Trade Restrictions in Italy

Italy is one one of the largest economies of the world, ranking at the number 8 according to the 2019 data which showed that the Gross Domestic Product of the country was at almost $2 billion. The country is a part of the European Union. “In 2019 Italy was the 19th largest market for U.S. exports, which totaled approximately $23.8 billion, and the 4th largest export market in the EU, following Germany, Netherlands and France. However, export values to the Netherlands (Rotterdam) and Belgium (Antwerp) are skewed by the ‘Rotterdam Effect’ where goods are valued at the port of entry, but then distributed throughout the EU.” (International Trade Administration, 2020). Apart from this, the country trades with a number of other countries around the world as well and usually consists of a variable amount of imports and exports.

Even though, Italy is part of the EU, some of the barriers that are in place are tariffs and non-tariffs. Trade restrictions are imposed by the government of the country in an attempt to meet some goals that the trade can be carried out smoothly. The aim of these barriers is not only protect the local businesses but also ensure that the dependency on the foreign products is reduced. In addition to this, imposition of tariffs also become a course of income for the government.

The EU Taxation and Customs Unions takes a look at the trade restrictions with the EU but for other countries, Italy has imposed a Common External Tariff. Tariffs are taxes which are imposed by the government on imports and is collected by the government through customs. CET is imposed so that no extra imports are brought in the country. However, the amount of tariff depends on a number of social, political and economic factors as well.

Non-tariff barriers include licenses and documents required to ensure that the trade being carried out is legal and that no smuggling is being done. This goes both ways but especially in case of imports. In some cases, special documents are also required. The details of these are given on the official websites of the government and those wish to carry out trade should check these to avoid any inconvenience.

In addition to this, the trade restrictions are also approved from the EU before implementation as the union is also a stake holder in this case and none of the members of the union would want that they are effected negatively.

 

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