Italians Down Under Conference Canberra, September 2016

Transcription

1 Italy-Australia Trade Relations and Potential for Reciprocal Investment Flows Massimiliano Tani School of Business, UNSW Canberra Italians Down Under Conference Canberra, September 2016

2 Australia and Italy are complementary economies. Australia Exports Primary Products: 58% Manufacturing: 14% Services: 21% Imports Manufacturing: 58% Services: 21% Italy Exports Machinery: 20% Other Manuf.: 60% Services: 20% Imports Primary Products: 12% Services: 19% Data refer to June for Australia and 2015 for Italy. Sources: Australia: DFAT based on ABS Italy: Min. Sviluppo Economico e ISTAT

3 though trade flows are mostly from Italy to Australia 1 A$ export to Italy = 7.7 A$ import from Italy For Australia, Italy is: 24 th export market but 11 th import market For Italy, Australia is: 29 th largest export market ~1.7% of all Italy s exports) 50 th (wild guess) import market ~ 0.5% of Italy s imports Data refer to 2015 for Australia and Italy. Sources: Australia: DFAT based on ABS Italy: ISTAT

4 investments are also mainly from Australia to Italy....but are low vs. other EU countries. Partner From Australia To Australia Italy A$ 4,538 A$ 2,758 France 45,616 22,055 Germany 66,914 41,228 UK 353, ,930 EU 589, ,857 All countries 2,080,714 3,024,361 Source: Elaboration using Tables 2 and 4 from DFAT (

5 this is puzzling as Italy is 7 th most important country of birth for Australia ~ 0.8% of population has Italian origin Each month: ~ 6,000 Italian residents visit Australia ~ 15,000 Australian residents visit Italy Source: ABS Overseas Arrivals and Departures

6 ..how can Italy and Italians bridge potential for closer relations? Two and a half ideas. 1. Information diffusion via national website (ideally an association) promoting Italy in all its local diversity 2. Make graduates aware and experienced in both labour markets at undergraduate level postgraduate level

7 1. diffusion of information Dedicated national website ideally from national association open to all active and legitimate Italian associations/groups in Australia to inform visitors and investors Vetting from Italian authorities but link and information update is responsibility of each association/group could be good starting point to point links to opportunities for firm-to-firm and people-to-people contacts

8 2. Prepare undergraduates to work in Italy and Australia labour markets There are already several MOUs between Italian and Australian universities They could cover agreement between placement offices to add possibility of internship to formal study experience Graduate will be aware and have experience of labour market practices in two labour markets (Italy and Australia) Australian AND Italian firms would have natural pool of potential candidates for hiring

9 3. Prepare graduates to work in Italy and Australia labour markets There are only few CO-TUTELLE agreements between Italian and Australian universities to jointly train PhD students Co-tutelle is buy 1 get 2 degrees: graduate has academic title issued by both universities Strengthen links between supervisors in Italy and Australia PhD graduate grows and contributes to strong relation between supervisors and universities Good personal return but also preparation for Australian and Italian firms, universities and organizations

10 Some more on co-tutelle Very actively used by French, German, and UK universities to strengthen links with Australia (and other countries). Easy to implement: difficulty is to convince supervisors, not university administrators Already implemented Australia-wide in both Go8 and other universities10

11 Questions?

12 Background Information

13 Trade Composition, Australia Export as % of Import: 2015 YTD Sector X/M Exports as % of Total Imports As % of Total Primary Products % 14% Manufacturing Products % 58% Services % 22% Other items & adjustments 7% 6% Total Trade in A$ MM , ,797 Source: Elaboration using Tables 1 and 2 from DFAT (

14 Merchandise Imports and Exports Australia, 2015 YTD Trading partner Imports A$ MM Exports A$ MM Italy 5, France 4,484 1,134 Germany 12,459 1,873 UK 7,137 3,803 EU 46,381 13,074 China 61,786 81,457 USA 33,027 14,226 All countries 276, ,306 Source: DFAT Tables 2,3, and 4 based on ABS (

15 Merchandise Trade, Australia: Export as % of Import: 2015 YTD To/From X/M Italy 0.13 France 0.25 Germany 0.15 UK 0.53 EU 0.28 China 1.32 USA 0.43 All countries 0.91 Source: Elaboration using Tables 3 and 4 from DFAT (

16 Total and Portfolio Investment Stock: Abroad to Australia: up to 2015 From Total (mil) I i /I Italy Portfolio (mil) I i /I Italy Italy A$ 2, A$ France 22, , Germany 41, , UK 499, , EU 990, ,964 1,810.2 China 74, , USA 860, ,856 1,582.9 All countries 3,024,361 1, ,622,744 4,663.1 Source: ABS International Investment Position. Supplementary Statistics (Table 2)

17 Total and Portfolio Investment Stock: Australia to abroad: up to 2015 To Total (mil) A i /A Italy Portfolio (mil) A i /A Italy Italy A$ 4, A$ 4, France 45, , Germany 66, , UK 353, , EU 589, , China 70, , USA 594, , All countries 2,080, , Source: ABS International Investment Position. Supplementary Statistics (Table 5)

18 Total and Portfolio Investment Stock: Out as % of In: up to 2015 To/From Total Portfolio Italy France Germany UK EU China USA All countries Source: Elaboration using Tables 2 and 5 from ABS