> quick help to download > online documentation The United States and Italy are working closely together on important economic issues, including within the G-7. The United States is one of Italy`s largest trading partners, with a share of $103.12 billion in goods and services in 2019. As a member of the European Union (EU), Italy is bound by EU treaties and laws, including those that have a direct or indirect influence on business investment. Under the right to establish the EU Treaty and the Friendship, Trade and Shipping Agreement with the United States, Italy is generally required to grant national treatment to US investors based in Italy or another EU Member State. Both countries have adopted an income tax convention to avoid double taxation. As part of the agreement, the EU will remove tariffs on imports of live and frozen lobster products into the United States. U.S. exports of these products to the EU totaled more than $111 million in 2017. The EU will abolish these tariffs retroactively to 1 August 2020 on the basis of the Most Favoured Nation (MFN). EU tariffs will be abolished for a period of five years and the European Commission will work to make tariff changes sustainable. The United States will reduce its annual tariffs by 50% on average for certain EU exports, including certain prepared meals, some crystalline glasses, surface preparations, greenhouse gas powder, cigarette lighters and lighter parts.
ZOLL reductions in the U.S. will also be based on the MFN and will be retroactive to August 1, 2020. In 2019, on the instruction of President Trump, the United States has developed formal procedures necessary to begin negotiations for a trade agreement, as has the European Commission. Given the issue from a different perspective, some studies suggest that Italy could also benefit from a trade war between the United States and China, since if trade between these two economies shrinks, it may be possible to replace the two countries` exports to these markets. Restricting Chinese exports to the United States, for example, could give way to additional Italian exports of clothing and footwear to the United States, while declining exports – particularly of medium and high-tech products – from the United States to China could help increase Italian exports of machinery, medical and optical products and precision instruments to China.