In 2016, trade between Canada and Italy was $9.88 billion.  Canada`s major exports to Italy include pharmaceuticals, cereals and mineral fuels. Italy`s major exports to Canada include nuclear reactors and machinery, beverages and vehicles (parts and engines).  Italy is Canada`s eighth largest trading partner in the world for products and the Third largest trading partner of the European Union. At the end of 2016, Italy was ranked as the 28th largest investor country for DL shares in Canada. As far as European countries are concerned, Italy took 15th place.  In October 2016, Canada and the European Union (including Italy) signed the Comprehensive Economic and Trade Agreement, a free trade agreement between Canada and the European Union. The 28 EU member states must approve the agreement so that it is fully effective. ROME – Italy`s new government wants to reject a painstakingly negotiated trade agreement between the European Union and Canada, and that`s good news for Ettore Prandini, a small farmer in Italy`s fertile north. CETA is not the first agreement challenged by Italy. It delayed the trade agreement with South Korea because of fears that it would affect the Italian car industry. A dispute over Australian tariffs on Italian tomato cans has also undermined the first trade negotiations between Europe and Australia.
However, last week the country backed a draft EU trade agreement with Japan. Hosuk Lee-Makiyama, director of the trade think tank ECIPE, said Italy posed a significant threat to CETA, but that the Commission could finally take the case to court and argue that the EU could continue to implement all parts of the agreement, with the exception of the settlement of investment disputes. Italy`s challenge to CETA comes after U.S. President Donald Trump withdrew from a joint statement agreed this weekend by Group of Seven heads of state and government in Canada, which spoke of the need for “free, fair and mutually beneficial” trade and the importance of combating protectionism. Canada and Italy have signed several bilateral agreements, such as an agreement on the prevention of double taxation taking into account income taxes and the prevention of tax evasion (1977)  and a social security agreement (1977).  In 1981, the two nations signed an extradition treaty and, in 1984, a cultural cooperation agreement.  There are direct flights between the two countries with the following airlines: Air Canada, Air Transat and Alitalia. The Comprehensive Economic and Trade Agreement (CETA) is the first major trade agreement signed by the European Union since the implementation of its agreement with South Korea in 2011. CETA is still in force for now, but Italy`s dominant populist parties are in danger of defeating it.