A group of 16 members of the US House of Representatives has written to treasury secretary Scott Bessent requesting he consider adding Ireland to a list of countries boycotting Israel, if the proposed Occupied Territories Bill is passed.
The move will increase pressure on the Irish Government from the US over its plans for the bill, which would prohibit trade in goods with the occupied Palestinian territories.
The Government has said it is committed to passing the bill, and is considering whether to include trade in services under its ambit. However, some business groups have warned the bill’s passing may have significant implications for US companies here.
The letter to Mr Bessent, sent Thursday and signed by 16 Congressmen and women, led by New York Republican Congresswoman Claudia Tenney, is likely to be favourably received by the Treasury Department.
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It suggests the Occupied Territories Bill would fall foul of 1986 legislation which requires the Treasury Department to maintain a list of countries which implement what the letter calls “an unsanctioned international boycott”.
Inclusion on this list imposes specific tax reporting requirements and potential penalties for US individuals and businesses engaged in certain activities in those countries, it says.
“Last month, Irish Foreign Affairs and Trade Minister Simon Harris introduced legislation to prohibit the import of goods and services originating from territories under Israeli administration that they characterize as ‘occupied,’ including Judea and Samaria, Gaza, parts of Jerusalem and the Golan Heights,” the letter from the Congressmen and women states.
“This measure is part of a broader effort aligned with the global Boycott, Divestment, and Sanctions (BDS) movement, which seeks to economically isolate Israel. Such policies not only promote economic discrimination but also create legal uncertainty for US companies operating in Ireland.
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“The United States must send a clear signal that efforts to economically isolate Israel will carry consequences, and that US law designed to combat such discrimination will be enforced.”
It is signed by Ms Tenney, and by Representatives Nick LaLota, David Schweikert, Elise Stefanik, Andy Ogles, Joe Wilson, Pete Stauber, Chuck Edwards, Keith Self, Barry Moore, Mark Messmer, Harriet Hegeman, Andrew Garbarino, Earl “Buddy” Carter, Ben Cline and Michael Turner. All are Republicans.
In a statement, Ms Tenney said, “Ireland’s proposed boycott is a blatant attempt to isolate and delegitimize 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 United States will not stay silent while our allies are targeted by hostile political agendas.”
The letter makes no mention of rulings by the International Court of Justice on the illegality of the Israeli occupation of the Palestinian territories which is relied upon by the Irish Government as a justification for the bill.
Dublin has stressed it does not want to boycott Israeli goods, only those produced in the occupied territories. It is not clear, however, that the distinction matters hugely to the US system.
“There have been suggestions made that Ireland’s position has been misrepresented in the United States. That is absolutely not the case – Ireland’s position is very well understood – people just strongly disagree with it,” said one person in the US who is opposed to the Irish legislation.
“There is a growing sentiment in Congress and political circles in the US that there will be severe political and economic consequences for Ireland if it presses forward with this legislation. Not only is this a Federal issue but it would also expand to a State issue across 36 states as enforcement of State anti-boycott legislation commences against companies doing business in Ireland that comply with such a law,” the source said.
