Suez crisis: more than 15 billion import-export at risk according to Unioncamere of Veneto

Source: press office Unioncamere del Veneto

Venice – Marghera, 01/17/2024 | The Study and Statistics Office of the Treviso-Belluno Chamber of Commerce has produced an estimate of the impact of tensions in the Middle East on Veneto’s international trade, which is seeing a reduction in ship transit through the Suez Canal. The bill amounts to 15.2 billion euros in supplies and exports at risk (elaboration on ISTAT data).

The biggest impact is on the flow of imports: in 2022, the Veneto imported goods worth 11.8 billion euros from East Asia, China and India, 81% of which are estimated to transit by the shortest route through the Suez Canal, amounting to 9.5 billion euros worth of supplies exposed to the current critical logistics issues: industrial machinery and its components, footwear, other electrical equipment.

Less exposed is the export front from Veneto to this area (net of foreign-on-foreign flows): we are talking about 5.7 billion euros of goods-machinery, tanning and leather, eyewear-directed to East Asia and India, just under 7 percent of regional exports.

The shift away from Suez is thus likely to cause delays or blockages in supplies and a consequent increase in costs. The possible impact on our region’s trade interchange is evident. – Many of our companies, in light of the geopolitical framework of recent years, from the pandemic crisis to ongoing conflicts, have already had to rethink their inclusion in global value chains – comments Unioncamere del Veneto President Mario Pozza – There is no evidence that this umpteenth crisis and the widening of the conflict in the Middle East can be resolved any time soon. And certainly the criticality and uncertainty of the international scenarios are bound to last, even in light of the latest tensions that have arisen between the United States and China after the outcome of the elections in Taiwan. So we need to think about bringing production back within the Mediterranean and bringing plants and production closer together, creating a new supply chain to not get overwhelmed. Nearshoring can be a solution and the chamber system is there to accompany Made in Italy and support our companies. On this aspect, entrepreneurs can also take advantage of the network of the 86 Italian Chambers of Commerce abroad, which are another supporting element to identify new markets, settlement opportunities and production areas. Just in these hours Assocamere Estero signed an agreement with the Conference of Italian Regions and Autonomous Provinces to support internationalization and foreign investment attraction to support the economic development of territories.