Index of "1996 Country Commercial Guides"
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U.S. Department of State
Italy Country Commercial Guide
Office of the Coordinator for Business Affairs


                                 US Embassy, Rome
                             COUNTRY COMMERCIAL GUIDE
                                      ITALY
                                      FY 96


Prepared by the US & Foreign Commercial Service, the Foreign 
Agricultural Service, the Economic Section, the Department of Treasury, 
the Political Section and the Labor Section at the U.S. Embassy, Rome, 
Italy
This Country Commercial Guide (CCG) presents a comprehensive look at 
Italy's commercial environment through economic, political and market 
analyses.  
The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annualy at U.S. Embassies through 
the combined efforts of several U.S. governement agencies.  

TABLE OF CONTENTS
I.   EXECUTIVE SUMMARY
II.  ECONOMIC TRENDS AND OUTLOOK
  Major Trends and Outlook
  Principal Growth Sectors
  Government Role in the Economy
  Balance of Payments Situation
  Infrastructure Situation
III.  POLITICAL ENVIRONMENT
  Nature of the Political Relationship with the 
    United States
  Major Political Issues Affecting Business Climate
  Brief Synopsis of Political System, Schedule for Elections, 
    and Orientation of Major Political Parties
  
IV.   MARKETING U.S. PRODUCTS AND SERVICES
  Distribution and Sales Channels
  Use of Agents/Distributors; Finding a Partner
  Franchising
  Direct Marketing
  Joint Ventures / Licensing
  Steps to Establishing an Office
  Selling Factors / Techniques
  Advertising and Trade Promotion (Including a brief 
    listing of Major Newspapers and Business Journals)
  Pricing Product
  Sales Service / Customer Support
  Selling to the Government
  Protecting Your Product from IPR Infringement
  Need for a Local Attorney
V.  LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
  Best Prospects for Non-Agricultural Goods and Services
  Best Prospects for Agricultural Products
  
VI.  TRADE REGULATIONS AND STANDARDS
  Trade Barriers, Including Tariffs, Non-Tariff Barriers,
    and Import Taxes
  Customs Valuation
  Import Licenses
  Export Controls
  Import/Export Documentation
  Temporary Entry
  Labeling, Marking Requirements
  Prohibited Imports
  Standards
  Free Trade Zones/Warehouses
  Special Import Provisions
  Membership in Free Trade Arrangements
VII. INVESTMENT CLIMATE
  Openness to Foreign Investment
  Conversion and Transfer Policies
  Expropriation and Compensation
  Dispute Settlements
  Performance Requirements/Incentives
  Right to Private Ownership and Establishment
  Protection of Property Rights
  Regulatory System:  Laws and Procedures
  Efficient Capital Markets and Portfolio Investment  
  Political Violence
  Bilateral Investment Agreement
  OPIC and Other Investment Insurance Programs
  Labor
  Foreign Trade Zone/Free Ports
  Capital Outflows Policies
  Foreign Direct Investment Statistics
  Major Foreign Investors
VIII. TRADE AND PROJECT FINANCING
  Brief Description of Banking System
  Foreign Exchange Controls Affecting Trading
  General Financing Availability
  How to Finance Exports / Methods of Payment
  Types of Available Export Financing and Insurance
  Project Financing Available, Including Lending from
    Multilateral Institutions and Types of Projects
    Supported
  List of Banks with U.S. Branches
IX.  BUSINESS TRAVEL
  Business Customs
  Travel Advisory and Visas
  Holidays
  Business Infrastructure
X.  APPENDICES
Appendix A:  Country Data
Appendix B:  Domestic Economy
Appendix C: Trade
Appendix D: Investment Statistics
Appendix E: U.S. and Country Contacts
Appendix F:  Market Research
Appendix G:  Trade Event Schedule


I. EXECUTIVE SUMMARY
Italy's economy grew at a 2.2 percent rate in 1994 and is expected to 
increase by 3 percent in 1995.  Italy's Gross Domestic Product is 
expected to reach 1.07 trillion USD in 1995 and should increase to 1.15 
trillion USD in 1996.  Inflation is predicted at 5.6 percent in 1995 and 
in 1996.  In 1994 the United States exported manufactured goods valued 
at 8.9 billion USD, (C.I.F. basis) while imports from Italy totalled 
14.7 billion USD.  U.S. exports (C.I.F.) are expected to increase to 
10.2 billion USD in 1995 and 11.4 billion USD in 1996.
Total stock of U.S. direct investment in Italy rose to 9.1 billion USD 
in 1994.  Italy had total direct investments of more than 7 billion USD 
in the United States.
Italy, representing the world's fifth largest economy, continues to 
transform itself.  The Italian government continues on the path of 
privatization and is thereby reducing its significant role in the 
economy.  As this rationalization of the economy moves forward, the 
economy is expected to offer even more opportunities to the U.S., both 
as an importer and a point for investment.  The expansion in the Italian 
economy offers significant commercial opportunities for American firms 
interested in entering the Italian market and expanding market share for 
those U.S. firms already represented in Italy.
Despite the current economic climate in Italy, the significant lira 
devaluation, and the often protectionist regulations of the Common 
Agricultural Policy (CAP), there are still many opportunities to both 
maintain and expand the market for a variety of products.  For example, 
as Italian purchasing power increases, so should the appeal of U.S. new-
to-market items.  The realignment of the distribution sector toward 
larger chains and more competitive pricing should also aid U.S. exports.  
Finally, European Union (EU) changes to the Common Agricultural Policy 
(CAP) and Italy's implementation of EU harmonized phytosanitary and 
sanitary regulations should offer fresh opportunities for U.S. 
agricultural exports.  In particular, the continued move toward a fully 
integrated Single Market should aid U.S. high value, convenience, and 
health food products.  However, U.S. exporters will continue to be 
challenged by  European competitors participating directly in the market 
through mergers.  U.S. companies, already well known for delivering 
quality products, will have to focus on price and service to maintain or 
develop their market share.

Country Commercial Guides are available on the National Trade Data Bank 
on CD-ROM or through the Internet.  Please contact STAT-USA at 1-800-
STAT-USA for more information.  To locate Country Commercial Guides via 
the Internet, please use the following World Wide Web Address:  
WWW.STAT-USA.GOV.  CCGs can also be ordered in hard copy or on diskette 
from the National Technical Information Service (NTIS) at 1-800-553-
NTIS.

II. ECONOMIC TRENDS AND OUTLOOK
MAJOR TRENDS AND OUTLOOK
Italy's economy has recovered strongly from 1993's recession.  Growth in 
1994 was 2.2 percent, while most estimates put 1995 growth at 3.0 
percent.  A strong export performance, driven by the weak lira, has been 
key to this recovery.  Growth in domestic demand over recent months has 
led to a widening of the recovery, although exports continue to play an 
important role.   Industrial production remains strong.
Aided by lira depreciation, Italy's foreign accounts continue to perform 
well.  Italy posted a 35.3 billion USD trade surplus (fob/fob) in 1994, 
compared to a 33.1 billion USD surplus a year earlier.  Its current 
account surplus of 15.5 billion USD was also up from 1993's 11.3 billion 
USD surplus.  Italy has been rebuilding its foreign reserves since the 
1992 foreign exchange crisis.  Reserves totalled 56.1 billion USD at the 
end of 1994.  The foreign accounts will continue to improve in 1995.  
Export performance will continue to be strong, though imports will also 
pick up due to recovery.  The trade surplus should be roughly 39 billion 
USD, 3.7 percent of GDP.  Italy should again post a current account 
surplus of around 1.7 percent of GDP.  
Inflation, which was below 4 percent for the first time in 25 years in 
1994, has returned as a central problem in 1995.  Through June, 
inflation was running at a 5.8 percent year-on-year rate, with most 
analysts predicting average inflation for 1995 at over 5 percent.  Lira 
devaluation, tax increases and increased profit margins by industry are 
cited as the main factors pushing inflation up.  The rising price level 
is of particular concern because of potential negative repercussions on 
wages.   Wage agreements signed in the summers of 1992 and 1993 broke a 
long history of wage-indexation, linking national wage agreements to 
government inflation targets, rather than actual inflation.  Most 
analysts credit these agreements for keeping inflation low in 1993 and 
1994 despite strong lira depreciation.  With a 1995 government target of 
2.5 percent lagging well behind actual inflation, there is a risk that 
unions might seek to renegotiate the earlier agreements, re-opening the 
possibility of a new negative wage-inflation dynamic mirroring that 
which contributed to the high rate of inflation historically prevalent 
in Italy.
The biggest challenge facing Italy remains the imbalance in public 
finances.  Since 1992, economic policy in Italy has focussed primarily 
on reducing government budget deficits and reining in the national debt.  
Successive Italian governments have adopted annual austerity budgets 
with significant cutbacks in spending, as well as new revenue raising 
measures.  Italy has enjoyed a primary budget surplus, net of interest 
payments, for the last three years, and is expected to do so again in 
1995.  The deficit declined in 1994 to 9.6 percent of GDP, down from 
10.0 percent in 1993.  According to government calculations, the deficit 
could fall as low as 7.4 percent of GDP in 1996, although some analysts 
consider this too optimistic a projection.  
The technical government led by Lamberto Dini has made deficit reduction 
the central element of its program.  Soon after taking power in January 
1995, Dini produced a supplemental 1995 budget which is expected to 
allow stabilization of the debt to GDP ratio this year, the first time 
in 15 years this ratio will not rise.  The government's 1996 budget aims 
to reduce the deficit by 32.5 billion lire (roughly 20 million usd), 
equally divided between spending cuts and new revenue measures.  The 
Dini government has also put forward a proposal to reform the Italian 
state pension system, a major drag on public finances.  Finally, the 
government has continued the process of privatization begun in 1992, 
with plans to put the major telecommunications, energy and electricity 
monopolies on the market in 1995/96.
The national debt should continue to decline slowly.  It is expected to 
stabilize in 1995 at roughly 124 percent of GDP, equal to last year's 
level, and to begin falling in 1996.  Given the heavy weight of interest 
payments in government expenditures, public finances remain hostage to 
international capital market developments, as well as domestic political 
instability.  Consequently, long-term predictions on deficit and debt 
developments are difficult to make with precision.
Economic Trends and Outlook for Agriculture
The economic climate over the last several years has profoundly affected 
agriculture.  In general, the price of agricultural inputs has risen and 
production has fallen.  Overall, the value of Italy's total agricultural 
production declined approximately 2.7 percent to $35.6 billion in 1994.  
The greatest decline in production (-8.21 percent) was in tree crops 
which suffered from the weather and cyclical downturns.  In particular,  
olives, citrus, and dupraceous fruits did poorly.  Cereals, particularly 
corn, also fell (-3.57 percent).  However, because cereal prices 
remained high and EU payments increased, there was no negative impact on 
farmers income.  Rice registered a consistent increase of more than 15 
percent in the traditional producing regions (Lombardy and Piedmont), 
due to increased planted area and higher yields.  In general, there was 
a shift from grains (hard and soft wheat) to oilseeds (soy and 
sunflower) due to the implementation of the Common Agricultural Policy 
(CAP) reform.  Sunflower seeds increased even into non-traditional 
areas, thanks mainly to the favorable subsidy scheme.  Horticultural 
production increased slightly (2.2 percent).  Wine production fell in 
terms of quantity (15-20 percent), but was generally satisfactory in 
terms of quality and price.  On the whole, the livestock sector remained 
stable (-0.6 percent), with a fall in milk and swine meat production 
countered by an increase in the sheep/goat sector.  Agricultural 
analysts point out that while the floods of November 1994 may have 
played an important role in the decline in the value of total Italian 
agricultural production, other factors such as CAP reform and 
diminishing agricultural employment (down 1.6% in 1994) may also have 
had an adverse effect.  
Before the Berlusconi Administration ended in February 1995,  
Agriculture Minister Adriana Poli Bortone held lengthy negotiations with 
the regional authorities to approve a new multi-year plan for 
agriculture.  In January 1995, her 21-article bill was approved 
allocating 7,475 billion lire (approximately $4.6 billion) for 1995-99.  
The regional authorities agreed that 52 percent of the total should be 
dedicated to the less developed southern Mezzogiorno region.
The goal of the new program is to make Italian farmers more competitive 
and to move away from pouring subsidies into the agricultural sector.  
The program is supposed to introduce a rigorous quality policy, maintain 
rural employment through a more attractive package for young farmers, 
promote a balanced rural development plan, protect the environment, and 
reduce Italy's foreign trade deficit in agricultural and food products.
Upon taking office, Agricultural Minister Walter Luchetti voiced his 
support for the above-mentioned goals.  Minister Luchetti is expected to 
remain in office at least until October 1995, when new national 
elections may be held to replace the current interim government of 
"technocrats".

PRINCIPAL GROWTH SECTORS
Italy's economic growth in 1995 is expected to be around 3 percent and 
is being driven by its strong export performance.  This, coupled with 
significant privatizations coming on stream, will create excellent 
opportunities in Italy for American exporters.
Best prospect industries for U.S. exports include aviation, industrial 
chemicals, computers and peripherals, computer services and software.  
The telecommunications sector with the expected privatization of STET 
should offer high potential to telecom equipment manufacturers.  The 
expected increase in networking applications, faster computers and 
significant improvements in U.S. software clearly will have a strong 
impact in Italy and U.S. firms should be ready to reap the benefits.  
The demand for increased power in semi-conductors offer U.S. 
manufacturers an excellent opportunity.  Weakness in the Italian Lira 
vis-a-vis the currencies of its strongest competitors (e.g. the United 
States, Germany, Japan) in high technology sectors provides American 
exporters an additional incentive for exploring the Italian market.  
U.S. firms with products and services that contribute to the further 
rationalization of the Italian economy will also find that Italy offers 
significant opportunities.
The environmental equipment, franchising, process controls, power 
generation, and insurance services are also best prospects for U.S. 
firms.

GOVERNMENT ROLE IN THE ECONOMY
In July 1992, the Amato government announced a major privatization 
program designed to reduce the role of the state in the economy and help 
bring down the large public sector deficit and public debt.  The 
government controlled, either directly or indirectly, about a third of 
all industrial activity and almost two-thirds of banking operations 
before the privatization program began.
The first privatization was in July 1993, with the sale of Italgel to 
Nestl?.  Since that time, two major banks,  Credito Italiano and Banca 
Commerciale Italiana, have been totally privatized.  They had belonged 
to IRI, the largest state holding company.  Over the course of 1994, IRI 
also sold ILVA (steel), Cirio-Bertolli-De Rica (canned foods) and 
GS/Autogrill (highway restaurants/ supermarkets).  Merchant bank IMI has 
been almost completely privatized (Treasury retains a 7 percent share) 
and insurance firm INA, partially privatized in 1994, should be fully 
privatized in the Summer of 1995.  ENI, the state holding company for 
energy, privatized Nuovo Pignone, a large turbine producer, in early 
1994 with the sale going to General Electric.
To date, Italian privatizations have raised 15.1 trillion lire (9.4 
billion USD).  IRI has received 6.2 trillion lire (3.9 billion USD) and 
almost 7.2 trillion lire (4.5 billion USD) has gone to the Italian 
Treasury.
While the privatization process has been successful to date, the major 
sales are yet to come:  STET (telecommunications), ENEL (electricity) 
and ENI (energy).  Together, these companies have been valued at 
approximately USD 50 billion.  Government plans to move forward with the 
sale of the first tranches of STET and ENEL this summer have fallen 
victim to Parliament wrangling over the establishment of regulatory 
authorities to oversee the privatized electricity and telecommunications 
sectors.  ENI, which owns the gasoline company AGIP, may come onto the 
market first, since it does not require a regulatory body.  Despite 
stops and starts, the privatization process will go forward.  Although 
they have differing views on modalities and regulations for 
privatization, all mainstream political
parties support the process.  The government has budgeted privatization 
proceeds of 10 trillion lire (usd 6.3 billion) annually for the next 
three years, a target that should be achievable provided the utilities 
sales go forward.

BALANCE OF PAYMENTS SITUATION
Italy's current account of the balance of payments improved further in 
1994 after a strong performance in 1993.  The current account balance 
improved from a 17.8 trillion lire surplus (11.3 billion USD) in 1993 to 
a 25.0 trillion lire (15.5 billion USD) surplus in 1994.  This was due 
primarily to a 5 trillion lire (2.2 billion USD) improvement in the 
trade balance in response to the sizable depreciation of the lira since 
September 1992.  In addition, the deficit on invisibles decreased by 2.2 
trillion lire (1.9 billion USD).
The capital account balance shifted from a 14.8 trillion lire (9.4 
billion USD) surplus in 1993 to a 22.5 trillion lire (13.9 billion USD) 
deficit in 1994.  The determinant factors in the capital account were 
portfolio investment and banking transactions.  In 1994, portfolio 
investment registered a 8.3 trillion lire (5.1 billion USD) net outflow, 
a stark reversal of the 113.0 trillion lire (71.9 billion USD) net 
inflow in 1993.  This was primarily due to Italian investors moving 
funds overseas in the first quarter of 1994, a move likely attributable 
to concern about Italian political developments leading up to March 
elections last year.  Foreign portfolio inflows also fell sharply, 
primarily due to a shift away from fixed rate government bonds, also 
hurt by political instability.  Net direct investment posted a 4.6 
trillion lire (2.9 billion USD) outflow, down from the 5.5 trillion lire 
(3.5 billion USD) net ouflow registered in 1993, primarily due to 
increased Italian investment overseas.  Banks' foreign net position 
decreased by 21.6 trillion lire (13.4 billion USD), following an 84.6 
trillion lire (53.4 billion USD) increase in 1993.   Private and public 
loans deteriorated by 8.5 trillion lire (5.2 billion USD) in 1994.  
The current account and capital account surpluses plus errors and 
omission resulted in a 3.3 trillion lire (2.1 billion USD) increase in 
the Bank of Italy's official reserves in 1994.

INFRASTRUCTURE SITUATION
Transportation
Railroad--The railroad system is nationalized and operated by the 
Italian State Railways (Ferrovie dello Stato, abbreviated FS), a 
government agency. The railroad provides an efficient and economical 
method of transportation. More than half of the rail system is 
electrified. 
Highway--The highway system is approximately 197,000 miles, including 
over 3,000 miles of super highways called the autostrade. The network 
connects the major industrial centers and offers easy access to Northern 
Europe. Trucking services are operated mainly by private companies under 
government concession.
Air--Alitalia, a state-owned company, is Italy's principal airline 
providing both international and domestic service. Additional domestic 
service is provided by Lauda Air, Itavia, and Meridiana airlines.  
Charter service is offered by SAM, an Alitalia subsidiary, while air-
taxi service is available from Unijet Italia in Rome and Agena in Milan. 
Italy has an extensive airport network consisting of 19 international, 
17 domestic, and 59 general aviation airports.  Federal Express, DHL, 
and other rapid delivery services are also available.
Sea--Italy has six major seaports--Genoa, Livorno, Naples, Palermo, 
Trieste, and Venice. In addition, there are 35 smaller ports mostly used 
for coastal shipping.

III. POLITICAL ENVIRONMENT

NATURE OF THE BILATERAL RELATIONSHIP WITH THE UNITED STATES
Italy is an important economic and strategic ally of the United States.  
Its proximity to conflicts in the Balkans, the Mediterranean, and North 
Africa underscores its strategic significance.  On a bilateral basis, 
Italy is the most important European space partner of the United States.
Reform of the Italian economy, the fifth largest industrialized economy 
in the world, is vital to U.S. interests.  Reforms now underway are 
expected to modernize the economy, reduce the state's economic role and 
increase foreign investment opportunities, giving Italy a stronger 
market-oriented voice within the EU.  A solid economic recovery in Italy 
is essential for European and global growth and to burden sharing on 
security and international assistance.
The United States and Italy enjoy over 20 billion dollars annually in 
two-way trade.  U.S. companies have 9.1 billion dollars invested in 
Italy.  Reform efforts, including greater transparency in government 
procurement and the privatization process will benefit the Italian 
economy and should provide many new opportunities for U.S.-Italian 
business cooperation. Continued progress of Italian enforcement of 
intellectual property rights protection is a high U.S. priority.
The Dini Government has largely followed the economic and foreign policy 
of its predecessor, headed by former PM Silvio Berlusconi.  Dini, who 
served as Treasury Minister in the Berlusconi government and continues 
to serve as Treasury Minister under the present government, has 
continued efforts at recasting Italy public finances, and as a result 
1995 is the first year to see a turnaround on the debt/GNP ratio.  Under 
the Dini Government, which took effect in January 1995 after 
Berlusconi's resignation, Italian foreign policy supports U.S. 
objectives of an expansion of the global democratic community, 
stimulation of the global economy and strengthening of mechanisms for 
cooperation in the international financial arena, the creation of a new 
European Security architecture, democratic and market reforms in Russia 
and the newly independent states, and efforts to reach a settlement of 
the conflict in the Balkans.  

MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE
The March 1994 national elections that swept away Italy's post-WWII 
governing parties brought to power the center-right "Freedom Pole" 
Coalition headed by Silvio Berlusconi.  This ruling coalition included 
Berlusconi's own newly-created Forza Italia movement, Fini's rightist 
Italian Social Movement (MSI), which gave way the same year to the 
National Alliance (AN), the pro-federalist Northern League, and the 
small Christian Democratic Center (CCD), a conservative spin-off of the 
old Christian Democratic Party.  However, when Northern League leader 
Umberto Bossi broke with Berlusconi, Bossi pulled his party out of the 
coalition, depriving it of a majority.  Faced with a no-confidence vote, 
Berlusconi resigned in December 1994.  After consultations with party 
and institutional leaders, President Scalfaro in January 1995 picked 
Lamberto Dini to head a government of technocrats.  None of Dini's 
cabinet holds elective office.  It received a limited parliamentary 
mandate to complete four essential objectives:  a supplementary budget 
bill, pension reform, regional electoral reform, equal access rules 
governing the use of television for election campaigns.  Dini pledged to 
step down on the completion of this program, although it is possible 
that President Scalfaro could send him back to parliament to receive 
another mandate.  Although Dini's government has generally followed the 
policies of the preceding center-right Berlusconi government, it has 
received its parliamentary support from the center-left parties, who 
were keen to see Dini replace Berlusconi as Prime Minister.  Berlusconi 
and his supporters have continued to press for early elections to give 
Italy a "political" government with a popular mandate, viewing Dini's 
"technical government as an anomaly.   The relative success of the 
center-left parties in the April regional elections blunted Berlusconi' 
drive for early national elections.  But Berlusconi's success in the 
June referenda, where voters supported his opposition to a break-up of 
his three Fininvest TV networks, gave him a visible political boost. 
 
BRIEF SYNOPSIS OF POLITICAL SYSTEM, MAJOR POLITICAL PARTIES
Italy is a republic whose government is divided into three spheres of 
power:  the Parliament, the Government (which performs an executive 
function), and the Judicial.  The President of the Republic (who has 
limited responsibilities in all three spheres) and the constitutional 
court help to maintain an equilibrium between these branches.  The 
President of the Republic's most important functions are to nominate the 
prime minister and his cabinet, and to dissolve parliament.
Parliament consists of the Chamber of Deputies and the Senate. Over 
time, the Chamber of Deputies has become the leading body, but each is 
equivalent in power.  A large part of the work of Parliament takes place 
in committees.
The executive functions are exercised by the Government, which consists 
of the Prime Minister and his Council of Ministers.  The Prime Minister 
is the President of the Council and the leading figure in the 
government.  His power is derived from the day-to-day running of the 
government, chairing the council and setting its agenda, as well as 
signing legislation.  There are twenty two ministers, including four 
without portfolio.  The ministries form the basic structure of the 
state's public administration by implementing the policies and laws of 
the state.  Unlike previous governments, most of the Dini Government 
ministers are so-called non-political technocrats without a base of 
support in a political party.  
The justice system consists of four branches (constitutional, common, 
administrative, and special), which are essentially independent of each 
other.
Although the power of the State is primarily centralized, the twenty 
regions have authority for the administration of some public functions 
and for enacting certain specific legislation (e.g.  healthcare).
An important factor in the Government and the State is the power of the 
political parties.  Because no party commanded a parliamentary majority 
for almost 45 years, coalition government was the norm.  Any return to a 
political government following elections is expected to be based on a 
coalition, whether of the center-right or center-left.  
Due to the fall of the Berlusconi Government, parliament's landscape 
changed somewhat through defections (especially from the Northern 
League) and party splits.  As of mid-1995, the parties in the Chamber of 
Deputies stood as follows:  Forza Italia - 108, Alleanza Nazionale - 
108, Lega Nord - 76, CCD - 29, Federal Liberal Democrats - 22, Italian 
Federalist League - 20, PPI - 33, PDS/Progressives - 169, Communist 
Renewal - 24, Mixed Group - 40.  In the Senate party strengths were: FI 
- 36, AN - 48, CCD - 14, Italian Federal League - 10, Northern League - 
44, PPI - 34, PDS/Progressives - 74, Democratic Left - 10, Rete/Greens - 
13, Labor/Socialists - 10, RC - 15, Mixed Group - 17.  

Political Environment for Agriculture
The role played by the Ministry of Agriculture in the definition of 
agricultural policy has evolved over the last three decades under the 
influence of two important factors.  First, there has been the 
progressive expansion of the Common Agricultural Policy (CAP) to cover 
all of the major commodities and farm sectors, a development that has 
brought considerable change to the formerly more autonomous powers and 
responsibilities of the Ministry of Agriculture in setting national 
policy.  Second, within Italy there has been a devolution of primary 
responsibility for implementing farm policies to the twenty regional 
governments.
As a result of these two developments, the Ministry of Agriculture now 
serves as a conduit for the policy directives and funds provided by the 
European Union and the local authorities at the regional level who 
implement the programs and spend the money.

IV. MARKETING U.S. PRODUCTS AND SERVICES

DISTRIBUTION AND SALES CHANNELS
American business representatives will find that selling in Italy offers 
new challenges, but it presents no overwhelming problems. Over 7,500 
American companies are actively represented in Italy, with approximately 
850 of them having subsidiaries there.
U.S. executives may find that some commercial practices differ from 
those in the United States, but most will be very familiar. The system 
of retail and wholesale distribution, for instance, centers on small 
family-operated stores, although the supermarket-type operation has 
gained importance and there are a number of substantial department store 
operations.
Retail Distribution in Italy
With a population of 56.5 million, the Italian retail distribution 
sector is large in total sales although it serves the consumer at the 
retail level through numerous small, family-owned, retail outlets rather 
than large, mass market operations.  The market offers many commercial 
opportunities because of the large sales volume and a lack of 
competitive companies. Many large retail stores have recently been 
opening on Sundays.  Bill 426 of 1971 restricts the opening of new large 
retail outlets in order to maintain and encourage the small family-owned 
traditional stores. However, with time, the pressure of competition and 
the demands of sophisticated consumers will gradually introduce change 
in the distribution system.  
In order to satisfy Italian consumers, firms operating in the Italian 
retail distribution sector find that they must invest large amounts of 
money in new techniques, management, research, media promotion, and 
equipment. The industry's average return on investment is approximately 
13 percent. In terms of existing points of sale, there is a trend from 
the family-type stores and street vendors to the distribution chains.  
Italian distribution systems include small family-owned stores, street 
vendors, hypermarkets, shopping malls, specialized stores and discount 
stores.
Horizontal points of sale such as general stores, which had experienced 
boom conditions in the early 1980s, have begun to lose ground to 
specialized stores, franchising chains, and hypermarkets. In order to 
create a unique business identity, department stores have begun a 
process of realignment and now tend to attract the more affluent, 
quality-oriented consumers as well as compete on price and product 
selection.
Supermarket chains now look toward further expansion, particularly in 
creating and operating large shopping malls. Where such shopping centers 
exist, they are proving to be successful. 
The Italian retail distribution system is faced with new challenges of 
competition and technology. It is in the process of being reorganized in 
terms of number of points of sale and of marketing strategies. The small 
traditional retail outlets are considered obsolete, but the Italian  
distribution groups are still too small in many cases to compete 
effectively with large chains operating in some of the other European 
nations. A process of internationalization is now taking place among 
Italian and foreign chains with some agreements already signed. There 
is, however, room for more.

USE OF AGENTS/DISTRIBUTORS; FINDING A PARTNER
The marketing of products in Italy is accomplished through a variety of 
channels, depending on the nature of the product, the sales territory to 
be covered, the type of buyer, and the sales promotional activities 
required. Brokers, commission merchants, and independent representatives 
are used extensively for the sale of raw materials, semifinished 
products, and capital goods to the larger manufacturing organizations. 
However, well-established distributors are normally employed to reach 
industrial firms as well as the large number of wholesalers and 
retailers engaged in the marketing of consumer goods.
Agency--Agency contracts are governed by the Italian Civil Code and by a 
number of other legislative decrees. An Italian agent for a foreign firm 
is generally regarded as being authorized to act for the firm. Depending 
on the contract, the principal may be subject to termination 
compensation payments and to income taxes and other levies on sales 
effected through the agent.
Distributorship--Under this arrangement the local distributor takes 
title of the merchandise and assumes the risks, and has the obligation 
to pay any taxes. Distribution agreements are subject only to the terms 
of the contract itself. There are no laws or regulations currently in 
effect in Italy providing for advance notice of termination, termination 
compensation, or social security payments in connection with these 
agreements.
Frequently, a distributorship agreement provides for exclusive sales 
rights. There is nothing in the Italian law preventing exclusive 
arrangements in all or part of Italy. However, if these agreements 
provide for exclusive sales rights in all or part of the EU, they should 
be examined carefully, and with the assistance of a competent 
international lawyer, in light of the antitrust provisions of the EU 
regulations.

