Trading Partner Portal: Italy
Italy is in the southern part of Europe and is a high income country with a corresponding gross domestic product (GDP) of $2 trillion and a population of 60.29 million people. The country is economically split in half between the industrial north and the south, whose economy heavily relies of agriculture. Though Italy is the third largest economy in the Euro zone, it has a high percentage of public debt, hindering market activity. Nonetheless, Italy has a proven reliable and well founded trading partner of the United States. World Bank, CIA
Italy is the 17th largest export destination of the United States. The US exported around $19.9 billion worth of goods to Italy in 2020. The key exports were chemicals, which totaled $4.59 billion, followed by oil and gas, transportation equipment, and primary metals. The United States is the third largest export destination for Italian goods, after Germany and France. In 2020, the US imported $49.46 billion worth of Italian products. The main imports were chemicals, non-electrical machinery, transportation equipment, and food manufactures.
The United States and Italy also have retained a symbiotic foreign direct investment (FDI) relationship. In 2019, the US had approximately $34.9 billion in FDI to Italy and Italy had roughly $43.6 billion in FDI into the US. In 2018, Italian FDI in the US supported 93,700 jobs and contributed $223 million to research and development and another $2.3 billion to expanding US exports. The top industry sectors for Italian FDI in the US were: industrial equipment, auto components, renewable energy, metals, food and beverages, and software & IT services. Select USA
In California in 2020, Italy was the twenty-third largest source of FDI through foreign owned enterprises (FOEs). Italian FOEs provided 5,293 jobs through 236 firms amounting to $359 million in wages. Top industry sectors were: manufacturing, leisure/hospitality, retail trade, wholesale trade, and professional/business services (World Trade Center Los Angeles FDI Report, June 2021).
Italy- California Trade
In particular in the United States, California has a strong exporting relationship with Italy. Out of all the states, California is the a top exporter of goods to Italy, totaling approximately $1.6 billion worth in 2020. Agricultural products make up 20.6% of all exported goods from California to Italy and totaling roughly $332.9 million. Other key categories of exported California goods to Italy are transportation equipment, computer/electronic products, and chemicals. In 2020, California imported around $3.68 billion worth of Italian goods. The main imports included food manufacturers, non-electrical machinery, beverages and tobacco products, and transportation equipment. US Department of Commerce
Texas Central Signs Design-Build Contract with Salini Impregilo to Build Texas High-Speed Train
Salini Impregilo, September 13, 2019
Trade Agreements and Issues
Transatlantic Trade and Investment Partnership (TTIP)
Italy is one of the nations that are currently involved in negotiations for the Transatlantic Trade and Investment Partnership (TTIP) with the rest of the European Union and the United States. The United States and the European Union have a strong bilateral trade relationship totaling $698.7 billion in 2015. A free trade agreement, such as TTIP, desires to strengthen that relationship by eliminating tariffs, aligning compatible regulations to open trade, and furthering trade in the service sector.