Taoiseach Micheál Martin has said the aim of the Occupied Territories Bill must be to apply pressure on Israel to end the war in Gaza, rather than "disadvantage Ireland unduly".
He said this meant the Government had to take into account, when framing its approach, anti-boycott legislation in the United States which was introduced to protect Israel.
"We do have to factor in the presence of American legislation, the boycotting divestment legislation, which is already passed by numerous states in America, which would penalise any company that, from an American perspective, participates in boycotts," he said.
Mr Martin made the comment when asked whether legislation currently before an Oireachtas Committee should be expanded to include services as well as goods.
"There's no point in Ireland coming out worse if it has no impact on Israel. That’s the only point I’m making, we have to be clear-eyed in terms of the impact. People should know about the impact."
The bill will ban trade with the Occupied Palestinian Territory by making any import from there an offence under the Customs Act.
This will mean that the bill will be enforced by customs officers.
They will have the power to inspect, search and arrest anyone seeking to import goods from Israeli settlements in the Occupied Palestinian Territory.
While trade is banned, the legislation going to the Government does not cover services.
Tánaiste Simon Harris has said he is open to expanding the current legislation to include services as well as goods.
