Embassy of Italy Wellington New Zealand

ITALY-NEW ZEALAND TRADE RELATIONS

Trade relations between Italy and New Zealand are still showing an upward trend in spite of a temporary decrease in the growing trend of Italian exports.

Amongst European Union countries Italy is NZ’s fourth partner (after Germany, UK and France) and eleventh in the world. It is also placed ninth in terms of exporting countries.

Italian imports from New Zealand (data updated to December 2003) are valued 444 mln NZD with a decrease of 5 % on an annual basis: however, this decrease is inferior to that for the previous 12 months (8.3%).

From an Italian viewpoint, New Zealand seems less important but at December 2003 on an annual basis it absorbed Italian goods for an amount of 777 mln NZD with a decrease of 7%.

The reduction of Italian exports is part of a general decrease that has also hit its other main trading partners. Data concerning Australia and Japan (first and third exporter) show a contraction of their exports, respectively of 2.4 % and 4.1. For the same peiod USA (second exporter) reports again a negative balance (about 15%) after that of the previous year.

Latest data on Italian exports to New Zealand show how some products and services have reported important increases.

The most significant examples in the period 2001-2003 were:

- pharmaceutical products (+30% Dec 02/Dec 03)

- electrical machinery (+14% Dec 02/Dec 03)

- ceramic tiles (+8% Dec 02/Dec 03)

The Italian “mixed exports” is going to be ever more articulated; from industrial goods (supply of military aircraft in the 90’s to farm machinery) - light and heavy as well - to foodstuffs.

Many “success stories” (domestic appliances, luxury foodstuffs) show that a direct presence on New Zealand market could rapidly enlarge an ever increasing demand linked to an “Italian lifestyle”.

Market offers unexplored fields especially concerning Italian direct investments. There is a strong presence of the UK and even for this reason in the period 2001/2002 only two cases of direct Italian investments are known: an agricultural one in Otago in the South Island and another one of industrial washing-machine in Auckland.

Considering Joint Ventures, there are some companies to be mentioned such as the wool mill “Loro Piana”, which uses New Zealand merino wool, Zespri International Ltd., which grows several variety of kiwi; the joint ventures between Antinori and Daniel Schuster Wines Ltd. for the production of Mr Nelson Wine in the South Island and the Joint venture between Forest Herbs Research Ltd of Nelson and Named Srl of Milan, for the production of a cream from the horopito plant.

Some interesting sectors are:

- anti-seismic constructions

- infrastructures

- environmental technologies

- shipbuilding industry (mainly yacht) and software

- joint participation in contracts in the civil building sector in the Far East (China, Malaysia, South Korea, Indonesia)

- special fruit and vegetable cultivation (biological products mainly)

- tourism

- film sector

Italy/New Zealand- Total Trade

	December 2002	December 2003	%change 03/02
Total Trade	1.301.277	1.222.146	-6%
Total NZ Export to Italy	466.053	444.222	-4.7%
Total Nz Import from Italy	835.224	777.923	-6.9%

Italy
December 2003 Bilateral Trade with New Zealand
New Zealand Exports to Italy: December Years (NZ$000 FOB)

Code	Description	2001	2002	2003(P)	% Change

4104	Hides and skins	133,971	117,155	125,942	8
5101	Wool	82,488	99,261	78,179	-21
0204	Sheep meat	57,824	43,915	52,553	20
4101	Raw hides and skins	37,954	39,388	37,232	-5
3501	Casein	52,910	21,670	20,147	-7
0810	Kiwifruit	10,696	22,036	18,445	-16
4105	Tanned skins	23,558	18,764	17,331	-8
4102	Sheep skins, raw	34,671	17,340	16,624	-4
0307	Molluscs	14,322	6,445	7,764	20
0404	Whey	7,148	2,489	5,955	139
0504	Guts, bladders etc.	7,328	3,444	5,530	61
0208	Meat and edible offal	7,969	5,406	4,227	-22
0303	Frozen fish	4,738	3,957	3,830	-3
4103	Raw hides	2,999	2,589	3,294	27
8422	Dish washing machines etc.	339	350	2,694	669
7607	Aluminium foil	2,125	3,235	2,662	-18
3507	Enzymes	2,820	2,225	2,169	-2
1209	Seeds	733	1,274	1,975	55
0304	Fish fillets	3,244	1,623	1,875	16
7326	Iron or steel	269	251	1,821	625
	Top 20 Sub Total	488,106	412,817	410,249	-1
	NZ's Total Exports to Italy	548,522	466,053	444,222	-5
	Top 20 as % of Total Exports to Italy	89	89	92

Italy
December 2003 Bilateral Trade with New Zealand
New Zealand Imports from Italy: December Years (NZ$000 CIF)

Code	Description	2001	2002	2003(P)	% Change

8701	Tractors	42,368	47,455	27,940	-41
8703	Cars	22,439	30,744	24,850	-19
3004	Medicaments	t16,478	18,389	24,572	34
8481	Taps, cocks etc.	21,471	25,379	23,970	-6
8516	Electric equipment	19,417	23,057	20,140	-13
8502	Electric generators	1,720	3,440	17,508	409
9401	Seats	17,514	19,819	17,259	-13
8422	Dish washing machines etc.	14,322	16,042	17,183	7
6908	Ceramic flags	14,783	16,815	17,085	2
8479	Machinery appliances	7,583	9,259	13,814	49
7321	Stoves etc.	10,414	11,528	13,283	15
1509	Olive oil	12,413	13,925	13,232	-5
8708	Motor vehicles, parts	10,542	14,016	13,138	-6
8413	Pumps	13,722	12,155	12,977	7
8424	Mechanical appliances	10,179	15,066	12,909	-14
8414	Pumps	10,877	12,934	12,016	-7
8419	Machinery	8,394	9,257	12,009	30
7113	Jewellery	7,461	11,107	11,875	7
6403	Footwear	13,116	12,958	11,235	-13
4810	Paper and paperboard	12,956	17,572	9,688	-45
	Top 20 Sub Total	288,169	340,917	326,683	-4
	NZ's Total Imports from Italy	731,395	835,224	777,924	-7
	Top 20 as % of Total Imports from Italy	39	41	42

Source: Statistics New Zealand, Overseas Trade

All Exports include re-exports