IOE&IT and Italian Partner Commit to Enhancing UK-Italy Trade in Memorandum of Understanding

19 Sep, 2023

IOE&IT and Italian Partner Commit to Enhancing UK-Italy Trade in Memorandum of Understanding

On September 18th, the Institute of Export and International Trade (IOE&IT) and the Italian Chamber of Commerce and Industry for the UK (ICCIUK) officially inked a Memorandum of Understanding (MoU), solidifying their joint commitment to bolster Italian-UK trading endeavors.

Marco Forgione, the director general of IOE&IT, and Alessandro Belluzzo, the president of ICCIUK, came together at the Chamber's London office to formalize this strategic partnership.

Belluzzo expressed his enthusiasm, emphasizing that this MoU signifies more than just a signature; it symbolizes an unwavering dedication to the growth and success of their respective members and the enduring collaboration between their nations. He further highlighted the importance of this agreement in fostering trade between Italy and the UK.

Forgione echoed these sentiments, underscoring the pivotal role Italy plays as a trade partner for the UK. He expressed excitement about the potential of their collaboration to assist businesses in both countries in overcoming challenges and obstacles they may encounter in their trade activities.

The ICCIUK, boasting esteemed members such as Lavazza and Ferrari, actively promotes trade between Italian and UK businesses. Moreover, it provides legal and strategic guidance to Italian enterprises seeking to establish a foothold in the UK market and expand internationally. Collaborating with IOE&IT, ICCIUK is poised to offer comprehensive support to businesses navigating the evolving regulatory landscape, including the development of training materials and qualifications to facilitate compliance with new customs checks and procedures like the Border Target Operating Model (BTOM) introduced in January.

Belluzzo emphasized that this agreement is a gateway to a realm of opportunities for their members. It will facilitate knowledge exchange, promote training, and provide additional support to companies interested in expanding their presence beyond Italy and the UK. The collaborative efforts of both organizations aim to empower businesses to thrive in the dynamic landscape of international trade.

Furthermore, the agreement paves the way for joint initiatives spanning various topics, including sustainable trade, international trade policy, and compliance.

This MoU aligns with a similar bilateral cooperation agreement inked by the UK and Italian governments in late April, reaffirming their commitment to supporting Ukraine, achieving climate targets, enhancing supply chain security, and modernizing their economies. Notably, this followed the signing of a free trade deal between the UK and Italy in February, marking the UK's first such agreement with an EU nation post-Brexit.

Given the tumultuous past three years for Italian exporters grappling with administrative changes due to Brexit, the coordinated support from IOE&IT and ICCIUK is expected to be a welcome development for many businesses. Navigating these regulatory changes had proven to be a significant challenge, consuming substantial time and resources, as reported by the Financial Times. Economist Fabrizio Botti of the Istituto Affari Internazionali suggested that complications arising from these new requirements had contributed to the delay in UK-Italy trade returning to pre-pandemic levels.

Despite these challenges, trade figures have exhibited a rebound, surpassing 2019 levels. According to the Department for Business and Trade, UK-Italy trade in the year leading up to March 2023 was valued at £47.4 billion, marking a notable increase of 21.1% compared to the previous year. Importantly, the UK significantly increased its imports from Italy during this period, surging by 28.3% to £30.9 billion, while UK exports to Italy also rose by 9.7% to reach £16.5 billion.

These statistics solidify Italy's position as the UK's 11th largest trading partner, accounting for 2.7% of the UK's total trade, while the UK ranks as Italy's sixth largest export market. The collaborative efforts of IOE&IT and ICCIUK aim to further strengthen these ties and navigate the evolving landscape of international trade successfully.