Is the US right to highlight Venezuela for its role in the illegal drug trade?


Fadah Jassem
  • English
  • Arabic

The majority of cocaine seizures across Latin America and the Caribbean are concentrated in a handful of countries. Colombia and Ecuador have led by a wide margin for decades, followed by transit hubs such as Panama and Brazil. Venezuela sits further down the list. Across all the countries shown here, it accounted for 3.6 per cent of all cocaine confiscated. So, why does the US administration regard it as a major drug trafficking threat?

In recent months, President Donald Trump has repeatedly linked the Nicolas Maduro government to a so-called narcotics empire, explicitly blaming Venezuela for the drug-related deaths of American citizens.

However, the drug disproportionately driving the majority of overdose deaths in the United States is fentanyl, not cocaine. Fentanyl is produced almost entirely in Mexico using chemicals sourced mainly from China, according to US authorities. Venezuela plays no known role in that trade, nor does any other South American country.

Pressure on Caracas nonetheless intensified in September last year, when US forces attacked small vessels that Washington claimed were transporting drugs from Venezuela towards the US.

The strikes were framed as part of an armed conflict with drug cartels, with the White House vowing to dismantle trafficking networks. Many believe Trump is really after the oil in Venezuela, and the drug trafficking threats are being used to go after the vast reserves. However, many have questioned the legitimacy of those operations.

That confrontation escalated further in recent days, when US authorities moved to arrest Mr Maduro, and now he has been charged with cocaine trafficking to the US. The charges revive long-standing allegations that elements of the Venezuelan state provided protection to regional drug-smuggling networks.

Many believe Trump is really after the oil in Venezuela, and the drug trafficking threats are a pretext to go after the vast reserves. “We’re going to be taking out a tremendous amount of wealth out of the ground,” Mr Trump told reporters after the seizure of Mr Maduro, promising that American companies would be able to tap more of Venezuela’s crude reserves.

And the drug trafficking data also points to Venezuela’s role in drug smuggling being exaggerated. The country is not a major producer of cocaine. Cultivation and processing remain concentrated in Colombia and neighbouring countries. From the perspective of seizures alone, Venezuela’s part in the regional cocaine trade is relatively small. The politics surrounding it, however, have become anything but.

More from Armen Sarkissian
How green is the expo nursery?

Some 400,000 shrubs and 13,000 trees in the on-site nursery

An additional 450,000 shrubs and 4,000 trees to be delivered in the months leading up to the expo

Ghaf, date palm, acacia arabica, acacia tortilis, vitex or sage, techoma and the salvadora are just some heat tolerant native plants in the nursery

Approximately 340 species of shrubs and trees selected for diverse landscape

The nursery team works exclusively with organic fertilisers and pesticides

All shrubs and trees supplied by Dubai Municipality

Most sourced from farms, nurseries across the country

Plants and trees are re-potted when they arrive at nursery to give them room to grow

Some mature trees are in open areas or planted within the expo site

Green waste is recycled as compost

Treated sewage effluent supplied by Dubai Municipality is used to meet the majority of the nursery’s irrigation needs

Construction workforce peaked at 40,000 workers

About 65,000 people have signed up to volunteer

Main themes of expo is  ‘Connecting Minds, Creating the Future’ and three subthemes of opportunity, mobility and sustainability.

Expo 2020 Dubai to open in October 2020 and run for six months

UAE currency: the story behind the money in your pockets
THE SIXTH SENSE

Starring: Bruce Willis, Toni Collette, Hayley Joel Osment

Director: M. Night Shyamalan

Rating: 5/5

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

ALRAWABI%20SCHOOL%20FOR%20GIRLS
%3Cp%3ECreator%3A%20Tima%20Shomali%3C%2Fp%3E%0A%3Cp%3EStarring%3A%C2%A0Tara%20Abboud%2C%C2%A0Kira%20Yaghnam%2C%20Tara%20Atalla%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A
Quick pearls of wisdom

Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”

Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.” 

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Updated: January 07, 2026, 6:36 AM