A new trade agreement between the UK and Italy could boost exports by billions of pounds every year, it has been suggested.

It comes after the International Trade Secretary Anne-Marie Trevelyan announced the “start of discussions” on a new export and investment partnership with the European Member State.

According to the latest statistics, trade between the UK and Italy was worth approximately £34 billion in 2020 – making Italy the UK’s ninth biggest trading partner and the UK Italy’s fifth largest export market.

The most popular British exports include cars, worth £829 million, followed by medicinal and pharmaceutical products, worth £383 million. British businesses, meanwhile, imported £1.2 billion of Italian clothing, £860 million of beverages, and more than £640 million of fruit and vegetables in 2020.

But red tape and international trading barriers are preventing billions of pounds of extra trade a year, the report reveals.

It is suggested that the new export and investment partnership could boost exports in sectors such as the life sciences, defence and security, and digital and tech, and promote inward investment across the green energy and food and drink sector.

Commenting on the proposed partnership, the International Trade Secretary said: “Enhancing our bilateral relationship with Italy is a win-win, which will boost export opportunities and investment promotion for our businesses.”

Ms Trevelyan added: “The UK and Italy are also working side-by-side to deliver a successful COP26 Summit. The next 18 months are critical for our planet and together we will lead by example to accelerate progress towards a green, resilient and inclusive recovery.”

For help and advice with related matters, please get in touch with our team today.