Italian exports to exceeded Italy’s imports from other European nations by $22.7 billion in 2014. Similarly, Italy achieved a $26.3 billion trading surplus with North America and a smaller 16.3 positive balance with the Middle East.
The fact that Italy earns these trade surpluses indicates Italian competitive advantages for a specific set of export products highlighted below.
These major product supply advantages are root causes for Italy’s $56.7 billion overall trade surplus which was the eighth-largest in the world for 2014 albeit well behind China’s $384.3 billion benchmark.
Italy’s trade surplus in 2014 represents a dramatic improvement since 2010 when it racked up a negative balance equal to -$40.1 billion.
Italy Major Product Supply Advantages
Top 10
Presented in descending order, the following list showcases the general product categories under which Italy earned the highest trade surpluses in 2014.
- Machinery: US$64.8 billion (38.2% of all product surpluses)
- Articles of iron or steel: $14.6 billion (8.6%)
- Furniture, lighting , signs: $10.6 billion (6.2%)
- Beverages, spirits and vinegar:$7.6 billion (4.5%)
- Clothing (not knit or crochet): $6 billion (3.5%)
- Leather, animal gut articles: $5.8 billion (3.4%)
- Footwear: $5.7 billion (3.4%)
- Ceramic products: $4.6 billion (2.7%)
- Aircraft, spacecraft: $3.9 billion (2.3%)
- Ships, boats: $3.8 billion (2.3%)
The above top 10 product categories represent 75.1% of Italy’s overall product-category surplus subtotal which amounted to $169.9 billion. For that subtotal, 52 of Italy’s 97 general product categories delivered a surplus in 2014 while the remaining 45 categories incurred deficits.
Growth
Italy enriched its trade surplus amounts at the fastest-pace during 2010 to 2014 under the product categories below.
- Ships, boats: Up 200.6% since 2010 (US$3.8 billion)
- Leather, animal gut articles: Up 153.3% ($5.8 billion)
- Clothing (not knit or crochet): Up 74.1% ($6 billion)
- Footwear: Up 44.6% ($5.7 billion)
- Beverages, spirits, vinegar: Up 41% ($7.6 billion)
- Machinery: Up 38.7% ($64.8 billion)
- Aircraft, spacecraft: Up 27.5% ($3.9 billion)
- Ceramic products: Up 21.6% ($4.6 billion)
- Articles of iron or steel: Up 20.8% ($14.6 billion)
- Furniture, lighting , signs: Up 13.4% ($10.6 billion)
Detail
From the perspective of the more detailed 4-digit harmonized tariff system (HTS) level, below are 15 products that enabled Italy to achieve the highest surpluses in its international trade with other countries.
- Automobile parts/accessories: US$7.6 billion
- Medication mixes in dosage: $7.2 billion
- Taps, valves, similar appliances: $6.9 billion
- Miscellaneous furniture: $6.6 billion
- Wine: $6.4 billion
- Dishwashing, clean/dry/fill machines: $6.3 billion
- Processed petroleum oils: $5.9 billion
- Footwear (leather): $5.8 billion
- Jewelry: $5.6 billion
- Miscellaneous machinery: $4.7 billion
- Cases, handbags, wallets: $4.6 billion
- Miscellaneous iron or steel tubes, pipes: $3.5 billion
- Temperature-change machines: $3.3 billion
- Air or vacuum pumps: $3.2 billion
- Other animal leather: $3 billion
Among these, medication mixes in dosage had the fastest-growing Italian surplus with a 2,610% gain since 2010. In second place were cases, handbags and wallets up 186.5% while exported leather footwear moved ahead in value by 45.6%.
Italy Major Product Supply Advantages by Country
Top 10
Presented in descending order, the following list shows with which trade partners Italy earned the highest trade surpluses in 2014.
- United States: US$23 billion (16% of Italian country-specific surpluses)
- France: $15.1 billion (10.5%)
- United Kingdom: $14.4 billion (10%)
- Switzerland: $11.4 billion (7.9%)
- Hong Kong: $6.9 billion (4.8%)
- United Arab Emirates: $6.2 billion (4.3%)
- Turkey: $5.4 billion (3.7%)
- Poland: $4.2 billion (2.9%)
- Australia: $4.1 billion (2.9%)
- Japan: $3.5 billion (2.5%)
The above 10 trade partners represent 65.7% of Italy’s subtotal surplus of $143.4 billion from the 155 geographic entities with which Italy demonstrated competitive trade advantages.That subtotal excludes the 70 trade partners with which Italy incurred trade deficits.