Appointing an Agent or a Distributor
Italy represents a large and affluent market where language and personal 
relationships are valued when conducting business transactions. American 
firms have found that relying on local Italian sales agents or 
distributors, who have the contacts and understand the market, can most 
effectively develop sales.
It is important to obtain specific legal advice on appointing an agent 
or distributor, but some general guidelines follow.  Italy implemented 
the EU directive 86-653 in October, 1991, so Italian agency law is now 
in conformity with EU requirements. All agent agreements should be in 
writing and state the marketing area and any exclusive arrangements. 
Termination of the relationship is the area that most frequently causes 
problems for American exporters. Generally, the civil codes protect the 
interests of the representative. In the absence of termination 
provisions in a written agreement, the law provides for a minimum notice 
of termination of one month during the first year of the agreement, two 
months during the second year, three months for the third year, four 
months for the fourth year, five months for the fifth year, and six 
months for the sixth and further years.  Parties may agree to other 
terms, provided the notice of termination is not less than the above. An 
agreement with a definite period terminates on the agreed expiration 
date.  If the parties continue to operate under the agreement after that 
date, the agreement becomes an agreement of indefinite term, which can 
be terminated in accordance with the above notice periods. If the 
American principal wants to terminate the relationship, notice of 
termination should be given, even with a definite term contract.
The termination of an agreement without the required notice makes a U.S. 
principal liable for compensation. The Italian sales agent could seek to 
claim the amount of the commissions that would have been earned during 
the termination period or for the amount of actual damages suffered. In 
exceptional cases, and only for just cause (such as competition or 
fraud), an agreement may be terminated without notice provided the other 
party is immediately advised of the reason. In such cases, the courts 
may be requested to terminate the contract.
At the expiration or termination of an agreement, by whatever means, an 
agent who has increased the value of the business is entitled, in 
principle, to an adequate remuneration which cannot exceed the average 
of the commissions in 1 year. Such claims by agents are subject to an 
expiration term of 1 year.
Three kinds of distribution agreements are commonly used:
- Exclusive distributorships, where the distributor has the sole right 
to sell specified goods within a defined area.
- Quasi-exclusive distributorships, where the distributor sells almost 
all the specified products within a defined area.
- Informal distributor arrangements under which the grantor imposes 
heavy obligations on the distributor and which would cause damage to the 
distributorship if the grantor terminated the agreement.
In the absence of mutual agreement, or the failure to meet contract 
obligations, a distribution agreement of indefinite term cannot be 
terminated by the grantor without reasonable notice or fair 
compensation. In general, grantors should consider protecting themselves 
by entering into agreements for definite periods rather than an 
indefinite period. Also, specific minimum performance clauses should be 
considered, such as percent of distributor's sales, minimum annual 
sales, number of business contacts to be made, etc., and grantors should 
propose that U.S. law and courts have jurisdiction.
A continued and close working contact between the American firm and the 
agent or distributor is very desirable and should be developed early in 
the relationship. Certain products and equipment require servicing to 
maintain their useful life. The U.S. exporter should determine if 
servicing is needed and develop a distribution network to include such 
servicing by qualified personnel. To build trust, loyalty, and marketing 
skills, U.S. producers frequently bring their agents or distributors to 
the United States for training and marketing assistance.
There are important distinctions in Italian law between distribution and 
agency agreements.
  A. Distribution Agreements
  The distributor may be the sole, exclusive distributor for a given 
territory; in addition, he/she may distribute solely products of one 
seller.  In all cases, he/she assumes the financial obligations and 
risks connected with the distribution of the products.
  Distributorship contracts and/or distribution agreements usually have 
a specific duration, although some may be indefinite with termination 
possible upon a specific notice.  No payments are due to a terminated 
distributor in Italy, except under normal concepts of breach of 
contract.  The terms of distributor agreements are subject to European 
Community regulations.
  A foreign exporter will not be subject to Italian income tax on sales 
made in Italy through a distributor since there is no permanent 
establishment in Italy.
  B. Agency Agreements
  The appointment of an agent involves some risk since a foreign 
exporter may be deemed to have a permanent establishment in Italy and 
therefore be subjected to Italian income tax.  Italy's general adoption 
of the OECD's definition of a "permanent establishment" makes the use of 
an agent much less of a risk than previously.
  Apart from tax considerations, the principal problem presented is that 
an agent has some of the rights granted by Italian law to employees 
(Civil Code, art. 1742-1753), regardless of the principal's nationality.
  On September 10, 1951, Italian agency law was brought into conformity 
with European Community Law by D.P.R. No. 303, with the following 
amendments:
  (1) if the parties continue to perform activities under the contract 
past the termination date, a fixed term contract becomes automatically a 
contract of indeterminate duration;
  (2) an agent retains his/her right to a commission after contract 
termination if prior efforts led to a sale or agreement for the 
principal; and
  (3) an agent's right to an indemnity for client development is 
recognized.
  More detailed provisions are set out for safeguarding the agent's 
rights to commissions and limiting the principal's ability to prevent 
the agent from competing after termination of the agency.
  The relationship between principal and agent also is governed by 
collective bargaining agreements entered into between representatives of 
the agents' unions and the principals' associations.
  A foreign principal not in Italy may, and generally will, enroll its 
Italian agent with ENASARCO, a public agency charged with the 
administration of social security benefits for agents.
  Social security contributions amount to ten percent (five percent from 
principal and five percent from agent) on all commissions or on other 
amounts (i.e., expense reimbursements) paid to the agent with regard to 
the agency relationships up to ceiling of 34 million lire per year for 
an exclusive agent and 20 million lire for a non-exclusive agent.  
Annual contributions may not be less than 240,000 and 120,000 lire, 
respectively.
  The principal must withhold the agent's share of contributions from 
amounts paid to him/her and must also make contributions to ENASARCO for 
the severance indemnity that is payable to agent upon termination as 
follows:
  (a) for exclusive agents, four percent of all sums must be paid on the 
first 24 million lire per year, two percent from 24 million to 36 
million lire, and one percent over 36 million lire;
  (b) for non-exclusive agents, four percent of all sums must be paid on 
the first 12 million lire per year, two percent from 12 to 18 million 
lire, and one percent over 18 million lire.

FRANCHISING
Italy has the fourth largest number of franchisors and franchisees in 
the EU (370 and 18,650 respectively).  In spite of the severe economic 
recession that has hit Italy, the franchising sector has continued to 
fare well, with the number of franchisors growing by 12 percent in 1994, 
a total volume of business in excess of 17 trillion lire and a total of 
46,300 employees.  Approximately 15 percent of all retail trade in Italy 
is controlled by franchises.
Market Demand
The Italian population has shown itself to be receptive to the fast and 
efficient services provided by franchises, but the Italian end-user is 
not always open to those services that try to replace traditionally 
strong and consolidated activities.  Nevertheless, the Italian market's 
receptivity to the franchising concept appears to be steadily growing 
and an acceptance by the Italian business community that franchising is 
the most innovative way to introduce a business concept.
End-User Profile
There is a vast difference in the economic make-up of the geographical 
regions of the country, as the north is predominantly an industrialized 
area and the south is primarily an agricultural one.  The north has a 
large number of commercial, financial, and industrial enterprises and 
has double the per capita income rate of the south.  Similarly, the 
local geographic distribution of franchising is disparate, with a 
concentration of franchising networks in Northern Italy (54 percent) and 
an absence of them in the remote regions of the extreme North and South.  
Competitive Situation
Because of the relative novelty of franchising in Italy, the majority of 
franchisors are working in traditional franchise activities such as 
apparel retailing, ice cream and candy sales, housewares, and fast food 
restaurants.  The franchising of services accounts for 30 percent of the 
total number of franchisers, and is quickly expanding.  Trade sources 
estimate that the total market for the service sector will reach 820 
million USD by 1995.  Traditionally strong service franchisors have been 
beauty salons, health clubs, fast  photo developing and quick printing 
shops and real estate activities.  
Best Sales Prospects
The sectors that appear to have the best potential are, courier delivery 
services, travel and tourism organizations, management consulting 
organizations and software and consulting services.  Growth is expected 
to be 14 percent annually over the next three years.  
Legal Requirements
The implementation of the European Unified Market has stimulated a 
harmonization of trade, tariffs, legal requirements, standards and 
procedures.  Franchising agreements are subject to the laws governing 
commercial contracts in general, and those governing sales of trademark 
licensing agreements in particular.
Smaller American franchisors trying to find Italian master licensees 
have to face obstacles related to the lack of their name recognition in 
Italy and to inexperience with local business practices.  The price for 
the master license is almost always set too high and the assistance to 
be provided by the franchisor is never spelled out clearly enough.
The average validity of a franchising contract in Italy is 5 years in 39 
percent of cases, 3 years in 24 percent and 6 years in 10 percent.  An 
entry fee is required by 51 percent of franchisors, while royalties are 
requested by 70 percent of master franchisors.  Eighty-four percent of 
the standard contracts provide comprehensive training programs, manuals 
and programs of regularly scheduled workshops for franchisees.
Local labor laws discourage employers from hiring part-time or temporary 
labor, although the new government plans to introduce part-time labor 
and less protective labor laws.
 
Financing
Financing is generally negotiated privately on a case-by-case basis 
between the master franchisor and the franchisees.  Over 50 percent of 
the franchisors offer financing and leasing programs.
More than 80 percent grant exclusive area contracts while 46 percent 
require a total turnover of the stocks with a contractually agreed mark-
up.
More than 70 percent of the large companies offer assistance in the way 
of operations manuals, computerized management programs, assistance for 
the opening of the points of sale, as well as continuous training 
seminars.  Most companies hold annual conventions and provide 
newsletters and comprehensive assistance programs.
The cost of a franchise in the personal items sector varies from a 
minimum of $50,000 to an average cost of $150,000 up to a maximum of 
$350,000 and over.  Most franchise contracts are drawn up for a period 
of three to five years.  Virtually all franchisees pay entry fees, 
royalties and contribute to advertising expenditures.

DIRECT MARKETING
There are many logistical problems of operating a nationwide sales 
network as well as managing the growing personnel and promotion costs. 
Part-time employment is presently restricted, although there are now 
some moves to liberalize restrictions. Marketing firms are developing 
new distribution techniques designed to employ the casual worker and to 
target groups of consumers by catalog, door-to-door sales, teleshopping 
or telemarketing. The most widely used methods of direct marketing are: 
- Direct selling, mainly used in the nonfood sector.
- Mail order, catalog sales, or orders placed directly with the 
supplier.
Mail order marketing has been operating in Italy for approximately 15 
years.  Although direct marketing is considered a very effective 
marketing technique, it  still remains a modest channel of distribution 
for Italian companies. One of the disadvantages of this technique, which 
may be overlooked by foreign investors, is frequent delays by the postal 
system. The establishment of a semiprivate nationwide express mail 
service, the proliferation of couriers, and the arrival of foreign 
parcel delivery services now offer alternatives to the national mail 
system.
Telephone direct marketing is growing faster than any other selling 
technique. With the development of new telephone equipment, the business 
world has turned to the use of the telefax, making Italy the second 
largest per capita user in the world.
 
Teleshopping (buying by telephone) is becoming a popular sales approach 
to reach the consumer. There are a number of privately owned television 
stations which mainly host telemarketing programs.
Telecommunications technologies are playing an increasing role in the 
process of restructuring the distribution system. Scanners, electronic 
cash registers, and display management systems are now common while 
computerized stock control systems, customer databases, and inventory 
control programs are being used only by the large distribution networks. 
The more sophisticated groups have also resorted to consulting services, 
resulting in technical cooperation agreements between a number of 
Italian and international chains.

JOINT VENTURES / LICENSING
A joint venture (Associazione in Partecipazione) involves the 
participation by a supplier of capital in the profits of the business.  
The operator manages the business and is solely responsible for the 
obligations he or she assumes toward third parties.  The person 
furnishing the capital is responsible for any loss in direct proportion 
to his or her share in the net profit, limited to the amount of his/her 
original investment.  
Joint ventures can be for one time defined transactions with a definite 
duration (contractual joint venture) or a permanent cooperation between 
separate groups through the incorporation of a joint-stock company 
(corporate joint venture).  Corporate joint ventures are now seen 
frequently in Italy.
Licensing in Italy allows foreign entities to profit from technology 
transfers of a formula, process or patent without the need to invest 
substantial capital.  The Italian government imposes no exchange control 
limitations on the transfer of royalties abroad.  Protection over the 
use and ownership of the technology transferred should be included in 
the terms of the licensing agreement.

STEPS TO ESTABLISHING AN OFFICE
A foreign citizen wishing to establish temporary or permanent residence 
in Italy to administer a business or to manage a corporation should 
obtain a business visa for this purpose from one of the Italian 
Consulates in the United States. All individuals or firms in business in 
Italy must be registered with the local Chamber of Commerce, Industry 
and Agriculture. This is a quasi-government office, operating 
essentially as a field office of the Ministry of Industry and Commerce. 
To register with this office, an agent for a foreign company must 
produce a power of attorney duly notarized by Italian consular or 
diplomatic official in the country of the principal.

SELLING FACTORS / TECHNIQUES
Direct Buying--Direct purchases of imported goods occur frequently in 
Italy with wholesalers and large retailers seeking to obtain the lowest 
cost from the manufacturer. Certain raw materials and some industrial 
machinery and equipment having limited markets are purchased by the end-
users directly from foreign manufacturers or suppliers. Voluntary 
associations of food retailers and food wholesalers make substantial 
purchases directly from domestic or foreign manufacturers. 
Wholesale Outlets--Wholesale establishments are numerous in Italy, but 
most of these are still small firms. Their scope is limited to selling 
only to small retailers who are not in a position to buy directly from 
manufacturers. The larger retail outlets customarily purchase from local 
wholesalers only those items that they sell in small quantities. Many of 
the larger wholesalers in Italy are familiar with foreign trade 
practices and procedures and sell their goods on a countrywide basis.  
In 1993, there were a total of 127,500 wholesales; of which 35,700 were 
food wholesalers and 91,800 non-food wholesalers.
Retail Outlets--Retail trade is still dominated largely by small 
individual outlets run by the owner with the help of family members or 
with one or two paid assistants. Small firms are expanding and are 
adopting new merchandising techniques. Modern retail outlets, however, 
such as department and self-service stores, have been increasing 
rapidly, particularly in the cities. The number of stores handling food 
products exceeds those handling other lines. Food sales volume is 
limited by the consumers' traditional practice of making small purchases 
as needed on a day-to-day basis.
According to the Ministry of Industry, there are 287,900 food retail 
outlets, and 572,600 retailers of nonfood goods in Italy. 
Department stores and supermarkets have gained wide public acceptance in 
the last few years, but these large establishments account for 7 to 8 
percent of total Italian retail sales. There are some 935 department 
stores and 3,696 supermarkets in Italy. Issuance of licenses for more 
department stores and markets has been limited by the goal of 
maintaining the existence of small retailers. Nevertheless, the 
expansion of chain and department stores is resulting in more and more 
centralized buying by head offices.  Presently there are 250 shopping 
malls operating in Italy.
The advent of large retail organizations has influenced the streamlining 
of other distribution outlets. Groups of wholesalers and retailers have 
formed associations for bulk purchases by their members. Approximately 
150 mail-order firms operate in Italy. Of these, 18 companies hold 75 
percent of the market. However, the mail-order business in the 1990s is 
expected to show strong growth and profitability.
Franchising--The franchising system is gaining favor in Italy and offers 
good potential for American firms to extend management skills and 
marketing practices. Although efforts are being made to expand 
franchising operations, it is generally agreed that the parent company 
would need to make a solid commitment and long-term investment in 
company-owned outlets to establish its name, to educate the consuming 
public, and thus attract potential franchisees.
Franchisors should also bear in mind that a business license is 
necessary for each outlet. These may be difficult to obtain, 
particularly if the franchise will be competing against small, 
independent, local companies.
Leasing--It has become common to lease, rather than buy, certain types 
of machinery. The leasing of foreign machines is usually arranged with 
Italian clients through  local branch offices or agents of foreign 
manufacturers established to provide this marketing service. Leasing is 
complicated by the fact that the importation, payment of  customs 
duties, and other related business formalities must be taken care of by 
a firm established in Italy. Such tasks would usually be done by either 
an agent of the foreign manufacturer or by the Italian lessee. Because 
the lessee is often not willing to assume the inconvenience of handling 
importation of leased equipment, local representation is usually 
necessary.
Import Channels
Italy has a variety of importers, sales agents, and distributors well 
versed in all aspects of international trade. Many goods are handled by 
importers who purchase for their own account and distribute throughout 
the country and Europe. Because of the size, accessibility, and 
competitive nature of the Italian market, importers may insist on an 
exclusive distributorship. If the importer is a well qualified and 
successful firm, an exclusive distributorship often yields the best 
results. Wholesalers constitute an important segment of the importers 
doing business in this manner. They are the primary source of supplies 
for the small- and medium-sized retail outlets, which often find it 
impossible to buy directly from manufacturers that require large orders.
Purchasing associations are formed by independent retailers. These 
associations combine purchasing power and operate their own warehouses, 
thus performing a function similar to the wholesaler.
There are many commission agents and brokers in Italy serving the 
domestic and European markets. An Italian representative can often 
provide an excellent starting point in exporting to Southern Europe, 
Eastern Europe, or North Africa. The Italian firm can easily handle the 
logistics, linguistics, transshipment, and stocks on behalf of the 
American firm.  However, if the American firm desires these activities 
to be performed, they should be explicitly stated in a contract or sales 
agreement.
If the product normally has a high sales volume and low profit margin, 
the Italian firms seek to deal directly with the manufacturer. Sales to 
a department store, chain store, or end-user often give best sales 
results, but require greater promotional effort by the American 
exporter. The direct sales method eliminates the added shipping and 
warehousing expenses, but the U.S. exporter and Italian importer must 
handle the shipping formalities and work harder to ensure a successful 
business relationship.
The introduction of products into the Italian market should come after 
the U.S. exporter has planned and reviewed the consumer and business 
environment.  Product representation throughout Italy is facilitated by 
the unified and compact  market and may be achieved with any of the 
following distribution methods to cover the entire area, depending on 
the expected sales volume, product support requirements, and marketing 
techniques. However, these methods must be applied with the U.S. 
exporter being mindful of the advantages a local representative would 
have in serving the home market.
- Establishing a sales office to serve the entire country and provide a 
distribution base for Western Europe.
- Selling through an agent a or distributor whose activity may cover 
specified areas, the entire country, or include European-wide  sales.
- Selling through established wholesalers or dealers.
- Selling directly to department stores, chains, retailer cooperatives, 
consumer cooperatives, or other purchasing organizations.
The U.S. exporter would be ill-advised, after having appointed a 
representative firm, to provide only product literature and samples and 
then expect to have good sales results. Regular communications and 
visits to the representative, particularly when newly appointed, by 
seasoned sales personnel or company technicians can reveal information 
on market developments and assist in the solution of any problems. 
Regular submission of sales reports can be a vital link to analyzing 
sales results and identifying potential problems before they occur. 
Italian firms can purchase products and services from international 
sources and have come to expect well-designed, high-quality products, 
with efficient after-sales service. An effective after-sales servicing 
system also should be incorporated into distribution plans.
The U.S. exporter seeking an Italian sales agent should ideally visit 
Italy to make an appraisal of the relative merits of the prospective 
agent. Besides acquainting the U.S. exporter directly with local market 
conditions and special sales characteristics, a visit also provides an 
opportunity to discuss policy and sales campaigns with the potential 
agent, and to review responsibility for customs fees, taxes, labeling, 
business procedures, and payments. These responsibilities should always 
be clearly defined before undertaking a long-term relationship.

ADVERTISING AND TRADE PROMOTION
Advertising in Italy has grown rapidly in volume, importance, and 
sophistication. This growth in advertising has been accompanied by a 
proliferation of advertising agencies and an expansion of services. 
Along with Italian-owned agencies, there are joint ventures with other 
European or American firms. While some agencies specialize in specific 
services and media, a large number of full service agencies deal with 
all advertising aspects and have market research facilities.
The following is a breakdown of media use: newspapers, 35 percent; 
magazines, 35 percent; radio and television, 22 percent; movie strips, 2 
percent; and other methods, 6 percent.
Advertising and Trade Promotion--The main means of product advertising 
in Italy is through the daily newspapers. Newspapers work closely with 
advertising firms, both Italian and foreign. However, since the 
newspapers themselves do not maintain advertising departments, 
advertising firms must place their ads with special agencies 
commissioned by the papers to receive advertising for them.
Of about 90 daily newspapers in Italy, only a dozen or so are read 
throughout the country, and while some 230 Italian and foreign 
periodicals are on sale in Italy, only about 20 have a large 
circulation.
Television--Italy is served by three television networks operated by 
Radiotelevisione Italiana (RAI), a government-regulated company in which 
the state owns a majority interest. The three networks carry commercials 
in programs all day long. In addition, some 100 private television 
stations are licensed for local broadcasting. 
Radio--There are three radio stations owned and operated by RAI. These 
are on the air for more than 340 hours weekly, and commercial time is 
available. In addition to the three networks, there are numerous local 
radio stations.
Motion Picture Theaters--Wide use of film clips is made for advertising 
purposes. There are some 10,000 motion picture theaters and many 
regularly show advertising. The rates for advertising vary according to 
the showing time and class of the theater. Advertising is shown during 
every intermission. Therefore, this medium may be used to reach a wide 
market and cut across economic strata.
Posters and Billboards--Poster advertising is handled by a number of 
specialized companies, as is electric sign advertising, which is subject 
to special regulations. Poster advertisement on walls, along streets, in 
street cars, buses, and other means of transportation are used to reach 
the consumer market. Both posters and billboards are subject to the 
approval of provincial authorities and to payment of a tax on poster 
advertising.
Show Windows and Flyers--Show window advertising is extensively used in 
Italy. Displays are usually attractively done and show prices of the 
items for sale. Advertising flyers are in common use, and street banners 
are used also for special occasions. Loudspeakers are used for 
advertising at sporting events. Direct advertising, through the 
distribution of gifts, samples, and price reduction coupons, is 
frequently used to interest consumers.
Trade Fairs--Exhibitions are a cost-effective method to enter a foreign 
market and meet a wide range of buyers interested in a particular 
industry sector. Sales professionals find that trade fairs attract 
extensive buyer attendance and frequently can be used to gauge 
acceptance and pricing of new products and to observe the competition. 
In the course of a few days, a new market entrant may be able to 
generate more qualified and motivated prospects than by using any other 
sales approach. Also, fairs are useful for finding an agent, 
distributor, or representative. The U.S. Department of Commerce 
frequently organizes events that are identified as having excellent 
prospects for American exporters. Information on participating in 
Italian trade fairs can be obtained from Department of Commerce district 
offices located throughout the United States. 
For information about trade fairs at Fiera Milano, the large 
international trade fair site in Milan, firms can contact Fiera Milano's 
U.S. representative for information by calling 1-800 524-2193. Fiera 
Milano organizes an extensive variety of international shows each year.

Below is a listing major Italian newspapers and business journals
Newspapers
CORRIERE DELLA SERA
Via Solferino, 28
20121 Milano
tel. 39-2-6282-7246 
LA GAZZETTA DEL MEZZOGIORNO
Via Scipione l'Africano, 264
70124 Bari
tel. 39-80-270-275
GIORNALE DI SICILIA
Via Lincoln, 21
90133 Palermo
tel. 39-91-616-5355
IL GIORNALE
Via Gaetano Negri, 4
20123 Milano
tel. 39-2-85661
IL GIORNO
Piazza Cavour, 2
20121 Milano
tel. 39-2-77681 
L'INFORMAZIONE
Piazza del Popolo, 18
00187 Roma
tel. 39-6-36931
IL MATTINO
Via Chiatamone, 65
80121 Napoli
tel. 39-81-794-7111
IL MESSAGGERO
Via del Tritone, 152
00187 Roma
tel. 39-6-47201
LA NAZIONE
Via Ferdinando Paolieri, 2
50121 Firenze
tel. 39-55-55-24851
L'OSSERVATORE ROMANO
00120 Citta' del Vaticano
tel. 39-6-6988-3461
LA REPUBBLICA
Piazza Indipendenza, 11/b
00185 Roma
tel. 39-6-49821
IL RESTO DEL CARLINO
Via Mattei, 106
40138 Bologna
tel. 39-51-536-111
IL SOLE-24 ORE
Via Lomazzo. 52
20154 Milano
tel. 39-2-31031
LA STAMPA
Via Marenco, 32
10126 Torino
tel. 39-11-65681
IL TEMPO
Piazza Colonna, 366
00187 Roma
tel. 39-6-675-881
L'UNITA'
Via del Tritone, 61
00187 Roma
tel. 39-6-699-961
LA VOCE
Via Dante, 12
20121 Milano
tel. 39-2-863-751

Major Italian Business Journals
L'ESPRESSO
Via Po, 12
00198 Roma
tel. 39-6-84781
ITALIA OGGI
Via Marco Burigozzo, 5
20122 Milano
tel. 39-2-582-191
MILANO FINANZA
Via Marco Burigozzo, 5
20122 Milano
tel. 39-2-582-191
MONDO ECONOMICO
Via Paolo Lomazzo, 51
20154 Milano
tel. 39-2-349-2451
PANORAMA
20090 Segrate (Milano)
tel. 39-2-75421
IL MONDO
Via Angelo Rizzoli, 2
20132 Milano
tel. 39-2-2588

PRICING PRODUCT
When providing the Italian buyer with a price quote, American firms most 
frequently provide a quote that includes packing costs, insurance, and 
freight. This is called the c.i.f. price. The average Italian business 
representative can then usually determine the charges for customs, 
taxes, and local transportation to arrive at the final landed cost to 
importer. The customary terms of sale in Italy are either cash or net. 
Sales made on cash terms call for payment before delivery, on delivery, 
or shortly after delivery -- usually within 10 days from the date of 
delivery. A 2 to 5 percent discount is made for payment of the full 
amount of the transaction at the end of the specified period from 1 to 4 
months from the date of the invoice. The length of the period depends on 
the commodity involved, the credit standing of the buyer, and the 
motivation of the seller. A period of up to 2 years is often allowed for 
payment of capital goods, store equipment, trucks, and similar heavy 
equipment. 
Italian firms indicate that some American suppliers are too rigid in 
their payment terms and have thus lost business to other suppliers 
because of their rigidity. Financing is considered as much a competitive 
factor as the product itself, the delivery date, or after-sales service.
While some U.S. manufacturers request payment upon receipt of the goods, 
more successful sellers are offering terms allowing settlement of the 
account from 60 to 120 days following receipt of the order.
The use of irrevocable letters of credit for the Italian market has 
declined appreciably in recent years. Although such instruments are 
still required by American exporters, especially when the Italian 
customer's credit reputation is not well known, the growing reluctance 
of Italian firms to provide letters of credit has required American 
exporters to utilize other methods to assure payment or lose the sale to 
other suppliers in the competitive Italian market. The Italian 
businessperson is reluctant to pay a high fee for a letter of credit 
when other suppliers or means of payment are available. American firms 
have put to greater use the export credit insurance and guarantee 
programs available through the Foreign Credit Insurance Association 
(FCIA).
Trade and Financial background
Information on specific Italian firms is available from the U.S. 
Department of Commerce through its World Traders Data Reports Service. 
American companies should contact their local U.S. Department of 
Commerce District Office.  American banks also provide credit 
information service as well as private agencies.
Just as the terms of any sales offer should be presented in a clear and 
detailed manner, shipments should conform to the contract and to any 
samples which may have been sent to the Italian importer. Special 
attention should be given to the prompt observance of agreed delivery 
schedules, as prompt delivery may be a decisive and possibly an 
overriding consideration of the importer in placing additional orders. 
When shipping on letter of credit, all terms specified on the letter of 
credit must be strictly observed.  If the terms are no followed, the 
letter of credit may not be honored by the bank.
Quotations and Payment Terms
U.S. sales quotations are usually given on a c.i.f. basis which is the 
sales price plus costs (such as packing), insurance charges, and air or 
ocean freight to point of importation. The c.i.f. quote is generally 
preferred by Italian importers since they are usually familiar with the 
Italian customs charges and value-added taxes levied on the product at 
the time of importation, but may not be acquainted with U.S. costs for 
trucking, ocean, or air freight. Large Italian firms and department 
stores, however, may prefer to buy on other terms when they arrange for 
the shipping and insuring the goods. Quotations and invoicing are 
usually in terms of the currency of selling country.
American quotations, usually stated in dollars and on a c.i.f. basis, 
are completely acceptable to Italian buyers. The usual practice of 
American firms selling to a new customer is to require cash against 
documents on the first sale or two. After establishing credit, the 
importer will expect to pay by 30-, 60-, or 90-day letter of credit. In 
all cases, the American exporter will have to decide how to balance 
between making the sale with liberal financing terms versus more secure 
payment terms but with less sales potential. When first starting out, 
American firms may often find it necessary to offer their best price and 
payment terms in order to land the sale in the competitive international 
market. Later, prices may be adjusted as sales and volume permit.
The Italian buyer may request a quote or shipment of goods under 
INCOTERMS. This is a set of international rules defining the important 
commercial terms and practices. By referencing INCOTERMS in contracts or 
invoices, both buyer and seller will have a uniform understanding of 
their responsibilities in an agreement. Copies of the 90-page 
publication Guide to INCOTERMS are obtainable from ICC Publishing, 156 
Fifth Avenue, New York, NY 10010, (212) 206-1150. Exporters can also 
obtain information from the Dun & Bradstreet Exporters' Encyclopedia.
Merchandise may be examined by the Italian importer before customs 
clearance for the purpose of making an inventory. Goods cannot clear 
customs without shipping documents and payment of any required customs 
duty, applicable value-added taxes, and any excise taxes. These 
formalities must be undertaken by the importer at the time of clearing 
customs. Import licenses, if required, should be presented by the 
importer within the period for which they were issued.

