5. Trade and Commerce

This chapter offers an historical economic analysis of Italy’s international trade relations: in particular, the worsening of trade relations with France that started in 1888 was one of the reasons for the gravity of the crisis that manifested itself in the following years and that was suffered above all in southern Italy. In the long run, however, it had the positive effect of increasing the multilaterality of Italy’s international relationships, including that with China. Italian foreign trade appears positive during this period (1861–1919). As reported by Zamagni (Dalla periferia al centro. La seconda rinascita economica dell’Italia 1861–1981. Il Mulino, Bologna, p. 156, 1990) between the years 1866–68 and 1913 the annual growth rate of imports was 3.1% and that of exports 2.7%. However, Italy’s share of world trade fell (from 3.1 to 2.6%) as it failed to keep pace with the expansion of international trade in other countries (Federico in Meridiana 4:163–196, 1988). As regards exports, those of raw materials (sulphur and metallic minerals) and traditional agricultural products (oil, wine, eggs and rice) declined. Only raw hemp and rawhides registered an increase in the category of unprocessed products. This result was certainly due to the process of industrialization initiated in the 1880–1913 period which, on the one hand, had transformed the productive sectors and, on the other, had expanded the internal demand for raw materials and foodstuffs. The scenario changed after 1923. One of the main features of this change was the more marked territorial diversification of Italian foreign trade which, while it gives a glimpse of German predominance, does not recreate the dependence of Italian trade on a single country that existed in the period up to 1887 (year of the agrarian crisis and of the law of 14 July 1887 imposing the agrarian tariff with a distinctly protectionist power (Toniolo, in Storia economica dell’Italia liberale 1850–1918. Il Mulino, Bologna, 1988) which led to the break with France).