Economic Data (1999, in $U.S.)
Total GDP: Purchasing power parity = $1.212 trillion
GDP Growth: 1.3%
Per Capita GDP: Purchasing power parity = $21,400
Inflation Rate: 1.7%
Trade Balance: $35.7 billion trade surplus.
Trade with RI: Italy is Rhode Island’s 18th largest trading
partner, with $16.389 million in exports in 1999.
Exports: $242.6 billion: engineering products, textiles and clothing, production
machinery, motor vehicles, transport equipment, chemicals, food, beverages and
tobacco, minerals and nonferrous metals. Export trading partners: EU 56% (Germany
16.5%, France 12.7%, UK 7.2%, Spain 5.8%, Netherlands 2.9%), U.S. 8.5%.
Imports: $206.9 billion: engineering products, chemicals, transport equipment,
energy products, minerals and nonferrous metals, textiles and clothing, food,
beverages and tobacco. Import trading partners: EU 61% (Germany 18.8%, France
13.12%, UK 6.47%, Netherlands 6.2%, Belgium-Luxembourg 4.7%), U.S. 5.1%.
Best Prospects for Exports: Computer software, computers and peripherals,
computer services, franchising, management consulting services, airport and ground
support equipment, insurance services, telecommunications services, pet products,
automotive parts and service equipment, education and training services, electric
power systems, medical equipment, pollution control equipment and supplies, travel
and tourism.
Italian Republic
Location: Southern Europe, a peninsula extending into the central Mediterranean Sea, northeast of Tunisia. Bordered by Austria, France, Holy See (Vatican City), San Marino, Slovenia, and Switzerland.
Geographic Area: 301,230 sq km, slightly larger than Arizona.
Climate: Predominantly Mediterranean; Alpine in far north; hot, dry in
south.
Major Cities: Rome (Capital), Milan, Florence, Venice, Bologna and Naples.
Population: 57,634,327 (July 2000 est.)
Ethnic Groups: Italian (includes small clusters of German-, French-, and
Slovene-Italians in the north and Albanian-Italians and Greek-Italians in the
south)
Languages: Italian (official), German (parts of Trentino-Alto Adige region
are predominantly German speaking), French (small French-speaking minority in
Valle d’Aosta region), Slovene (Slovene-speaking minority in the Trieste-Gorizia
area).
Time Zone: Italy is six hours ahead of U.S. Eastern Standard Time.
Workweek: Business hours are from 8 or 9 a.m. to noon or 1 p.m. and from
3 to 6 or 7 p.m., Monday through Friday. Government offices are normally open
between 8 a.m. and 2 p.m. Bank hours are from 8:30 a.m. to 1:30 p.m. and 3:00-4:00
p.m.; they are closed on Saturdays. Retail establishments are closed on Sundays
although there are exceptions primarily in tourist areas
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Type of Government: Republic
Head of State: Silvio Berlusconi
Currency: 1 Italian lira (Lit) = 100 centesimi
Exchange Rate: $1U.S. = 0.9867 Euros, U.S.1$ = 2271.83 Italian lire.
Note: On January 1, 1999, the EU introduced the Euro that is now used for non-cash
transactions at a fixed rate of 1,936.27 lire per euro; the euro will replace
the local currency in consenting countries for all transactions in 2002. The value
of the euro changes with respect to the dollar, which in turn changes the value
of the lira against the dollar.
Tariffs, Trade, Taxes, Trademarks
Tariffs and Non-Tariff Barriers: Almost all goods originating in the
United States and other countries can be imported without import licenses and
free of quantitative restrictions.
Taxes: While customs duty rates are the same for all 15 EU countries, the
value-added tax (VAT) and excise tax on products and services usually vary. These
taxes are levied in the country of final destination.
The government has proposed to reduce corporate income tax rate from 41% to a
standard rate of 37% and a reduced rate of 19% for reinvested profits. If approved,
this would reduce the average corporate income tax to 28%.
