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The move to avoid legislation against settlement products was revealed on Wednesday after a new government was formed this week. The bill was originally promoted by pro-Palestinians groups in the boycott, divestment and sanctions movement.
The Fianna Fáil party promised in its manifesto that it would seek such a measure, to the point of imposing heavy fines on those who sell products from Jewish communities beyond the Green Line and a potential prison sentence of five years.
The bill passed several readings in both chambers of parliament, but Prime Minister Leo Varadkar has opposed the bill because it violated EU trade rules.
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