TABLE OF CONTENTS
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I.   COMMERCIAL OVERVIEW (EXECUTIVE SUMMARY)                2

II.  LEADING TRADE PROSPECTS                                4

III. ECONOMIC TRENDS AND OUTLOOK                            7

     Major Trends and Outlook                               7
     Economic Trends & Outlook for Agriculture              9
     Principal Growth Sectors                               10
     Government Role in the Economy                         11
     Balance of Payments Situation                          12
     Trade and Investment Barriers                          12
     Labor Force in Italy                                   15
     Major Local & Third Country Competitors in
          Specific Sectors                                  16
     Infrastructure Situation Re: Goods/Service
          Distribution                                      16

IV.  POLITICAL ENVIRONMENT                                  18

     Nature of the Bilateral Relationship with the
          United States                                     18
     Major Political Issues Affecting Business Climate      18
     Brief Synopsis of Political System, Major
          Political Parties                                 19
     Political Environment for Agriculture                  20

V.   MARKETING U.S. PRODUCTS AND SERVICES                   22

     Distribution and Sales Channels                        22
     Use of Agents/Distributors; Finding a Partner          24
     Franchising in Italy                                   28
     Direct Marketing                                       29
     Joint Ventures / Licensing                             30
     Steps to Establishing an Office                        31
     Selling Factors / Techniques                           31
     Advertising and Trade Promotion (Including Listing
          of Major Newspapers and Business Journals)        34
     Pricing Product                                        39
     Sales Service / Customer Support                       41
     Selling to the Government                              42
     Protecting Your Product from IPR Infringement          42
     Need for a Local Attorney                              42
     Marketing U.S. Agricultural Products                   42

VI.  TRADE REGULATIONS AND STANDARDS                        47

     Tariffs and Import Taxes                               47
     Customs Valuation                                      47
     Import Licenses                                        48
     Export Controls                                        48
     Import/Export Documentation                            49
     Temporary Entry                                        50
     Labeling, Marking Requirements                         52
     Prohibited Imports                                     52
     Standards                                              52
     Free Trade Zones/Warehouses                            55
     Special Import Provisions                              55
     Membership in Free Trade Arrangements                  56
     Trade Regulations and Standards Relating to
          Agricultural Products                             57

VII. INVESTMENT CLIMATE                                     58

     Host Country Policies and Practices                    58
     Transfer Policies                                      60
     Expropriation and Compensation                         61
     Dispute Settlements                                    61
     Performance Requirements/Incentives                    61
     Right to Private Ownership and Establishment           62
     Protection of Property Rights                          62
     Regulatory System:  Laws and Procedures                66
     Bilateral Investment Agreement                         66
     OPIC and Other Investment Insurance Programs           67
     Labor                                                  67
     Foreign Trade Zone/Free Ports                          68
     Capital Outflows Policies                              68
     Foreign Direct Investment Statistics                   68

VIII. TRADE AND PROJECT FINANCING                           70

     Brief Description of Banking System                    70
     Foreign Exchange Controls Affecting Trading            70
     What is General Financing Availability                 71
     How to Finance Exports/Methods of Payment              71
     Types of Available Export Financing and Insurance      72
     Project Financing Available                            72
     List of Banks with Correspondent U.S. Banking          73

IX.  BUSINESS TRAVEL                                        76

     Business Customs                                       76
     Travel Advisory and Visas                              76
     Holidays                                               77
     Business Infrastructure                                78

APPENDICES

Appendix A:    Country Data                                 81
Appendix B:    Best Prospect Sectors                        94
Appendix C:    U.S. and Country Contacts                    111
Appendix D:    Market Research                              126
Appendix E:    Trade Event Schedule                         131