A group of US Congress members has written to US Secretary of the Treasury Scott Bessent asking him to consider adding Ireland to a list of countries which boycott Israel if the Occupied Territories Bill (OTB) is passed.
The group of 16 congressmen and women, led by New York Republican Congresswoman Claudia Tenney, signed the letter, which expressed their "serious concerns" regarding the Government's proposal to prohibit the import of goods from Israeli-occupied territories.
It said the US treasury department should examine the implications of the proposal under US law.
If Ireland was to be added to the list of countries which boycott Israel, it would impose specific tax reporting requirements and potential penalties for US individuals and businesses engaged in certain activities in those countries, the letter said.
In June, Tánaiste Simon Harris brought the outline of the OTB to Cabinet, with the legislation known as the Israeli Settlements Prohibition of Importation of Goods Bill 2025.
The bill bans trade with the Occupied Palestinian Territory by making any import from there an offence under the Customs Act.
A cross-party Oireachtas foreign affairs committee was then tasked with drawing up a pre-legislative scrutiny report on the long-awaited bill.
Taoiseach Micheál Martin previously confirmed the OTB is likely to go before the Dáil and Seanad in early autumn.
The Congress members' letter said: "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 characterise as "occupied," including Judea and Samaria, Gaza, parts of Jerusalem and the Golan Heights."
"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," it added.
The letter said the bill could violate Section 999 of the Internal Revenue Code of 1986, which could lead to Ireland being added to a list of countries which implement an "unsanctioned international boycott".
"We encourage the Treasury Department to assess whether Ireland's proposal indicate that they require or may require participation in or encouragement of an international boycott within the meaning of Section 999.
"If the criteria are met, Ireland should be added to the boycott list to ensure that US companies are informed of their reporting obligations and protected from unintended legal exposure," it said.
The group of congressmen and women said the US 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".
