed to dialogue with the United States.

The American measures follow long-standing complaints by Washington that Syria supports militant groups such as Hamas and Hezbollah and fails to stop guerrillas from crossing the border into Iraq. Syria has been on the U.S. State Department's list of terror-sponsoring countries.

The sanctions also include authorizing the U.S. Treasury Department to freeze assets of Syrian nationals and entities involved in terrorism, weapons of mass destruction, the occupation of Lebanon and terrorism in Iraq, and restricting transactions between U.S. banks and the Syrian national bank.

The sanctions were expected for weeks but apparently were delayed by the upsurge of violence in neighboring Iraq.

On Monday, Syrian Foreign Minister Farouk al-Sharaa said Washington's allegations his country is not cooperating in the fight against terrorism are "unfounded" since Syria has agreed with other Arab countries on the need to combat terrorism. Speaking after a meeting of Arab ministers in Cairo, Egypt, al-Sharaa said there was a "unanimous Arab decision" to condemn the sanctions.

Ordinary Syrians said they were not too worried about the sanctions, with one calling them "nonsense."

"It means nothing to me," said Raymond Elias, who owns a business selling pumps and generators imported from Europe. "It will have no effect on Syria."

The Damascus businessman said he believes many American companies will not abide by the sanctions and will continue operating here.

"Maybe some companies dealing with America may bend to the (Bush) administration, but many others at the end will be looking after their own interests," he said.

Michel Kilo, a prominent Syrian political writer, said imposing sanctions was a decision for the United Nations, not the United States. He added that American companies will suffer because they could be replaced by European and Asian companies.

Anwar al-Bunni, a Syrian human rights activist, predicted an "enormous" political fallout.

"America is a superpower in the world, and when it punishes a country it is driving it out," he said.

For example, he said, Syria's negotiations with the EU have been "complicated" because of American pressure.

Others appear to dispute America's views on Syria. U.N. Mideast envoy Terje-Roed Larsen, who met with President Bashar Assad in Damascus, said the United Nations "has a very good relationship with the representatives of the government of Syria."

A Western diplomat in the region said the sanctions could have a significant impact on both Syria and neighboring Lebanon, where Damascus has deep influence over that country's politics and government.

The diplomat said the sanctions are meant to send a signal to Assad that he needs to cooperate.

Saddam of Iraq vs Asad of Syria

The Twin-regimes of Terrorism http://2la.org/syria/index.php

Syrian Terrorism Against Lebanese http://www.2la.org/lebanon/ee/terrorlb.htm

Syrian Terrorism Against Syrian Citizens http://www.2la.org/lebanon/ee/terrorsy.htm

Syrian Terrorism Against Americans http://www.2la.org/lebanon/ee/terroram.htm

Syrian Sponsored Terrorism Against Europeans

http://www.2la.org/lebanon/ee/terroreu.htm

Lebanese Peaceful Revolution Against Syrian Occupation

http://www.lgic.org/en/help_resistance.php