US politicians lobby Trump to penalise Ireland if it passes Occupied Territories Bill

Congresswoman claims Boycott, Divestment and Sanctions measures are anti-Israel, despite Irish Government saying the UN and ICJ have provided the legal basis for the law

Irish politicians and campaigners, including the Cork Palestine Solidarity Campaign, have long called for a ban on trade with Israeli settlements set up illegally on Palestinian land. File picture: Martin Shiel

Members of the US Congress have written to the Trump administration asking that Ireland faces penalties if the Occupied Territories Bill boycotting Israel passes through the Oireachtas. 

The bill will ban the trade of goods with illegal Israeli settlements on Palestinian land.

The Government said there is a narrow legal basis, based on an advisory opinion from the UN's top court, to ban the trade of goods with illegal Israeli settlements.

The Government has said this is being done to comply with the International Court of Justice, which said last year that countries should "take steps to prevent trade or investment relations" that maintain illegal Israeli settlements on Palestinian land.

US anti-boycott law

On Thursday, New York congresswoman Claudia Tenney, along with 15 other lawmakers, wrote to US Treasury Secretary Scott Bessent asking that he investigate whether Ireland’s proposed law violates US anti-boycott law. 

The letter urges the Department of the Treasury to conduct a formal review under Section 999 of the Internal Revenue Code and consider adding Ireland to the list of countries that require or may require participation in international boycotts against the US or its allies.

If added to the list, there is the potential that American citizens or businesses in Ireland would be subject to additional tax reporting rules.

In a statement, Ms Tenney said that the Boycott, Divestment and Sanctions (BDS) movement was "anti-Israel" and would "economically isolate America’s closest ally in the Middle East". She said the Irish legislation "aligns with the global BDS movement, which seeks to delegitimise Israel and create legal uncertainty for US companies operating abroad".

Ireland’s proposed boycott is a blatant attempt to isolate and delegitimise Israel on the world stage. 

"This proposed boycott is discriminatory, dangerous, and would violate US law. 

"The Treasury Department has the duty to enforce the law, protect American businesses, and hold countries accountable when they promote foreign boycotts against our allies. The US will not stay silent while our allies are targeted by hostile political agendas,” said Ms Tenney.