SALES SERVICE / CUSTOMER SUPPORT
An American company that is successful in Italy becomes so because its 
products are marketed with the same diligence employed in the U.S. 
market. Whether the firm establishes a manufacturing operation or a 
sales branch, or appoints a commission agent, a stocking distributor, or 
a combination agent/distributor, the American exporter must make a long-
term commitment to exporting and follow sound marketing practices in 
order to sell successfully in the Italian market. A key factor in this 
commitment to serving the overseas buyer is the local stocking of parts 
and giving priority to immediate air shipments on request of the 
European customer.
An American company that is entering the competitive Italian market is 
advised to commit the resources needed to market the products properly 
and establish long-term sales to achieve maximum sales volume. The 
appointment of a resident representative is extremely important.  For 
promotion of business and knowledge of the market, there is no effective 
alternative to a resident representative who is part of the local 
business community and readily available to customers. Having a local 
representative is particularly important when the product is complex and 
may be expected to require follow-up servicing or modification. Local 
representatives are familiar with the product and needs of the customer 
and are in a position to solve problems. Personalized service is 
frequently demanded by customers, creates goodwill, and often stimulates 
repeat sales.  Technical manuals and promotional literature should be in 
Italian.  Italy is a competitive market where a reliable supplier is 
important.  Local representatives with solid reputations and promotional 
material in Italian reflects a commitment to customer service and the 
prestige of the American firm.
A number of U.S. firms maintain their own sales organizations in Italy. 
Still others sell through specialized importers or appoint sales agents 
who often are manufacturers' brokers. A large, well-established Italian 
firm with an efficient nationwide sales organization is likely to insist 
on an exclusive arrangement. About 7,500 U.S. firms are represented in 
the Italian market through agents, branches, subsidiaries, or licenses. 
Of these, nearly 850 have a substantial direct capital investment in the 
form of stock as the sole owner or partner in an enterprise. Generally, 
the sales territory includes all of Italy. In other cases, the territory 
also covers the whole European Community depending on the type of 
product and degree of technical support needed. Italian distributors 
also have excellent contacts with Eastern Europe and  the Mediterranean 
Basin.

SELLING TO THE GOVERNMENT
The Italian government does not typically purchase goods and services 
abroad; unless those cannot be procured locally through domestic 
sources, which would include subsidiaries, branches and agents of 
American companies.  In order to be considered as a source for Italian 
government purchases, it is recommended that the American firm be 
represented by an agent/distributor rather than try to deal directly to 
Italian government agencies.
Each of the Italian agencies maintains its own list of contractors and 
suppliers.  Therefore, U.S. firms need to contact each agency directly 
to establish its eligibility.  U.S. companies must first establish their 
financial and technical capabilities by presenting these directly to the 
Italian agencies.

PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT
Since 1989, the U.S. Trade Representative has placed Italy on the 
intellectual property rights "watch list" under the Special 301 
provision of the United States Trade Act of 1988, primarily reflecting 
problems with protection of copyrights for computer software and film 
videos.  Enactment in December 1992 of the EU software directive making 
software copyright violations a criminal offense was a major step 
forward.  Since that time, the GOI has substantially increased 
enforcement actions against both video and software pirates and created 
an Interministerial Anti-Piracy Committee.  Other activity has included 
specialized training courses for Italy's three law enforcement agencies, 
and creation in several major municipal centers (i.e., Milan, Rome) of 
special "pools" of Italian prosecutors specialized in combatting 
intellectual property crimes.
Italy is a member of the Paris Union International Convention for the 
Protection of Industrial Property (patents and trademarks) to which the 
United States and about 85 other countries adhere. U.S. citizens 
generally are entitled to the same treatment (national treatment) in 
acquiring and maintaining patent and trademark protection in Italy as an 
Italian citizen would be. In addition, after filing a patent application 
in the United States, a U.S. citizen is entitled to a 12-month period 
within which to file a corresponding application in Italy and receive in 
Italy the benefit of his or her first U.S. filing date (rights of 
priority). The priority right filing period for trademarks is 6 months.
Italy is also a member of the Berne Copyright Union and adheres to the 
Universal Copyright Convention to which the United States and 50 other 
countries are signatories. U.S. authors can thereby obtain copyright 
protection in Italy for their work first copyrighted in the United 
States merely by placing on the work, their name, date of first 
publication, and the symbol ©. In turn, Italian authors have the same 
rights in the United States for works first copyrighted in Italy.
Patent and trademark applications and inquiries should be addressed to:
Ministero dell'Industria e Commercio
Ufficio Centrale Brevetti per Invenzioni
Modelli e Marchi
Via Molise, 19
00187 Rome, Italy
Applications and inquires concerning copyrights should be addressed to:
Presidenza del Consiglio dei Ministri
Ufficio del Propriet? Letteraria, Artistica e
Scientifica
Via Boncompagni, 15
00187 Rome, Italy
Laws Governing Intellectual Property Rights
Patents and Licensing--The principal laws governing patent protection 
are Royal Decrees No. 3731 of October 30, 1859, No. 1127 of June 29, 
1939, Law No. 633 of April 22, 1941, and Presidential Decree No. 338 of 
June 19, 1979. Decree 338 amends the former Italian legislation and 
implements the European Patent Convention. To be patentable, an 
invention must be novel, that is it cannot have been available to the 
public anywhere else before the date of the filing or of the priority 
claimed.
Patents are granted for 15 years from the effective filing date of 
application. They are assignable and transferable. A patent can be 
subject to compulsory licensing if not worked within 3 years from date 
of grant or 4 years from the filing date of application, whichever is 
later.  The introduction or sale in Italy of items manufactured in 
foreign countries does not constitute working of the invention.  (This 
provision is currently being reviewed to assure compliance with Italian 
Uruguay Round "Trips" obligations.)
Licensing and technical assistance agreements with foreign firms are 
encouraged by the government. The foreign exchange necessary to effect 
payment abroad (including the United States) of bona fide royalties 
and/or technical assistance fees can be obtained simply upon application 
to the Italian Exchange Office through a bank. Applicants are required 
to produce the original contract with the foreign concern and to submit 
a certified copy of such a contract. A certificate confirming the 
validity of the patent should also be submitted in the event that the 
contract provides for the use of patents.
Annual taxes must be paid each year during the period an Italian patent 
is in force. These taxes are progressive and range from lire 1,000 for 
the first year to lire 35,000 for the 15th year.
Trademarks--The principal trademark registration laws are Royal Decree 
No. 929 of June 21, 1942, and Presidential Decree No. 795 of May 8, 
1948. Some types of terms are not registrable as trademarks, such as 
those deemed to be generic, those containing false indications of 
quality or origin of goods, and those similar terms already registered 
by others in Italy or for which applications are pending. For some 
goods, geographic names may not be used in trademarks nor can the 
portraits of persons be registered without their consent.
Trademark applications are examined for acceptability of their format 
and consistency with the laws. If an application is in order, the mark 
will be registered. There is no opportunity for opposition and the first 
applicant is entitled to registration. However, any other person who 
claims to be the first user of the mark in Italy can have the prior 
registration cancelled, provided one can prove the claim. No claim of 
prior use claim can be made after the registered mark is 5 years old.
Trademarks are registered for 20 years from the effective application 
filing date and are renewable for similar periods. Failure to use a mark 
within 3 years after its registration can result in cancellation. 
Trademarks may be assigned to other users provided such action does not 
involves deceptive trade practices.
For administrative purposes, trademark products are classified under 42 
groups (1-34 for products and 35-42 for services). Applications must 
indicate the appropriate classification.
Copyrights--Both Italy and the United States are signatories of the 
Universal Copyright Convention, which provides for mutual copyright 
protection. In Italy, copyrights are protected by Law No. 633 of April 
22, 1941 and Decree Law No. 82 of August 23, 1946. Executive recognition 
in the form of copyright protection to the author is accorded 
intellectual creations pertaining to science, literature, music, 
decorative arts, architecture, the theater, and motion pictures. 
Copyright protection for an author's work exists for the life of the 
author, plus 50 years after his or her death. In the case of motion 
pictures, protection is limited to 50 years from the date of the first 
public screening. Anonymous works are protected for 50 years after 
publication.
The following additional legislation relating to the protection of 
copyright was subsequently issued:  Illegal duplication of phonographic 
material (No. 406 7/29/81); Illegal duplication and transmission of film 
works (No. 400 7/20/85); Illegal duplication of software (No. 518 
12/20/92 - enacting EU Directive 91/250); Rental and neighboring rights 
related to intellectual property (No. 685 11/16/94 - enacting EU rental 
rights directive).
Further detailed information on procedures regarding patent, trademark, 
and copyright protection in Italy should be obtained from competent 
legal counsel.
EU Initiatives on IPR
Italy is also a signatory to the European Patent Convention, which 
provides for a centralized European-wide patent protection system (Italy 
has not yet ratified the convention). The European Patents Act of 1977 
provides increased legal protection, a patents court, and guidelines for 
compensation of an inventor.  Under the European Convention, an 
applicant for a patent is to be granted a preexamined 15-year, non-
renewable European patent that has the effect of a national patent in 
all 16 countries that are signatories of the convention, based on a 
single application to the European Patent Office. This procedure should 
expedite the granting of patents. However, infringement proceedings 
remain within the jurisdiction of the national courts, which could 
result in some divergent interpretations. Further information may be 
obtained from the European Patent Office, Motorama-Haus, Rosenheimer 
Strasse 30, Munich, Germany.
The EU commission is attempting to harmonize copyright protection in 
several areas and views continued progress as a key part of its programs 
for the internal market.  The software directive, approved by the 
European Council in 1991, entered into force on January 1, 1993.  Seven 
member states including Italy have transposed the directive into 
national legislation.  The directive on rental and lending rights, 
approved by the Council in 1992, was implemented in Italy in late 1994 
(see above).
In September 1993, the Council adopted a directive on the harmonization 
of copyright laws in satellite broadcasting and cable retransmission, 
which member states were supposed to have implemented by January 1, 
1995.  This measure allows satellite broadcasters to clear in their 
country of origin full copyright responsibility for their entire 
footprint throughout Europe.  In an attempt to overcome the significant 
divergences among the member states in this area of IPR protection, in 
October 1993, the Council adopted the directive on the harmonization of 
the duration of copyright and of certain related rights.  It provides 
for the term of copyright to be harmonized for a period of 70 years 
after the author's death.  For related rights, it harmonizes the term of 
protection at 50 years from the date of production.  A bill to transpose 
these two EU directives into Italian law was before the Italian 
parliament as of June 1995, with approval expected imminently.

NEED FOR A LOCAL ATTORNEY
American companies which are interested in setting up agencies, 
distributorships, licenses or joint ventures are encouraged to seek 
professional legal advice and counsel.  The American Embassy maintains a 
list of lawyers which is available to the public.

Marketing U.S. Agricultural Products and Services
The nature of the Italian food business continues to change in response 
to increased purchasing power, better educated and more widely traveled 
consumers and the increasing number of working women.  Northern Italy 
remains the country's most important economic region and accounts for 55 
percent of national income and 45 percent of the population.  In 
contrast, the central region generates about 20 percent of national 
income, with 18 percent of the population.  The southern region 
(including Sicily) has 37 percent of the population but accounts for 
only 25 percent of national income.  Household expenditures on food and 
drink vary according to region.  Most households in northern Italy spend 
less than 18 percent of their income on food, while southern households 
spend over 24 percent of total income on food items.
Italy's food distribution system is undergoing a rapid change due to the 
economic recession which is forcing consolidation of food outlets.  The 
biggest growth area in Italy is the increasing number of hard discount 
chain stores which are forcing small and medium sized retailers to 
accept lower margins or file bankruptcy.  A snapshot of the Italian 
retail food sector highlights the tremendous growth in chain stores of 
all types:

                  1991      1992      1993      1994*
Wholesalers       37.2      37.1      37.0      36.8
(1,000s)
Hypermarkets      100       120       137       150
+2,500 sqm
Supermarkets      4240      4880      5250      5600
400-2,500 sqm
Mini-markets      25,110    26,380    26,970    27,800
less than 400sqm
Total Retail      289,100   256,510   290,120   285,000
 Food Outlets 
*Source:  Nielsen and FAS/Italy Estimates
Many of the larger supermarket chains have buying offices in the
U.S. or visit large U.S. food shows such as FMI.  Hypermarket chains
that offer both food and non-food items are doing well and
supermarkets that cannot offer price discounts are suffering.
Important differences exist in Italian style supermarkets vs. U.S.
food chains.  For example, roughly 30 percent of all Italians prefer
to walk to their local food store, thus small, light packaging is
important.  Store (and brand) loyalty is very strong, but product
variety is not a key factor for Italian consumers.  "Generic label"
items have a very poor quality image.  Finally, 70 percent of all
Italians still buy their meat from neighborhood butchershops.
Concentration is taking place in the wholesale distribution sector,
but at a slower rate than in the retail sector.  A typical Italian
wholesaler might be no more than one person with a truck making a
handful of deliveries and existing on tiny margins.  Wholesale
marketing channels vary greatly according to the nature of the
commodity and the region.  Regional wholesale markets are important
distribution points for fresh fruits and vegetables as well as
seafood.
The importance of the tourist industry in Italy is also significant. 
Supermarkets and other food outlets have more liberty in setting opening 
and closing hours in tourist zones and the tourist industry is quickly 
adapting to American style eateries and consumer services.  As of 
January 1994, there were 35,515 hotels and 204,770 food service outlets 
in Italy.  Small eating establishments (including bars, cafes, ice cream 
stores, pastry shops, pubs, discos, etc.) totaled 105,574.  Restaurants 
(including pizzerias, buffet style, fast food, etc.) numbered 63,681.  
This sector has not been hard hit by the recession and demand for items 
such as "bulk" frozen foods is on the upswing. 
Even though fast food outlets are becoming more popular, Italian diners 
continue to be sophisticated and eating trends point to a demand for 
leaner foods including non-fat items and attractive presentation.  In 
addition, menus must adapt to Italian eating patterns and habits (i.e. 
pasta, salads, pizza and cheese).  Typical Mediterranean dishes are a 
staple - even in non-Italian ethnic restaurants.
The increased popularity of snack foods has pushed up demand for fast 
food outlets.  The typical Italian coffee bar now stocks a broad 
selection of sweet and salty snacks in addition to hot and cold lunch 
sandwiches.  These stand-up coffee bars (which serve alcoholic 
beverages, etc.) usually feature an ice cream case with individual 
servings for take out.  Ethnic restaurants are slowly gaining in 
importance and larger supermarkets now feature an ethnic food display 
case or area for a weekly ethnic food promotion.
The institutional food sector has also undergone concentration and 
become more efficient in recent years.  Institutional cafeterias and 
restaurants are most interested in semi-prepared foods such as frozen 
vegetables, breaded fish products, ready-to-cook pasta, frozen or 
chilled chicken parts and bulk packaged snacks.

V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT

BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES (IN RANK ORDER)
  (US$ millions, unless otherwise noted)

1.  Aircraft & Parts (AIR)
2.  Computer Software (CSF)
3.  Industrial Chemicals (ICH)
4.  Computer Services (CSV)
5.  Airport & Ground Support Equipment (APG)
6.  Telecommunications Equipment (TEL)
7.  Computers and Peripherals (CPT)
8.  Electronic Components (ELC)
9.  Process Controls: Industrial (PCI)
10.  Franchising (FRA)
11.  Electrical Power Systems (ELP)
12.  Laboratory Scientific Instruments (LAB)
13.  Pollution Control Equipment (POL)
14.  Insurance Services (INS)

1. Best Prospect
Rank: 1 
Name of Sector: AIRCRAFT & PARTS
ITA Industry Code: AIR
2. Narrative:
As European competition continues to grow, the Italian aviation sector 
is still maintaining strong ties with the U.S. industry and has high 
regard for U.S. products' sophistication, advanced technology and unique 
design.  In 1994 U.S. manufacturers have been able to maintain their 
dominant position with approximately 79 percent import market share.  A 
subsector of interest to U.S. manufacturers is Airborne Avionics where 
U.S. leadership is unanimously recognized.
In 1994, the Italian aviation sector continued to experience a stagnant 
market demand.  However moderate growth is expected through 1996 when 
large aviation companies such as the flag carrier Alitalia, and its 
wholly-owned subsidiary ATI, are expected to recover from their current 
heavy losses and give new impetus to purchases.  As aviation production 
relies on high initial investment costs, Italian aviation manufacturers 
largely operate by collaborating with other foreign companies.  In fact 
the majority of aircraft in service now are of foreign origin and are 
primarily of U.S. and France design.
3. DATA TABLE:
                                1994       1995       1996
A. Total Market Size            5,400     5,675       6,070
B. Total Local Production       5,630     5,950       6,430
C. Total Exports                2,050     2,160       2,370
D. Total Imports                1,820     1,885       2,010
E. Total Imports from U.S.      1,440     1,540       1,680
I. Exchange rate:
   1 U.S. DLR = Lire            1,613     1,650       1,650
The above statistics are unofficial estimates.


1. Best Prospect
Rank: 2
Name of Sector: COMPUTER SOFTWARE 
ITA Industry Code: CSF
2. Narrative:
1994 was the year of recovery for the information technology market 
worldwide and Italy was no exception.  Computer software, which accounts 
for approximately 20 percent of the total Italian information technology 
market and represents 37 percent of the software and services sector, 
strengthened by an additional 4 percent in 1994.  Prospects for growth 
over the next few years are bright.  The multimedia revolution is 
driving the information technology world and the telecommunication world 
into ever-closer contact, and Italy is slated for major liberalization 
and consequent higher investments in its telecom system.  Advances in 
technology that improves productivity, accelerates product cycles and 
competes more effectively will be the key to organizations' success in 
the future, and corporate spending, particularly by export-oriented 
manufacturers in the North, will include investment in the new software.  
Particular fields targeted for growth are:  client-server computing; 
document image processing and groupware.  Finally, the success of 
electronic commerce including electronic data interchange in markets 
similar to Italy's augurs well for producers of related software with 
financial and banking institutions as the prime customers.   As 
technological changes accelerate and users are presented with a 
multitude of new opportunities, the U.S. is well placed to reap large 
benefits in a market which recognizes the supremacy and innovativeness 
of American products.  
 
3. DATA TABLE:
                              1994       1995          1996
A. Total Market Size         2,610      2,767         2,988
B. Total Local Production    1,968      2,065         2,168
C. Total Exports               150        169           180
D. Total Imports               792        871         1,000
E. Total Imports from the U.S. 587        643           815
I. Exchange rate:
   1 U.S. DLR = Lire         1,613      1,650         1,650
The above statistics are unofficial estimates

1. Best Prospect
Rank: 3
Name of Sector: INDUSTRIAL CHEMICALS
ITA Industry Code: ICH
Narrative:
Italy is a large producer and user of industrial chemicals.  Italy ranks 
fourth in total number of chemical plants after Japan, the United States 
and Germany.  The privatization of the largest Italian chemical company, 
State-owned Enichem, is a priority of the Italian Government.  Most 
Italian plants produce basic chemicals, mainly petrochemicals and 
fertilizers.  Italian imports of chemical products are mainly based on 
specialty and fine chemicals with high technological content.  Several 
large European and American multinational companies have subsidiaries 
and factories in Italy. After the devaluation of the lira, U.S. 
multinationals have significantly increased production in their Italian 
plants, and have indirectly increased their penetration into the Eastern 
European countries.  It is expected that in the near future, both 
imports and exports will record consistent increases.  American 
companies have a very good reputation in Italy as suppliers of high 
quality specialty and fine chemicals.  Since September 1992, the Italian 
Lira has depreciated by 38 percent against the U.S. Dollar, and by about 
60 percent against the German Mark.  Imports from the U.S. will be 
preferred by Italian importers over German products as a result of the 
currency differentials. 
3. DATA TABLE:
                              1994         1995            1996
A. Total Market Size         49,970       51,200         55,900
B. Total Local Production    43,985       45,130         49,600
C. Total Exports             14,100       14,550         15,900
D. Total Imports             20,085       20,620         22,200
E. Total Imports from U.S.   1,010         1,080          1,180
I. Exchange Rate 
   1 U.S. DLR = Lira         1,613         1,650          1,650
The above statistics are unofficial estimates.

1. Best Prospect
Rank: 4
Name of Sector: COMPUTER SERVICES 
ITA Industry Code: CSV
2. Narrative:
The computer services sector has represented and is expected to continue 
to remain one of the driving forces of the Italian information 
technology market. In 1994, it represented over 33 percent of the total 
IT market. The growth of the computer services sector in the next three 
years will be strongly supported by general business reorganization 
processes aimed at achieving more rational and flexible internal 
structures and at increasing business efficiency and productivity. 
Global outsourcing services and "selective" outsourcing services (data 
processing, hardware/ software maintenance, applications management, 
network management, desktop management and disaster recovery services) 
will play an important role, as they will be increasingly accepted as  
tools to operate efficiently and cost-effectively. Consulting, 
customization, and systems integration services are also forecast to 
register considerable growth, due to the need for business process 
reengineering and redesign of information systems, creation of 
information infrastructures and middleware development. Value added 
services, media integration, and telecommunication services will also 
become increasingly important. The U.S. dominates the market and its 
superiority in this sector is widely recognized.  Good opportunities 
exist for new-to-market U.S. companies offering highly specialized 
services, willing to team up with well-established Italian firms for 
cooperation agreements. 
3. DATA TABLE:
                                    1994         1995        1996
A. Total Sales                      4,540       4,740       5,150
B. Sales by local firms              3,285      3,430       3,710
C. Sales by local firms                140        150         160
D. Sales by foreign-owned firms      1,395      1,460       1,600
E. Sales by U.S.-owned firms         1,075      1,125       1,250
I. Exchange Rate:
   1 U.S. DLR = Lire                 1,613      1,650       1,650
The above statistics are unofficial estimates.

1. Best Prospect
Rank: 5
Name of Sector: AIRPORT & GROUND SUPPORT EQUIPMENT
ITA Industry Code: APG
2. Narrative:
The Italian airport and ground support equipment sector has high 
consideration for U.S. product sophistication, advanced technology and 
unique design.  The U.S. market position in this sector is fairly good 
and is expected to maintain its share through 1998.  Competition from 
European countries (Germany, France, U.K.) is increasing, but U.S. 
leadership is unanimously recognized.  Because Italian manufacturers 
supply no more than 73 percent of domestic demand and only cover the 
needs for low technology equipment, the importance of imports of U.S. 
high technology products remains almost uninfluenced by the current 
dollar/lira relationship in direct competition with European suppliers 
conditioned by the high German mark.  Furthermore, the local market is 
slowly but continuously expanding, even though a certain slowdown was 
experienced in both 1993 and 1994 due to ongoing economic/financial 
problems, political instability and corruption and because of a country-
wide business contraction.  Nevertheless, the market is expected to gain 
trust in view of near term investments and expenditures for airport 
expansions, upgrading of infrastructures, purchase of ground support 
equipment and systems in order to meet world standards of safety, 
performance and systems maintenance.  Ongoing investments have been 
concentrated, so far, in 14 major Italian airports to update air 
transportation management and passenger/cargo terminal facilities.  The 
Italian government is strongly supporting airports expansion by 
contributing approximately 350 million dollars in 1992 and 290 million 
dollars in 1993 to be spent over a five year span.  Private expenditures 
are estimated at approximately 950 million dollars through 1998.
3. DATA TABLE:
                                 1994        1995         1996
A. Total Market Size            2,310       2,470        2,660
B. Total Local Production       1,690       1,840        1,950
C. Total Exports                  695         780          820
D. Total Imports                1,315       1,410        1,530
E. Total Imports from U.S.        595         650          745
I. Exchange rate:
   1 U.S. DLR = Lire            1,613       1,650        1,650
The above statistics are unofficial estimates.

1. Best Prospect
Rank: 6
Name of Sector: TELECOMMUNICATIONS EQUIPMENT 
ITA Industry Code: TEL
2. Narrative:
Italy is an interesting market for the U.S. telecommunications industry 
that continues to adapt itself to the local ongoing changes, 
deregulation process and growth.  However, growth is not uniform 
throughout the sector, and U.S. companies should look at Value Added 
Services as the most promising subsectors to include in their marketing 
plans.  Competition from European manufacturers (France, Germany, 
Sweden, U.K.) is increasing so partially eroding U.S. import market 
share for those products of low sophistication and general use.  This 
sector is experiencing significant development as the result of a world-
wide strategic role of telecommunications and by progressive measures 
enacted by EU's TLC Commission to develop a common telecommunications 
policy.
Growth in this market is continuing at a steady pace also in response to 
the recent choice of a second operator (Omnitel/Pronto Italia) to run a 
new cellular phone network and last year founding of Telecom Italia 
that, by incorporating five major telephone service companies, will 
become the world's sixth largest telecommunications company.  
Development of satellite systems for the business community, 
installation of fiber optic cables, the fastest rate of conversion to 
digital switching in the world, the dramatically growing market for 
cellular radio and portable network services, are a few examples of the 
expansion this marketplace is going through.  Therefore, Italy will 
continue to represent an interesting market as substantial investments 
and expenditures are foreseen through 1996 and beyond. Consequently 
local manufacturing and imports should remain high and see additional 
growth.  In view of the positive outlook and the enhancement of country-
wide networks, it is expected that interconnectivity products will 
largely benefit from this expansion. 
3. DATA TABLE:
                                1994        1995            1996
A. Total Market Size           8,019       8,240           8,800
B. Total Local Production      7,405       7,590           8,130
C. Total Exports               1,071       1,110           1,250
D. Total Imports               1,685       1,760           1,920
E. Total Imports from U.S.       540         590             670
I. Exchange rate:
   1 U.S. DLR = Lire           1,613       1,650           1,650
The above statistics are unofficial estimates.

1. Best Prospect
Rank: 7
Name of Sector: COMPUTERS AND PERIPHERALS
ITA Industry Code: CPT
2. Narrative:
In 1994 the Italian market for computers and peripherals showed signs of 
recovery after the serious recession which hit the economy in 1992/1993. 
The sector is forecast to maintain its strategic role as one of the top 
best prospect industries for U.S. imports in the next three years. The 
reorganization process, which Italian business is currently undergoing, 
is affecting the development of the market: demand for IT products and 
systems is picking up as complex information systems in large and medium 
sized companies are updated to adopt client/server architectures and 
groupware platforms. The need for IT/telecom integration also represents 
a major driving force. The availability of new products based on CMOS 
technologies is expected to contribute to the basic hold of the 
mainframe subsector. The proprietary minicomputer subsector is forecast 
to increasingly lose ground, while good prospects still exist for open 
systems and UNIX based systems. Demand for workstations is picking up, 
due to renewed investments in the technical-scientific market. Personal 
computers are registering high growth rates, both in unit and value 
terms, and they are increasingly used in networking applications. Demand 
for mobile computing systems, CD-ROM and multimedia products is also 
growing rapidly. U.S. technology and standards are highly regarded, and 
the best opportunities for success lie with American companies offering 
innovative and sophisticated products, willing to team up with well-
established local firms for distribution agreements.
3. DATA TABLE:
                                1994         1995           1996
A. Total Market Size           5,190        5,330          5,650
B. Total Local Production      5,475        5,600          5,900
C. Total Exports               3,550        3,650          3,850
D. Total Imports               3,265        3,380          3,600
E. Total Imports from U.S.     1,105        1,130          1,200
I. Exchange Rate:
   1 U.S. DLR = Lire           1,613        1,650          1,650
The above statistics are unofficial estimates.

1. Best Prospect
Rank: 8
Name of Sector: ELECTRONIC COMPONENTS
ITA Industry Code: ELC
2. Narrative:
For the first time after three years the Italian market for electronic 
components is showing no negative signs despite the inflation rate that 
reduced the dynamics of growth.  As in the past, electronic components 
production cannot cover domestic demand. Therefore, Italy will continue 
to be highly dependent on imports (including U.S.) of large quantities, 
mainly semiconductors, to meet automotive, telecommunications and 
automation industries' demand. Italy's major suppliers of electronic 
components are the U.S. (approx. 12.7 percent of the 1994 import market 
share), Singapore, The Netherlands, Germany, Japan, France, U.K. and 
South Korea.  Far East products are gaining a reasonable reputation for 
quality and competitiveness.  Italian producers find it difficult to be 
competitive at an international level because most of the Italian 
companies have low technology and limited productions diversification.  
3. DATA TABLE:
                                   1994         1995           1996
A. Total Market Size              3,388        3,580          3,900
B. Total Local Production         1,850        2,000          2,220
C. Total Exports                  1,297        1,425          1,595
D. Total Imports                  2,835        3,005          3,275
E. Total Imports from U.S.          360          398            450
I. Exchange rate:
   1 U.S. DLR = Lire              1,613        1,650          1,650
The above statistics are unofficial estimates.

1. Best Prospect
Rank: 9
Name of Sector: PROCESS CONTROLS: INDUSTRIAL
ITA Industry Code: PCI
2. Narrative:
The Italian market for process controls stagnated in 1994, as a 
consequence of the strong decline of orders experienced in 1993. 
However, in 1995 and 1996 industrial investment is expected to increase 
considerably, giving new impulse to the process control market. 
Consistent growth is forecast over the next three years. The Italian 
market, among the four largest in Europe, is very sophisticated and 
welcomes new products with innovative features. Local companies have 
excellent integration capabilities for systems and parts and are highly 
specialized in certain applications. Although one of the most important 
companies in the sector worldwide, Elsag-Bailey, is Italian, German 
companies have a very large share of the Italian market, followed by 
U.S. companies. U.S. companies should be able to increase their share on 
the Italian market because of the present favorable differences in 
exchange rates: since September 1992 the Italian lira has depreciated 60 
percent against the German Mark and 38 percent against the U.S. Dollar. 
The strong demand for flexibility by Italian manufacturers will lead to 
strong growth in demand for intelligent instrumentation and for simpler 
supervision systems.
3. DATA TABLE:
                                 1994  1995  1996
A. Total Market Size  3,315  3,570  3,800
B. Total Local Production  2,155  2,330  2,480
C. Total Exports  600  650  700
D. Total Imports  1,760  1,890  2,020
E. Total Imports from U.S.  530  570  610
I. Exchange rate:
   1 U.S. DLR = Lira  1,613  1,650  1,650    
The above statistics are unofficial estimates.


