According to the Financial Times, Ireland is set to become the first EU member state to formally initiate legislation banning trade with Israeli businesses operating in the occupied Palestinian territories, a move the government says is driven by the gravity of the ongoing war on Gaza.

Irish Foreign and Trade Minister Simon Harris will launch the drafting process on Tuesday, describing the planned bill as a necessary response to the “war crimes” committed by "Israel".

“It is clear war crimes are taking place, children are being starved and food is being used as a weapon of war,” Harris told the Financial Times, stressing that global inaction has allowed "Israel's" atrocities against Gaza to continue unchecked.

The legislative effort comes just days after a majority of EU states voted to reassess the bloc’s broader trade agreement with “Israel”.

Ireland's imports of goods from Israeli businesses located in the occupied Palestinian territories, primarily areas around al-Quds and the West Bank, are modest in volume.

Nonetheless, the Dublin government, which last year officially recognized the State of Palestine alongside Spain and Norway, hopes the initiative will set a precedent for other European countries to follow.

Legal test for services like Airbnb

According to the Financial Times, a central point of debate within the planned legislation concerns whether intangible services, such as tourism platforms and IT companies, should be included in the trade ban.

An update on Gaza and my plans to bring forward legislation on the occupied territories, the need for aid, including Irish funded aid to immediately enter Gaza and the need for the European Union to suspend the association agreement between the EU and Israel. pic.twitter.com/sFe8opp2Ns

— Simon Harris TD (@SimonHarrisTD) May 24, 2025

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“There has never been a targeted trade measure of this nature before at an EU level,” said Conor O’Neill, head of policy and advocacy at Christian Aid Ireland, who helped draft a similar occupied territories bill in 2018. That bill was initially spearheaded by an independent senator but stalled amid concerns over EU trade law.

O’Neill emphasized that a comprehensive ban should encompass not only physical goods, such as citrus fruit and cosmetics, but also services offered by multinational firms operating in the occupied territories, as reported by the Financial Times. One such example is Airbnb, which previously announced plans to delist properties in the region before reversing its decision in 2019 following legal settlements.

Although the company claimed it would donate related profits to aid agencies, critics argue that listing properties in settlements legitimizes illegal occupation. With Airbnb’s European headquarters based in Dublin, the platform could potentially fall within the jurisdiction of the new legislation.

Pressure mounts on Irish government

While previous attempts to implement such legislation were blocked over legal concerns tied to EU trade regulations, the government’s current posture marks a significant shift. Harris, referencing the intensity of the humanitarian crisis in Gaza, asserted that “given the scale and gravity of what we’re now seeing with the deprivation of aid and the bombardment of Gaza... this is an appropriate course of action to take,” as reported by the Financial Times.

Though Harris previously stated he had “no policy disagreement... whatsoever” with including services under the scope of the bill, he acknowledged having received legal advice indicating such a provision would be problematic. Irish academics and legal experts dispute that interpretation, says the Financial Times.

In an open letter last week, more than 400 scholars and lawyers argued there were “no insurmountable obstacles in Irish, EU or international law” preventing the inclusion of services. They also called for the government to publish its legal opinion for transparency.

ICJ opinion cited in legal defense

The letter referenced an advisory opinion issued last year by the International Court of Justice, which stated that UN member states should “take steps to prevent trade or investment relations that assist in the maintenance” of the Israeli occupation, now in its sixth decade. A previous opinion by EU legal experts echoed this stance, reinforcing the argument that the proposed Irish bill aligns with international law.

Should the bill be adopted in full scope, it could block companies headquartered in Ireland from engaging in business activities tied to settlements, including digital platforms such as Airbnb. Palestinian-made goods, such as Zaytoun olive oil produced in the occupied territories, would be exempt under the new measures, according to the Financial Times.

Ireland’s central bank also remains under scrutiny, given its oversight of Israeli bond sales. Sinn Féin, the country’s main opposition party, is backing a separate bill aimed at halting the purchase and sale of these bonds, which it argues contribute to financing the war on Gaza. That bill is expected to be debated next week in parliament.

Parliamentary debate expected by June

Harris expressed hope that the new bill would be ready to enter parliamentary scrutiny by June. “We want to do something impactful... but the European Union acting collectively would have a much more profound impact,” he told the Financial Times, underscoring Ireland’s call for broader action at the EU level.

Although trade volume between Ireland and the settlements remains minimal, estimated at just €685,000 between 2020 and 2024, covering products such as fruit, furniture, and cosmetics, the symbolic weight of the legislation could resonate widely across Europe. Advocates of the measure point to Ireland’s role in the global anti-apartheid movement in the 1980s, where its trade bans against South Africa were eventually adopted by other nations.

According to the Financial Times, the Israeli regime, meanwhile, has condemned recent moves by allies to reconsider their trade ties in response to its war on Gaza. Occupation Prime Minister Benjamin Netanyahu has denounced leaders in the UK, France, and Canada for calling on the occupation to end its military campaign in the besieged enclave, declaring that they were “on the wrong side of humanity and the wrong side of history.” Israeli officials continue to reject any comparison between their policies and the apartheid system once upheld in South Africa.