The Irish parliament has passed a bill banning the import of goods produced in Israeli settlements in the occupied Palestinian territories, becoming the first legislation of its kind in the European Union targeting settlement-related economic activities after Spain began imposing restrictions on the import of some products coming from the occupied Palestinian territories since last October.

The legislation comes at a time when European calls are mounting to reconsider trade relations with the occupation, against the backdrop of the ongoing war on the Gaza Strip and settlement expansion in the West Bank and occupied Jerusalem.

The bill prohibits the import of goods from "certain Israeli settlements" located outside the internationally recognized borders of the Israeli occupation, including products associated with residential, agricultural and commercial activities within those settlements.

The move comes amid growing European calls to reassess trade relations with the occupation, against the backdrop of the war in Gaza and the continued settlement expansion.

Direct legal reliance on the opinion of the International Court of Justice

The Irish government confirmed that it based this legislation on the 2024 advisory opinion of the International Court of Justice, which concluded that Israel's occupation of the West Bank, East Jerusalem, and the Gaza Strip is illegal under international law.

This basis, according to its interpretation, gives Dublin a justification for taking economic action against settlement-related activities as a product of illegal occupation.

Ireland was one of the first European countries to recognize the State of Palestine in 2024, which led to unprecedented tension with the occupation government, to the point of closing the Israeli embassy in Dublin and imposing restrictions on the entry of Israeli ministers to Irish territory.

Broader European Calls... And limited economic impact

Ireland has been pushing for some time to review the 1995 Association Agreement between the European Union and Israel, which forms the legal framework governing trade and economic relations between the two parties.

The European Union announced last month that it would consider various options to restrict trade with Israeli settlements, but the lack of consensus among member states continues to prevent the adoption of unified European measures against the occupation.

Despite the law's political importance, it is estimated that its economic impact will be limited, with Irish imports from settlements limited to products such as fruits, vegetables and timber, worth only 1 million euros (about $1.1 million) between 2020 and 2024, according to AFP.

Criticism calls for the ban to be expanded

The bill sparked debate in the Irish parliament, with a number of opposition MPs criticising the current version of the legislation, arguing that it does not go far enough, as it is limited to the trade in goods and does not include trade in services related to Israeli settlements.

The government defends its position, arguing that the inclusion of trade in services poses greater legal complications than the ban on goods, and that it seeks to ensure that the law is "legally sound" before it goes into effect, so that it can withstand any challenges.