New control of exports and investment screening legislation

Dara Calleary

The Control of Exports Act 2023 creates a framework for regulating the export of controlled items, principally dual-use and military items, while the Screening of Third Country Transactions Act 2023 introduces an inward investment screening mechanism for the first time.

Dara Calleary, minister for trade promotion, digital and company regulation, said: “In an increasingly interconnected world, the national and global security environment is becoming more contested and complex.

“Reflecting this changing environment, and the increasing diversification of threats, the government has passed two key pieces of legislation designed to protect security and public order and to ensure that Ireland meets EU and International obligations and responsibilities by having an effective system of export controls.”

When enacted, the new export controls will put a legal obligation on exporters to obtain prior authorisation to export designated items to third countries and seek to balance the pursuit of free trade and the functioning of open markets with maintaining international stability and security.

Mr Calleary said: “When targeted correctly and enforced effectively, export controls are a powerful tool. With an ever-changing geopolitical landscape and advances in technology, there was a need to strengthen and modernise the current legislative framework for export controls in Ireland.”

The screening mechanism, expected to come into force in Q2 2024, will provide for reviews of certain third country investments relating to critical technology, critical infrastructure, critical raw materials, sensitive data or media plurality, to determine whether these transactions pose a risk to Ireland’s security or public order.

The new law empowers the minister for enterprise, trade and employment to investigate, authorise, condition, or prohibit foreign investments based on a range of security and public order criteria.

Mr Calleary said: “Ireland welcomes foreign direct investment — FDI is, after all, a cornerstone of our successful economic model. However, in a rapidly changing world we cannot be naive about those that would seek to undermine our security.

“I believe that the inward investment screening mechanism that we have developed is tailored to suit Ireland’s needs, ensuring that we remain an attractive location for FDI whilst being a safe and responsible location in which to do business.”