Standards: As a member of the EU, Italy applies the product standards and
certification approval process developed by the European Community. To indicate
conformance to the mandatory EU requirements, the manufacturer or a representative
must place a CE mark on all regulated products before they can be sold on the
EU market.
Foreign Investment: For the most part, foreign investors do not find major
barriers to investing in Italy, although bureaucratic requirements can be burdensome.
Foreign ownership of 100 percent of Italian firms is allowed, although some restrictions
to foreign investment exist. Italy provides national treatment to foreign investors
except in a few instances.
Free Trade Zones: Two free trade zones exist in Italy located in Trieste and
Venice. Goods of foreign origin may be brought in without payment of taxes or
duties, as long as the material is to be used in the production or assembly of
a product that will be exported. Benefits of a free-trade zone include:
1) Customs duties deferred for 180 days from the time that the goods leave the
free-trade zone to enter another EU country; 2) the goods may undergo any transformation
free of any customs restraints; 3) absolute exemption from any duties on products
coming from a third country.
Trade Finance: Financial resources flow relatively freely in Italian financial
markets and credit is allocated on market terms. Foreign participation in Italian
markets is not restricted. Italy has a well-developed banking and credit system
with numerous correspondent U.S. banks.
Business Etiquette: In general, good business practice in the United States
also applies when doing business in Italy. Businesspeople in Italy appreciate
prompt replies to their inquires, and expect all correspondence to be acknowledged.
Conservative business attire is recommended at all times.
Product Labeling: Under Italian legislation, the origin of imports is established
through documentation accompanying the shipments arriving in Italy and not through
product or container marking.
Patents/Trademarks/Copyrights: The USTR has placed Italy in the Special
301 “Priority Watch List” due to copyright infringements for computer software,
sound recordings and film videos, delays in passing effective anti-piracy legislation,
and to introduction of European content requirements (TV broadcast quotas) at
the national level that are more strict than those required by the EU Broadcast
Directive.
Copyright: Both Italy and the United States are signatories of the Universal
Copyright Convention, which provides for mutual copyright protection.
Trademarks: Some terms cannot be registered as trademarks, such as those
considered to be generic, those containing false indications of quality or origin
of goods, and those with similar terms already registered by others in Italy or
for which applications are pending.
Key Contacts
Bryant College, John H. Chafee Center for International Business
RI Export Assistance Center, Raymond W. Fogarty, Director
World Trade Center, Edward Barr, Manager
RI State Directorate, Maureen Mezei, International Trade Director
Contact: Mary-Ruth Foley
Telephone: (401) 232-6566
Fax: (401) 232-6416
E-mail: mrfoley@itdn.net
Web site: www.rieac.org
U.S. Export Assistance Center, Department of Commerce
Keith M. Yatsuhashi, International Trade Specialist
Telephone: (401) 528-5104
E-Mail: kyatsuha@mail.gov
U.S. Small Business Administration
Marilyn Bogue, International Trade Officer
Telephone: (401) 528-4585
E-Mail: marilyn.bogue@sba.gov
U.S. Embassy in Italy
Via Veneto 119/A, 00187, Rome
Telephone: [39] (06) 46741
Fax: [39] (06) 488-2672
U.S. & Foreign Commercial Service
Eric Weaver, Minister Counselor for Commercial Affairs
American Embassy
Via Vittorio Veneto 119/A
00187 Rome, Italy
Telephone: 39-06-4674-2202
Fax: 39-06-4674-2113
E-Mail: Rome.Office.Box.mail.doc.gov
Embassy of Italy
1601 Fuller Street NW, Washington, DC 20009 and 2700 16th Street NW, Washington,
DC 20009 Telephone: [1] (202) 328-5500
Fax: [1] (202) 483-2187
Consulates General: Boston, Chicago, Houston, Miami, New York, Los Angeles, Philadelphia,
and San Francisco
U.S. Department of Commerce
Market Access Compliance Office
David DeFalco, Italy Desk Officer
Room H-3042
14th Street and Constitution Ave, NW
Washington, DC 20230
Telephone: (202) 482-2178
Fax: (202) 482-2897
