Italy is famous for its tourism, its cuisine and most importantly, its exports.
Prada, Ferrari and Gucci are a few examples, but there are many others.
Italy is the world’s eighth largest export economy. This includes $41 billion USD in exports to the US, Italy’s third-largest export partner.
Here is why your US business should buy Italian.
“Made in Italy”
Italian goods, especially cars and clothing, have worldwide recognition for being high quality.
In fact, Chinese textile workers moved to Italy in the 1970s to master the Italian craft. Once they did, the Chinese workers created businesses in Italy. They created goods that were “made in Italy,” but at a cheaper price by breaching work laws.
Italian businesses that wanted to buy domestic goods gravitated towards these Chinese suppliers. The products were “made in Italy”, and were priced much lower than the competition.
Since then, the Institute for the Protection of Italian Manufacturers has made “Made in Italy” harder to achieve. The certification has become even more prestigious and is greatly desired by foreign businesses.
Strong Trade Relationship
The US is Italy’s largest export destination outside of the European Union. In 2016, the US received $45.4 billion USD in Italian imports, creating a $28.6 billion trade deficit.
Even with a weaker currency than Italy’s euro, the US is still purchasing Italian imports in mass. This shows the non-monetary value that Italian imports have in the marketplace. Plus, it demonstrates how the US market relies on Italian imports.
Welcomes Foreign Investment
Italy’s government loves foreigners, from tourists visiting Rome to businesses importing Italian goods.
They created Industria 4.0 in 2016 to boost foreign investment, by:
- Cutting corporate tax from 27.5% to 24%, and;
- Increasing investment in R&D by €24 billion by 2020.
The US Commercial Service has offices in Rome and Milan to help US businesses find suppliers as well.
Simple B2B Payments
The digital age has made global business transactions easier than they were a decade ago. This is especially true if you’re using global payments methods such as Veem.
Veem has redesigned international money transfers so that they skip the banks. This cuts unnecessary costs and delays, making the payment process much quicker.
If you’re importing or exporting to Italy, B2B transactions with Veem are as easy as sending an email.
Helping Italy Helps You
Importing Italian goods guarantees high-quality products for your business while feeding the Italian economy.
Foreign businesses can receive a grant of up to 65% of the amount spent buying southern Italian goods.
Italy faces economic inequality, with 90% of Italian exports coming from northern Italy. Because of this, the government incentivizes foreign investment in southern Italy.
Foreign businesses can receive a grant of up to 65% of the amount spent buying southern Italian goods. This tax cut results in southern Italian goods being cheaper than in other European regions. Plus, investing in southern Italy improves their economy, and their potential to import US goods.
Italy is becoming an ideal supply partner for US businesses. Among other reasons, renowned product quality and tax cuts for foreign businesses create a prime location for your business to import and export.