Occupied Territories Bill Signed into Law as President Connolly Enacts Historic Trade Prohibition
President Catherine Connolly has signed the Israeli Settlements in the Occupied Palestinian Territories (Prohibition of Importation of Goods) Act 2026 into law, making Ireland the first European Union member state to legislate against trade with illegal Israeli settlements in the occupied Palestinian territories, in a moment that advocates have described as historic but that critics argue is significantly weakened by its exclusion of services — which account for approximately 70 per cent of trade with the affected territories.
Background
The Occupied Territories Bill has had one of the longest and most contested legislative journeys in recent Irish political history. It was first proposed by Independent Senator Frances Black in 2018, driven by the evidence of human rights violations in the occupied Palestinian territories and the argument that Irish trade with illegal settlements was incompatible with the state's stated commitment to international law. The original 2018 proposal sought to ban both goods and services, but the version that ultimately passed the Oireachtas and received the President's signature was limited to goods.
The path to enactment was shaped by two significant developments. The first was the 2024 International Court of Justice advisory opinion, which deemed Israel's presence in the occupied territories unlawful and created a stronger legal foundation for states to restrict trade with those territories. The second was the formation of a government that included parties — including Sinn Féin — with a strong commitment to Palestinian rights, which provided the political momentum to advance the legislation.
The government-drafted bill was approved by Cabinet in May 2026 and passed all stages in the Dáil without a vote before moving to the Seanad. The exclusion of services from the legislation's scope was the central point of controversy throughout the legislative process, with opposition senators arguing that the omission rendered the bill largely symbolic given the dominance of services in modern trade.
Key Developments
The bill passed its final stages in the Seanad on July 23, with opposition attempts to table amendments extending the prohibition to services defeated by votes of 24-13 and 26-14. Senator Frances Black, whose original 2018 proposal inspired the legislation, described the final act as a "watered-down" version of the original intent, arguing that the government was "consciously" allowing large companies involved in tech and IT services to avoid the legislation's impact.
Minister for Foreign Affairs Helen McEntee defended the legislation, stating that it was necessary to build a bill with a strong legal foundation that could serve as a precedent for other countries. The government's position was that extending the prohibition to services would face significant legal challenges under EU trade law and could undermine the entire legislative project. President Connolly signed the bill into law on July 23, completing the legislative process.
The legislation prohibits the importation into Ireland of goods originating from illegal Israeli settlements in the occupied Palestinian territories. Businesses found to be in breach of the prohibition face significant penalties. The government has indicated that it will work with EU partners to encourage similar legislation at the European level, using Ireland's Presidency of the Council of the EU as a platform for that advocacy.
Why It Matters
Ireland's enactment of the Occupied Territories legislation is significant in the context of European politics, where most member states have been reluctant to take unilateral action on trade with the occupied territories. The legislation places Ireland at the forefront of a small group of countries — including Belgium and Spain — that have taken concrete steps to restrict economic relations with the settlements, and it creates a legal precedent that other states may follow.
The exclusion of services is a genuine limitation. The tech sector's presence in the occupied territories — including data centres, software development, and financial services — is substantial, and the legislation as enacted does not touch that activity. Critics are correct that this represents a significant gap. However, the goods prohibition is not without practical effect: it covers agricultural produce, construction materials, and manufactured goods from the settlements, and its enforcement will require customs authorities to develop new verification procedures. For context, this is the first time any EU member state has enacted legislation specifically prohibiting trade with Israeli settlements, and its symbolic and diplomatic significance extends beyond its immediate practical scope.
Local Impact
The legislation will require Irish importers to verify the origin of goods they source from the region, and the Revenue Commissioners will be responsible for enforcement. The Department of Enterprise has indicated that guidance for businesses will be published in the coming weeks. Irish civil society organisations that have campaigned for the legislation — including Trócaire, Amnesty International Ireland, and the Ireland Palestine Solidarity Campaign — have welcomed the enactment while calling for the government to commit to extending the prohibition to services in future legislation.
What's Next
The Revenue Commissioners will develop enforcement procedures and publish guidance for businesses in the coming months. The government has committed to raising the issue of EU-wide trade restrictions with Israeli settlements during Ireland's Presidency of the Council of the EU, which runs until December 2026. Senator Frances Black has indicated that she will continue to advocate for the extension of the prohibition to services, and the issue is likely to feature in the Seanad's autumn programme. The legislation's implementation will be monitored by a cross-departmental group, with a review of its effectiveness scheduled for 2028.