1. Best Prospect
Rank: 10 
Name of Sector: Franchising
ITA Industry Code: FRA
2. Narrative:
Franchising is expanding rapidly in Italy; the sector even prospered 
during the severe economic recession in 1993 and 1994. Italy now ranks 
fourth in Europe with approximately 370 franchisors, 18,650 franchisees, 
and a total of 46,000 people employed. The highly fragmented Italian 
retail distribution system is gradually being replaced with more modern 
distribution formats.  The continual growth of successful new franchises 
has created awareness in the Italian business community of franchising 
as one of the most effective way to introduce a business concept.  This 
is being enhanced not only by events such as the annual franchising 
trade show held in Milan, but also by favorable publicity in leading 
magazines.  The most dynamic sectors are specialized food chains, with 
26 franchisors and 2,600 franchisees, and personal items, with 106 
franchisors and 3,335 franchisees.  The service sector accounts for 115 
franchisors and 5,680 franchisees, while the specialized trade (which 
includes toys, gift items, beauty products, and sporting goods) has 54 
franchisors and approximately 3,000 franchisees, and the 
restaurant/hotel sector 26 franchisors and 350 franchisees.  Chains are 
generally created by former professionals in the sector or by companies 
with synergic activities, wanting to diversify.  A key factor to the 
successful introduction of a foreign franchising  system is adaptability 
to Italian business and cultural patterns.

                                1994      1995          1996
A. Total Market Size             10,000    10,850       12,070
B. Sales by Local Firms           9,240    10,075       11,230
C. Sales by Local Firms           1,400    1,550         1,720
D. Sales by Foreign-owned Firms   2,160     2,325        2,560
E. Sales by U.S.-owned Firms        275       310          355
I. Exchange Rate:
    1 U.S. DLR  = Lira            1,613     1,650        1,650    
The above statistics are unofficial estimates.

1. Best Prospect
Rank: 11
Name of Sector: ELECTRICAL POWER SYSTEMS
ITA Industry Code: ELP
2. Narrative:
Italy's economic/political instability and unforeseen difficulties in 
implementing the National Energy Plan, have significantly influenced the 
local market for energy related products, equipment and systems.  In 
particular, electric power demand continued to increase, causing 
substantial imports of electricity from neighboring countries (France, 
Austria and Switzerland).
Therefore, energy production investments (including incentives to self-
producers), energy source diversification, promotion of energy 
conservation technologies and utilization of renewable sources will play 
a significant role on Italy's power generation planning through the 
nineties.  Energy generation by nuclear fuel has been halted, but there 
are signs of renewed interest for this form of electric power 
generation.  U.S. manufacturers and suppliers should concentrate their 
marketing efforts on highly sophisticated and innovative 
products/systems, while maintaining and possibly improving their 
leadership in licensing and technical cooperation as the majority of 
Italian-built heavy electrical machinery is manufactured by Italian 
firms under U.S. licenses.
3. DATA TABLE:
                                 1994         1995         1996
A. Total Market Size            5,260        5,410        5,680
B. Total Local Production       5,575        5,585        5,760
C. Total Exports                1,670        1,750        1,790
D. Total Imports                1,355        1,575        1,710
E. Total Imports from U.S.        230          290          330
I. Exchange rate:
   1 U.S. DLR = Lire            1,613        1,650        1,650
The above statistics are unofficial estimates.

1. Best Prospect
Rank: 12
Name of Sector: LABORATORY SCIENTIFIC INSTRUMENTS 
ITA Industry Code: LAB
2. Narrative:
The Italian laboratory instrumentation sector consists of a large number 
of small to medium size trading companies and subsidiaries of foreign 
companies which cannot meet market demand, therefore, Italy imports 
approximately 79 percent of total market size. At present, the share of 
American products is particularly high (37.7 percent) and is expected to 
grow at a rate of 9 percent through 1996. This strong American presence 
reflects the technological lead U.S. manufacturers enjoy versus their 
main competitors.   But even if a large portion of the import market is 
dominated by U.S. technology, competition from Germany, Japan, France, 
Holland and U.K. is increasing.  Strong competition also exists from 
other European manufacturers, particularly from those which offer 
quality equipment at reasonable prices.  
The market for laboratory instruments, in spite of the general recession 
that continued to hit the Italian economy through 1994, continued to 
expand at a rate of approximately 8 percent annually. Moreover Italy, 
both at public and private level, is devoting greater resources to 
research and development, while the manufacturing industry is striving 
to improve quality by broadening overall demand for laboratory and 
scientific instruments.  

3. DATA TABLE:
                              1994         1995            1996
A. Total Market Size         1,105         1,160          1,250
B. Total Local Production      470           515            570
C. Total Exports               240           265            280
D. Total Imports               875           910            960
E. Total Imports from U.S.     317           343            370
I. Exchange rate:
   1 U.S. DLR = Lire         1,613         1,650          1,650
The above statistics are unofficial estimates.

1. Best Prospect
Rank: 13
Name of Sector: POLLUTION CONTROL EQUIPMENT AND SERVICES 
ITA Industry Code: POL
2. Narrative:
The Italian pollution control industry is a best prospect industry for 
U.S. sales in the medium term. In 1994, the market still suffered from 
the economic recession, particularly impacting the industrial end-users 
segment, and more significantly, from the total freeze on investments in 
the public sector caused by heavy cuts in public administration budgets 
and by massive investigations into corruption. The release of blocked 
investment funds in 1995, the need to enforce EU legislation, the 
national 1994-1996 environmental plan calling for investments of $6 
billion, and the economic recovery should give momentum to this sector 
in the next few years. The driving forces for the development of the 
market will be represented by the waste management and the water 
treatment subsectors. The asbestos removal market niche is also becoming 
important. The Italian industry is still largely dependent on foreign 
expertise and know-how for the supply of specialized equipment and 
instrumentation. U.S. technology and standards are highly regarded and 
recognized and good business opportunities exist for experienced 
American firms providing highly innovative, safe, cost effective, and 
efficient products, technologies, and services, ready to work closely 
with Italian partners who can help them in understanding local 
legislation and business procedures.
3. DATA TABLE:
                                1994      1995      1996
A. Total Market Size           3,605     3,780     4,020
B. Total Local Production      3,245     3,410     3,640
C. Total Exports                 360       390       420
D. Total Imports                 720       760       800
E. Total Imports from U.S.       325       350       370
I. Exchange Rate:
   1 U.S. DLR = Lire           1,613     1,650      1,650
The above statistics are unofficial estimates

1. Best Prospect
Rank: 14
Name of Sector: INSURANCE SERVICES 
ITA Industry Code: INS
2. Narrative:
The National Social Insurance Institution (INPS) is facing ever-
increasing costs and will probably encounter serious problems in 
guaranteeing an adequate pension to all citizens in the next century, or 
proper health care.  More and more citizens are thus turning to private 
insurance.  Emblematic are the respective 22.9 percent and 10.4 percent 
increases in sales of life and health insurance policies during 1994.  
Foreign-owned insurance companies maintain and estimated market share of 
32 percent.  The handful of U.S. companies presently doing business in 
Italy have, however, significantly increased their performance by 18 
percent and managed to reach an estimated 0.32 percent of the market.
3. DATA TABLE:
                                      1994     1995      1996
A. Total Sales                      34,347    36,950    40,630
B. Sales by Local Firms             36,752    39,530    43,460
C. Export Sales by Local Firms      13,395    14,400    15,830
D. Sales by Foreign-owned Firms     10,990    11,820    13,000
E. Sales by U.S.-owned Firms           110       120       140
I. Exchange rate:
   1 U.S. DLR = Lire                 1,613     1,650     1,650
The above statistics are unofficial 
estimates.

BEST PROSPECTS FOR AGRICULTURAL PRODUCTS
As previously mentioned, there are 3 major trends in the Italian 
consumer ready food market:
Healthier eating:  For Italians this means less red meat consumption; a 
switch from butter to vegetable oils and from spirits to lower alcohol 
wines and beer or mineral water;  increased demand for light foods (no 
fat, low fat etc.) and diverse health food items (organically grown, 
salt free, gluten free, etc.) and a preference for frozen over canned 
fruits and vegetables.
Convenience (with tradition):  The average Italian household has very 
limited refrigerator and freezer space and less than 19 percent of all 
families have a microwave oven.  The trend toward table ready foods is 
growing, but slowly as Italian consumers have a strong preference for 
fresh foods and traditional eating habits.  Thus "cooks in 5 minutes" 
may imply low quality.  However, the increased consumption of frozen 
foods has pushed supermarkets to enlarge their freezer sections and 
supported the growth of frozen-food-only chain stores.  Snack food 
consumption -- while not necessarily healthy -- has increased 
tremendously over the past 5 years and is one of the fastest growing 
food sectors in Italy.
Diversification:  Although the standard fare described as the 
"Mediterranean diet still dominates the Italian dinner table, consumers 
are becoming increasingly more open to non-traditional foods.  They are 
more likely to try a new food if it has been introduced by a friend or 
explained through demonstrations or taste tests.  Snack food consumption 
has shown the greatest diversification with items like individual 
serving ice cream bars, popcorn, "flavored chips", candies, cookies and 
crackers of all kinds.
Diversification in the Italian diet (health foods, snack foods etc.) has 
been reinforced by the media which is used heavily by the major brand 
leaders to market their products.  TV and print advertorials are popular 
tools to promote and explain snack foods and healthy (i.e. organic) 
items.  More liberal sales laws have also aided this trend.  Until 
recently, baby foods and foods for special diets (salt-free, sugar free, 
etc.) were sold only by pharmacies, but now can be purchased in 
supermarkets.
The primary market sector opportunities in Italy are:  convenience foods 
with special packaging and long shelf life advantages, whole grain 
products, mineral waters and nonalcoholic beverages, snack foods (sweet, 
salty and diet), seafood, baby foods or special diet foods (no salt, no 
sugar, etc.), organically grown products and pet foods.  An overview of 
several sectors follows:
Snack foods  Italy has a fairly high level of consumption of sweet 
snacks at 3 kilos per capita.  The traditional market is expanding as 
Italians are eating snacks for breakfast and seeking new products with a 
willingness to experiment.  Price is still a consideration, but 
consumers are demanding better quality and novelty in snacks foods.  
Rich products should be truly rich and healthy products should explain 
their health advantages.  Individual serving snacks are in greater 
demand and there is substantial seasonality to consumption patterns 
depending on the product (i.e. more chocolate in the winter, overall 
greater consumption during the school year, etc).
Frozen Foods   Called the "Cinderella Sector" because of its fairy tale 
rise to popularity and sudden appearance in the Italian market; the 
frozen food sector is growing quickly.  There is further room to grow as 
per capita consumption of frozen foods was 8.3 kilos in 1993 compared to 
the EU average of 20 kilos per capita.  Frozen food consumption totaled 
2 million metric tons in 1993 (of which 300,000 was seafood products).  
Over 50 percent of the market is frozen fruits and vegetables, followed 
by seafood, snacks (including ice cream) and french fries.  There are 
also market opportunities for chicken parts, prepared dishes and snacks.
Health/Organic Foods:  In 1993, there were 300 firms dedicated to 
production of health/organic foods with a turnover of 500 billion lire.   
Organic foods enjoy a 20 to 30 percent price advantage at the retail 
level.  Popular U.S. products are whole grain items, juices and snacks.  
Italian companies are often interested in buying a line or display case 
of single brand/multiple products.
Beverages   From herbal teas to fruit juices, The Italian market for 
nonalcoholic beverages is booming.  The lion's share of this consumption 
is mineral water, however, Italian consumers are interested in trying 
new "healthy" drinks and substituting tea and juice for coffee, wine and 
beer.  In 1993, per capita consumption of fruit juice was 7.9 liters, 
while soft drinks and mineral water consumption was 160.1 liters per 
capita.  "All-natural" products have the edge.  Traditional fruit juice 
flavors are apricot, pear and peach.  Citrus juices are no longer 
limited to breakfast only and orange juice in particular is consumed 
"freshly squeezed". 
In addition to high-value products, U.S. companies also should look for 
opportunities to supply Italian export industries with raw materials.  
Some of the best prospects are:
Logs (2471000)(2472020)(2472010)
PS&D Code: IT9455A
                                        [1000 Cubic Meters] 
                               1993            1994           1995
A. Total Market Size           7726            7977           7990
B. Total Local Production      2670            2700           2700
C. Total Exports                2.0             3.0            2.5 
D. Total Imports               5058            5270           5300
E. Total Imports from U.S.     54.4            57.0           61.0 
          
Processed Wood Products (2482000)(2483020)(2483040)(6342010)
PS&D Code: IT9455A      (6343200)(6416120) 
                                        [1000 Cubic Meters]
                               1993            1994           1995
A. Total Market Size          10281           10812          11050
B. Total Local Production      5060            5090           5100
C. Total Exports                645             648            648
D. Total Imports               6217            6300           6528
E. Total Imports from U.S.      325             326            334
Comment:  Although U.S. exports of forest products to Italy were 
affected adversely by the strong dollar during 1993, they recovered in 
1994 and are expected to grow over the long term.  The market for 
Italian wood furniture is excellent due to the soft lira which has 
encouraged trade and as long as demand for the finished product remains 
strong, demand for U.S. logs and semi finished products should remain 
firm.   There has also been a strong demand for U.S. hardwood species 
for flooring in 1995.  Exporters should continue their efforts to 
educate Italian end-users about the benefits of panels and lumber 
applications. 

Oilseeds (2230000)
PS&D Code: IT9506A
                                       [1000 Metric Tons]
                             MY1993          MY1994          MY1995
A. Total Market Size           2228            2502            2552
B. Total Local Production       803            1170            1200
C. Total Exports                  2               0               0
D. Total Imports               1337            1372            1352
E. Total Imports from U.S.      550             553             553
Oilmeals (0810000)
PS&D Code: IT9506A
[1000 Metric Tons]
                             MY1993          MY1994          MY1995
A. Total Market Size           3720            3811            3831
B. Total Local Production      1547            1734            1764
C. Total Exports                 69              45              45
D. Total Imports               2092            2122            2112
E. Total Imports from U.S.       26              25              25
 
Comment: Implementation of the Blair House Agreement and the reformed 
Common Agricultural Policy for oilseeds should prevent domestic soybean 
production from expanding.  For quality reasons, U.S. exports should 
benefit from an increase in domestic consumption of oilseed oil due to a 
reduction in olive oil supplies, despite strong price competition from 
Southern Hemisphere suppliers, primarily Argentina and Brazil.  Oilseed 
meal imports should increase slightly, because of demand from the hog 
and poultry industries and high prices for competitive feed ingredients 
such as corn.
Grain and Feed      (0410000)(0440000)(0430000)(0422110)
PS&D Code: IT9511A  
                                       [1000 Metric Tons] 
                             MY1993          MY1994          MY1995
A. Total Market Size          22127           21690           21700
B. Total Local Production     18350           17713           18107
C. Total Exports               3576            3421            3080
D. Total Imports               6304            6372            6620
E. Imports from U.S.            232             295             340
Comment: The perennial problem facing U.S. grain exports to Italy is the 
EU variable levy.  In the case of wheat, this has resulted in France's 
virtual take-over of the bread wheat market.  However, U.S. bread wheat 
(Dark Northern Spring and Hard Red Spring) has benefited from improved 
quality standards.  Durum wheat imports from the United States recovered 
in 1994 and should continue to do well in 1995, because of diminished 
intervention stocks.  Total imports of wheat and rice derivatives have 
increased.  These products are particularly important for the Italian 
food processing sector for flour, pasta, bread, biscuit, and semolina 
production.  While the United States faces stiff competition from Canada 
and Europe, it is the preferred exporter of quality grains.  There is 
also an interest in pulses.  U.S. competitors for pulses in the Italian 
market include Argentina and Turkey.   Expanded interest in parboiled 
rice, brown rice and prepared rice mixes continues to offer some 
potential for U.S. exporters, although given the dominant position of 
local rice, the market for U.S. rice will likely remain limited.  

Nuts (0577400)(0577500)(0577901)(0577907) 
PS&D Code: IT9414A
                                       [1000 Metric Tons] 
                             MY1993          MY1994          MY1995
A. Total Market Size          136.0           136.5          137.0
B. Total Local Production     115.0           162.3          145.0
C. Total Exports               79.5            83.0           83.0
D. Total Imports               68.5            65.3           66.0
E. Total Imports from  U.S.     7.6             7.8            8.0
Comment: The long-term decline in domestic production of walnuts and 
almonds plus an economic recovery in 1994/95 should favor imports from 
California.  These nuts are increasing in popularity with consumers.  A 
similar interest can be seen in dried fruit from the United States.  Ad 
campaigns promoting raisins and prunes as healthy snack foods have been 
particularly successful. The superior quality of the U.S. product has 
resulted in strong demand for U.S. origin prunes.  U.S. raisins also 
show potential for growth in the Italian market.  
Cattle and Swine (0013000) (0011000)
PS&D Code: IT9552B*
                                              [head]
                               1993            1994            1995
A. Total Mkt Size/Slaughter   17106           16750           16920
B. Total Local Production     15605           15755           15738
C. Total Exports                 17              24              18
D. Total Imports               3507            2860            3040
E. Total Imports from U.S.        -               -               -
* Does not include genetic material
Comment: Italy is one of the largest U.S. markets for bovine semen.  In 
1994, Italy imported 245,900 doses from the United States of a total of 
333,800 doses.  In 1995, Italy is expected to import 260,000 doses from 
the U.S. of 340,000 doses.  While Italy is a promising market, exporters 
should be aware that there are regulatory requirements which require 
imported semen to be tested in an officially approved Italian artificial 
insemination center.  Furthermore, U.S. exports have been affected in 
the past by the Italian Holstein Frisian Association's (ANAFI) arbitrary 
qualitative restrictions on imports.  Each year, ANAFI establishes a 
limit on the number of U.S. bulls eligible to provide semen to Italy.  
Hides/Skins (2111000)
PS&D Code: IT9452B
                                           [Metric Tons]
                               1993            1994            1995
A. Total Market Size          435.0           500.0           450.0
B. Total Local Production      95.0            93.0            93.0
C. Total Exports               10.0            12.0            12.0
D. Total Imports              353.0           450.0           400.0
E. Imports from U.S.            8.0             8.0             8.0
  
Comment: Overall, Italy is the largest importer in the European Union of 
U.S. hides and skins.  U.S. exports of finished and semi-finished 
leather products continue to benefit from strong Italian demand.  The 
popularity of American-style shoes--such as Timberland and Top-Siders--
which require a heavy side-leather, has in part sparked Italian demand 
for American leather.

VI. TRADE REGULATIONS AND STANDARDS

TRADE BARRIERS, INCLUDING TARIFFS, NON-TARIFF BARRIERS AND IMPORT TAXES
Broadcast Directive and Motion Picture Quotas
In keeping with the 1989 EU broadcast directive, Italy's 1990 broadcast 
law requires that upon conclusion of three years from concession of a 
national broadcast license, a majority of tv broadcast time for feature 
films be reserved for EU-origin films.  The Italian law also requires 
that half of the European quota be dedicated to Italian films.  The 
Italian law is more narrowly focused than the broadcast directive, since 
it encompasses only films produced for cinema performance, and excludes 
tv films and series and other programming.  The film sector decree-law 
enacted on January 18, 1994, calls for application of the Italian 
broadcast quotas proportionally during evening viewing hours, but its 
language is strictly hortatory.
A separate but related issue concerns films shown in Italian theaters.  
The film sector law approved by parliament on February 23, 1994 
eliminated obligatory screen quotas for Italian films (heretofore 25 
days per quarter subject to closing of the theater, under a 1965 law), 
and in their place substituted discretionary rebates on Italy's box 
office tax for theaters that show italian films.  The rebates and 
eligibility thresholds (percentages of screenings required to qualify) 
vary according to the category of the film.  The United States continues 
its efforts both to obtain elimination of discriminatory laws and 
regulations in the audiovisual sector and to limit their impact in the 
interim.
Civil Aviation
Since 1990, the United States/Italy civil aviation relationship has 
undergone some liberalization, including the entry of new U.S. carriers 
in 1991 and 1992.  Nevertheless, the market remains restrictive.  U.S. 
carriers have expressed concern over a range of issues, including a 
number of which relate to the lack of competition in the provision of 
services at international airports.
Government Procurement
In Italy, fragmented, often non-transparent government procurement 
practices and previous problems with corruption have created obstacles 
to U.S. firms' participation in Italian government procurement.  
Regarding public works procurement, pressure for reform has led to 
legislation (Merloni-bis) that should provide more transparent 
procurement procedures, including establishment of a central body to 
monitor implementation.  However, implementing regulations are still 
being drafted and the reforms envisaged in the legislation will not be 
fully implemented until 1999.
Standards, Testing, Labeling and Certification
In the areas of standards and standards setting, Italy has been slow in 
accepting test data from foreign sources, but is expected to adopt EU 
standards in this area.  In sectors such as pollution control, the 
uniformity in application of standards may vary according to region, 
thus complicating certification requirements for U.S. Business.

CUSTOMS VALUATION
Advance Rulings from Italian Customs
Prior to signing a long-term contract or sending a shipment of 
considerable value, it may be prudent for a U.S. exporter to first 
obtain an official ruling on the customs classification, duty rate, and 
taxes. Such requests should be sent to: Ministry of Finance, Rome, 
Italy. The request should describe the product, the material it is made 
from, and other details needed by customs authorities to classify the 
product correctly. While customs will not provide a binding decision, 
the advance ruling usually will be accepted if the imported goods are 
found to correspond exactly to the full description provided when 
requesting the ruling.
IMPORT LICENSES
Import Licensing
With exception of a small group of largely agricultural items, 
practically all goods originating in the United States and most other 
free-world countries can be imported without import licenses and free of 
quantitative restrictions. There are, however, monitoring measures 
applied to imports of certain sensitive products. The most important of 
these measures is the automatic import license for textiles. This 
license is granted to Italian importers when they provide the requisite 
forms.
 
Various apparel and textile products, and controlled items such as arms 
and munitions are the most frequently regulated items. Import licenses 
are generally rapidly granted for goods of U.S. origin and delays are 
usually from lack of proper documentation or information.
Licenses are not transferable. They may be used to cover several 
shipments within the total quantity authorized. In general, the goods 
involved are indicated on the license by the Harmonized System 
classification number and the corresponding wording of the tariff 
position.

EXPORT CONTROLS
U.S. Export Controls
For the purpose of national security, foreign policy, or the short 
supply of materials, the United States controls the export of goods and 
technology by two broad categories of export licenses--general and 
validated.
The vast majority of U.S. exports are shipped abroad under general 
licenses that do not require formal application or approval. To 
determine which kind of export license is required, exporters should 
consult the U.S. Export Administration Regulations for complete details 
or obtain assistance from the local U.S. Department of Commerce district 
office.
 
As an overview, the first step in the export licensing process is to 
determine whether a product requires a general or validated license. 
Determine what is being exported, the destination of the product, its 
end-use, and the organization that will be using the product. Check the 
schedule of Country Groups listed in the U.S. Export Administration 
Regulations to determine the destination category; check the Commodity 
Control List to determine if the product requires a validated license 
for shipment to that particular country; and determine if any special 
restrictions are in effect.
If the product is not on the control list, then it can be exported under 
a general license. The U.S. exporter simply completes the "U.S. Shippers 
Export Declaration", Form 7525-V, providing details of the shipment; 
includes a commercial invoice; and exports the goods. If the product is 
on the control list, a validated license is needed. An application must 
be made and an export license granted. As a general rule, an exporter 
will need a validated license (1) if the products are controlled or in 
short supply regardless of the country of destination; (2) for any 
commodity to a destination with foreign policy concerns; or (3) for 
unpublished technical data to certain destinations. Certain special 
licenses are also issued to cover large projects or repeated sales 
through a foreign distributor.
For assistance in determining what type of license is needed and to 
initiate the processing of an application, contact your local Department 
of Commerce district office or the Bureau of Export Administration, 
Office of Export Assistance, Room H-1099D, U.S. Department of Commerce, 
Washington, DC 20230, (202) 482-4811.

IMPORT/EXPORT DOCUMENTATION
Shipping Documents
Documents required for exporting include the usual shipper's commercial 
invoice and the bill of lading or air waybill, none of which require 
consular legalization. For textiles and apparel, it is good practice to 
provide a certificate of origin, available through most state chambers 
of commerce. For other products, however, if substantive proof of U.S. 
origin is provided through other accompanying documents as well as 
through characteristic trademarks, a certificate of origin is not 
normally necessary.
Shipments to Italy require one copy each of the bill of lading (or air 
waybill) and the commercial invoice for customs clearance. There are no 
consular requirements, but certificates of origin may be required as set 
out below.
U.S. Customs also requires two copies of the "U.S. Shipper's Export 
Declaration" (U.S. Department of Commerce Form 7525V) for goods valued 
at 1,500 USD or more. A declaration form must be completed for all 
shipments by regular mail or parcel post valued at 500 USD or more. The 
form must include the harmonized commodity number of the exported 
product as well as the weight stated in metric units. When sending goods 
through the mail, the exporter should inquire at the post office as to 
the proper documentation needed for mail shipments. For additional 
information or assistance on export documentation, readers should 
consult publications such as the Exporter's Encyclopedia, published by 
Dun's Marketing Services or contact a local U.S. Department of Commerce 
International Trade Administration district office.
Although no special format is prescribed for the commercial invoice, it 
is advisable to include the following: date and place of shipment; name 
(firm's name) and address of the seller and buyer; method of shipment; 
number, markings of the packages, and their numerical order; description 
of the goods using the usual commercial description according to kind, 
quality, grade, and the weight (gross and net, in metric units), along 
with any factors increasing or decreasing the value; agreed price of 
goods; unit cost; total cost f.o.b. factory plus shipping; insurance 
charges; delivery and payment terms; and the signature of a responsible 
official of the shipper's firm. Bills of lading should bear the name of 
the party to be notified. The consignee needs the original bill of 
lading to take possession of the goods.
Certificates of origin are required for a small number of goods such as 
textile products. The need for a certificate of origin should be 
ascertained directly from the importer or from the appropriate customs 
authority. Letter of credit terms may stipulate that a certificate of 
origin be provided. Customs authorities accept certificates of origin 
issued by authorized local U.S. chambers of commerce or boards of trade.

TEMPORARY ENTRY
Temporary Imports
Material may temporarily be imported into Italy without payment of 
duties and tax if such material is to be used in the production or 
manufacture of a product that is to be exported. The importer gives 
security, usually in the form of a guarantee from a bank or insurance 
company, for the amount of the usual duties and taxes. Upon exportation 
of the finished product, the guarantee is released or the deposit 
returned.
Temporary entry of goods intended to be reexported in the same condition 
is permissible free of import duties and taxes upon approval of an 
application by Italian Customs.
Samples without commercial value are admitted free of duty and taxes. 
Product literature should be marked "product Literature - no commercial 
value".  Samples with commercial value are also admitted duty and tax 
free, provided that the following conditions are complied with:
(a)  The samples are accompanied by a representative of the U.S. firm 
with a statement, notarized by an Italian Consulate, identifying the 
commercial traveler and attesting to the intention that the samples are 
being imported into Italy for the purpose of being shown or demonstrated 
and they are to be reexported in due course.
(b)  A certificate of origin from a recognized chamber of commerce is 
submitted to identify the source of the goods.
(c)  A deposit or bond, in the amount of the applicable customs duties 
and taxes, is made at the point of entry. This will be refunded when the 
goods are reexported.
(d)  A list (in duplicate) with a full description of each sample, 
including weight and value, is submitted. It is helpful to have such a 
list in Italian.
U.S. traders should be aware of another and more simplified procedure in 
the form of a carnet for the temporary importation of samples without 
posting guarantees.  See the "Carnets" section in this chapter (under 
SPECIAL IMPORT PROVISIONS).
In practice, samples valued in excess of lira 1 million (or about 1,250 
USD) are practically impossible to clear through Italian customs. In 
such cases, it is advisable to engage the services of a local freight 
forwarder.
Goods in Transit
Goods may clear customs with an EU transit procedure that provides for 
the issuance of a single transit document under which the goods may be 
easily shipped across frontiers of the EU member states. These transit 
documents are completed for the importer by a freight forwarder in 
Italy. The EU transit document provides the basis for a single, 
comprehensive procedure covering the goods within the Community. Since 
single transit document is an EU form, the European importer, customs 
house broker, freight forwarder, or shipper must prepare the document at 
the point of entry.
Inward and Outward Processing
Inward processing is the temporary importation of raw material or 
products for additional manufacture or processing. Merchandise imported 
for additional processing and eventual reexport out of the EU is 
eligible for custom-free treatment.
The reexported goods may be partly or totally processed. The import duty 
and taxes are levied only on those goods that are not reexported and are 
finally sold in the EU.
To qualify for inward processing, an Italian (or EU) firm must satisfy 
customs that it is necessary to use imported goods instead of EU goods; 
state an intention to export products manufactured from the imported 
goods (or equivalent goods available in the EU); and assure that, upon 
reexportation, the conditions set forth in the authorization are 
satisfied, the exported products are accounted for, and the entered 
goods are identifiable and relate to specific importations.
In outward processing, a firm in Italy may export goods for further 
manufacture or processing from the EU customs area and then reimport the 
final product. Duties and taxes are levied only on the increased value 
added by the expatriate manufacturing or processing when the goods are 
returned to Italy and not to the total value of the product. Only firms 
located in Italy or another EU country are eligible to take advantage of 
this option, and they should first gain approval of the Customs 
authorities.

LABELING, MARKING REQUIREMENTS
Marking and Labeling
There is no general requirement that imports be marked as to country of 
origin. Under Italian legislation, the origin of imported merchandise is 
established through documentation accompanying the shipments arriving in 
Italy and not through marking of products or their containers. Certain 
specified commodities, however, must be marked or labeled to show 
composition, and name and location of manufacturer, in accordance with 
various laws and regulations.
The following articles are subject to special marking or labeling 
regulations:  lime, cement and similar binding agents; pianos, automatic 
pianos, harmonicas and similar instruments; clinical thermometers; 
ethical medicines; cosmetics.
Hallmarking of gold and silver articles is required before they can be 
offered for sale. Only small tolerances are allowable for manufacturing 
errors. The hallmarking may be done by a hallmarking office after 
importation.
Imports of certain commodities such as packaged foods, distilled 
spirits, beer, wine, vinegar and foodstuffs) are subject to special 
regulations regarding the manner in which they must be labeled to show 
manufacturer, composition, content (in metric units), and country of 
origin.  In view of the complexity of these regulations and changing 
requirements, information should be requested from the importer prior to 
shipment.  When the services of an importer are not available, 
information can be obtained directly from the appropriate Italian 
Government authority listed at the end of this publication.  For 
agricultural and food products, the U.S. exporter should contact the 
U.S. Department of Agriculture for marketing and labeling information 
and exporting assistance.

