Despite falls in its global trade performance, a 2005 current account deficit of 21.2 billion euros, political instability and the unenviable position of having the lowest growth rates in Europe, Italy remains an important trade opportunity for Australian
Despite falls in its global trade performance, a 2005 current account deficit of 21.2 billion euros, political instability and the unenviable position of having the lowest growth rates in Europe, Italy remains an important trade opportunity for Australian business, according to Australia’s ambassador to Italy.
Peter Woolcott, who spoke last week at the WA Business News Meet the Ambassadors breakfast, said Italy remained one of the world’s largest economies, despite experiencing GDP growth in 2005 of zero against 1.3 per cent for the European Union.
“Italy is Australia’s 18th largest export market and remains our third largest export market in the EU after the UK and the Netherlands,” he said.
Mr Woolcott said two-way merchandise trade in 2005 totalled $5.8 billion, while merchandise exports were worth $41.5 billion, a 12.2 per cent growth from previous year’s figures.
“The trade figures also reflect a key rise in our imports from Italy to just under $4.4 billion in 2005 with over 6 per cent in annual growth over the last five years,” he said. “This leaves Australia [as Italy’s] 12th biggest supplier and seventh largest export market outside of Europe.”
Australian exports of goods to Italy in 2005 included coal ($313 million), which took over from wool ($278 million) as the biggest single contributor, while notable increases were in exports of iron ore ($60.5 million) and aluminum ores and alumina ($45.8 million).
Another export to make a big jump has been leather, which was up from $1.6 million in the 2004 financial year to $28 million in 2005.
Exports in fast ferries, motor vehicle parts, processed food, wine, medicaments and defence material also grew.
Goods imported by Australia included medicaments ($450 million), pharmaceutical products ($135 million), specialised machinery ($129 million), household equipment ($122 million) and furniture ($119 million).
“There are significant opportunities and we ought to be a natural partner,” Mr Woolcott said. “We are resource rich and we have good market access.
“Major investment opportunities which have recently taken place by Australian companies include the Macquarie Bank’s purchase of 42 per cent of Rome Airport for $542 million and NewsCorp’s $3 billion stake in the Italian pay-TV platform TELE+.”
Mr Woolcott also pointed out that Italy should not only look at Australia as a trading partner but as a bridge into the bustling Asian markets, in particular for small-to-medium enterprises, which make up 95 per cent of the Italian economy and have little understanding of the Asian markets.
“This goes beyond our geographical position…and encompasses our network of regional economic relations,” he said.
Austrade state manager Jenny Matthews said there were opportunities in Italy for small-to-medium sized companies from WA.
“We find we are working with small companies which have niche products going into markets like Italy,” she said. “One of the local success stories [to break into the Italian market] has been Ganehill Pty Ltd, which produces a particular type of zinc cream.”
Italy’s major industries are tourism, precision machinery manufacturing, textiles, chemicals, pharmaceuticals, food processing, motor vehicles, electrical goods, clothing and footwear.
About half of Italy’s trade is with the EU, particularly Germany, France, the UK, Spain and the Netherlands.
