Introducing the Occupied Territories Bill would be an act of “economic terrorism” in the midst of a trade war with the US, senior Government sources have warned.
It comes after the Cabinet was warned that Ireland is “particularly exposed” to US tariffs, as well as countermeasures from the EU.
The mood at the Cabinet table was described as being “very low” with Government ministers “just waiting” for the scale of US President Donald Trump’s tariffs to be revealed today.
Cabinet sources said Tánaiste and Trade Minister Simon Harris warned ministers about the integrated nature of supply chains between Ireland and our biggest trading partner, the United States.
Ministers were told that 32% of the goods we export go to the US and it provides 17% of our imports.
Around 80% of Irish exports to the US are medicinal and pharmaceuticals, with Donald Trump pledging to directly target the US pharmaceutical multinationals based here.
The level of impact will depend on the detail of Mr. Trump’s announcement, but a scenario of 20% tariffs by the US and the EU could see exports of pharmaceuticals and chemicals to the US halved.
Ireland’s Tánaiste and Minister for Trade Simon Harris. (RollingNews.ie)
European Commission President Ursula von der Leyen has warned “all options are on the table” in response to Trump’s tariffs threats, saying that while the EU does not want an economic conflict it has the “power to push back.”
As the Government braces for the impact of Mr. Trump’s tariffs – to be unveiled today – senior Government sources told the Mail last night that introducing the controversial Bill now would be akin to “economic terrorism.”
While details of the tariffs will not be known until later today, Government sources said yesterday that the Programme for Government already agreed to pause tax cuts in the event of a downturn.
Asked what next steps could be expected, a source replied “scrapping the Occupied Territories Bill.”
“If anyone tried to place the Occupied Territories Bill on the Order paper in the Dáil it would be akin to economic terrorism,” they said.
A spokesman for Taoiseach Micheál Martin said while there is “no timeline” for the introduction of the legislation he didn’t believe it was linked to the US tariffs and that it remained part of the Programme for Government.
Taoiesach Micheál Martin. (RollingNews.ie)
There has been substantial pressure from the US for the Government to drop the Bill, which would ban the trade of goods and services between Ireland and illegal Israeli settlements.
US Ambassador to Ireland Clare Cronin warned Mr. Martin last year there would be “consequences” if the legislation was passed while it has also been raised with Enterprise Minister Peter Burke by the US Chamber of Commerce.
In an email published by The Ditch website, Ms. Cronin wrote to the secretary-general of the Department of Foreign Affairs, Joe Hackett, saying the legislation would impact on 1,000 US companies operating in Ireland.
“I am closely following developments related to the Occupied Territories Bill (OTB), as are colleagues in Washington. We are concerned that, if enacted in its current form, the Bill would cause economic uncertainty for almost 1,000 US companies operating in Ireland, because the US Export Administration Act prohibits companies from complying with an ‘unsanctioned foreign boycott,'” Ms. Cronin wrote.
July 7, 2023: US Ambassador to Ireland Claire D. Cronin at Fourth of July celebrations in Dublin. (RollingNews.ie)
During his trip to the US for the St. Patrick’s Day engagements, Mr. Martin came under pressure over the Government’s hardened stance against Israel and the commitment to introduce the OTB.
Jewish groups in the US told the Taoiseach they would lobby intensely for retaliatory sanctions against Ireland if the legislation was progressed.
The American Jewish Committee issued a statement claiming Mr. Martin said that the Bill was being dropped.
Mr. Martin told the meeting the Bill was “no longer on the legislative calendar,” the statement said.
“The [Taoiseach] said the legislation as drafted is probably unconstitutional and unenforceable. While not dispensing with it outright, he said it was no longer on the legislative calendar,” it said.
The Taoiseach’s spokesman said “categorically” that he did not tell the meeting this. The Bill was not included on the Spring Legislative Programme.
The Programme for Government did not commit to enacting the Bill, instead it pledged to “progress legislation prohibiting goods from Occupied Palestinian Territories.”
March 12, 2025: US President Donald Trump with Ireland’s Taoiseach Micheal Martin in The White House for St. Patrick’s Day engagements. (Merrion Street)
Cabinet sources described the mood at yesterday’s meeting as “very low” with ministers “just waiting” for the scale of the tariffs.
The OTB was introduced to the Oireachtas in 2018 by Senator Frances Black and, if enacted, would ban trade between Ireland and illegal Israeli settlements. Ms Black is due to meet with Mr. Harris this week to discuss the contentious Bill.
IBEC’s Danny McCoy said recently he was opposed to passing the Bill, describing it as “a high moral position” but “its practical implementation is probably zero, so it’s kind of worthless to the people you are trying to benefit’”
Finance Minister Paschal Donohoe did not rule out yesterday whether Ireland would face a recession on foot of the tariffs.
Asked by the Mail if the Irish public need to prepare for a possible recession, he said: “It’s difficult to exactly identify what could be the scenario we’re facing into after tomorrow, because we don’t yet know what the level of tariffs will be. And we don’t yet know if they’re announced, how much of them will be permanent, and further measures could follow afterwards.
“All I can say at the moment is on the basis of what President Trump has already said. I do believe it is very likely that we will experience an economic challenge in the next number of years.
“But on the basis of what I currently know, I believe it’s most likely that will lead to a lower level of economic growth, with a risk in relation to how many new jobs could be created, or some lost.
“And that will happen over the next two to four years. Once we know exactly what is going to happen, I’ll be better able to answer what is the scenario we are confronting.”
*This article was originally published on Extra.ie.
www.irishcentral.com (Article Sourced Website)
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