PROHIBITED IMPORTS
There are a number of Italian regulations and European Community 
directives that prohibit certain foodstuffs, food colorings, drugs and 
narcotics, animal products, plants, seed grains, alcohol, cosmetics and 
toiletries, etc.  It is therefore recommended American exporters contact 
the Italian importer prior to the shipment or use their freight 
forwarder to make the determination.

STANDARDS
Technical Standards
The metric system is the key measurement system in international trade, 
with the United States being the only major nation where this system is 
not in full use. The 1988 Trade Act states that the metric system is the 
preferred system for weights and measures. American firms can be at a 
serious disadvantage in world markets since overseas buyers are 
reluctant to accept nonstandard (nonmetric) products since replacement 
parts and tools are less available and serious safety risks could result 
by mixing metric and nonmetric parts.
As a member of the EU, Italy applies the product standards and 
certification approval process developed by the European Community. 
Italy is required by the Treaty of Rome to incorporate approved EU 
directives into its national laws. There is frequently a long lag by the 
various EU members on obtaining national implementation.
With the development of a single harmonized EU product standard, U.S. 
exporters may find that it is usually much easier to comply with one EU-
wide standard rather than having to meet several individual national 
standards when exporting to Europe.
There are numerous mandatory and voluntary standards in existence that 
define products, processes, or procedures and embrace many fields. The 
texts of these standards may be obtained directly from UNI, Ente 
Nazionale Italiano di Unificazione, Via Battistotti Sassi, 20133 Milan 
(Italian National Bureau of Standards) or through the American National 
Standards Institute, 1430 Broadway, New York, NY 10018, (212) 354-3300.
As part of the unification program to establish common standards for all 
12 member countries, key product areas will be regulated by the 
Community.  Mandatory requirements to protect the health and safety of 
consumers, as well as the environment are constantly being developed and 
implemented. To indicate conformance to the mandatory EU requirements, a 
CE mark must be placed on all regulated products by the manufacturer or 
a representative before they can be sold on the EU market. The 
applicable product testing and certification requirements for individual 
product categories are specified in the various EU directives. The CE 
mark relates only to the mandatory health, safety, and environmental 
requirements established by the EU; it does not indicate conformity to 
European product standards. Thus, national marks of conformity with 
product standards remain compatible with the CE mark and both may be 
applied to the product. It should be noted, however, that the CE mark 
does replace all national safety marks for the regulated products.
The EU Commission has released The Global Approach to Certification and 
Testing, a document that recommended harmonized testing and 
certification procedures within the Community. These proposals included 
establishing a "modular" system for demonstrating product compliance. 
Under this system, methods of demonstrating product conformity range 
from having the manufacturer self-certify the product to having a 
private testing company type-approve the product and provide market 
surveillance, depending on the probability and type of product risk. As 
standards and certification requirements are important in international 
trade, it is expected that more U.S. testing laboratories will be able 
to certify that products comply with EU requirements.
U.S. firms exporting to Italy are confronted with both national and EU 
product standards. Further, these regulations occasionally change to 
meet new technology and more stringent demands. Exporters can stay fully 
informed of the latest EU technical standards activities by contacting 
the Standards Information Service of the National Institute of Standards 
and Technology (NIST) at (301) 975-4040. A part of the U.S. Department 
of Commerce, NIST offers industry an in-depth reference system on EU 
standards information gathered from the two European standards bodies 
tasked to write the EU norms--the European Committee for Standards (CEN) 
and the European Committee for Electrotechnical Standardization 
(CENELEC).
NIST also can provide updated information from the EU which will 
elaborate on directives and provide assistance in identifying EU and 
member state standards and regulations. For more information, contact 
NIST at (301) 975-4038.
Also, the Single Internal Market Service, International Trade 
Administration, Room 3036, U.S. Department of Commerce, Washington, DC 
20230, publishes regular updates on the status of the EU directives. To 
obtain copies of EU directives, amendments, and published updates, or to 
obtain a complete list of EU directives that could affect product sales 
to the Italy or to another EU country, call (202) 482-5276. Copies of 
all documents are available at a nominal fee.
Other valuable sources of information with regard to foreign standards 
include the American National Standards Institute, 1430 Broadway, New 
York, NY 10018, (212) 354-3300, the Department of Commerce's National 
Technical Information Service, Springfield, VA 22161, (703) 557-4733, as 
well as various trade associations that follow international activities 
for their membership.
Electrical power supplies are generally 220 volts, 50 cycles, single-
phase and 380 volts, 50 cycles, three-phase.  Electricity at 60 cycles 
is not available. American appliances, such as electric shavers or hair 
dryers, do not work and will be damaged if used without a transformer.
Service interruptions are rare and the frequency of the current is 
stable. The electrical plug is the standard plug B. This is a plug that 
has two round pins instead of the flat prongs. Some outlets may require 
different plugs in other parts of the country.
Italy uses the metric system of weights and measures, which is called 
the International System of Units (SI). The European Community has 
established standardized packaging units for numerous products which 
should be consulted by U.S. exporters. Labeling must be in metric units 
for all imported products to be sold in Italy. Products are allowed to 
be imported and then labeled in SI metric units prior to sale. Dual 
labeling information is permitted, but the nonmetric information must 
not predominate. The U.S. exporter would be well advised to first check 
with the Italian importer to ensure that the package size and labeling 
complies with all requirements prior to shipment.
Metric measurements should be used in every quotation where size or 
weight is involved. The Italian buyer will expect products and 
literature to be labeled in metric units. Detailed information on the 
European Union's metric and packaging requirements may be obtained from: 
Office of European Community Affairs, Room 3036, U.S. Department of 
Commerce, Washington, DC 20230, (202) 482-2905.

FREE TRADE ZONES/WAREHOUSES
There are two free zones in Italy: one in Trieste and the other in 
Venice. Goods of foreign origin may be brought into the free trade zones 
without the payment of customs duties and taxes. The goods remain free 
of all such charges while held in the zones or if subsequently 
transshipped or reexported. The goods may be freely sold, manipulated, 
and processed.
Italy also has numerous general warehouses that are located throughout 
Italy in all the port areas and cities.  There are no limitations as to 
the type or origin of merchandise that can be stored in free trade zones 
or bonded or customs warehouses. The time limit for such storage is 5 
years. Merchandise deteriorated while in storage can be destroyed 
without payment of duty.
The advantage of a free trade zone or bonded warehouse to American firms 
is having a European base of supply to assure customers prompt delivery 
and service. Also being able to maintain inventory at low cost with a 
minimum of customs paperwork is also a distinct advantage.

SPECIAL IMPORT PROVISIONS
Italy participates in the International Convention to Facilitate the 
Importation of Commercial Samples and Advertising Materials. Samples of 
negligible value imported to promote sales are accorded duty-free and 
tax-free treatment. Prior authorization is not required. To determine 
whether the samples are of negligible value, their value is compared 
with a commercial shipment of the same product. Granting of duty-free 
status may require that the samples be rendered useless for future sale 
by marking, perforating, cutting, or other means.
Imported samples of commercial value may be granted a temporary entry 
and exemption from custom charges. However, a bond or cash deposit may 
be required as security that the goods will be removed from the country. 
This security is the duty and tax normally levied plus 10 percent. 
Samples may remain in the country for up to 1 year. They are not 
permitted to be sold, put to their normal use (except for demonstration 
purposes), or utilized in any manner for remuneration. Goods imported as 
samples may be imported only in quantities constituting a sample 
according to normal commercial usage.
Carnets
As a result of various customs agreements, simplified procedures are 
available to U.S. business and professional people for the temporary 
importation of commercial samples and professional equipment. A carnet 
is a customs document that facilitates customs clearance for temporary 
imports of samples or equipment. With the carnet, goods may be imported 
without the payment of duty, tax, or additional security. The carnet 
also usually saves time since formalities are all arranged before 
leaving the United States. A carnet is usually valid for 1 year from the 
date of issuance and is issued at moderate cost. A bond or cash deposit 
of 40 percent of the value of the goods covered by the carnet is also 
required. This will be forfeited in the event the products are not 
reexported and duties and taxes are not paid.
Carnets are sold in the United States by the U.S. Council for 
International Business at the following locations: 1212 Avenue of the 
Americas, New York, NY 10036, (212) 354-4480; 3345 Wilshire Boulevard, 
Los Angeles, CA 90010, (213) 386-0767; and 1930 Thoreau Drive, #101, 
Schaumburg, IL 60173.

MEMBERSHIP IN FREE TRADE ARRANGEMENTS
Italy has been a member of the European Community (EU) since its 
inception in 1958. The other EU members are Belgium, Denmark, France, 
Germany, Greece, Ireland, Luxembourg, the Netherlands, Portugal, Spain, 
the United Kingdom and Austria.  Other countries have applied for 
membership.
The EU forms a customs union and a large unified market having free 
trade among the member states. It levies a common tariff on imported 
products coming from non-EU countries such as the United States, Japan, 
and Canada. The EU also has a common agricultural policy, joint 
transportation policy, and free movement of goods and capital within the 
member states. Other aspects of commercial activity are being 
harmonized.
The EU grants tariff preferences to more than 100 developing countries 
and about 40 overseas territories under the EU's Generalized System of 
Preferences (GSP). Imports of nearly all semimanufactured and 
manufactured goods originating in these countries and territories enter 
the Community duty free. Annual duty-free quotas are established for 
those products and a system of providing  certificates of origin has 
been established to ensure that goods are not diverted through the GSP 
countries to take advantage of the lower tariff concessions. 
Free trade agreements have been developed between the European Community 
and the European Free Trade Association (EFTA), which includes Finland, 
Austria, Norway, Iceland, Lechitenstein, Sweden, and Switzerland. Under 
the terms of these agreements, most industrial products and certain 
processed agricultural products are exempt from import duties if traded 
within this trading bloc of 19 nations. The result of the agreements 
reached between the 12 EU members and the 7 EFTA members is an open 
trading area for most industrial products of 19 nations with an affluent 
population of 380 million.
While customs duty rates are the same for all 12 EU countries, the 
value-added tax (VAT) and excise tax on products and services usually 
differ from country to country. These taxes are levied in the country of 
final destination. See the "Value-Added Tax" section for the Italian 
rates.

VII. INVESTMENT CLIMATE

OPENNESS TO FOREIGN INVESTMENT
Official Italian policy is to encourage foreign investment, and, for the 
most part, foreign investors will not find major impediments to 
investing in Italy, although bureaucratic requirements can be 
burdensome.  100 percent foreign ownership of corporations is allowed.  
Some restrictions, however, exist.  The 1990 anti-trust law gives the 
government the right to review mergers and acquisitions over a certain 
threshold (50 billion lire or where the merged entity would have 
combined sales of over 500 billion lire, adjusted over time for 
inflation).  The government has the authority to block mergers involving 
foreign firms for "reasons essential to the national economy" or if the 
home government of the foreign firm applies discriminatory measures 
against Italian firms.  There are several industry sectors which are 
either closely regulated or prohibited outright to foreign investors.  
These include domestic air transport, aircraft manufacturing, and the 
state monopolies (e.g., railways, tobacco manufacturing).  Outside these 
sectors, there are no screening or blocking procedures directed solely 
at foreign investment. 
Italy provides national treatment to foreign investors except in a few 
instances.  These include limits to access to government subsidies for 
the film industry and some establishment requirements for financial 
service firms and banks, especially those from non-EU countries.  The 
Italian government operates several monopolies, including petroleum, 
railroads, electrical generation and transmission, and the production of 
cigars and cigarettes.  The privatization program is reducing the State 
role in these sectors.  Italy maintains restrictions and/or limits on 
foreign investment in banking, insurance, and shipping.  A further 
restriction on investment concerns local labor requirements.  Companies 
can bring in foreigners only after certifying that no unemployed Italian 
is available to carry out the expected duties. 
Industrial projects require a multitude of approvals and permits from 
the many-layered Italian bureaucracy.  Foreign investments often receive 
close scrutiny.  These lengthy procedures can, in and of themselves, 
present extensive difficulties for the uninitiated foreign investor.
As of January 5, 1992, all foreign (and Italian) securities firms 
wishing to do business in Italy or with Italian clients must create a 
"Societa` di Intermediazione Mobiliare" (security intermediation company 
or SIM) in Italy.  A SIM is a joint stock company, with prescribed 
capital, staff, and structural requirements.  The fact that it is costly 
to create a SIM can preclude foreign firms from competing in an 
important part of the Italian securities market.  The SIM law conflicts 
with basic tenets of the OECD codes of liberalization.  The United 
States is pressing Italy, bilaterally and in the OECD, to amend this 
law.  The EU commission has challenged the SIM law as a violation of the 
Treaty of Rome and it would be clearly in violation of the EU's 
investment services directive, which will enter into force on January 1, 
1996.  Legislation to make the system consistent with EU regulations is 
in Parliament.
In the banking sector, the Amato law of July 1990 allowed banking and 
savings institutions established in accordance with italian "public law" 
to transform themselves into "private law" joint stock companies and 
sell up to 49 percent of their assets to private investors.  Shares in 
the joint stock companies could be transferred to foreign and Italian 
investors provided that Italian state controlled entities retained 
direct and indirect ownership of the majority of shares of common stock.  
The law also provided that in exceptional cases, subject to the approval 
of the Treasury ministry, a majority stake could be transferred to 
private investors.  A November 1994 directive issued by the Treasury 
moves further in the direction of private control of the banking sector, 
providing fiscal incentives for these quasi-public banks to further 
reduce their holdings to less than 50 percent.  Several major banks have 
announced plans to take advantage of the new directive.  Acquisition of 
more that five percent of a credit institution's capital (or gaining 
effective control) requires prior authorization by the Bank of Italy.  
In addition, industries (either Italian or foreign) are barred, directly 
or indirectly, from acquiring more the 15 percent of a bank's capital. 
The expansion of modern distribution units, such as chain stores, 
department stores, supermarkets, hypermarkets, and franchises is 
restricted by local practice and national legislation which subjects 
applications for large retail units above a certain merchandising 
surface to a lengthy and cumbersome authorization process.  Italy 
provides a number of investment incentives (consisting of tax breaks and 
other measures to attract industrial investment) to depressed areas, 
especially in the south of Italy.
The 1992 privatization program proposed the sale of the majority of the 
capital of public companies, public services and financial institutions, 
and encouraged the management of these enterprise to sell assets by 
curtailing government financial assistance.  The main sale techniques 
indicated by legislation are private placement, worker shareholdings and 
management by-outs, public offer for sale, and public auction.  Apart 
from allowing greater transparency, public sale should impose greater 
discipline and make it possible to extend share ownership (to Italian 
households in particular).  Privatization regulations provide some 
limits to the establishment of "hard-core" shareholder groups for 
companies operating in defense, communications, energy, and public 
utilities, as well as for companies operating in the credit and 
insurance sectors.  
The Italian tax system does not discriminate between foreign and 
domestic firms.  Direct taxation, which is governed by the single 
statute (testo unico), includes the national corporate income tax 
(IRPEG), recently raised one percentage point to 37 percent, the local 
income tax (ILOR), which is currently 16.2 percent, and the personal 
income tax (IRPEF), which is progressive, varying from 10 to 51 percent.  
From January 1, 1993 , ILOR was replaced by a new local property tax 
(ICI), although ILOR was grandfathered in certain cases.  The tax rate 
for the ICI is set by each municipality.
Foreign citizens who reside in Italy for more than 180 days per year are 
subject to the personal income tax (IRPEF).  Italian residents are 
required to pay taxes on their world wide income.  Non-residents are 
taxed on income accruing from an Italian source.  Italy's civil code 
stipulates that an investor's losses generally cannot exceed the value 
of the initial investment.  Capital investments, sales of companies and 
plants, exchange transactions, loans sales of securities and transfers 
of properties relating to company mergers and reorganizations are exempt 
from the value added tax (IVA).

CONVERSION AND TRANSFER POLICIES
Presidential decree no. 454 of September 1987 liberalized Italian 
exchange control laws and provided that all cross-border transactions 
would be permitted unless specifically prohibited by law.  This and 
subsequent decrees and regulations concerning exchange controls were 
consolidated under presidential decree no. 148 of March 1988, which 
establishes the "testo unico" (single statute).  In May 1990, Italy 
eliminated its remaining foreign exchange controls in order to implement 
the EU directive on liberalization of short-term capital movement.
There is a double taxation treaty in effect between the U.S. And Italy.  
The Italian-U.S. Tax treaty provides that profits in a company located 
in one of the contracting states are not taxable in that state unless 
the company carries on business in the other state through a permanent 
establishment that may be taxed in the other state.  Royalties from 
patents and like properties are exempt from tax withholding under the 
treaty.  They are freely remittable, subject to documentation 
requirements.
Residents are free to undertake financial transactions, including direct 
investments and purchases and sales of foreign securities, real estate 
investments, and loans.  Residents may also freely hold foreign exchange 
and lire in any form in Italy and abroad.  Residents cannot enter or 
leave the country with bearer securities worth more than 20 million lire 
(12,500 USD).  They are allowed to import or export nonbearer securities 
worth more than 20 million lire, provided that they submit a declaration 
to customs.  Banks and authorized intermediaries must, for statistical 
purposes, submit data on their foreign exchange transactions exceeding 
20 million lire to the foreign exchange office of the Bank of Italy.
Except as noted above, foreign investments in Italy, including both 
direct and portfolio investment and purchase of real estate, are not 
restricted and no restrictions apply to repatriation of capital.
EXPROPRIATION AND COMPENSATION
Under article 42 of the Italian constitution, private property may be 
expropriated for "public purposes."  Compensation is guaranteed.  
According to the constitutional court, such compensation may not be 
"merely symbolic", but must adequately compensate the legitimate 
proprietor for losses.  Lenders are not covered by the same 
constitutional guarantee as proprietors in the event of expropriation.  
The constitution also authorizes the nationalization of enterprises 
handling essential public services, energy and monopolies that are 
indispensable to the national economy.

DISPUTE SETTLEMENTS
U.S. investors in Italy have the choice in selecting a forum for dispute 
resolution, which should be specifically set forth in the contract.  
Given the slowness of the Italian judicial system (normally 3 - 5 years 
for trial in a civil matter and 2 automatic appeals) you are well 
advised to choose arbitration, which can be Italian or international.

PERFORMANCE REQUIREMENTS/INCENTIVES
In June 1994, the Berlusconi government presented the so-called 
"Tremonti package", then coverted into law, with tax measures aimed to 
stimulate employment and economic activity though tax exemptions for 
entrepreneurs starting new companies, abolition of various minor taxes, 
and tax exemptions for companies which list themselves on the Milan 
stock exchange.  The Dini government has recently announced plans for 
new incentives to encourage investment in the South of Italy which will 
be consistent with European Union regulations.  Provisions are expected 
to include tax incentives for production as well as a guarantee fund to 
allow consolidation of enterprise debt.

RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT
There is no specific limitation to the right to private ownership and 
establishment in either the Italian Constitution or Italian Civil Law.

PROTECTION OF PROPERTY RIGHTS
Laws governing physical property, i.e., expropriation and 
nationalization, ensure adequate compensation.

REGULATORY SYSTEM:  LAWS AND PROCEDURES
Italy is in the process of implementing the EU mandated, single market 
directives which are intended to harmonize many of the most significant 
regulatory structures.  While the thrust of these directives is towards 
creating a non-discriminatory, less restrictive trade regime amongst the 
twelve EU members, the resulting market consolidation is expected to 
yield significant benefits to non-EU trading partners as well.  
Harmonization of standards relating to labeling, content, production, 
safety, etc.  should reduce development costs and contribute to 
economies of scale for companies which wish to operate in Italy.
Several EU directives deal with the issue of transparency, public sector 
contracts, and subcontracting.  The process of incorporating these 
directives into Italian law has focused public attention on governmental 
and party practices in a sector widely thought to be poorly regulated 
and corrupt.  Legislation required to bring Italy into compliance with 
EU standards in this area would have the effect of subjecting such 
transactions and relationships to public scrutiny.  Final enactment has 
yet to occur and the topic remains politically volatile.
In the areas of standards and standards setting, Italy has been slow in 
accepting test data from foreign sources, but is expected to adopt EU 
standards in this area.  However, it is generally accepted that the 
implementation process may be slower than with some other leading EU 
members.  It appears that in sectors such as pollution control, the 
uniformity in application of standards may vary according o region, thus 
creating a complicated system of certification requirements for U.S. 
exporters.
EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT
Financial resources flow relatively freely in Italian financial markets 
and credit is allocated primarily on market terms.   Although the 
Italian stock market is small relative to those in other G-7 countries 
and suffers from thin trading in a number of its stocks, it is 
techically modern and efficiently administered.  The Italian governmnent 
bond market, the world's second largest after the U.S., is predominantly 
an electronic screen-based market, and is also administered efficiently.
The Italian banking system is highly fragmented and generally regarded 
as inefficient, with high operating costs and excessive dependence on 
interest rate spreads for income.  The top five Italian banks account 
for 40 percent of total bank assets.  State ownership of financial 
institutions, both direct and indirect, remains high, despite recent 
progress in privatization.  Still, the conversion over the last two 
years of most public sector banks to joint-stock status means that banks 
are operating on a profit basis and are unable to tap the government for 
funds.  1994 was a record bad year for the banking system due to 
declining spreads between borrowing and lending rates, significant 
capital gains losses on government securities, and 30 percent growth in 
bad loans.  An estimated 9.7 percent of total loans were considered non-
performing at the end of 1994.  Bank performance has improved in the 
first half of 1995.
There are limits on cross-shareholding among banks, and between banks 
and industry.  Industries cannot hold more than 15 percent of the total 
shares of a bank, while banks cannot take more than 20 percent of 
industries or 10 percent of other financial insitutions.  While cross-
shareholding has been used to fight off takeover attempts, this has not 
been directed against foreign investors, but against takeovers in 
general.  In some cases, foreign firms have been part of the original 
core shareholder group defending against the takeover.  Legislation 
permits corporations to adopt statutes which set a maximum level for an 
invididual shareholders, but these apply to all shareholders, not just 
foreign shareholders.

POLITICAL VIOLENCE
Political violence is not a threat to foreign investments in Italy.

BILATERAL INVESTMENT AGREEMENT
Italy has bilateral investment agreements with the following countries:
Chad  Ivory Coast
China  Kuwait
Egypt  Malta
Gabon  Rumania
Guinea  Sri Lanka
Hungary  Tunisia
The 1948 U.S.-Italy Friendship, Commerce and Navigation Treaty contains 
provisions which may protect U.S. investment in Italy.  Generally, 
existing bilateral investment accords create favorable conditions and 
guarantees for capital investment.  They include reciprocal guarantees 
of equal treatment vis-a-vis domestic firms and most-favored-nation 
status vis-a-vis third countries, assurances against appropriation 
without fair market compensation and indemnities against losses suffered 
during war or revolution. Agreements also include statements allowing 
for the free transfer of returns, royalties and funds to maintain 
investments.  They usually detail the procedures under which disputes 
would be arbitrated.

OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS
There is no OPIC program in Italy.  Italy is a member of the 
multilateral investment guarantee agency (MIGA).
LABOR
Unemployment continues to be a serious problem in Italy.  While the 
national rate in January 1995 was well above the January 1994 rate of 
11.1 percent, the breakdown by geographic area shows that it is much 
higher in the South of the country (21.1 percent) than in the North (7.2 
percent) and center (10.4 percent) and is also much higher for women 
(16.8 percent) than for men (9.5 percent).
The youth unemployment rate (15-24) increased to 34.3 percent, from 32.1 
percent in January 1994.  In the South it rose from 50.2 percent in 
January 1994 to 54.7 percent in January 1995.
The presence of unreported employment in the underground economy might 
help in explaining the contradiction between the economic recovery and 
the unemployment statistics.
There is a skilled labor pool in the North, where industries and 
services are more developed.  Labor shortage exists in the fields of:  
engineering, nursing, and computers.  There is also a lack of 
electricians trained to deal with current technology in the automotive 
industry.  Marketing skills and high level human resources are also 
lacking.  The south, where agriculture and the underground economy are 
more widespread, has an overabundance of unskilled labor and of well-
educated young people who do not want to leave their regions to find a 
job.  Immigrant workers are employed for seasonal harvesting.
The labor market is rather rigid, but is getting more flexible, though 
very slowly.  Job placement, once an exclusive function of the Labor and 
Social Security Ministry (through its local offices), is undergoing a 
gradual reform which will deregulate it.  Employers can now select 
directly their prospective employees.  However, they still need to 
comply with the law on compulsory hiring, i.e., they must reserve a 
percentage of their new hires to disadvantaged workers, including the 
long-term unemployed.  New proposed legislation is expected to improve 
part-time, temporary employment, job sharing and fixed term contracts.
Social security contributions are high, accounting up to 45 percent of 
total labor cost.  Some reimbursement is possible, however through 
government tax relief granted to companies "exposed to international 
competition".
Italian workers enjoy elaborate legal protection from dismissal, often 
with complex and costly consequences.
Labor relations in Italy have improved since the late 70ies.  Labor 
unions are less confrontational, especially the three major labor 
confederations, Cgil, Cisl and Uil, which signed, in July 1993, a 
tripartite agreement with government and the major employers 
associations, to have a regulated, balanced incomes policy and keep 
inflation under control.
The number of strikes have decreased on average, though very recently a 
series of conflicts in the transport sectors have upset the economy.  
There is a law limiting the right to strike in public essential 
services, which is however too weak to stop the small independent unions 
from calling disruptive strikes.  This law might be changed soon.
Labor Force in Italy
According to the first 1995 quarterly Labor Force Survey released by the 
National Statistical Office (ISTAT), adjusted to comply with EU 
standards, there are 22,437 million workers in the Italian workforce, of 
which 19.698 million employed and 2.739 million unemployed.  Employed 
workers totaled 1.389 million in agriculture; 6.485 million in industry; 
11,941 million in services.  The unemployment rate was 12.2 percent in 
January 1995, up from 11.9 percent in October 1994, corresponding to 
34,000 more unemployed.  The labor force decreased by 273,000 units and 
there were 307,000 fewer jobs in January 1995 than in October 1994, 
mostly in agriculture and industry.  Employment in agriculture and 
industry decreased 9.4 percent (149,000 units) and 2.7 percent 
respectively.  Employment in services increased 0,1 percent (17,000 
units).

FOREIGN TRADE ZONES / FREE PORTS
There are two free trade zones in Italy located in Trieste and Venice.  
Goods of foreign origin may be brought in without payment of taxes or 
duties, as long as the material is to be used in the production or 
assembly of a product that will be exported.
Benefits of a free-trade zone include:
- customs duties deferred for 180 days from the time that the goods 
leave the free-trade zone to enter another EU country;
- the goods may undergo any transformation free of any customs 
restraints;
- absolute exemption from any duties on products coming from a third 
country.
The free-trade zone law also allows a company, of any nationality, to 
employ workers of the same nationality, under that country's labor laws 
and social security.
 
CAPITAL OUTFLOW POLICIES
Italy has maintained a relatively open attitude toward Italian direct 
investment abroad for some years.  The final controls on portfolio 
investment abroad were dropped in early 1990 and the prohibition on 
opening current accounts abroad was also eliminated.  A reporting 
requirement on capital outflows has been established for statistical and 
tax purposes, but there are no quantitative controls.  Certain incentive 
grants and low-cost loans are available to encourage Italian investment 
in Malta.

FOREIGN DIRECT INVESTMENT STATISTICS
In 1994, Italian direct investment abroad (net) exceeded foreign direct 
investment (net) in Italy by 2.7 billion USD.  Italian direct investment 
abroad totalled 4.9 billion USD, down from 7.0 billion USD in 1993.  
Direct investment inflows totalled 2.2 billion USD, compared to 3.6 
billion USD in 1993.  Italian direct investment abroad in 1994 exceeded 
foreign direct investment in Italy for the fifth year in a row.
The Bank of Italy (BOI) estimates that at end-1994, the stock of total 
foreign direct investment in Italy was USD 58.8 billion, of which U.S. 
investment amounted to 9.1 billion USD (15.5 percent of total).  The 
stock of total Italian direct investment abroad was 81.3 billion USD.  
Italian investment in the U.S. was valued by the Bank of Italy at 7.0 
billion USD (8.6 percent of total Italian direct investment overseas) at 
end-1994.  (See appendix A, Tables 3 and 7).
Switzerland has the largest stock of foreign direct investment in Italy 
(19.2 percent), followed by the U.S.  Among EU countries, which as a 
whole account for 52.3 percent of foreign investment in Italy, France is 
the largest investor in Italy (13.3 percent), followed by Netherlands 
and the U.K. (10.5 percent each), Luxembourg (8.3 percent) and Germany 
(7.8 percent of total).  Although Japan is a net investor in Italy, both 
Italian investment in Japan and Japanese investment in Italy (mostly in 
the banking and insurance sectors) are modest: 1.9 and 1.8 percent for 
the respective totals.
All the EU countries are net recipients of Italian investment.  Among 
non-European countries, the largest recipients of Italian investment are 
Brazil and Argentina.
The Bank of Italy does not publish statistics on Italian direct 
investment in the former Soviet Union, Eastern Europe and NIC's.  The 
countries are included in the "other" category, which receives almost 
three times what it invests in Italy.
(Note: BOI statistics on foreign direct investment stocks differ 
considerably from those of USDOC.)
Of the 9.1 billion USD of U.S investment in Italy at the end of 1994 
(see Appendix A, table 5), the largest portion was in the industrial 
sector at 6.3 billion USD (69.3 percent of total investment).  The 
largest portion of industrial investment was in the chemical industry -- 
2.0 billion USD (22.3 percent of total). Investment in the other 
sectors, such as food, mechanical and transportation equipment sectors, 
also registered increases.  Investment in the service sector totalled 
2.4 billion USD, or 26.6 percent of total.  The largest portion of 
service sector investment was in banking and insurance -- 1.3 billion 
USD, or 14.5 percent of total.
Of Italy's 7.0 billion USD of direct investment in the U.S. at end-1994 
(See Appendix A, Table 6), 3.6 billion USD was in the services sector 
(51.0 percent of the total) and 2.8 billion USD was in the industrial 
sector (39.4 percent of the total stock).  The energy sector at 668 
million USD accounted for most of the balance (9.5 percent of the 
total).  In the service sector, the value of direct investment in the 
banking and insurance sector totalled 1.6 billion USD (23.3 percent of 
total).  In the industrial sector, the value of Italy's investment in 
the mechanical sector increased from 900 million USD at end-1993 to 1.2 
billion USD at end-1994.

