Introduction to Italy

Italy has a diverse industrial economy, the seventh largest in the world and the fourth largest in the European Union (EU). In addition, Italy represents a large and affluent market and offers countless opportunities for businesses seeking to expand global sales and exports, with almost 60 million consumers and a Gross Domestic Product (GDP) ranked fourth in the EU. In addition, Italy is the United States’ 19th largest export market. In 2008, U.S. exports to Italy totaled $15.4 billion, an increase of 9.39 percent over the previous year.¹

Advantages for U.S. exporters to Italy include: the weak dollar versus a strong euro; the fact that U.S. products are viewed as trendy, now and innovative - especially those with the added benefits of health and life style; a growing niche market for foreign foods as Italians become more aware of foreign cuisines; and the fact that U.S. fast food chains, theme restaurants and the food processing industry are demanding ingredients originating in the U.S.²

Challenges facing U.S. exporters to Italy include: strong cultural presumption that Italian food products are superior to those of foreign suppliers; political opposition to modern biotechnology; detention of U.S. products by Italian border inspectors for not conforming to EU sanitary standards; and the need to develop and invest in relationships with Italian trade contacts.³

Benefits of Exporting to Italy

o According to Export.gov 95 percent of the world’s consumers live outside the United States.

o Exporting allows your company to withstand changes in the domestic economy.

o Selling abroad will increase your sales, profits and customer base.

o You can extend the life cycle of your product by exporting while your domestic market is still in maturity.

Other Information

The U.S. Department of State provides advice for business travelers and tourists going to Italy. General information concerning Italy can be found at www.state.gov/r/pa/ei/bgn/4033.htm.

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1 WISER Trade, March 20009

2 U.S. Commercial Service, “Doing Business in Italy, 2009″

3 Ibid