Asymmetric Trade Relations between Italy and Libya

Abstract

Italy and Libya have strong ties in the field of economic security; however, this has not been in the centre of academic attention. Asymmetric economic relations can result in political influence for the larger states. Italo–Libyan trade relations are dominated by the export of Libyan oil and natural gas to Italy. The quantity of the energy export has reduced since 2011. ENI is the biggest foreign actor in Libya; thus, it is of utmost importance for Rome to guarantee Italian influence in Libya. Asymmetry in energy trade is not as significant as in other trade areas, since Libya is a rentier state and as such it depends on oil revenues. In other trade areas, there is a significant asymmetry with Italian domination, even though its market share has decreased since the Arab Spring.