MAJOR FOREIGN INVESTORS
Most major multinationals, both U.S. and foreign, have a presence in 
Italy.  General Electric, AT&T, Boeing, ITT Sheraton, Pfizer and Texas 
Instruments are just a few of the well-known American companies with 
investments in Italy.

VIII. TRADE AND PROJECT FINANCING
BRIEF DESCRIPTION OF BANKING SYSTEM
There are numerous banking offices located throughout the country, with 
1,037 banks and 22,133 branches performing commercial services. Among 
the most important are the Istituto Bancario San Paolo di Torino, Banca 
di Roma, Cassa di Risparmio delle Provincie Lombarde (CARIPLO), Banca 
Commerciale Italiana, Credito Italiano, Banco di Napoli and Banca 
Nazionale del Lavoro. These banks are a principal source of credit 
information.
Several U.S. banks perform banking services in Italy through branches, 
subsidiaries, or representatives. Many American banks can also provide 
their commercial customers with bank reports on an overseas buyer as 
well as provide assistance on letters of credit and foreign exchange.
Banks in Italy that have the authority to participate in foreign 
exchange usually have a U.S. correspondent.  Foreign currency transfers 
and foreign-exchange transactions must be channeled via authorized 
intermediaries (the Bank of Italy, the Italian Foreign Exchange Office, 
and authorized banks).  The larger banks in Italy have branches in one 
or more U.S. cities.  Several large U.S. banks have a branch office in 
Italy, usually in Milan.
The Bank of Italy, Italy's central bank, is widely respected both 
nationally and internationally as a non-political overseer of the 
Italian economy responsible for controlling inflation and balanmce of 
payments pressures.
U.S. banks with offices in Italy include Chase, Chemical, Citibank, 
Continental Bank, Morgan Guaranty Trust, Republic National Bank of New 
York and Bank of America.

FOREIGN EXCHANGE CONTROLS AFFECTING TRADING
Italy has no restrictions on the amount of foreign exchange instruments, 
currency, or checks which may be brought into the country.  Normally, 
lire 20 million may be taken out of the country, but any amount declared 
on entry may be reexported.
Italian exchange regulations are issued by the Italian Exchange Office 
(Ufficio Italiano dei Cambi--UIC), Via Quattro Fontane 123, Rome 00184) 
under authority of the Ministry of Foreign Trade. Foreign exchange may 
be sold or acquired from the Bank of Italy or any of the banks 
authorized by the Bank of Italy. In practice, all commercial banks are 
authorized to conduct foreign exchange transactions.
Dollar currency, travelers checks, and, in some cases, personal checks, 
may be exchanged at banks, exchange offices, and authorized tourist 
offices and hotels.  Major credit cards are accepted with proper 
identification.  It is best to first confirm what form of payment is 
accepted.

GENERAL FINANCING AVAILABILITY
Italy has a well-developed banking and credit system with numerous 
correspondent U.S. banks.  Italian banks are subject to close government 
supervision since the granting of credit and the administration of 
savings are considered functions of "national interest."  The 
establishment of a new bank must be authorized by the Bank of Italy.
Until 1993, the Italian banking system was divided into two categories, 
differentiated by length of lending authorized.  The Single Banking Law 
passed in 1993 abolished this division, effectively allowing all Italian 
banks to lend at any maturity.  Due to this historical legacy, those 
institutions which focussed on longer-term lending, including the 
Istituto Mobiliare Italiano (IMI) and Mediobanca, remain at the 
forefront for this type of finance.  Short-term business and trade 
finance is available from a wide range of Italian and U.S. banks.
U.S. firms desiring to finance major portions of their capital 
investment outside the United States may find capital available in the 
Eurodollar market.  U.S. bank branches in Italy can assist in financing 
capital investment.

HOW TO FINANCE EXPORTS / METHODS OF PAYMENT
When providing the Italian buyer with a price quote, American firms most 
frequently provide a quote that includes packing costs, insurance, and 
freight. This is called the c.i.f. price. The average Italian business 
representative can then usually determine the charges for customs, 
taxes, and local transportation to arrive at the final landed cost to 
importer. The customary terms of sale in Italy are either cash or net. 
Sales made on cash terms call for payment before delivery, on delivery, 
or shortly after delivery -- usually within 10 days from the date of 
delivery. A 2 to 5 percent discount is made for payment of the full 
amount of the transaction at the end of the specified period from 1 to 4 
months from the date of the invoice. The length of the period depends on 
the commodity involved, the credit standing of the buyer, and the 
motivation of the seller. A period of up to 2 years is often allowed for 
payment of capital goods, store equipment, trucks, and similar heavy 
equipment. 
Italian firms indicate that some American suppliers are too rigid in 
their payment terms and have thus lost business to other suppliers 
because of their rigidity. Financing is considered as much a competitive 
factor as the product itself, the delivery date, or after-sales service. 
While some U.S. manufacturers request payment upon receipt of the goods, 
more successful sellers are offering terms allowing settlement of the 
account from 60 to 120 days following receipt of the order.
The use of irrevocable letters of credit for the Italian market has 
declined appreciably in recent years. Although such instruments are 
still required by American exporters, especially when the Italian 
customer's credit reputation is not well known, the growing reluctance 
of Italian firms to provide letters of credit has required American 
exporters to utilize other methods to assure payment or lose the sale to 
other suppliers in the competitive Italian market. The Italian 
businessperson is reluctant to pay a high fee for a letter of credit 
when other suppliers or means of payment are available. American firms 
have put to greater use the export credit insurance and guarantee 
programs available through the Foreign Credit Insurance Association 
(FCIA).
Information on specific Italian firms is available from the U.S. 
Department of Commerce through its World Traders Data Reports Service. 
American banks also provide credit information service as well as 
private agencies.
Just as the terms of any sales offer should be presented in a clear and 
detailed manner, shipments should conform to the contract and to any 
samples which may have been sent to the Italian importer. Special 
attention should be given to the prompt observance of agreed delivery 
schedules, as prompt delivery may be a decisive and possibly an 
overriding consideration of the importer in placing additional orders. 
When shipping on letter of credit, all terms specified on the letter of 
credit must be strictly observed.  If the terms are no followed, the 
letter of credit may not be honored by the bank.
TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE
As a member of the G-7, Italy as a market for U.S. exporters does not 
warrant any special USG credit assistance. The network of Italian banks 
with branches in the U.S. (Banca Nazionale del Lavoro, Credito Italiano, 
Banca Commerciale Italiana, Monte dei Paschi di Siena, Banca di Roma, 
CARIPLO, etc.) will offer limited export credit assistance.  Similarly, 
large U.S. banks and/or local banks located in the exporter's state can 
offer factoring, exchange fluctuation hedging and limited exporter's 
credit services.  The EXIM bank and FCIA consider Italy a low political 
risk country.  Italy is classified as a "rich" country under the OECD 
rate classification.  Small business exporters may obtain assistance 
under the SBA's Export Revolving Line of Credit (ELRC) loan program.

PROJECT FINANCING AVAILABLE
Several programs exist to help finance exports. The following export 
financing programs may be of interest to a U.S. exporter:
- The Small Business Administration (SBA) provides financing for the 
establishment, operation, or expansion of a small business, including 
firms engaged in exporting. the SBA's Export Revolving Line of Credit 
Guarantee Program provides pre-export financing for sales and for 
foreign market development. SBA also has a program in cooperation with 
the Export-Import Bank of the United States (Eximbank) to participate in 
loans to small firms.
- The Export-Import Bank of the United States (Eximbank) is an 
independent U.S. Government agency that helps to finance the sale of 
U.S. goods and services to foreign buyers. Eximbank can provide loans 
directly to foreign buyers, provide U.S. suppliers and their banks with 
credit risk protection, or originate direct financing. Eximbank has 
regional offices located in New York, Chicago, Houston, Miami, and Los 
Angeles.
- The Foreign Credit Insurance Association (FCIA) is a private sector 
association of insurance companies. The FCIA acts in conjunction with, 
and as an agent for, Eximbank to cover export sale repayment losses due 
to political or commercial causes.
- The Overseas Private Investment Corporation (OPIC) assists U.S. 
private investment to promote  the economic and social progress of 
developing countries. Programs include political risk insurance, special 
insurance coverage for natural resource projects, leasing, and 
contractor's risks.
- The International Bank for Reconstruction and Development (IBRD), 
under the World Bank Group, promotes development of member countries 
mainly by extending conventional loans for specific high-priority 
projects.

LIST OF BANKS WITH U.S. BRANCHES
A large number of Italian banks have correspondence relationships with 
U.S. banks.  Below is a listing of Italian banks with branch offices in 
the U.S.
Istituto Bancario San Paolo di Torino S.p.A.
Piazza San Carlo 156
10121 Turin
Tel: 39-11-5551
Fax: 39-11-555-6650
245 Park Avenue, Suite 3500
New York, NY 10022
Tel: (212) 692-3000
Fax: (212) 599-5303
Banca di Roma
Via Marco Minghetti 17
00187 Rome
Tel: 39-6-670-71
1 Wall Street
New York, NY 10005
Tel: (212) 607-6300
Fax: (212) 952-0445
CARIPLO - Cassa di Risparmio delle Provincie Lombarde S.p.A.
Via Monte di Pieta'
20121 Milan
Tel: 39-2-886-61
Fax: 39-2-886-62326
10 E. 53rd Street
New York, NY 10022
Tel: (212) 832-6622
Fax: (212) 527-8777
190 S. LaSalle Street, Suite 2890
Chicago, IL 60603
Tel: (312) 444-1500
Fax: (312) 444-1501
Banca Nazionale del Lavoro BNL S.p.A.
Via V. Veneto 119/A
00187 Rome
Tel: 39-6-470-21
Fax: 39-6-470-28445
25 E. 51st Street
New York, NY 10019
Tel: (212) 581-0710
Fax: (212) 713-1683
Banca Commerciale Italiana S.p.A.
Piazza della Scala 6
20121 Milan
Tel: 39-2-88501
1 William Street
New York, NY 10004
Tel: (212) 607-3500
Fax: (212) 809-2124
555 S. Flowers Street, Suite 2400
Los Angeles. CA 90071
Tel: (213) 624-0440
Fax: (213) 624-0457
Banco di Napoli S.p.A.
Via Toledo 177/178
80132 Naples
Tel: 39-81-791-1111
Fax: 39-81-552-5809
277 Park Avenue
New York, NY 10172
Tel: (212) 872-2400
Fax: (212) 644-8246
Credito Italiano
Direzione Centrale
Piazza Cordusio
20123 Milan
Tel: 39-2-88621
375 Park Avenue
New York, NY 10152
Tel: (212) 546-9600
500 S. Grand Avenue, Suite 1600
Los Angeles, CA 90071
Tel: (213) 622-2787
Monte dei Paschi di Siena
Piazza Salimbeni 3
53100 Siena
Tel: 39-577-294-111
Fax: 39-577-294-653
26th Floor 245 Park Avenue
New York, NY 10167
Tel: (212) 557-8111
Fax: (212) 557-8039
Banco di Sicilia S.p.A.
Via Generale Vincenzo Magliocco 1
90141 Palermo
Tel: 39-91-608-1111
250 Park Avenue
New York, NY 10017
Tel: (212) 692-4300

IX. BUSINESS TRAVEL

BUSINESS CUSTOMS
By and large, what is considered good business practice in the United 
States also applies when doing business in Italy. Businesspeople in 
Italy also appreciate prompt replies to their inquires, and they expect 
all correspondence to be acknowledged.
Before embarking on a business venture to tap the market in Italy, the 
review of travel guides would be especially helpful. These guides 
contain useful hints on cultural differences and business protocol.

TRAVEL ADVISORY AND VISAS
Every U.S. traveler must have a valid passport. No visa is required of 
U.S. citizens visiting Italy for less than 3 months, but one is required 
for longer stays. An American citizen entering for permanent residence 
must register as soon as possible after entering the country. 
Application for a Stay Permit (Permesso di Soggiorno) is made at the 
local police station and is valid for two years. U.S. citizens planning 
to work in the country must first obtain a work permit. The permit is to 
be presented to immigration upon arrival. Work permit approval must 
first be obtained by the Italian employer and are usually granted only 
for specialized work or skills. Management and skilled workers have no 
difficulty in obtaining work permits. The Italian employer files an 
application at a Provincial Labor Office which then authorizes an 
Italian Consulate in the United States to issue a work visa to the 
prospective employee.  The application process should be initiated three 
to four months before it will be needed.
For further information concerning entry requirements for Italy, 
travelers can contact the Embassy of Italy at 1601 Fuller Street, NW, 
Washington, DC 20009, telephone: (202) 328-5500, or the nearest Italian 
Consulate General in Boston, Chicago, Houston, Los Angeles, New Orleans, 
New York, Philadelphia, or San Francisco.
A person seeking to work in Italy in an independent or self-employed 
capacity, files an application directly with the Italian Consulate along 
with needed credentials demonstrating experience in the field of work.
Italy has a very low rate of violent crime, little of which is directed 
toward tourists.  Petty crime (pickpocketing, theft from parked cars, 
purse snatching) is a significant problem, especially in large cities.  
Most reported thefts occur at crowded tourist sites, on public buses, or 
at the major railway stations, including Rome's Termini, Milan's 
Centrale, Florence's Santa Maria Novella, and the Centrale in Naples.
U.S. Citizens are reminded that certain Alitalia flights between Italy 
and various middle eastern points (usually Damascus or Amman) make en 
route stops in Beirut.  (The State Department warns U.S. Citizens to 
avoid all travel to or through Lebanon.)
Embassy and consulate locations
The U.S. Embassy in Rome is located at Via Veneto 119/A, telephone: 39-
6-46741, fax: 39-6-4674-2217.  There are U.S. Consulates at the 
following locations:  Florence, at Lungarno Amerigo Vespucci 38, 
telephone:  39-55-239-8276/8/9, or 217-605; fax:  39-55-284088; Milan, 
at Via Principe Amedeo 2/10, telephone:  39-2-290351; fax:  39-2-2900-
1165; Naples, at Piazza della Repubblica, telephone:  39-81-583-8111; 
fax:  39-81-761-1869; Palermo (consular Agent), at Via Re Federico 
18/bis, telephone:  39-91-611-0020 or 39-337-793284 (cellular); fax: 39-
91-611-0434.  Trieste (consular agent), at Via Roma 15, telephone:  39-
40-660177, fax:  39-40-631240;  Genoa (consular agent), Via Dante 2, 
telephone/fax: 39-10-584492.  

HOLIDAYS
Italian holidays must be taken into account when planning a business 
itinerary. July and August are poor months for conducting business in 
Italy since most business firms are closed for vacation during this 
period. The same is true during the Christmas and New Year period. 
Italian commercial holidays are listed in the box below and are the 
official statutory holidays when most commercial offices and banks are 
closed. Certain other days are celebrated as holidays within local 
jurisdictions. Holidays are also observed by the U.S. Embassy and should 
be considered when telephoning or visiting the U.S. and Foreign 
Commercial Service staff there.  When an Italian holiday falls on a 
Saturday, offices and stores are closed.
Listed below are Italian holidays for FY 96:
1995
November 1, Wednesday  All Saints' Day
December 8, Friday  Immaculate Conception
December 26, Tuesday  St. Stephen's Day
1996
January 6, Saturday  Epiphany
April 8, Monday  Easter Monday 
April 25, Thursday  Anniversary of the Liberation  
May 1, Wednesday  Labor Day
August 15, Thursday  Assumption Day

Patron Saint's Day are observed by the following cities:
Milan
December 7, 1995, Thursday  St. Ambrogio's Day
Florence
June 24, 1996, Monday  St. John's Day
Rome
June 29, 1996, Saturday  St. Peter and St. Paul's Day
Palermo
July 15, 1996, Monday  St. Rosalia's Day
Naples
September 19, 1996, Thursday  St. Gennaro's Day

BUSINESS INFRASTRUCTURE
Italian is the official language and is spoken in all parts of Italy, 
although some minority groups in the Alto Adige and Aosta regions speak 
German and French, respectively. Correspondence with Italian firms, 
especially if the letter is the first sent, should be in Italian. If a 
reply comes in English then the subsequent correspondence with the 
Italian firm can be in English. The use of Italian is not only regarded 
as a courtesy, but assures prompt attention, and prevents inaccuracies 
which might arise in translation. Most large commercial firms, however, 
are able to correspond in various languages in addition to English and 
Italian, but a business overture or proposal is given more serious 
attention if written in Italian.
The importance of having trade literature, catalogs, and instructions 
for the use of servicing of products printed in Italian cannot be 
overemphasized. The agent representative in Italy who has such material 
is in a far better competitive position than the one who can only show 
prospective customers and consumers literature in English.
The usual Italian business hours are from 8 or 9 a.m. to noon or 1 p.m. 
and from 3 to 6 or 7 p.m.  Working hours for the various ministries of 
the government are normally form 8 a.m. to 2 p.m. without intermission.  
Bank hours are from 8:30 a.m. to 1:30 p.m. and 3:00-4:00 p.m.; they are 
closed on Saturdays.
With the ease of telephone communications, international calls are 
frequently the best method of arranging appointments and maintaining 
solid commercial relations.  Fax machines have increased the speed and 
ease of international communications and should be used to maintain 
strong business ties.  The Italians are usually adept at handling 
business calls in English, but you must be prepared to expect some 
language differences and be able to make simple requests in Italian.  
The time zone for Italy is 6 hours ahead of the U.S. eastern standard 
time.  Phoning from the U.S. requires the country code prefix 39 
followed by the city code.  Long distance calls made from within Italy 
require the city code preceded by 0.  Milan's city code within Italy is 
02.  Calls to Milan from outside Italy require country code 39 followed 
by city code 2 and the phone number.   
Medical services are excellent and hospitals compare with those in the 
United States. Common medical needs are readily obtained, and special 
supplies are normally available on short notice. An international 
certificate of vaccination is not required for travelers from the United 
States. Drinking water is acceptable and most pharmaceuticals are 
available, and sanitation is at American standards.
Rental automobiles are available at numerous locations. An international 
or state driving license is acceptable. Tipping is as appropriate in 
Italy as it is in the United States. Generally, tip waiters 10 percent 
if "servizio" has not been added to the check.
Conservative business attire is recommended at all times. Business 
appointments are also required, and visitors are expected to be 
punctual.
There is solid sales potential for U.S. goods and services in the 
Italian market. It is a highly competitive market and the U.S. exporter 
must keep certain factors in mind to achieve maximum success. The 
"golden keys" of customary business courtesy, especially replying 
promptly to requests for price quotations and to orders, are a 
prerequisite for exporting success. In general, European business 
executives are more formal than their American counterparts; therefore, 
it is best to refrain from using first names until a solid relationship 
has been formed. During the first stages of conducting business, it is 
best to let the prospective buyer take the lead since the American 
approach of "getting down to business" may be considered abrupt. Avoid 
commenting on political events or negative comments about the country. 
Some positive and sincere  observations about the Italian culture, 
style, art, history, cusine, or music are always appropriate. Italian 
business executives tend to titles indicating the position in the firm.  
Friendship and mutual trust are highly valued, and once an American has 
established this relationship a productive business association can 
usually be counted upon.
Italian buyers appreciate style, quality, and service, but are also 
interested in delivered price. Care must be taken to assure that stated 
delivery dates will be maintained and that after-sales service will be 
promptly honored. Italians, and Europeans in general, are concerned that 
after placing an order with a supplier that the delivery date be 
honored. While there are numerous factors that may interfere with prompt 
shipment, the U.S. exporter must allow for additional shipping time and 
keep in close contact with the buyer. Meeting delivery schedules is of 
prime importance. It is much better to quote a later delivery date that 
can be guaranteed than promise an earlier delivery that is not 
completely certain.
Currency
The basic monetary unit is the lira (plural: lire) and is usually 
indicated as L or Lit. The value of the lira changes with respect to the 
U.S. dollar. Check the financial section of the daily newspaper for the 
current exchange rate.
Major U.S. credit cards are usually accepted with proper identification, 
such as a passport but visitors should always ask if a particular card 
is accepted prior to ordering meals or making hotel reservations. 
Travelers checks are accepted, but visitors should first inquire on the 
policy of the bank, hotel, or store before attempting to use them.
Obtaining Credit Information
In addition to the World Traders Data Reports (WTDR) service provided by 
the Commerce Department to examine the reliability of a foreign firm, 
background information on Italian firms can also be obtained from the 
following sources:
- Foreign Credit Interchange Bureau, National Association of Credit 
Management, 475 Park Avenue South, New York, NY 10003.
- Dun and Bradstreet, Inc., 99 Church Street, New York, NY 10007.
- Gradon America, 71 West 23rd Street, Suite 1629, New York, NY 10010.
- Owens Online, 11701 Belcher Road South, Suite #111, Largo, FL 34643-
5116
- Major banks--contact the international section of any large city bank 
for assistance.
- The American Bureau of Collections, Inc., 1100 Main Street, Buffalo, 
NY 14209-2356 (a collection bureau with an overseas network).
U.S. exporters should maintain close liaison with distributors and 
customers to exchange information and ideas. In most instances, mail, 
fax, or telephone communication is sufficient, but the understanding 
developed through periodic personal visits is the best way to keep 
distributors apprised of new developments and to resolve problems 
quickly. Prompt acknowledgement of correspondence by air mail or fax is 
recommended.
Further, when sales volume warrants, U.S. exporters should seriously 
consider warehousing in Italy to maintain an adequate local supply and 
guarantee proper service of their European customers. A vigorous and 
sustained promotion is often needed to launch products because of 
entrenched buying habits. Products must be adapted to both technical 
requirements and to consumer preferences. It is not sufficient to merely 
label a product in conformity to national requirements for the 
development of the full market potential. Consumers must also be 
attracted to the product by the label and packaging as well as ease of 
use
  APPENDICES

  APPENDIX A:  COUNTRY DATA
     - POPULATION:  56.5 MILLION (1994 DATA)     
     - POPULATION GROWTH RATE:  0.0%
     - RELIGION(S):  MOST ITALIANS ARE ROMAN CATHOLIC
     - GOVERNMENT SYSTEM:  PARLIAMENTARY REPUBLIC
     - LANGUAGES:  ITALIAN.  GERMAN IS THE OFFICIALSECOND LANGUAGE IN 
TRENTINO-ALTO ADIGE (TYROL); FRENCH IS THE OFFICIAL SECOND LANGUAGE IN  
VALLE D'AOSTA.
     - WORK WEEK:  38 HOURS/MON-SAT

  APPENDIX B: DOMESTIC ECONOMY
  1994, ACTUAL, 1995 AND 1996 ESTIMATES -  USD MILLIONS
                                            1994       1995      1996

   - GDP AT CURRENT PRICES              1,017,424  1,067,311  1,154,548
   - NOMINAL GDP GROWTH RATE (PERCENT)    5.9           7.6         8.2
   - REAL GDP GROWTH RATE (PERCENT)       2.2           3.0         2.6
   - GDP PER CAPITA (USD)                  17,999     18,882     20,426
   - GOVERNMENT SPENDING AS
   - PERCENTAGE OF GDP                    58.3          57.4        57.4
   - INFLATION (PERCENT)                   3.9           5.6         5.6
   - UNEMPLOYMENT (PERCENT)               11.3          11.4        11.5
   - FOREIGN EXCHANGE RESERVES             56,011      66,444     77,355
   - AVERAGE EXCHANGE RATE
   - FOR USD 1.00                        1613          1655        1655
   - FOREIGN DEBT                      58,864        63,674      67,974
   - DEBT SERVICE RATIO (PERCENT)        9.2          10.5         9.7

  APPENDIX C:  TRADE
  1994, ACTUAL, 1995 AND 1996 ESTIMATES -  USD MILLIONS
                            1994     1995      1996
- TOTAL ITALIAN EXPORTS     189,398  206,844  237,241
- TOTAL ITALIAN IMPORTS     167,426  192,336  215,884
- EXPORTS TO THE U.S.        14,686   15,682   17,987
- IMPORTS FROM THE U.S.       7,758    9,461   10,620


  U.S. SHARE OF HOST COUNTRY OF MANUFACTURED GOODS       
                                      1994         1995           1996
- TOTAL (FROM WORLD)                127,528      146,502        164,438
- TOTAL FROM THE U.S.                 8,874       10,194         11,443
- U.S. SHARE OF MANUFACTURED
-   IMPORTS (PERCENT)                   7.0          7.0            7.0
- MANUFACTURED GOODS TRADE
-   BALANCE WITH U.S.                 5,724         5,748         6,843
- PROJECTED AVERAGE ANNUAL
-   GROWTH RATE FROM WORLD    
-   THROUGH 1996 (PERCENT)             15.1          12.1          14.7
- PROJECTED AVERAGE ANNUAL
- GROWTH RATE FROM U.S.
-   THROUGH 1996 (PERCENT)             15.1          12.1          14.7

 
  IMPORTS OF AGRICULTURAL GOODS
                                        1993     1994     1995
- TOTAL (FROM WORLD)                  10,573    12,145    13,633
- FROM THE U.S.                          547       628       705
- U.S. SHARE OF AGRICULTURAL
-   IMPORTS (PERCENT)                   5.7        4.5       4.6
- AGRICULTURAL GOODS TRADE
-   BALANCE WITH U.S.                  -568       -511      -587

  TRADE BALANCE WITH THREE LEADING PARTNERS IN 1994
- GERMANY         3,842  3,266  3,334
- UNITED KINGDOM  2,055  1,902    773
- UNITED STATES   5,179  5,813  6,237

  PRINCIPAL U.S. EXPORTS (F.A.S.)
  (TOP 5 BY 4-DIGIT TARIFF ITEM)
                            1993  1994  1995
   
- 1. AIRCRAFT & ASSOCIATED
     EQUIPMENT               890  990  1,050
- 2. COAL                    324  350    375  
- 3. MEDICINAL PRODUCTS &
     MEDICAMENTS             262  280    300
- 4. ADP & UNITS             539  585    640  
- 5. MEASURING EQUIPMENT     264  300    320

  
  PRINCIPAL U.S. IMPORTS (C.I.F.)
  (TOP 5 BY 4-DIGIT TARIFF ITEM)
- 1. JEWELRY, GOLD/SILVER   1,323  1,470  1,550
- 2. FOOTWEAR                 890    950  1,000
- 3. FURNITURE                555    600    670
- 4. OIL FROM MINERALS        450    480    520
- 5. MOTOR VEHICLE PARTS 
     & ACESSORIES             350    360    380
SOURCE: BANK OF ITALY, ISTAT, ISCO, EMBASSY FORECAST


  APPENDIX D: INVESTMENT STATISTICS

TABLE 1: FOREIGN DIRECT INVESTMENT INFLOWS BY ECONOMIC SECTOR (NET) 
1991-1994 (USD MILLIONS) (1)
                         1991      1992      1993    1994
AGRICULTURE              -2.4       2.4       3.2     22.3 
ENERGY                  -83.7     396.9      93.4     -5.0
INDUSTRY              2,166.0   1,508.9   1,751.9   -367.0
OF WHICH:
   MECHANICAL            24.2      78.7     248.7   -137.0
   CHEMICAL             926.7      51.9     410.9   -160.0
   FOOD                 108.8     460.2     163.5    225.7
   TEXTILES              59.6      -6.5      18.4     13.0
   MINERAL/METAL         61.2     129.9     234.1    135.2
   OTHER                985.5     794.6     676.2    290.1
BUILDING AND
PUBLIC WORKS             23.4     -13.8       7.6     45.3
SERVICES                436.7   1,307.6   1,623.4   1751.4
OF WHICH:
   BANKING/INSURANCE    119.3   1,340.1   1,180.0    951.6
   TRADE                 72.5      35.7     -83.3   -212.0
   TRANSPORTATION/
   COMMUNICATION         24.2       6.5      40.7     98.0
   OTHER SERVICES
   (NOT FOR SALE)       220.8     -74.7     486.0    489.8

T O T A L             2,539.9   3,202.1   3,579.5  2,181.0

(1) COMPILED BY THE OFFICE OF THE TREASURY ATTACHE BASED ON BANK OF 
ITALY DATA AND CONVERTED AT THE FOLLOWING AVERAGE EXCHANGE RATES:
               1991  1992  1993  1994
      
LIRA/DOLLAR  1,241  1,233  1,572  1,613

NET = NEW INVESTMENT LESS DISINVESTMENT


TABLE 2: ITALIAN DIRECT INVESTMENT OUTFLOWS BY ECONOMIC SECTOR (NET) 
1991-1994 (MILLIONS OF DOLLARS) (1)
                1991         1992         1993       1994
AGRICULTURE     -66.1        13.0         -4.5       11.8
ENERGY          103.9       103.9       -286.4       70.7
INDUSTRY      1,722.0       747.6      2,392.5    1,903.3
OF WHICH:
   MECHANICAL   838.0        11.4        834.6    1,345.9
   CHEMICAL      52.4      -103.1        -51.5      -45.9
   FOOD          56.4       787.3        649.5      214.5
   TEXTILES     245.8        40.6         64.9       85.6
   MINERAL/METAL 40.3       258.9         82.1      187.8
   OTHER        489.1      -247.6        813.0      115.3
BUILDING AND
PUBLIC WORKS    198.2      -190.7         80.2      237.4
SERVICES      4,711.5     4,950.5      4,762.7    2,696.2
OF WHICH:
   BANKING/INSURANCE  4,164.4  4,463.5  4,462.5  2,062.0
   TRADE  148.3  -114.4  29.3  120.9
   TRANSPORTATION/
   COMMUNICATION  101.5  535.7  -29.3  97.3
   OTHER SERVICES
   (NOT FOR SALE)  297.3  65.7  300.3  416.0

