“Made in Italy” and China: new business export opportunities

During its six months of EU premiership, Italian Prime Minister Matteo Renzi is successfully increasing importance of partnerships with key foreign markets. The last example concerns Mr Li Keqiang, who has been officially received as Chinese Prime Minister for the first time.

Mr Keqiang chose to visit Italy during his European tour and this is a clear and positive signal for future import/export operations. In addition, China and Italy celebrate the 10th anniversary of their comprehensive strategic partnership this year. Italy is one of China’s main partner in Europe and both Countries are interested in cooperation, economic growth and investments.

 WHICH ARE THE MAIN TOPICS DISCUSSED DURING THIS VISIT?

Chinese and Italian Prime Minister’s meeting at Innovation Forum

In effect, this visit aims to develop new business opportunities enhancing the traditional friendship relations between China and Italy, which are symbols of excellence for Eastern and Western cultures and they respect and appreciate each other. During the last six months, exchanges reached 23 billions of dollars and this is an encouraging data. In effects, China’s will is to increase import for “Made in Italy”products with particular attention to high technologies, energy, agriculture, machines and yacht sectors.

First of all, the two leaders met during China-Italy Innovation Forum and they signed 20 bilateral cooperation agreements. The total amount is over 8 billions of Euros and this is a great leap both for Italian exportations and economy. These are the most important exemples:

• Enel SpA and Bank of China signed an agreement which Italian Managing Director and CEO Mr Francesco Starace defined as strategic:  Enel SpA needs financial competences and Bank of China has at its disposal a company which is an international leader in utility sector. Both parties are satisfied and confident about results and reciprocal benefits
• Finmeccanica-AgustaWestland has an agreement with Chinese Beijing Automotive Industrial Corporation (BAIC): Italian company is now supplier for 50 helicopters, which will be used for public missions. The contract value is about 400 billions of Euros and it is only the first step towards future partnerships such as supporting activities, customized helicopters and in loco flight training
• Italian National Standardization Body -UNI signed a prior agreement with SAC–Standards Administration of China in order to cooperate and to share information and activities which simplify commercial exchanges.

The last point is particularly positive for Made in Italy food exportations as it aims to make controls, methods, timing and required documents easier and faster. In addition, Mr Renzi and Mr Keqiang discussed about solving two negative market trends which are oppressing this sector and many others ones: forgery and infringement of intellectual property. Joining innovation and creativity to scientific knowledge in order to improve and to make grow mutual industries: this is one of the key points expressed by Mr Keqiang during China-Italy business forum.

 WHICH ARE BENEFITS COMING FROM ASEM AND CHINESE PRIME MINISTER VISIT?

Chinese Prime Minister’s arrival at Asem, Milan, Italy

Mr Keqiang also attended to the 10th Asia-Europe Meeting (Asem) with leaders coming from over 50 Asian and European Countries and international organizations. For the first time in Italy, Asem’s theme was: “Responsible Partnership for Growth and Security“. In particular, the 53 member states discussed about the following topics:

1. Responsible
2. Partnership
3. Sustainable Growth
4. Security

As we can understand, this summit was established in order to help Europe and Asia solving a number of issues of global importance such as economic growth, energy safety, financial and economical cooperation, human rights and climate changes. All these themes concern improvement and simplification of future business relations and they are obviously related to import and export to Italy.

Milan was chosen as the right place to host the summit and this is a great pride for the whole Italy. As declared by Mr Pisapia, Milan’s mayor, the city lived two wonderful days thanks to journalists coming from the most important newspapers and to all international news channels. They had special consideration for Milan describing its beauty and pointing out attention to Italy. Therefore, events we all were witnesses lead a great value for internationalization.

China is a powerful economic, commercial and financial Country and it chose Italy as a strategic partner. This means that Beijing likes Made in Italy main features: tecnology, quality, design, innovation and creativity. Italian companies are ready to win this challenge and to take opportunities coming from exportation.

 

 

 

WHAT IS TRAFFIC LIGHT LABELLING AND HOW THIS SYSTEM DAMAGED EXPORT FOR “MADE IN ITALY” FOOD PRODUCTS

Traffic light labelling system’s classification for food

Great Britain is the fourth international market for Italian food companies which sell their products abroad. This means business and export opportunities for € 2.500.000.000, as Italy’s food and drink industry body Federalimentare points out. As we can easily understand, Italian farmers were very disappointed when Great Britain Department of Health annonced a new project: using traffic light labelling for food products.

HOW DOES THIS SYSTEM WORK?         

Helping customers to distinguish bad food from healthy food and fighting fatness problems: these are the main purposes declared by English Minister Mrs Anna Soubry one year ago. Each food item is labelled red, yellow or green depending on its fats, salt and sugar contents for a 100 grammes quantity.

WHAT DOES IT MEAN FOR “MADE IN ITALY” FOOD?

Italian exportation for food were damaged by this decision because traffic light labelling system is too summary. It doesn’t take into consideration neither quantities that are consumed nor other nutritional components. In a very simple way, labels communicate that an item is not absolutely healthy and this is wrong. The right information is that the item marked “red” must be consumed with moderation.

Traditional Italian products for which “Made in Italy” is a worldwide brand, such as olive oil and Parmesan cheese, were classified as “bad food” while cola is marked “green” and we know it is not healthier than cheese.Market research points out that 67% of English customers don’t buy a product labelled “red” because this colour means “warning, danger” and so both import and export to Italy for food products are decreasing. In addition, Great Britain is not a Country renowned for light food or balanced diet and so if English Minister Mrs Anna Soubry thinks a label may solve fatness problems she is off the truck.

A traditional “Made in Italy” food: Parmesan cheese

These are the reason why Italy decided to present this problem to EU Commission.
In particular, Italian EU Parliament members point out that labels are misleading and they don’t really help customers choosing healthy food as Great Britain claimed. On the contrary, customers are not responsible for their choices, they only look at the colour without analyzing the other components. It’s an easy and fast system but it is not realistic: if items marked as “red” were harmul for public health they would have been removed from both Great Britain and all international markets. As declaired by Paolo De Castro, Head of the European parliament’s agriculture committee, this system risks to damage quality products such as Italian ones.

WHICH IS EU COMMISSION’S DECISION ABOUT THIS SYSTEM?

Few days ago, Italy received an important confirmation: EU Commission decided to send a “letter of formal notice” to Great Britain, which has 2 months to answer. In case of no solution or no answer, Italian “dossier” will be submitted to EU Court. EU Commission confirms customers need information when choosing products but this is not the right method.

This success for Italy is justified by:

• combined actions coming from all Italian EU Parliament and Commission members during this months
• combined actions coming from Italian farmers, Federalimentari and other Italian Organizations
• Italian Prime Minister Mr Matteo Renzi’s commitment to solve this situation
• EU treaties’ rules

Concerning the last point, EU treaties allows free exchanges between European Union Countries. Each item which is produced and selled by an EU Country following its rules and its standard, legal and traditional procedures can be commercialized in other EU Countries. As a consequence, all EU members have to accept distribution and commercialization for EU products into their markets. Thanks to these rules, the whole Europe is a market without customs or restrictions. On account of this, traffic light labelling system is a clear discrimination against some products and this is not allowed.

Import to Italy, export companies and “Made in Italy” won this battle and this is a great success for the whole sector.