Canada is among the key markets identified by Italy to counter the impact of US duties. The Canadian Chamber in italy underlines the importance of CETA ratification to support exports.
Italian Foreign Minister Antonio Tajani recently announced that Canada will be included in Italy’s strategic plan to counter the impact of possible trade tariffs imposed by the United States. The initiative aims to diversify Italy’s export destinations and strengthen economic relations with alternative markets, including Canada, which is considered a strategic partner.
Tajani underlined the importance of identifying new markets to support Italian exports, especially in key sectors such as agribusiness, mechanics and luxury. Currently, Canada is the second largest non-European market for Italian exports, with a trade exchange that has grown significantly in recent years. This relationship has been consolidated thanks to the Comprehensive Economic and Trade Agreement (CETA), a trade agreement between the European Union and Canada that entered into force provisionally in 2017.
CETA and its role in strengthening Italy-Canada economic relations
CETA has already produced positive effects for Italian companies, reducing tariff and non-tariff barriers and facilitating access to the Canadian market. However, the agreement still awaits final ratification by Italy, an essential step to ensure stability and continuity in bilateral trade relations.
According to European Commission data, from 2017 to date, Italian exports to Canada have benefited from an increase in market share, with particular success in the agri-food, fashion and advanced technology sectors. The elimination of more than 98% of duties has made Italian products more competitive and allowed companies to consolidate their presence in the Canadian market.
Despite these results, the debate on the ratification of CETA in Italy is still open. Some sectors, particularly those related to agriculture, have expressed concerns about the impact of the agreement, fearing excessive competition with Canadian products. However, many trade associations and business organisations argue that non-ratification could jeopardise the benefits achieved so far.
The point of view of the Canadian Chamber in Italy
The Canadian Chamber in Italy has expressed its support for the ratification of CETA, highlighting the benefits for both Italian and Canadian companies (not only in terms of opposing tariffs) and the need to consolidate the economic relationship with Canada.
Caterina Passariello, President of the Canadian Chamber in Italy, said:
‘Canada is a growing market with increasing demand for Italian products. The ratification of CETA would offer Italian companies stable and secure access to this market, contributing to the growth of our exports and the creation of new business opportunities. On the other hand, for Canadian companies, Italy represents a natural landing place in Europe, considering the large Italian-Canadian community present in Canada. Without final ratification, we risk losing confidence and competitiveness compared to other European countries that have already completed the legislative process.’
Stefano Colombetti, Vice-President of the Canadian Chamber in Italy, also emphasised the importance of the agreement for companies on both sides of the Atlantic:
‘CETA has already proven to be an effective tool for Italian and Canadian businesses not only to counter tariffs. Its final ratification would represent a further step forward in building a solid and lasting economic relationship between the two countries. Moreover, considering the recent trade tensions with the United States, it is crucial for the two nations to diversify their markets in order to seize strategic opportunities in this direction.’
Prospects for Italian exports and the role of Canada
In the current context, Italy is working on a plan to identify alternative markets for its exports. Besides Canada, Tajani mentioned Mexico, Turkey, Japan and India as possible destinations for Italian exports, with the goal of reaching EUR 700 billion in exports by the end of 2025.
The inclusion of Canada in this strategy to counter tariffs demonstrates the Italian government’s desire to strengthen economic relations with the North American country and to guarantee Italian companies privileged access to a dynamic and expanding market.
From a trade perspective, sectors that could benefit most from the ratification of CETA include:
- Agri-food: Italian protected designation of origin (PDO) products have found strong interest in the Canadian market, thanks to the increased protection provided by the agreement.
- Mechanics and manufacturing: Italian companies specialising in machinery and advanced technologies can find an ideal partner for growth in Canada.
- Fashion and luxury: the Canadian market is an important outlet for Italian fashion and design brands.
There is no doubt that the inclusion of Canada in the Italian plan to counter US tariffs highlights the strategic role that this market can play for Italian companies. The final ratification of CETA would be a key element in ensuring stability and competitiveness for Italian companies operating in Canada.
