Libya and Italy discuss new trade and investment agreement

Libya is expanding  its long standing relationship with Italy to a more solid and practical economic partnership after officials in Tripoli discussed the possibility of a new agreement to expand trade, investment and the business environment, as reported by Libya Herald and agencies on April 27th.

At the centre of the discussions was a meeting between Economy and Trade Minister Suhail Abu Shiha and Italian Ambassador Gianluca Albrini, attended by the heads of the Libyan and Italian chambers of commerce and the director of the commercial office at the Italian embassy.

The two sides reviewed trade indicators and already established investment partnerships, then focused on mechanisms to strengthen cooperation between chambers of commerce and business owners with the main intention to facilitate the movement of traders, increase the volume of bilateral trade and deepen foreign direct investment across multiple sectors.

Reporting based on ICE Agency data said bilateral trade between the two countries reached about €6.08 billion in the first nine months of 2025, down 18.4% from the same period in 2024.

The Italian side also highlighted the geographic logic of the relationship, arguing that Libya and Italy could use their position to expand transit trade toward both European and African markets.

Libyan officials used the meeting to promise facilities for Italian companies seeking to enter the Libyan market and participate in government backed projects, while the joint chamber of commerce said the next phase would focus on giving the private sector a more direct role.

It also identified banking and logistics procedures as major obstacles still facing companies, even as interest among Italian firms in returning to Libya appears to be growing.

Political normalisation may remain incomplete, but sector by sector economic re-entry can still be used to rebuild confidence, attract partners and test whether the business environment is becoming more usable in practice

Libya Herald plus agencies, maghrebi.org .