Trump’s Trade Policies Could Cost Italy €1.4 Billion
US president Donald Trump’s 'America First' trade policy, if fully implemented, could see the Italian economy losing up to €1.4 billion in exports.
Over €300 million of this figure would be for food and agricultural products, according to a report published by research organisation ISMEA.
The ISMEA report draws on the possible developments that could arise from the new US commercial policy, following statements made by President Trump.
According to ISMEA, the EU’s food exports to the USA reached €21 billion in 2016, compared to just under €12 billion in imports.
The US is the third-largest buyer of Italian exports, both overall and in the food sector. The Italian food and agriculture sector exports €3.8 billion of goods to the US annually, of which wine (€1.3 billion) and olive oil (about €500 million) account for half.
Also relevant is the share of cheese and dairy products (€289 million), pasta (€244 million), confectionery products (€198 million), and processed fruit and vegetable products (€196 million).
The results of the study indicate that greater protectionism by the US would end up having negative effects on the economy. ISMEA concludes that Italy and the EU must participate in negotiations with full awareness of the possible scenarios and consequences for each side.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.