Ireland set to ban imports from illegal Israeli settlements

Ireland is poised to become the first EU nation to ban imports of products from illegal Israeli settlements in a move that could put it at odds with the European Commission, the bloc's executive arm.

Foreign Affairs Minister Micheal Martin said on Tuesday, after a cabinet meeting, that authorities would review a draft bill related to trade and investments in the occupied Palestinian territories, to bring it in line with the Irish constitution and EU law.

"This is one element of the government’s approach to the devastating violence and the appalling humanitarian situation in Gaza and the West Bank," he said.

Campaigners hope Ireland's decision will inspire similar action in other pro-Palestinian EU countries such as Spain, Luxembourg and Belgium, potentially paving the way for an EU-wide ban. The bloc is Israel's largest trading partner.

"The horror of the current moment is shaking a few EU countries, Ireland among them, out of this stupor where they realise that the current [EU] policy is a policy of managed decline," said Conor O'Neill, spokesman for the campaign to pass the occupied territories bill in Ireland.

"The number of settlers and settlements approved and constructed has just risen and risen," Mr O'Neill told The National. "If you pass legislation like this, you're saying to many private companies involved in settlements: there is a real legal and commercial risk to you."

The population of Israeli settlers in the occupied West Bank, including East Jerusalem, surged from 520,000 to more than 700,000 between 2012 and 2022, UN figures show. These territories, seized by Israel in 1967, are intended to form part of a future Palestinian state – a pathway supported by the EU but rejected by the Israeli government.

A draft bill has been stuck for years at cabinet level in Ireland over fears it would breach EU laws. However, an advisory opinion from the International Court of Justice (ICJ) in July marked a turning point, Irish Prime Minister Simon Harris said. Speaking at a summit in Brussels last week, Mr Harris said the ICJ stance had been a "game-changer".

The ICJ clarified that states must "take steps to prevent trade or investment relations that assist in the maintenance of the illegal situation created by Israel in the Occupied Palestinian Territory".

Ireland's Attorney General, Rossa Fanning, has since informed the Irish government that EU law does not preclude a member state from adhering to its international obligations, including the need to ban trade with settlements. This legal interpretation has cleared the way for Ireland to proceed with the ban, though technical changes to the draft bill will be needed.

Legal challenges to a unilateral Irish ban could be lodged by either the EU Commission or a private citizen. It remains unclear how the Commission may react but in the past, it has not always issued sanctions when issues are politically sensitive. The National has contacted a representative for comment.

The bill is expected to be adopted by Parliament in the next weeks, though it will be a challenge to pass before an upcoming parliamentary election, Mr Martin said. A date for the election has yet to be set but it is expected to take place before the end of the year.

European pressure mounts

The EU's 27 countries are divided over the Middle East conflict. Some countries, such as the Czech Republic, have shielded Israel from language that may appear critical in joint statements issued by the bloc. Others, like Ireland and Spain, have pushed the EU to review its association agreement with Israel on the grounds of human rights violations. The request, lodged in February, has dragged on for months because of a lack of political will.

Belgium's Prime Minister Alexandre De Croo has supported Ireland's push to pressure Israel. "Maybe we have to change our strategy," he said. Alluding to settlements and settler violence against Palestinians in the West Bank, as well as to Israel's destruction of Gaza, Mr De Croo added: "Week after week, we see that, almost intentionally, steps are being made to make the two-state solution impossible."

The ICJ ruling has energised campaigners across Europe, encouraging them to push their governments to adopt tougher stances on Israeli settlements. "We're not naive about this. We don't think this policy will end the occupation tomorrow," said Mr O'Neill.

"But the same was true in the 1980s when Ireland became one of the first European countries to ban trade of certain goods and products from apartheid South Africa. That didn't end apartheid but it contributed to moving things in the right direction."

The EU currently differentiates between products from Israel and those from occupied territories, with goods from settlements not eligible for reduced tariffs under the EU-Israel association agreement.

Speaking to The National before the Irish cabinet meeting, Olof Gill, Commission spokesman for trade and agriculture, said the EU and its member states have an obligation to implement EU legislation applicable to goods originating from settlements.

"This includes, in the context of EU’s consumer protection policy, indicating the [place of] origin of goods originating in settlements in the occupied territories," Mr Gill said. "Any information indicated must not be misleading for consumers."

This requirement has been upheld by the European Court of Justice, which ruled in 2010 that EU states must distinguish between Israeli products and those from settlements. The ruling came after water-filter manufacturer Brita attempted to pay reduced tariffs for imported equipment and syrup made by a company based in an Israeli settlement in occupied East Jerusalem.

A total ban on imports from illegal settlements could deter companies from operating in the occupied territories, reducing their financial incentives to work there. "It's a lever to make them [the settlements] less financially viable," said Mr O'Neill. "Most companies are not ideological. They want to make money."

In the Netherlands, a legal battle is under way, as NGOs recently sued the Dutch government for failing to prevent alleged genocide in Gaza. They are also pushing for a ruling under which the state would be obliged to prevent Dutch companies, including pension funds, from investing in illegal settlements.

"It’s clear that the Dutch government cannot get away any more with saying 'we discourage trade in settlements'," said Daan de Grefte, legal officer at the European Legal Support Centre.

"The ICJ clearly said that it’s illegal. The only thing to do is take active steps to make sure there is no active trade with illegal settlements."

The first hearing will be in The Hague, capital of the Netherlands on November 22.