ECONOMIC AND COMMERCIAL RELATIONS
Trade between Italy and Bangladesh is comparatively small. In 2008 it was worth €599.9 million, slightly higher than 2007. Italian exports fell back, while Italian imports, following the surge in 2006 (+35%), performed well (11.7%). Our trade balance, which has traditionally been negative for Italy, declined further (from almost €260 million in 2006). Italy mainly imports textiles and leather goods from Bangladesh, accounting for more than 90% of total imports. Some 70% of Italian exports to Bangladesh are machinery and industrial equipment.
ITALIAN INVESTMENT AND MARKET PENETRATION PROSPECTS
Italian investment in Bangladesh is still fairly modest, mostly in textiles, confectionery and footwear. The reluctance of the Italian business community to invest on the Bangladeshi market is due to the numerous obstacles that have to do with poor infrastructure, an unpredictable bureaucratic system, the deterioration in law and order and corruption. Yet the local market could provide Italian businesses with good opportunities, particularly in energy, electric power, industrial waste treatment, telecommunications, and the food processing industry (fruit and food processing and conservation), aquaculture.
TRADE BETWEEN ITALY AND BANGLADESH (millions of euros)
2003 2004 2005 2006 2007 2008 2009 (Jan-Nov)
Exports 110.6 134.5 149.7 167.3 186.7 166.6 145.4
% change -2.9 +21.6 +11.3 +11.7 +11.6 -10.8 - 0.27
Imports 257.4 302.8 314.7 425.4 388.3 433.3 413.9
% change -8.3 +17.63 +3.9 + 35.1 -8.7 +11.6 +6.15
Total trade 386.0 437.3 464.4 592.7 575.0 599.9 559.3
Balance -146.8 -168.3 -165.0 -258.1 -201.6 -266.7 -268.5
Source: ISTAT
TRADE BETWEEN ITALY AND BANGLADESH 2008 % of total exports (provisional figures)
ITALIAN EXPORTS
Industrial machines and equipment 65.8%
Leather hides and skins 5.4%
Medicinal and pharmaceutical products 3.4%
Yarn, fabrics, ready-made textile articles 3.9%
ITALIAN IMPORTS
Industrial textile products and garments 83.3%
Leather hides and skins and processed products 7.9%
Footwear 3.0%
Yarns, fabrics and ready-made textile articles 1.9%
(Source: processed from ISTAT data)
