Economy minister Caoimhe Archibald issued instructions to officials about not engaging in UK/Israel trade talks.
Stormont’s Economy Minister is facing a legal challenge over her bid to exclude Northern Ireland from any involvement in trade talks between the UK and Israel.
The legal threat to Sinn Fein’s Caoimhe Archibald also challenges her decision to instruct officials in Invest NI, Stormont’s business support agency, not to provide financial assistance to any companies arming Israel.
The pre-action protocol letter has been issued by pro-union think tank Unionist Voice Policy Studies (UVPS).
The group says that as international trade policy is not a devolved issue, Ms Archibald has no authority to act on the matter.
It comes after Ms Archibald made a written statement to the Assembly on Thursday after commissioning a review to establish if businesses in receipt of Invest NI grant funding had links to Israeli arms.
Ms Archibald said Invest NI had provided an assurance that it “does not support projects that manufacture arms or their components for supply to Israel”.
The minister announced a series of “additional measures” she said would “eliminate any risk of public funds being used to support the manufacture of arms or components that are used for genocide”.
The steps included a commitment that her department “will not engage in the British Government’s trade talks with Israel while it continues to illegally occupy and impose apartheid on Palestine”.
The minister said her department would also be asking for confirmation from companies seeking Invest NI support that “they are not manufacturing arms or components for countries committing genocide”.
The DUP has already launched a move in the Assembly to have the matter referred to the wider Stormont Executive for discussion.
TUV leader and North Antrim MP Jim Allister has submitted a request for an urgent debate on the issue in the House of Commons.
Under Stormont rules, ministers are obliged to refer matters deemed significant and controversial to the whole powersharing Executive for a collective decision, rather than acting unilaterally.
A pre-action protocol is the first step required to challenge a minister’s decision in the courts.

Loyalist activist Jamie Bryson is a director of Unionist Voice Policy Studies.
In a statement, UVPS said: “The decision of the Minister for Economy to purport to exclude Northern Ireland from the sovereign Government’s trade talks with Israel is plainly unlawful.
“It is firstly significant and controversial, and therefore should have been referred to the Executive; but secondly, the minister is purporting to act in a non-devolved area, therefore is plainly far beyond her functions and responsibilities.
“The minister further stated Invest NI shall not engage in projects with any company who manufactures arms for Israel.
“This amounts to clear discrimination on the ground of political opinion against any business who supports Israel and either for that reason, or simply as a business decision, lawfully manufactures arms or components thereof for sale to Israel.
“We have consistently challenged what we see as unlawful acts of Executive ministers, and this in our view is the latest example of a Sinn Fein minister acting far beyond their lawful powers, and most importantly acting without recourse to the Executive and thus in defiance of the principles of powersharing.”
Mr Bryson is taking legal action against Sinn Fein Infrastructure Minister Liz Kimmins over a decision to install Irish language signs in Belfast’s Grand Central Station.
The Department for the Economy has been approached for comment.