WorldCity, Annual Report: No. 10 Italy- Trade, Italian-style | Connecting Local Business Leaders To The Global Economy

Annual Report: No. 10 Italy- Trade, Italian-style

July 2nd, 2006

A diverse range of consumer products lead the list of imports from Italy.

Olive oil, leather, European cars, Italian shoes, ceramic tiles, wine. There’s something about Georgia’s wide-ranging imports from Italy that whispers "good living."

Georgia’s trade with the Mediterranean country rose almost 12 percent last year to total $2.2 billion, led by more than $1.3 billion in imports. Topping the imports was $75 million in motor vehicle parts destined for Italian auto distributors in eastern states.

But oils – both combustible and edible – saw the greatest growth among the Top 5 imports for 2005. Imports of refined petroleum products from Italian refineries soared 74 percent to end the year at $69 million. Much of those energy imports were used to make up for shortfalls that arose after hurricanes Katrina and Rita.

In 2005, the United States imported gasoline from 44 nations. Italy ranked No. 7 behind Canada, the Virgin Islands, United Kingdom, the Netherlands, Venezuela and Russia.

Italy produces about a fifth of the world’s olive oil and most olive oil entering the United States comes from that country. Georgia saw a big jump in those shipments in 2005. They jumped nearly 54 percent to reach $47 million.

Leather goods also played an important role among imports. In 2005, some $42 million in Italian leather goods entered Georgia, much of it was to be used for upholstery. Although leather shoes – a separate commodity category – have been losing market share to cheaper Chinese products globally, Georgia’s shoe imports were up 75 percent.

Furniture, another of Italy’s traditional exports recently struggling against Chinese competition, also saw gains. Georgia’s furniture imports from Italy rose nearly 55 percent to exceed $23 million.

Italian trade officer Alessandra Ferri said the global economy is experiencing a "historical structural change of its equilibrium" and the best way for Italy to address the Chinese challenge is to promote Italian products as distinctive.

Ferri said that while shoes and furniture battle to retain market share, Italy’s pharmaceutical sector has pushed forward. Georgia’s imports of Italian pharmaceuticals jumped 70 percent to total $32 million.

Italy’s pharmaceutical exporters include Milan-based Recordati Industria Chimica e Farmaceutica, Zambon Group Italia and Menarini Industrie Farmaceutiche Riunite in Florence.

Tile and wine imports also saw double-digit growth in 2005.

While imports dominated the trade exchange, Georgia exported $809 million in goods to Italy. Medical instruments were the top export, jumping 25 percent to $119 million. Shipments of chemical wood pulp rose 61 percent to exceed $94.4 million.

Aircraft and aircraft parts, which had been Georgia’s top two exports to Italy, saw their values drop significantly in 2005, pushing them into the fourth and third-place spots, respectively. Aircraft exports plunged 71 percent to $63 million while aircraft part exports fell 27 percent, closing the year at $71 million.

Georgia, home to paper producer Georgia-Pacific, also sent more than $51 million worth of paper to Italy, up from $42 million a year earlier. The European country is known for its book printing.

Georgia’s exports of yachts and powerboats, meanwhile, doubled to value more than $28 million in 2005.

Georgia firms with operations in Italy include Coca-Cola, Georgia-Pacific, Equifax, Rayovac and Newell Rubbermaid while Italian companies in Georgia are Aetna Group, Aquafil, Gucci and Indagro. Pirelli Tires has a factory in Rome, Ga., and an new Atlanta office for photonics technology research.