T O T A L  6,669.6  5,624.2  6,952.5  4,919.4

(1) COMPILED BY THE OFFICE OF THE TREASURY ATTACHE BASED ON BANK OF 
ITALY DATA AND CONVERTED AT THE FOLLOWING AVERAGE EXCHANGE RATES:
  1991  1992  1993  1994
LIRA/DOLLAR  1,241  1,233  1,572  1,613

NET = NEW INVESTMENT LESS DISINVESTMENT

TABLE 3A: STOCK OF FOREIGN DIRECT INVESTMENT IN ITALY BY MAJOR 
INVESTORS; YEAR END 1991-1994 (USD MILLIONS) (1)
                1991          1992        1993        1994
UNITED STATES  8,179.8  6,953.8  5,817.5  9,084.7
EU            30,785.4  25,583.3  22,674.9  30,747.9
   OF WHICH:
   FRANCE      8,261.5  7,161.8  5,808.1  7,838.7
   NETHERLANDS  6,566.5  5,311.4  4,809.9  6,146.0
   UNITED KINGDOM  6,318.9  5,032.6  4,092.7  6,185.3
   GERMANY  4,552.6  3,661.5  3,142.6  4,560.1
   LUXEMBOURG  3,982.6  3,532.3  3,803.4  4,879.8
   SPAIN  183.3  174.4  168.4  201.8
   OTHER EU  920.0  709.0  849.8  936.1
SWITZERLAND  14,146.0  11,044.9  9,406.1  11,263.8
SWEDEN  1,686.4  1,394.3  1,568.7  1,733.1
LIECHTENSTEIN  1,102.5  862.0  1,094.5  1,197.5 
JAPAN  924.4  768.2  890.8  1,119.6
ARGENTINA  139.9  110.1  96.8  103.7
BRAZIL  16.5  12.2  15.8  16.6
OTHER  2,692.4  2,605.2  10,933.7  3,530.6
T O T A L  30,785.4  25,583.3  22,674.9  58,797.5

(1) COMPILED BY THE OFFICE OF THE TREASURY ATTACHE BASED ON BANK OF 
ITALY DATA AND CONVERTED AT THE FOLLOWING END YEAR EXCHANGE RATES:   
                          1991  1992  1993  1994
      
LIRA/DOLLAR  1,151  1,471  1,704  1,630


TABLE 3B: STOCK OF FOREIGN DIRECT INVESTMENT IN ITALY BY MAJOR 
INVESTORS; YEAR END 1991-1994 (PERCENTAGE OF TOTAL) (1)
               1991         1992        1993        1994
UNITED STATES  13.7  14.1  11.1  15.5
EU  51.6  51.9  43.2  52.3
   OF WHICH: 
   FRANCE  13.9  14.5  11.1  13.3
   NETHERLANDS  11.0  10.8  9.2  10.5
   UNITED KINGDOM  10.6  10.2  7.8  10.5
   GERMANY  7.6  7.4  6.0  7.8
   LUXEMBOURG  6.7  7.2  7.2  8.3
   SPAIN  0.3  0.4  0.3  0.3
   OTHER EU  1.5  1.4  1.6  1.6
SWITZERLAND  23.7  22.4  17.9  19.2
SWEDEN  2.8  2.8  3.0  2.9
LIECHTENSTEIN  1.9  1.7  2.1  2.0
JAPAN  1.6  1.6  1.7  1.9
ARGENTINA  0.2  0.2  0.2  0.2
BRAZIL  0.1  0.0  0.0  0.0
OTHER  4.5  5.3  20.8  6.0
T O T A L  100.0  100.0  100.0  100.0

TABLE 4A: STOCK OF ITALIAN DIRECT INVESTMENT ABROAD BY MAJOR RECIPIENT; 
YEAR END 1991-1994 (MILLIONS OF DOLLARS) (1)
              1991          1992        1993        1994
UNITED STATES  5,873.1  4,455.5  4,784.0  7,030.1
EU  35,289.3  32,828.7  41,857.4  50,681.6
   OF WHICH:
   LUXEMBOURG  9,978.7  8,764.8  8,098.0  10,453.4
   NETHERLANDS  7,343.2  6,970.1  11,794.0  14,215.3 
   FRANCE  5,026.9  5,349.4  6,649.1  8,315.3
   GERMANY  4,270.2  3,453.4  4,492.4  4,761.3
   UNITED KINGDOM  4,695.9  3,728.8  5,352.1  6,020.2
   SPAIN  3,615.1  3,133.9  3,423.1  4,108.0
   OTHER EU  359.3  1,428.3  2,075.7  2,808.0
SWITZERLAND  7,064.3  5,359.6  5,098.0  7,036.8
BRAZIL  3,165.9  2,480.6  2,191.3  2,702.5
ARGENTINA  1,314.5  1,034.0  1,162.0  1,369.3
JAPAN  617.7  455.5  642.6  1,480.4
SWEDEN  85.1  33.3  135.0  164.4
LIECHTENSTEIN  74.7  60.5  59.9  84.0
OTHER  9,222.6  6,840.2  17,861.5  10,767.5
T O T A L  62,707.2  53,547.9  73,791.7  81,316.6

(1) COMPILED BY THE OFFICE OF THE TREASURY ATTACHE BASED ON BANK OF 
ITALY DATA AND CONVERTED AT THE FOLLOWING END YEAR EXCHANGE RATES:           
  1991  1992  1993  1994
      
LIRA/DOLLAR  1,151  1,471  1,704  1,630


TABLE 4B: STOCK OF ITALIAN DIRECT INVESTMENT ABROAD BY MAJOR RECIPIENT; 
YEAR END 1991-1994 (PERCENTAGE OF TOTAL) (1)
           1991          1992        1993        1994
UNITED STATES  9.4  8.3  6.5  9.1
EU  56.3  61.3  56.7  62.3
   OF WHICH:
   LUXEMBOURG  15.9  16.4  11.0  12.9
   NETHERLANDS  11.7  13.0  16.0  17.5
   FRANCE  8.0  10.0  9.0  10.2
   GERMANY  6.8  6.4  6.1  5.9
   UNITED KINGDOM  7.5  7.0  7.2  7.4
   SPAIN  5.8  5.8  4.6  5.1
   OTHER EU  0.6  2.7  2.8  1.0
SWITZERLAND  11.3  10.0  6.9  8.7
BRAZIL  5.0  4.6  3.0  3.3
ARGENTINA  2.1  1.9  1.6  1.7
JAPAN  1.0  0.9  0.9  1.8
SWEDEN  0.1  0.1  0.2  0.2
LIECHTENSTEIN  0.1  0.1  0.1  0.1
OTHER  14.7  12.8  24.1  13.2

T O T A L  100.0  100.0  100.0  100.0

TABLE 5A: U.S. INVESTMENT IN ITALY BY ECONOMIC SECTOR
               OUTSTANDING END-YEAR 1991-1994 
               (MILLIONS OF DOLLARS) (1)
                1991         1992        1993        1994
AGRICULTURE  0.9  0.6  2.9  3.1
ENERGY  442.2  344.0  335.7  362.6
INDUSTRY  4,695.9  4,210.7  3,814.6  6,298.8
  OF WHICH:
  MECHANICAL  822.8  645.1  520.0  882.8
  TRANSPORTATION
  EQUIPMENT  92.1  72.1  95.7  499.4
  CHEMICAL  2,256.3  1,790.6  878.5  2,023.9
  FOOD  383.1  299.8  375.6  888.3
  TEXTILES  107.7  82.3  79.2  172.4
  MINERALS/METALS  45.2  36.0  69.8  84.0
  OTHER  988.7  1,284.8  1,795.8  1,747.9
SERVICES  3,040.8  2,398.4  1,664.3  2,420.2
  OF WHICH:
  TRADE  440.5  344.7  189.6  344.8
  BANKING/INSURANCE  1,799.3  1,420.8  956.0  1,319.0
  TRANSPORTATION/
  COMMUNICATION  86.0  69.3  143.2  247.2 
  OTHER SERVICES  715.0  563.6  375.6  509.2

T O T A L  8,179.0  6,953.8  5,817.5  9,084.7

(1) COMPILED BY THE OFFICE OF THE TREASURY ATTACHE BASED ON BANK OF 
ITALY DATA AND CONVERTED AT THE FOLLOWING END YEAR EXCHANGE RATES:
   1991  1992  1993  1994
      
LIRA/DOLLAR  1,151  1,471  1,704  1,630


TABLE 5B: U.S. INVESTMENT IN ITALY BY ECONOMIC SECTOR
               OUTSTANDING END-YEAR 1991-1994
               (PERCENTAGE OF TOTAL)
             1991          1992        1993        1994
AGRICULTURE  0.0  0.0  0.1  0.0 
ENERGY  5.4  4.9  5.8  4.0
INDUSTRY  57.4  60.6  65.6  69.3
  OF WHICH:
  MECHANICAL  10.0  9.3  8.9  9.7
  TRANSPORTATION
  EQUIPMENT  1.1  1.0  1.6  5.5
  CHEMICAL  27.6  25.8  15.1  22.3
  FOOD  4.7  4.3  6.5  9.8
  TEXTILES  1.3  1.2  1.4  1.9
  MINERALS/METALS  0.6  0.5  1.2  0.9
  OTHER  12.1  18.5  30.9  19.2
SERVICES  37.2  34.5  28.6  26.6
  OF WHICH:
  TRADE  5.4  5.0  3.3  3.8 
  BANKING/INSURANCE  22.0  20.4  16.4  14.5
  TRANSPORTATION/
  COMMUNICATION  1.1  1.0  2.5  2.7
  OTHER SERVICES  8.7  8.1  6.5  5.6

T O T A L  100.0  100.0  100.0  100.0


TABLE 6A: ITALIAN INVESTMENT IN THE U.S. BY ECONOMIC SECTOR
          OUTSTANDING END-YEAR 1991-1994 (MILLIONS OF DOLLARS) (1)
              1991           1992       1993        1994
AGRICULTURE  10.4  9.5  9.4  1.2
ENERGY  896.6  746.4  545.2  667.5
INDUSTRY  2,420.5  1,622.7  1,509.4  2,777.9
  OF WHICH:
  MECHANICAL  1,279.8  1,085.0  900.2  1,070.6
  TRANSPORTATION
  EQUIPMENT  141.6  108.8  86.3  380.4
  CHEMICAL  510.9  10.9  39.3  74.8
  FOOD  0.0  17.7  10.6  22.7
  TEXTILES  220.7  181.5  159.6  181.6
  MINERALS/METALS  50.4  45.5  68.1  720.2
  OTHER  217.1  173.3  245.3  227.6
SERVICES                   2,545.6       2.076.8  2,720.1     3.583.4
  OF WHICH:
  TRADE  384.9  309.3  316.3  400.6
  BANKING/INSURANCE  1,152.0  966.0  1,042.3  1,639.9
  TRANSPORTATION/
  COMMUNICATION  180.7  155.7  44.6  44.8
  OTHER SERVICES  828.0  645.8  1,316.9  2,498.2

T O T A L  5,873.1  4,455.5  4,784.0  7,030.1

(1) COMPILED BY THE OFFICE OF THE TREASURY ATTACHE BASED ON BANK OF 
ITALY DATA AND CONVERTED AT THE FOLLOWING END YEAR EXCHANGE RATES:
  1991  1992  1993  1994
LIRA/DOLLAR  1,151  1,471  1,704  1,630


TABLE 6A: ITALIAN INVESTMENT IN THE U.S. BY ECONOMIC SECTOR
          OUTSTANDING END-YEAR 1991-1994 (PERCENTAGE OF TOTAL)

                 1991           1992       1993        1994
AGRICULTURE  0.2  0.2  0.2  0.0
ENERGY  15.3  16.8  11.4  9.5
INDUSTRY  41.2  36.4  31.6  39.5
  OF WHICH:
  MECHANICAL  21.8  24.4  18.8  16.7
  TRANSPORTATION
  EQUIPMENT  2.4  2.4  1.8  5.4
  CHEMICAL  8.7  0.2  0.8  1.1
  FOOD  0.0  0.4  0.2  0.3
  TEXTILES  3.8  4.1  3.3  2.6
  MINERALS/METALS  0.9  1.0  1.4  10.2
  OTHER  3.7  3.9  5.1  3.2
SERVICES  43.3  46.6  56.9  51.0
  OF WHICH:
  TRADE  6.5  6.9  6.6  5.7
  BANKING/INSURANCE  19.6  21.7  21.8  23.3
  TRANSPORTATION/
  COMMUNICATION  3.1  3.5  0.9  0.6
  OTHER SERVICES  14.1  14.5  27.5  21.3

T O T A L  100.0  100.0  100.0  100.0

TABLE 7: DIRECT INVESTMENT BY ORIGIN AND DESTINATION
OUTSTANDING END-YEAR 1994 (MILLIONS OF DOLLARS) (1)

                           FOREIGN      ITALIAN     NET
                           INVESTMENT   INVESTMENT  ITALIAN
                           IN ITALY     ABROAD      POSITION   

EU   30,747.9  50,681.6  19,933.7
OF WHICH:
  UNITED KINGDOM  6,185.3  6,020.2  -165.1
  NETHERLANDS  6,146.0  14,215.3  8,069.3
  GERMANY  4,560.1  4,761.3  201.2
  FRANCE  7,838.7  8,315.3  476.7
  SPAIN  201.8  4,108.0  3,906.1
  LUXEMBOURG  4,879.8  10,453.4  5,573.6
  BELGIUM  806.7  2,004.3  1,197.5
  OTHER EU  129.4  803.7  674.2
NON-EU  28,049.6  30,635.0  2,585.4
OF WHICH:
  USA  9,084.7  7,030.1  -2,054.6
  SWITZERLAND  11,263.8  7,036.8  -4,227.0
  SWEDEN  1,733.1  164.4  -1,568.7
  LIECHTENSTEIN  1,197.5  84.0  -1,113.5
  JAPAN  1,119.6  1,480.4  360.7
  CANADA  219.6  583.4  363.8
  ARGENTINA  103.7  1,369.3  1,265.6
  BRAZIL  16.6  2,702.5  2,658.9
  OTHER  3,311.0  10,184.0  6,573.0

T O T A L  58,797.5  81,316.5  22,519.0

(1)  ORIGINAL DATA IN LIRE AND CONVERTED AT THE END-1993 EXCHANGE RATE 
ONE DOLLAR EQUALS 1,704 LIRE.
SOURCES:  ITALIAN EXCHANGE OFFICE AND BANK OF ITALY ANNUAL REPORT 1993.


  APPENDIX E:  U.S. AND ITALIAN CONTACTS
  ITALIAN GOVERNMENT AGENCIES 
The Italian Embassy
Commercial Section
1601 Fuller Street, NW
Washington, DC 20009
Tel: (202) 328-5500
Italian Government Tourist Board (ENIT)
630 Fifth Avenue, Suite 1565
New York, NY  10111
Tel: (212) 245-4822
The Italian Trade Commission 
(Assists in locating Italian suppliers and products.)  
Offices are located in the following cities:
2301 Peachtree Center
233 Peachtree Street, NE
Atlanta, GA 30343
Tel: (404) 525-0660
401 North Michigan Avenue
Suite 3031
Chicago, IL 60611
Tel: (312) 670-4360
1090 Natural Gas Tower
3050 Post Oak Boulevard
Houston, TX 77056
Tel: (713) 626-5531
1801 Avenue of the Stars
Suite 700
Los Angeles, CA 90067
Tel: (213) 879-0950
299 Park Avenue
New York, NY 10022
Tel: (212) 980-1500
Dipartimento della Dogana
(Department of Customs)
Viale delle Province 103
00162 Roma
Tel: 39-6-427-1043
Istituto Nazionale per il Commercio Estero (IEC)
Viale Liszt, 21
00144 Rome
Tel:  39-6-59921
Ufficio Italiano dei Cambi  (UIC) 
(Italian Exchange Office )
Via Quattro Fontane 123
Rome 00184
Ente Nazionale Italiano di Unificazione (UNI)
(Italian National Bureau of Standards)
Piazza Armando Diaz 2
20123 Milan 
Tel: 39-2-876-914
Comitato Elettrotecnico Italiano
(Electrical standards and certification)
Viale Manza, 259
20126 Milan
Tel: 39-2-255-0641
Ministero dell'Industria e Commercio
Ufficio Centrale Brevetti per Invenzioni
(Patent and trademark applications and inquiries)
Modelli e Marchi
Via Molise, 19
00187 Rome, Italy
Tel: 39-6-488-4450
Presidenza del Consiglio dei Ministri
Ufficio del Propriet? Letteraria, Artistica e Scientificia
(Applications and inquires concerning copyrights)
Via Boncompagni, 15
00187 Rome, Italy

  ITALIAN TRADE ASSOCIATIONS
Confederazione Generale dell'Industria  (Confindustria)
(Confindustria is the general confederation of Italian industry and
principal trade association in Italy acting as an umbrella organization 
covering numerous industry trade associations.)
Viale dell'Astronomia, 30
00144 Rome
Tel: 39-6-59031
Confederazione Generale Italiana del Commercio e del Turismo  
(Confcommercio)
(Confcommercio is an umbrella trade association affiliated with industry 
groups in commerce and tourism.)
Pazza G. G. Belli, 2
00153 Rome
Tel: 39-6-58661
Confederazione Generale Italiana dell'Artigianato
(General confederation of handicrafts associations.)
Piazza Venezia, 11
00187 Rome
Tel: 39-6-679-1420
Associazione Bancaria Italiana
(Association of Italian Banks)
Piazza del Gesu, 49
00186 Rome
Tel: 39-6-67671
Associazione Nazionale fra le Imprese Assicuratrici 
(National Association of Business Insurance)
Via della Frezza, 70
00186 Rome
Tel: 39-6-322 7141
Confederazione Italiana della Piccola e Media Industria (CONFAPI)  
(Industry confederation serving small- and medium-size firms.)
Via della Colonna Antonina, 52
00186 Rome
Tel: 39-6-678-2441
Confederazione Generale dell'Agricoltura Italiana
Corso Vittorio Emanuele II, 101
00186 Rome
Tel: 39-6-65121
Lega Nazionale Cooperative e Mutue
(National Cooperative and Mutual League)
Via Guattani, 9/13
00161 Rome
Tel: 39-6-884-1371
Unione Italiana delle Camere di 
Commercio Industria Artigianato e Agricoltura
(responsible as umbrella organization for all chambers of commerce in 
Italy) 
Piazza Sallustio, 21
00187 Roma
Tel:  39-6-47041
Associazione Nazionale del Commercio con l'Estero (ANCE)
(National Association for Foreign Trade)
Corso Venezia, 47/49
20121 Milan
Tel: 39-2-7750
American Chamber of Commerce in Italy
Via Cesare Cantu' 1
20123 Milan
Tel: 39-2-869-0661
Fax: 39-2-805-7737
  ITALIAN MARKET RESEARCH FIRMS
Addressvitt Montaldi
Via Anna Kuliscioff 38
20152 Milan
Tel:  39-2-48301334
Fax:  39-2-48301300
Contact:  Ms. Marida Cagnoli
Commark - Communicazione e Marketing S.r.l.
Via Isonzo 25
00198 Rome
Tel:  39-6-8558748
Fax:  39-6-8416677
Databank
Corso Italia 8
20122 Milan
Tel:  39-2-866641
Fax:  39-2-865579
Contact:  Mrs. Daniella Bosio
Directa S.r.l.
Via Solari 8
20144 Milan
Tel:  39-2-48193581
Fax:  39-2-48102277
Contact:  Dr. Giorgio Calo'
Executive Services Business Centres S.r.l.
Via V. Monti 8
20123 Milan
Tel:  39-2-3452211
Fax:  39-2-48013233
Loverso Dr. Alfredo
Via Morosini 39
20135 Milan
Tel:  39-2-55011554
Fax:  39-2-72002889
Nielson
Via G. di Vittorio 10
20094 Milan
Tel:  39-2-451971
Fax:  39-2-45101068
Palandri Horwath S.r.l.
Piazza Navona 49
00186 Rome
Tel:  39-6-6867841
Fax:  39-6-6896075
Contact:  Dr. Aldo Sanchini
Reseau
Ricerche e Studi su Elettronica & Automazione
Via S. Vittore 39
20123 Milan
Tel:  39-2-481983800
Fax:  39-2-4390535
Serin S.r.l.
Viale Beatrice d'Este 37
20122 Milan
Tel:  39-2-59900326
Fax:  39-2-59900326

  ITALIAN COMMERCIAL BANKS
SEE SECTION VIII FOR LISTING

  U.S. EMBASSY TRADE PERSONNEL
1) Robert Smolik
   Minister Counselor for Economic Affairs
   tel. 39-6-4674-2107
   fax. 39-6-4674-2230
2) Keith R. Bovetti
   Minister Counselor for Commercial Affairs
   tel. 39-6-4674-2202
   fax. 39-6-4674-2113
3) Frank Padovano
   Minister Counselor for Agricultural Affairs
   tel. 39-6-4674-2617
   fax. 39-6-4788-7008
4) Todd Minnies 
   Economic Counselor
   tel. 39-6-4674-2233
   fax. 39-6-4674-2389
5) Michael Frisby
   Commercial Counselor
   tel. 39-6-4674-2382
   fax. 39-6-4674-2113
      
  CONSULATE PERSONNEL
1) George Ruffner
   Principal Commercial Officer
   American Consulate Milan
   Tel. 39-2-659-2260
   fax. 39-2-659-6561
2) Ronald Soriano 
   Commercial Officer
   American Consulate Milan
   tel. 39-2-659-2260
   fax. 39-2-659-6561
   
3) Alessandra Gola
   Commercial Assistant
   American Consulate Florence
   tel. 39-55-211-676
   fax. 39-55-283-780
4) Susanna Lezzi
   Commercial Specialist
   American Consulate Genova
   tel & fax 39-10-543-877
5) Cristiano Sartorio
   Commercial Specialist
   American Consulate Naples
   tel. 39-81-583-8206
   fax. 39-81-761-1592
6) Carol Ross
   USTTA (United States Travel and Tourism Administration)
   c/o American Consulate General
   2/10 Via Principe Amadeo
   20/21 Milano
   tel. 39-2-659-5559
   fax. 39-2-659-5908        
  WASHINGTON-BASED USG COUNTRY CONTACTS
Isabella Cascarano--Italy Desk Officer
(Serves as a national consultant to assist American firms develop a 
solid commercial export strategy and sales.)
Room H-3043 (check)
U.S. Department of Commerce
14th Street and Constitution Ave, NW
Washington, DC 20230
Tel: (202) 482-0010
Fax: (202) 482-2897
Office of European Community Affairs
(Duty rates/ EU standards information)
U.S. Department of Commerce
Room H-3036
Washington, DC 20230
Tel: (202) 482-2905 and 482-5279
Bureau of Export Administration
(Export licensing information)
Room H-1099D
U.S. Department of Commerce
Washington, DC 20230
Tel: (202) 482-4811
Standards Information Service
National Institute of Standards and Technology (NIST)
Building 411,  Room A163
Gaithersburg, MD 20899
Tel: (301) 975-4040
National Marine Fisheries Service (NOAA)
(Exporting seafood)
1335 East-West Highway
Silver Spring, MD 20910
rade Services Division  
Tel: (301) 713-2379
Inspection Services Division
Tel: (301) 713-2355
U.S. Small Business Administration
Office of International Trade
1441 L Street, NW, Room 501-A
Washington, DC 20416
Tel: (202) 634-1500
U.S. Department of Agriculture
Foreign Agricultural Service
Washington, DC 20228
Duties/quotas on agricultural goods  
Tel: (202) 720-1312
Food regulations and labeling  
Tel: (202) 720-9408
Trade issues and markets  
Tel: (202) 720-1301

U.S Bureau of the Census
(Publishes a wide variety of trade statistics. Check local municipal or 
any  university library for details. Census also provides computer 
print-outs of trade data.)
U.S. Department of Commerce
Suitland, MD 20233
Tel: (301) 763-7754
U.S. Department of State
Italy Desk Officer
Washington, DC 20232
Tel: (202) 647-5669
U.S. Department of Treasury 
Western European Office
15th Street and Pennsylvania Ave, NW
Washington, DC 20230
Tel: (202) 622-2000
Internal Revenue Service
International Tax Treaty Division
P.O. Box 23598
Washington, DC 20026
Tel: (202) 874-1540
U.S. Department of Labor 
(Labor reports and statistics)
Bureau of Labor Statistics
2 Massachusetts Avenue, NW
Washington, DC 20212
Tel: (202) 606-7828
Export-Import Bank of the United States
811 Vermont Avenue, NW
Washington, DC 20571
Tel: (202) 566-4490
American National Standards Institute
11 West 42nd Street
New York, NY 10036
Tel: (212) 642-4900
U.S. International Chamber of Commerce
156 Fifth Avenue
New York, NY 10010
Tel: (212) 206-1150
Italy-America Chamber of Commerce (IACC)
(Facilitates bilateral trade in products, services, and investments.
The IACC provides a data service through an information bank developed
by the Italian Chambers of Commerce as well as a joint-venture referal
service.)
730 Fifth Avenue
New York, NY  10019
Tel: (212) 279-5520
Foreign Credit Insurance Association
40 Rector Street
New York, NY 10006
Tel: (212) 306-5000
  U.S. - BASED MULTIPLIERS RELEVANT FOR ITALY
National Italian American Foundation (NIAF)
(NIAF conducts cultural and educational events, sponsors exchange 
programs, works to enhance cultural, political, and economic relations 
between the United States and Italy and serves as an advocacy group.)
666 Eleventh Street, NW,   Suite 800
Washington, DC  20001
Tel: (202) 638-0220
U.S. Council for International Business
(Carnets to simplify Italian customs clearance with business samples)
1212 Avenue of the Americas
New York, NY 10036-1689
Tel: (212) 354-4480
(There are offices in Houston, Boston, San Francisco, Los Angeles, 
Miami, and Schaumburg, IL.)
Underwriter's Laboratories, Inc.
Technical Assistance to Exporters
333 Pfingsten Road
Northbrook, IL 60062
Tel: (708) 272-8800
American National Standards Institute
11 West 42nd Street
New York, NY 10036
Tel: (212) 642-4900
American Chamber of Commerce in Italy
Via Cesare Cantu' 1
20123 Milan
Tel: 39-2-869-0661
Fax: 39-2-805-7737
US International Chamber of Commerce
156 Fifth Avenue
New York, NY 10010
Tel: (212) 206-1150
Italia-America Chamber of Commerce
730 Fifth Avenue
New York, NY 10019
Tel: (212) 279- 5520

European Community Information Service
2100 M Street NW
Washington, DC 20037
Tel: (202) 862-9500
U.S. AND ITALIAN CONTACTS FOR AGRICULTURE

Organization  Contact Name  Address  Phone   Fax
  ITALIAN GOVERNMENT AGENCIES
Azienda Tabacchi  Antonio Truzzi  Via C. Pascarella 7  (39)(6)  (39)(6)
Italiani S.p.A.      00153 Rome  58691    5869288
(Tobacco Assoc) 
ICE  Gabriele Gasparre  Via Liszt 21  (39)(6)  (39)(6) 
(Ital Trade   Director Food and  00144 EUR-Rome  59921    5910508
Commission)  Agriculture Product 
  Division
Ministero delle    Pasquale Mainolfi  Via XX Settembre 20   (39)(6)  
(39)(6)  Risorse Agricole   Director    00187 Rome  4884293  4819580
Alimentari e  Agr. Production
Forestali   
(Min of Agric)
Ministero della    Romano Marabelli  Piazzale Marconi 25  (39)(6)  
(39)(6)
Sanita'  Director General  Palazzo Italia  5926780  59943217
(Min of Health)  Nutrition and Food,  00144 Eur-Rome
  Public Veterinary   
  Health Dept 

  ITALIAN TRADE ASSOCIATIONS/CHAMBERS OF COMMERCE
APTI  Fabio Parboni  Via Collina 48  (39)(6)  (39)(6)
(Tobacco    Director  00187 Rome  4744886  4827767
Packer Assoc)
Assoc  Alessandro Nardone  Via Tomassetti 9/11  (39)(6)  (39)(6)
Italiana  General Consultant  00161 Rome  44237871 44249286
Allevatori    
(Breeders)
Assoc Ital  Giorgio Cilenti  Via del Governo  (39)(6)  (39)(6)
Indus Olearia  Director Generale  Vecchio 3  6883251  6896176
(Veg Oil)     00186 Rome 
A.I.S.S.  Marco Nardi  Piazza della  (39)(51) (39)(51)
(Seed Indus  Secretary  Costituzione 8  503081    355166
Assoc)    Galleria del Reno
    Scala C
    40128 Rome
Assoc Nazionale  Giuseppe Santus  Via Locatelli 20  (39)(30) (39)(30)
Allevatori  Director  37122 Verona  364280   364280
Bovini della 
Razza Bruna
(Bovine Breeders) 

Assoc Nazionale  Giancarlo Lanari  Via Bergamo 292  (39)(37) (39)372)
Allevatori Razza  President  21626 Cremona  412521   474203  
Frisona Italiana    
(Holstein Freisian
 Breeders)

Assoc Nazionale  Giancarlo Cintoli  Via G.B. De Rossi 3   (39)(6)  
(39)(6)
Allevatori Suini    00161 Rome  8449106  8443471  (Swine Breeders)    
Assoc Nazionale  Francesco Guarneri  Via D'Azeglio 48  (39)(51) (39)(51)
Bieticoltori  Director General  40123 Bologna  334884   331403
(Beet Growers)
Assoc Nazionale  Lorenzo Fineschi  Via Po 102  (39)(6)  (39)(6) 
Cerealisti   Director  00198 Rome  8416554  8840877
(Grain Traders)
ASSALZOO  Emilio Minetti  Via Lovanio 6  (39)(6)  (39)(6)
(Compound Feed)  Secretary General  00198 Rome  8541641  8541641
ANEIOA  Ennio Pizzoli  Via Sabotino 46  (39)(6)  (39)(6)
(Nat'l Imp/Exp  President  00195 Rome  37515147 3723569
Hort Assoc)
ANIPO  Fausto Ratto  Largo Brindisi 5  (39)(6)  (39)(6)
(Nat'l Imp  Secretary General  00182 Rome  7004428  7004428
Hort Assoc)
FEDECOMLEGNO  Alfonso Froncillo  Via Guido d'Arezzo 16  (39)(6)  (39)(6)
(Wood Trade  President  00198 Rome   8417195  85301785
Federation)      
FEDERORTOFRUTTA  Paolo Antenore  Via de Gigli d'Oro 21  (39)(6)  (39)(6)
(Fruit Trade    00186 Rome  6893414  6893409
Assoc)
FEDERVINI  Federico   Via Mentana 2B  (39)(6)  (39)(6)
(Wine Trade  Castellucci  00185 Rome  4469621  4941566
Assoc)
ITALMOPA  Fabrizio Vitali  Via dei Crociferi 44   (39)(6)  (39)(6)
(Millers Assoc)  Secretary General  00187 Rome  6785409  6783052
    
