A Toothy Boycott

Ireland is advancing legislation that would make it the first Western nation to ban trade with Israeli settlements in the occupied Palestinian territories, a move that has sparked concerns about economic and diplomatic repercussions, NPR reported.

The Occupied Territories Bill – initially introduced in 2018 – has gained renewed momentum in recent months after the International Court of Justice (ICJ) issued an advisory opinion in July 2024, which said that Israel’s continued presence in the Palestinian territories is illegal and urged countries to prevent trade to sustain that presence.

Under the Irish bill, the importation or sale of goods from Israeli settlements would be a criminal offense, punishable by fines of around $260,000 and five years in prison.

While Irish lawmakers broadly support the bill, delays and amendments have raised fears among proponents that the measure is being watered down, RTE Ireland wrote.

The government recently confirmed that services, including financial and tech sectors, would not be covered – effectively excluding companies such as Airbnb, which hosts rental listings in the West Bank.

Critics worry that this exclusion undermines the bill’s impact, as services account for an estimated 70 percent of trade with Israeli settlements.

The bill has drawn strong criticism from Israel and its allies, including the United States.

The Israeli Ambassador in Ireland, Dana Erlich, condemned it as “anti-Israeli,” while Prime Minister Benjamin Netanyahu has called it part of a broader campaign to delegitimize the Jewish state.

US lawmakers have previously pressured Ireland, warning that passing the bill could harm trade relations. The bill’s critics fear potential economic repercussions, especially for American businesses operating in Ireland. Numerous American companies have over the years made Ireland the base for their European operations because of its low tax regime.

But supporters insisted that the measure aligns with international law, adding that the ICJ ruling strengthened the bill’s legal foundation. Others described the draft legislation as a precedent for other countries in the European Union.

Both Ireland and Spain have pushed for the EU to review its trade relationship with Israel in response to alleged human rights violations in Gaza.

Still, the bill’s potential impact remains uncertain: Ireland does more than $6 billion in annual trade with Israel, but trade with settlements is minimal – making the measure largely symbolic.