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 $2.11 trillion and a population of 59.1 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 (excluding the UK), 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 $27.7 billion worth of goods to Italy in 2022. The key exports were oil and gas, which totaled $6.9 billion, followed by chemicals, primary metals, and transportation equipment. The United States is the third largest export destination for Italian goods, after Germany and France. In 2022, the US imported $69 billion worth of Italian products. The main imports were non-electrical machinery, chemicals, transportation equipment, and leather products.
Italy- California Trade
In particular in the United States, California has a strong exporting relationship with Italy. Out of all the states, California is a top exporter of goods to Italy, totaling approximately $1.59 billion worth in 2022, making Italy California’s 23rd largest export market. Computer and electronic products made up $315 million of products exported to Italy. Followed by agricultural products at $292 million. Other key categories of exported California goods to Italy are chemicals and miscellaneous manufactured goods. In 2022, California imported around $4.9 billion worth of Italian goods. The main imports included processed foods, non-electrical machinery, transportation equipment, beverages and tobacco products, and miscellaneous manufactures. US Department of Commerce
Foreign Direct Investment
The United States and Italy also have retained a symbiotic foreign direct investment (FDI) relationship. In 2021, the US had approximately $28.09 billion in FDI to Italy and Italy had roughly $41 billion in FDI into the US. In 2020, Italian FDI in the US supported 98,700 jobs and contributed $299 million to research and development and another $2.4 billion to expanding US exports. The top industry sectors for Italian FDI in the US were: industrial equipment, renewable energy, software & IT services, metals, food and beverages, and electronic components. Select USA
In California in 2022, Italy was the twentieth largest source of FDI through foreign owned enterprises (FOEs). Italian FOEs provided 5,759 jobs through 241 firms amounting to $479 million in wages. Top industry sectors were: manufacturing, leisure/hospitality, professional/business services, wholesale trade, retail trade, and financial activities (World Trade Center Los Angeles FDI Report).
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.