UNA  Rita Pasquarelli    Via Vibio Mariano 58   (39)(6)  (39)(6)
(Poultry Union)  Secretary General  00189 Rome  3651681  33254015
    
UNAPROL  Moreno Bambi  Via Ostiense 131L  (39)(6)  (39)(6)
Olive Oil  President  00154 Rome  5745032  5745039 Producers Assoc)
UNICEB  Renzo Fossato  Via dei Campioni 13  (39)(6)  (39)(6)
(Livestock  Director  00144 Rome  5921241  5921478
Meat Traders)      
UNIPI  Dr. Giuseppe   Via Po 101  (39)(6)  (39)(6)
(Pasta   Menconi, Director  00198 Rome  8543262  8415132
Traders Assoc)
Western Wood  Massimo Pasanisi  Via Leonida Rech  (39)(6)  (39)(6)
Products   Marketing   00156 Rome  8293614  821977
Association  Consultant
Italy-America  Claudio Guerrini  Via Rava' 106  (39)(6)  (39)(6)
Chamber of   General Agent      00142 Rome  5032066  5433365
Commerce

  U.S. EMBASSY TRADE PERSONNEL
Foreign  Frank A. Padovano  American Embassy  (39)(6)   (39)(6)
Agricultural  Minister Counselor     Via Veneto 119A  46742362  47887008
Service  Agricultural Affairs   00187 Rome

  U.S. BASED MULTIPLIERS RELEVANT FOR ITALY
Alaska Seafood  J.C. Power  P.O. Box DX  (907) 
Marketing   Exec Director  Juneau, Alaska  586-2902
Institute    99811-0800
American Hardwood  Kathleen Landauer  Suite 200  (202)    (202)
Export Council  Exec Director  1250 Conn Ave, NW  463-2720  463-2785
    Washington, DC
    20037
American Quarter  Gary Griffith  2701 I-40 East  (806)  (806)
Horse  Director of Field  P.O. Box 200  376-4811  376-8112
Association  Operations  Amarilly, Texas
    79168
American Seed  Jack W. Wells  Suite 964  (202)  (202)
Trade Assoc  Int'l Mktg  1030 15th St, NW  223-4080  293-2617
    Washington, DC 
    20005
  
American Soybean  Tom Brennan  P.O. Box 27300  (314)  (314)
Assoc  Div Manager Europe     St. Louis, MO    576-1770  576-2786
    63141-1700
Calif Prune  Richard Peterson  103 World Trade Ctr  (415)
Advisory Board  Exec Director  San Francisco, CA  986-1452 
    94111-4293
California Walnut  Turner L. Oyloe  1540 River Park  (916) 
Commission  Chief Executive  Drive, Suite 101  646-3807
    Sacramento, CA 94815  
    
Cotton Council  K. Adrian Hunnings  Suite 964   (202)     (202)
International  Exec Director  1110 Vermont Ave NW  833-2943  331-0622     
Washington, DC         20005
Hardwood Plywood  E.T. Altman  P.O. Box 2789  (703)  (703)
Manufacturers  President  Reston, Virginia  435-9200  435-2537
Association    22090
Leather  Charles Myers  1000 Thomas  (202)  (202) 
Industries of   President  Jefferson Street  342-8086  3429063
America    N.W., Suite 515
    Washington, D.C.
    20007

MIATCO  Drayton C. Mayers  820 Davis Street  (708)  (708)
  Exec Director  Suite 212  8667300  8667413
    Evanston, IL 60201  
Michigan Bean  James E. Byrum  P.O. Box 473  (517)  (517)
Shippers    Leslie, MI 49251  589-5540  589-9688
Association
Mohair Council  Brian J. May  P.O. Box 5337  (915)     (915)
of America  Exec Director  San Angelo, TX  655-3161  655-4761
    76902
Nat'l Assoc  Gordon, A. Doak  P.O. Box 1033  (314)  (314)
of Animal   President  Columbia, MO    445-4406  446-2279
Breeders    65205
National Dry   Philip Kimball  Suite 700     (202)     (202)
Bean Council    1101 Conn Ave, NW  857-1169  429-5154
    Washington, DC
    20026
National Honey  Mary R Humann  421 First St    (303)     (303)
Board  Exec Director  Suite 203  776-2337  776-2337
    Longmont, CO  80501-1421
    80501-1421
National Forest  Steve Lovett  Suite 200   (202)     (202)
Products Assoc  Vice President  1250 Conn Ave, NW  463-2723  463-2785
    Washington, DC
    20036
National Peanut  Jeannette Anderson  1500 King Street  (703)  (703)
Council  Director  Suite 301  838-9500  838-9508
    Alexandria, VA 
    22314
Northwest  Christian Schlect  P.O. Box 570  (509)  (509) 
Horticultural  President  Yakima, WA   453-3193  453-4880
Council    98907
Southern U.S.  Scott Hansen  World Trade Center  (504)  (504) 
Trade   Exec Director  Suite 1540  568-5986  568-6010
Association    2 Canal Street
    New Orleans, LA
    70130-1408
Tobacco     Kirk Wayne  1725 K St, NW  (202)  (202)
Associates  President  Suite 512  828-9144  828-9149
    Washington, DC 
    20006
USA Dry Pea &  Harol Blaine  5071 Hwy West        (208)  (208)
Lentil Council  Administrator  Moscow, ID   882-3023  882-6406
    83843-4023
USA Rice   Bill J. Goldsmith  PO Box 740123  (713)  (713)
Council  Exec Vice Pres  Houston, TX   270-6699 270-1146  77274


U.S. Hide, Skin   Jerome J. Breiter  1700 North Moore  (703)  (703)
Leather   President  Suite 1600  841-5485 841-9656
Association    Arlington, VA
    22209
 U.S.Wheat  Winston L. Wilson  1620 I St, NW  (202)  (202)
Associates  President  Suite 801  463-0999 785-1052
    Washington, DC 
    20006
Western Wood  H.A. Roberts  522 SW Fifth Ave     (503)  (503)
Products  President  4th Floor   224-3930 224-3934
Association   Portland, OR
    97204-2122
Wine   John A. De Luca  425 Market St  (415)  (415)
Institute  President  Suite 1000  512-0151 442-0742
    San Francisco, CA
    94105


  APPENDIX F:  MARKET RESEARCH
  LIST OF ISAS TO BE COMPLETED IN FY 96
1. Industry subsector: Asbestos removal technologies and equipment
2. ITA industry code: POL
3. Due date: January 31, 1996 
4. Country: Italy
5. Researcher: N. Postiglione/Milan
6. Estimate of workdays needed for research: 10
7. Title and date of previous ISA: n/a
1. Industry subsector: Solar Energy Generation Equipment
2. ITA industry code: ELP
3. Due date: February 29, 1996
4. Country: Italy
5. Researcher: C. Sartorio/Naples
6. Estimate of workdays needed for research: 10
7. Title and date of previous ISA: Solar Energy Generation Equipment, 
February 1994
1. Industry subsector: Franchising Services
2. ITA industry code: FRA
3. Due date: March 31, 1996
4. Country: Italy
5. Researcher: P. Gattinoni/Milan
6. Estimate of workdays needed for research: 10
7. Title and date of previous ISA: Franchising Services, April 1993
1. Industry subsector: Cellular Telephony Infrastructure
2. ITA industry code:  TEL
3. Due date: April 30, 1996
4. Country: Italy
5. Researcher: M. Stannus/Rome
6. Estimate of workdays needed for research: 30
7. Title and date of previous ISA: n/a
1. Industry subsector: General Aviation
2. ITA industry code:  AIR
3. Due date: April 30, 1996
4. Country: Italy
5. Researcher: E. Sasso/Rome
6. Estimate of workdays needed for research: 10
7. Title and date of previous ISA: General Aviation, 1993
1. Industry subsector: Electronic Laboratory Instruments for Industry
2. ITA industry code:  LAB
3. Due date: May 31, 1996
4. Country: Italy
5. Researcher: L. Achenbach/Rome
6. Estimate of workdays needed for research: 10
7. Title and date of previous ISA: Electronic Laboratory Instruments for 
Industry, June 1993
1. Industry subsector: Athletic Clothing
2. ITA industry code: SPT
3. Due date: May 31, 1996
4. Country: Italy
5. Researcher: P. Gattinoni/Milan
6. Estimate of workdays needed for research: 10
7. Title and date of previous ISA: N/A
1. Industry subsector: Process Control Supervision Systems
2. ITA industry code: PCI
3. Due date: May 31, 1996
4. Country: Italy
5. Researcher: G. Vecchio/Milan
6. Estimate of workdays needed for research: 10
7. Title and date of previous ISA: N/A
1. Industry subsector: Organic Chemicals
2. ITA industry code: ICH
3. Due date: June 30, 1996
4. Country: Italy
5. Researcher: G. Alviggi/Milan
6. Estimate of workdays needed for research: 10
7. Title and date of previous ISA: Organic Chemicals, June 1994
1. Industry subsector: Information Technology in the Italian Public 
Sector
2. ITA industry code: CSF
3. Due date: July 31, 1996 
4. Country: Italy
5. Researcher: M. Stannus/Rome
6. Estimate of workdays needed for research: 30
7. Title and date of previous ISA: n/a
1. Industry subsector: Recycled Paper and Paperboard
2. ITA industry code: PAP
3. Due date: July 31, 1996 
4. Country: Italy
5. Researcher: A. Gola/Florence
6. Estimate of workdays needed for research: 20
7. Title and date of previous ISA: Recycled Paper & Paperboard, 
September 1992
1. Industry subsector: Internetworking Products & Services 
2. ITA industry code: CPT
3. Due date: August 31, 1996 
4. Country: Italy
5. Researcher: N. Postiglione/Milan
6. Estimate of workdays needed for research: 10
7. Title and date of previous ISA: n/a
1. Industry subsector: Life Insurance
2. ITA industry code:  INS
3. Due date:  August 1996
4. Country:  Italy
5. Researcher:  Lezzi/Genoa
6. Estimate of workdays needed for research:  10
7. Title and date of previous ISA: Life Insurance, July 1994
1. Industry subsector: Electrical Power Systems
2. ITA industry code: ELP
3. Due date: September 30, 1996
4. Country: Italy
5. Researcher: E. Sasso/Rome
6. Estimate of workdays needed for research: 10
7. Title and date of previous ISA:  Electrical Power Systems, September 
1995
1. Industry subsector: Semiconductors
2. ITA industry code: ELC
3. Due date: September 30, 1996
4. Country: Italy
5. Researcher: L. Achenbach/Rome
6. Estimate of workdays needed for research: 10
7. Title and date of previous ISA:  Semiconductors, December 1993
1. Industry subsector: CAD/CAM/CAE
2. ITA industry code: CSF
3. Due date: 
4. Country: Italy
5. Researcher: N. Postiglione/Milan
6. Estimate of workdays needed for research: 10
7. Title and date of previous ISA:  CAD/CAM/CAE, April 1993
  MARKET RESEARCH FOR AGRICULTURE
REPORT TITLE  REPORT ID  DATE DUE
FRESH DECIDUOUS FRUIT SEMI-ANNUAL  IT9509B  1/1/95
KIWIFRUIT ANNUAL  IT9548A  1/15/95
LIVESTOCK SEMI-ANNUAL  IT9552B  2/1/95
GRAIN & FEED ANNUAL  IT9511A  2/22/95
ANNUAL WORK PLAN  IT9560A  3/15/95 
CANNED DECIDUOUS FRUIT SEMI-ANNUAL  IT9516B  3/15/95
SEAFOOD SEMI-ANNUAL  IT9554B  3/15/95
STRAWBERRY ANNUAL  IT9532A  3/15/95
SUGAR ANNUAL  IT9519A  4/10/95
CITRUS SEMI-ANNUAL  IT9508B  5/1/95
TOBACCO ANNUAL  IT9521A  5/1/95
TOMATOES AND TOMATO PRODUCTS ANNUAL  IT9522A  5/30/95
COTTON ANNUAL  IT9504A  6/1/95
OILSEEDS & PRODUCTS ANNUAL  IT9506A  6/1/95
POULTRY ANNUAL  IT9553A  6/20/95

COUNTRY COMMERCIAL GUIDE  IT9524SR  7/7/95
ANNUAL MARKETING PLAN INFORMATION REPORT  IT9562V  7/15/95
LIVESTOCK ANNUAL  IT9552A  8/1/95
TREE NUTS ANNUAL  IT9514A  8/20/95
FRESH DECIDUOUS FRUIT ANNUAL  IT9509A  9/10/95
CANNED DECIDUOUS FRUIT ANNUAL  IT9516A  9/15/95
SEAFOOD ANNUAL  IT9554A  9/15/95
AGRICULTURAL SITUATION ANNUAL  IT9524A  9/30/95
SUGAR SEMI-ANNUAL  IT9519B  10/1/95
PLANTING SEEDS ANNUAL  IT9501A  10/15/95
TOBACCO SEMI-ANNUAL  IT9521B  11/1/95
CITRUS ANNUAL  IT9508A  11/15/95
DAIRY ANNUAL  IT9551A  11/30/95
WINE COMPETITION ANNUAL  IT9549A  12/10/95
FOREST PRODUCTS REPORT  IT9555A  12/15/95
TOMATOES & TOMATO PRODUCTS SEMI-ANNUAL  IT9522B  12/15/95
FRESH DECIDUOUS FRUIT SEMI-ANNUAL  IT9609B  1/1/96
KIWIFRUIT ANNUAL  IT9648A  1/15/96
LIVESTOCK SEMI-ANNUAL  IT9652B  2/1/96
GRAIN & FEED ANNUAL  IT9611A  2/22/96
ANNUAL WORK PLAN  IT9660A  3/15/96 
CANNED DECIDUOUS FRUIT SEMI-ANNUAL  IT9616B  3/15/96
SEAFOOD SEMI-ANNUAL  IT9654B  3/15/96
STRAWBERRY ANNUAL  IT9632A  3/15/96
SUGAR ANNUAL  IT9619A  4/10/96
CITRUS SEMI-ANNUAL  IT9608B  5/1/96
TOBACCO ANNUAL  IT9621A  5/1/96
TOMATOES AND TOMATO PRODUCTS ANNUAL  IT9622A  5/30/96
COTTON ANNUAL  IT9604A  6/1/96
OILSEEDS & PRODUCTS ANNUAL  IT9606A  6/1/96
POULTRY ANNUAL  IT9653A  6/20/96
COUNTRY COMMERCIAL GUIDE  IT9624SR  7/7/96
ANNUAL MARKETING PLAN INFORMATION REPORT  IT9662V  7/15/96
LIVESTOCK ANNUAL  IT9652A  8/1/96
TREE NUTS ANNUAL  IT9614A  8/20/96
FRESH DECIDUOUS FRUIT ANNUAL  IT9609A  9/10/96
CANNED DECIDUOUS FRUIT ANNUAL  IT9616A  9/15/96
SEAFOOD ANNUAL  IT9654A  9/15/96
AGRICULTURAL SITUATION ANNUAL  IT9624A  9/30/96
SUGAR SEMI-ANNUAL  IT9619B  10/1/96
PLANTING SEEDS ANNUAL  IT9601A  10/15/96
TOBACCO SEMI-ANNUAL  IT9621B  11/1/96
CITRUS ANNUAL  IT9608A  11/15/96
DAIRY ANNUAL  IT9651A  11/30/96
WINE COMPETITION ANNUAL  IT9649A  12/10/96
FOREST PRODUCTS REPORT  IT9655A  12/15/96
TOMATOES & TOMATO PRODUCTS SEMI-ANNUAL  IT9622B  12/15/96

  APPENDIX G:   TRADE EVENT SCHEDULE
Name of Event:  INVEST IN THE U.S.A. SEMINAR
Event ID No.:  
Event location:  Turin, Italy
Industry theme:  Trade and Investment
Dates of Event:  October 1995
ITA industry code:  INV/INF
Type of Event:  PIP
Name and phone number of post recruiter:  Susanna Lezzi, US&FCS Genoa, 
tel & fax:  39/10/543-877
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  10
Estimated dollar cost of event:  N/A

Name of Event:  AUTOMOTIVE AFTERMARKET INDUSTRY WEEK '95
Event ID No.:   96000599
Event location:  Las Vegas, Nevada
Industry theme:  Automotive Parts Aftermarket
Dates of Event:  October 24 - 27, 1995
ITA industry code:  APS
Type of Event:  International Buyers Program
Name and phone number of post recruiter:  Susanna Lezzi, US&FCS Genoa, 
tel & fax:  39/10/543-877
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  14
Estimated dollar cost of event:  N/A

Name of Event:  MEGA SHOW - FOOD AND DAIRY EXPO
Event ID No.:  96000600
Event location: Chicago, Illinois
Industry theme: Food and Dairy Products
Dates of Event:  November 4-7, 1995
ITA industry code: FPP
Type of Event: IBP
Name and phone number of post recruiter: Franco Alberti, US&FCS Milan, 
tel: 39/2/659-2261; fax: 39/2/659-6561
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  14
Estimated dollar cost of event:

Name of Event:  WORLD ENERGY ENGINEERING CONGRESS
Event ID No.:   95000601
Event location:  Atlanta, GA
Industry theme:  Energy
Dates of Event:  November 8-10, 1995
ITA industry code:  ELP
Type of Event:  International Buyer Program
Name and phone number of post recruiter:  Elio Sasso, US&FCS Rome, Tel: 
39/6/4674-2252; fax : 39/6/4674-2113
Estimated post permanent employee work days necessary to handle all 
aspects of this event: 30  
Estimated dollar cost of event:  N/A
Name of Event:  COMDEX FALL
Event ID No.:  
Event location: Las Vegas, Nevada
Industry theme: Computer hardware and software
Dates of Event:  November 9-20, 1995
ITA industry code: CPT
Type of Event: IBP
Name and phone number of post recruiter: Nicoletta Postiglione, US&FCS 
Milan, TEL: 39/2/659-2261
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  14
Estimated dollar cost of event: N/A

Name of Event:  MEDTRADE/NHHCE
Event ID No.:   96000606
Event location:  Atlanta, GA
Industry theme:  Medical products
Dates of Event:  November 15-18, 1995
ITA industry code:  MED
Type of Event:  International Buyers Program
Name and phone number of post recruiter:  Piera Gattinoni, US&FCS Milan, 
39/2/659-2260; fax: 39/2/659-6561
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  14
Estimated dollar cost of event:  N/A

Name of Event:  GREATER NEW YORK DENTAL MEETING
Event ID No.:   96000603
Event location:  New York, NY
Industry theme:  Dental equipment
Dates of Event:  November 25-29, 1995
ITA industry code:  DNT
Type of Event:  International Buyers Program
Name and phone number of post recruiter:  Mariella Stannus, US&FCS Rome, 
39/6/4674-2250; fax: 39/6/4674-2113
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  30
Estimated dollar cost of event:  N/A

Name of Event:  U.S. PAVILLION AT RICH & MAC
Event ID No.:  96000687
Event location: Milan, Italy
Industry theme: Process controls and laboratory equipment
Dates of Event:  November 28-December 1, 1995
ITA industry code: PCI/LAB
Type of Event: PIP
Name and phone number of post recruiter: US&FCS Milan, tel: 39/2/659-
2261; fax: 39/2/659-6561
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  60
Estimated dollar cost of event: $33,800

Name of Event:  POWER-GEN AMERICAS '95
Event ID No.:   
Event location:  Anaheim, CA
Industry theme:  Energy
Dates of Event:  December 5-7, 1995
ITA industry code:  ELP
Type of Event:  International Buyer Program
Name and phone number of post recruiter:  Elio Sasso, US&FCS Rome, 
39/6/4674-2252; fax: 39/6/4674-2113
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  30
Estimated dollar cost of event:  N/A

Name of Event:  THE BUILDERS' SHOW
Event ID No.:   96000605
Event location: Houston, Texas
Industry theme: Building products
Dates of Event: January 16-29, 1996
ITA industry code: BLD
Type of Event: IBP
Name and phone number of post recruiter: Franco Alberti, US&FCS Milan, 
tel: 39/2/659-2261; fax: 39/2/659-6561
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  14
Estimated dollar cost of event: N/A

Name of Event: EUROPEAN EDUCATION & LANGUAGE FAIR
Event ID No.: TBD
Event location: Milan, Italy
Industry theme: Education 
Dates of Event: January 20-21, 1996
ITA industry code: EDS
Type of Event: Post sponsored event (organized by private company Nexus)
Name and phone number of Post recruiter: Gabriella Vecchio, US&FCS 
Milan, tel: 39/2/659-2260; fax 39/2/659-6561
Estimated dollar cost of event: TBD

Name of Event:  MAGIC INTERNATIONAL
Event ID No.:   96000606
Event location:  Las Vegas, NV
Industry theme:  Apparel - male
Dates of Event:  January 30 - February 2, 1996
ITA industry code:  APP
Type of Event:  International Buyers Program
Name and phone number of post recruiter:  Piera Gattinoni, US&FCS Milan, 
39/2/659-2260; fax: 39/2/659-6561
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  14
Estimated dollar cost of event:  N/A

Name of Event:  SPORTING GOODS MATCHMAKER
Event ID No.:   
Event location: Milan, Italy
Industry theme: Sporting goods
Dates of Event: February 12-13, 1996
ITA industry code: SPT
Type of Event: PIP (tent)
Name and phone number of post recruiter: US&FCS Milan, telTEL: 39/2/659-
2261
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  40
Estimated dollar cost of event: N/A

Name of Event:  CALIFORNIA FARM EQUIPMENT SHOW & INTERNATIONAL 
EXPOSITION
Event ID No.:   96000607
Event location: Tulare, CA
Industry theme: Farm equipment
Dates of Event: February 13-15, 1996
ITA industry code: AGM
Type of Event: International BP
Name and phone number of post recruiter: Franco Alberti, US&FCS Milan, 
tel: 39/2/659-2261; fax: 39/2/659-6561
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  14
Estimated dollar cost of event: N/A

Name of Event:  AMERICAN INTERNATIONAL TOY FAIR
Event ID No.:   96000630
Event location:  New York, NY
Industry theme:  Toys & games 
Dates of Event:  February 16-19, 1996
ITA industry code:  TOY
Type of Event:  International Buyer Program
Name and phone number of post recruiter:  Leonarda Chiocchi, US&FCS 
Rome, 39/6/4674-2204; fax: 39/6/4674-2113
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  30
Estimated dollar cost of event:  N/A

Name of Event: U.S. PAVILION AT THE FRANCHISING & PARTNERSHIP SHOW
Event ID No.: TBD
Event location: Milan, Italy
Industry theme: Franchising
Dates of Event: March 1996
ITA industry code: FRA
Type of Event: PIP
Name and phone number of post recruiter: Piera Gattinoni, US&FCS Milan, 
tel: 39/2/659-2260; fax: 39/2/659-6561
Estimated dollar cost of event: TBD

Name of Event:  THE 1996 PITTSBURGH CONFERENCE & EXPO (PITTCON '96)
Event ID No.:  
Event location:  Chicago, IL
Industry theme:  Scientific instruments
Dates of Event:  March 4-7, 1996
ITA industry code:  LAB
Type of Event:  International Buyer Program
Name and phone number of post recruiter:  Luisa Achenbach, US&FCS Rome, 
39/6/4674-2427; fax: 39/6/4674-2113
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  30
Estimated dollar cost of event:  N/A

Name of Event:  INTERNATIONAL FRANCHISE EXPO
Event ID No.:  
Event location:  Washington, D.C.
Industry theme:  Franchising services
Dates of Event:  March 8-10, 1996
ITA industry code:  FRA
Type of Event:  International Buyer Program
Name and phone number of post recruiter:  Piera Gattinoni, US&FCS Milan, 
39/2/659-2260; fax: 39/2/659-6561
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  14
Estimated dollar cost of event:  N/A

Name of Event:  CONEXPO-CON/AGG '96
Event ID No.:   
Event location: Las Vegas, NV
Industry theme: Building products
Dates of Event: March 20-24, 1996
ITA industry code: BLD
Type of Event: IBP
Name and phone number of post recruiter: Franco Alberti, US&FCS Milan, 
tel: 39/2/659-2261; fax: 39/2/659-6561
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  14
Estimated dollar cost of event: N/A

Name of Event:  WASTE EXPO '96
Event ID No.:  
Event location:  Las Vegas, NV
Industry theme:  Waste management
Dates of Event:  May 20-24, 1996
ITA industry code:  POL
Type of Event:  International Buyers Program
Name and phone number of post recruiter:  Nicoletta Postiglione, US&FCS 
Milan (primary contact), tel: 39/2/659-2260; fax: 39/2/659-6561. 
Cristiano Sartorio, US&FCS Naples (support), tel: 39/81/583-8206; fax: 
39/81/761-1592
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  14
Estimated dollar cost of event:  N/A

Name of Event:  U.S. PAVILLION AT COSMOPROF
Event ID No.:   TBD
Event location: Bologna, Italy
Industry theme: Cosmetics & beauty products
Dates of Event: April, 1996
ITA industry code: COS
Type of Event: 
Name and phone number of post recruiter: US&FCS Milan, tel: 39/2/659-
2261; fax: 39/2/659-6561
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  50
Estimated dollar cost of event: $241,500

Name of Event:  INTERMEDIA
Event ID No.:   TBD
Event location: San Francisco, CA
Industry theme: Multimedia & CD Rom 
Dates of Event: April 1-3, 1996
ITA industry code: CSV
Type of Event: me and phone number of post recruiter: Nicoletta 
Postiglione, US&FCS Milan, tel: 39/2/659-2261; fax: 39/2/659-6561
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  14
Estimated dollar cost of event: N/A

Name of Event:  INTERNATIONAL FASHION BOUTIQUE
Event ID No.:  
Event location:  New York, NY
Industry theme:  Apparel
Dates of Event:  June 1-4, 1996
ITA industry code:  APP
Type of Event:  International Buyers Program
Name and phone number of post recruiter:  Piera Gattinoni, US&FCS Milan, 
tel: 39/2/659-2260; fax: 39/2/659-6561
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  14
Estimated dollar cost of event:  N/A

Name of Event:  COMDEX/SPRING AND WINDOWS WORLD '96
Event ID No.:  
Event location:  Chicago, IL
Industry theme:  Information technology
Dates of Event:  June 3-6, 1996
ITA industry code:  SFT
Type of Event:  International Buyers Program
Name and phone number of post recruiter:  Mariella Stannus, US&FCS Rome, 
tel: 39/6/4674-2250; fax: 39/6/4674-2113
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  120
Estimated dollar cost of event:  N/A

Name of Event:  HAZMAT INTERNATIONAL
Event ID No.:   TBD
Event location: Philadelphia, PA
Industry theme: Hazerdous waste management
Dates of Event: June 5-7, 1996
ITA industry code: POL
Type of Event: International Buyer Program
Name and phone number of post recruiter: Nicoletta Postiglione, US&FCS 
Milan, tel: 39/2/659-2261; fax: 39/2/659-6561
Estimated post permanent employee work days necessary to handle all 
aspects of this event: 14
Estimated dollar cost of event: N/A

Name of Event:  MINIEXPO INTERNATIONAL '96
Event ID No.:  
Event location:  Las Vegas, NV
Industry theme:  Mining industry equipment
Dates of Event:  September 9-12, 1996
ITA industry code:  MIN
Type of Event:  International Buyers Program
Name and phone number of post recruiter:  Leonarda Chiocchi, US&FCS 
Rome, tel: 39/6/4674-2204; fax: 39/6/4674-2113
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  30
Estimated dollar cost of event:  N/A

Name of Event:  IEEE/PE TRANSMISSION & DISTRIBUTION CONFERENCE
Event ID No.:  
Event location:  Los Angeles, CA
Industry theme:  Energy
Dates of Event:  September 15-20, 1996
ITA industry code:  ELP
Type of Event:  International Buyers Program
Name and phone number of post recruiter:  Elio Sasso, US&FCS Rome, tel: 
39/6/4674-2252; fax: 39/6/4674-2113
Estimated post permanent employee work days necessary to handle all 
aspects of this event:  30
Estimated dollar cost of event:  N/A

Because trade event schedules may change, firms should consult the 
Export Promotion Calendar on the NTDB or contact Post for latest 
information.

  TRADE EVENT SCHEDULE FOR AGRICULTURE
NAME  SECTOR  DATE  LOCATION    USG INVOLVEMENT
EIMU  Furniture  September   Milan
    1995
SALONE   Furniture  Sept 8-12  Verona
MOBILE TRIVENETO  1995
TRIVENETO
SANA  Health Natural  Sep 16-19  Bologna        *
  Foods  1995  
FLORMART  Horticultural  Sept 15-17  Padova
  Equipment and  1995
  Products
FIERA  Dairy Cattle  Sept 23-Oct 1  Cremona
INTERNAZIONALE    Semen and  1995
DEL BOVINO  Equipment
DA LATTE
SMAU  Office   Oct 21-25  Milan
  Furniture  1995
FIERACAVALLI  Horses and  Nov 9-12  Verona
  Equipment for  1995
  Horses
EXPO FOOD  Food  Nov 4-8  Milan        *
    1995
FIERA AGRICOLA    Agricultural  March 8-12  Verona        *
  Commodities  1996
  Equipment and
  Inputs
VINITALY  Wine  April 6-10  Verona        *
    1996
*  USDA/FAS, trade associations, and U.S. exporters
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