Growth
Italy enriched its trade surplus amounts with the countries below at the fastest-pace during 2010 to 2014.
- Sao Tome/Principe: Up 2,950% since 2010 (US$854,000)
- Saint Helena: Up 2,261% ($779,000)
- Lesotho: Up 2,214% ($810,000)
- Palau: Up 1,749% ($758,000)
- Montserrat: Up 1,543% ($1.6 million)
- Tokelau: Up 997.4% ($428,000)
- Grenada: Up 996.3% ($8.9 million)
- Guatemala: Up 771.9% ($58.9 million)
- Myanmar (Burma): Up 767.2% ($110.3 million)
- Macao: Up 595.7% ($193.8 million)
From the above list, Italy showed major product supply advantages over trade partners with comparatively small populations and for generally small surplus amounts.
US
Below are the products that gave Italy the highest surpluses in its international trade with the United States.
- Cars: US$1.8 billion (7.8% of Italy’s surplus versus United States)
- Wine: $1.4 billion (6.2%)
- Footwear (leather): $1 billion (4.4%)
- Engines (diesel): $933.5 million (4.1%)
- Cruise/cargo ships, barges: $672.1 million (2.9%)
- Automobile parts/accessories: $660 million (2.9%)
- Miscellaneous furniture: $654.8 million (2.9%)
- Cases, handbags, wallets: $637.5 million (2.8%)
- Spectacles, goggles: $621.6 million (2.7%)
- Taps, valves, similar appliances: $617.6 million (2.7%)
Among these, cars had the fastest-growing Italian surplus with the US posting a 168.7% gain from 2010 to 2014. In second place were diesel engines up 148.4% followed by spectacles and goggles ahead by 37.1%.
France
Below are the products that gave Italy the highest surpluses in its international trade with France.
- Footwear (leather): US$1.2 billion (8.2% of Italy’s surplus versus France)
- Miscellaneous furniture: $959.5 million (6.4%)
- Aircraft parts: $750.5 million (5%)
- Trucks: $689.9 million (4.6%)
- Seats (excluding barber/dentist chairs): $660 million (4.4%)
- Automobile parts/accessories: $641.4 million (4.3%)
- Glazed ceramic tiles, cubes: $550.8 million (3.7%)
- Yachts, other pleasure/sports vessels: $547.6 million (3.6%)
- Taps, valves, similar appliances: $499.8 million (3.3%)
- Miscellaneous iron or steel items: $497.4 million (3.3%)
Among these, pleasure boats including yachts had the fastest-growing Italian surplus with France posting a 589.6% gain from 2010 to 2014. In second place were Italian trucks up 36% followed by leather footwear ahead by 15.4%.
UK
Below are the products that gave Italy the highest surpluses in its international trade with the United Kingdom.
- Wine: US$871.7 million (6.1% of Italy’s surplus versus UK)
- Automobile parts/accessories: $797.4 million (5.5%)
- Miscellaneous furniture: $720.5 million (5%)
- Footwear (leather): $478.1 million (3.3%)
- Trucks: $452.9 million (3.1%)
- Pasta, couscous: $417.4 million (2.9%)
- Cases, handbags, wallets: $398.1 million (2.8%)
- Medication mixes in dosage: $396.2 million (2.8%)
- Taps, valves, similar appliances: $349.5 million (2.4%)
- Tomatoes (prepared/preserved): $309.6 million (2.2%)
Among these, medication mixes in dosage had the fastest-growing Italian surplus with the UK posting a 205.5% gain from 2010 to 2014. In second place were trucks up 70.9% followed by Cases, handbags and wallets ahead by 41%.
See also Italy’s Top 10 Exports, Highest Value Italian Export Products, Italy’s Top 10 Imports and Italy’s Top Import Partners
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on December 3, 2015
Trade Map, International Trade Centre. Accessed on December 3, 2015
Investopedia, Net Exports Definition. Accessed on December 3, 2015