Texas - Italy Trade[3]

This summary is presented to give an idea of what Texas and Italy normally trade.  The Chamber would be pleased to discuss any category and provide more detailed analysis on the figures. 

Imports to Texas from Italy

Increasingly Texas is the favorite location for Italian business.  Between 1999 and 2000 imports from Italy to Texas[4] in real value have increased by 33% (year over year).  Despite the current year slow down in the world economy, during the first six months of 2001 the imports from Italy to Texas remained almost unchanged.  Although the percentage increased substantially, it is worth noticing that the increase is mainly in previously imported products (industrial production) and the Italy-Texas trade has the potential to increase by leaps and bounds when Italian producers will start exploiting the Texas consumers’ market.

Texas imports from Italy are mainly of industrial nature.  Machinery and parts account for 22% of the total imports from Italy, with the main category being valves and parts for pipelines.  Heavy construction machinery and aviation engines are also part of this group.  Beside electronic and telephone equipment, no other category account for more than 10% of imports.  It is worth noticing that ceramic and construction materials are above 5% of total import and that wine and spirits account for about 2%.  Although very strong on its industrial production exports Italy is probably not fully exploiting the enormous potential of the Texas consumer market.  Food and clothing are among the lowest import figures, which stands in sharp contrast with the US total imports from Italy, where food and clothing make up a higher percentage of total imports. A complete table of imports is presented in Appendix A.

It appears also that Italy is not taking full advantage of Texas free trade zones with Mexico and the opportunity to use the Maquilladora incentives, tax and custom incentives offered by the Mexican government to import raw materials, produce and export finished goods.

Exports from Texas to Italy

Texas exports to Italy are much lower than imports in real value and they have been declining between 1999 and 2000.  The first six months of 2001 show an encouraging upward trend (plus 2%) when compared to the first six month of 2000.

Texas exports to Italy tend to mirror the imports.  Machinery and parts account for 15% of the total imports from Italy, with the main category being agricultural machinery.  Aviation engines and industrial machinery make up much of the residual imports that compose this.  Beside medical equipment and organic chemicals, no other category accounts for more than 10% of imports. A complete table of imports is presented in Appendix B.

Again, it appears that Italy is not exploiting all trading opportunities with Texas.  Although the main components of the Texas economy are represented in the make up of exports figures, Texas is home to growing industries, such as bioscience and electronics and computers, which hold much export potential.