What is Ireland’s Occupied Territories Bill and why could it be re-examined?

Irish Taoiseach Simon Harris has said his government will receive “formal advice” next week from attorney general Rossa Fanning that could revive a bill outlawing trade with Israeli settlements in the West Bank and East Jerusalem.

The Occupied Territories Bill was first tabled in 2018 by senator Frances Black, before the war in Gaza and Lebanon broke out. 

It aims to make it an offence in Ireland to import, attempt to import or assist another person in importing goods made in Israeli settlements, which are considered illegal under international law by the UN and most states.

Despite receiving broad cross-party support, the bill's progression has stalled over concerns it breached EU trade law — with Ireland fearing being penalised by Brussels.

But according to Dublin, a July advisory opinion by the Hague-based International Court of Justice (ICJ) provides legal grounds to revive the bill.

The Court’s opinion, which has no binding force, states that states are obliged “not to render aid or assistance” that could maintain Israel’s occupation of the Palestinian territories.

“The ICJ advisory opinion is a game changer in terms of the context, because it now places an obligation on countries to do all they can to help end the unlawful illegal occupation,” the Taoiseach told reporters in Brussels on Wednesday.

“I'd like to do that at an EU level, but regardless of the EU position, I'm not going to ignore the obligation that I believe now exists on Ireland to act,” he added.

Could the bill be revived and passed?

Both the lower house of the legislature, the Dáil, and the senate, the Seanad, have approved the bill, but not the government.

The current government coalition is formed of Fianna Fáil (Renew Europe) and the Greens, both of whom supported the bill back in 2018, and Fine Gael (EPP), which previously voted down the bill.

But Harris, the Taoiseach and Fine Gael leader, has strongly hinted he is hoping to inject fresh impetus into the bill.

"We want to see if it is now possible to move ahead in terms of trade restrictions, in terms of the occupied Palestinian territories,” he said on Wednesday.

Harris has also expressed a clear will to unilaterally suspend trade with Israel without Brussels’ support.

“Ireland (...)  will not wait for everybody in Europe to move on the issue,” he said.

Could other EU countries follow suit?

The EU-Israel trade deal, also known as the Association Agreement, does not apply to products originating from the occupied territories. 

It means Israeli goods made in the West Bank and East Jerusalem are exempt from preferential tariffs. Goods originating from settlements must also be clearly labelled in customs declarations.

Euronews asked the European Commission to provide further details on the value of products originating from settlements reaching the EU market. It said in a statement: "Trade with settlements is not included in EU trade figures with Israel."

"The EU does not recognise Israel’s illegal settlements as part of Israel’s territory. Therefore, EU importers should not declare Israel as country of origin if goods are imported from the settlements," the statements adds.

Ireland and Spain have spearheaded calls for Brussels to use its economic leverage to exert diplomatic pressure on Israel, by reviewing the Association Agreement and further restricting trade with Israel.

The Association Agreement includes a clause that makes EU-Israel relations “based on the respect for human rights and democratic principles,” meaning it could be suspended if EU countries agreed unanimously that Israel’s operations in Gaza and Lebanon violated fundamental rights.

The European Union is Israel’s main trading partner, accounting for 28.8% of its trade in goods in 2022.

EU leaders agreed to hold a special council to discuss that deal in May. While Israel has agreed in principle to attend that council, it has dismissed top diplomat Josep Borrell’s suggestion the meeting should be convened specifically to address Israel’s compliance with human rights in Gaza.

"I am afraid the Association Council will not take place before the next foreign affairs council,” Borrell said this week, in a sign the talks between both sides on the arrangements of the council are still in deadlock. The next foreign affairs council is scheduled to take place in mid-November.

Belgium’s caretaker prime minister Alexander de Croo has called for an EU ban on Israeli products originating from the occupied Palestinian territories, and the ban has already been enacted by the Brussels City Council.

Norway, not a EU member state, has advised its businesses against trading with Israeli settlements in response to the war in Gaza.