Abstract: The article deals with the issue of informal practices in Yugoslavia using examples of these practices in trade with Italy in the 1960s and early 1970s. Th e subject of the analysis is the re-export activity of Yugoslav companies, and various other illegal activities used by companies to achieve a better placement of their goods in another country, regardless of whether the state tacitly supported these activities or fought them. Th e research is based on documents from the Archive of Yugoslavia, media sources and literature. 

Keywords: Socialist Yugoslavia; Italy; trade relations; informal practices; corruption; re-export

Summary 

During the 1960s and 1970s, Yugoslavia and Italy had a large volume of trade, and at the same time, they were among the European countries with an increased level of corruption and informal activities, which meant the occurrence of a greater number of informal practices in their trade relations.  Sometimes these informal activities were carried out with the support of the state, and sometimes in opposition or conflict with it. In terms of importance, re-export stands out as a practice that often led to problems in relations with Italy and the European Economic Community. Yugoslav companies took advantage of Yugoslavia’s position as a member of the Non-Aligned movement, situated between two blocks; connecting these three markets, they were making profitable re-export deals. The attitude of the Yugoslav authorities towards re-export was complex and changed over time and in relation to the level of government (republican and federal authorities, president, federal assembly). Re-export companies had a significant influence in Yugoslavia due to the volume of business and the profits they made. Apart from re-exports, other trade manipulations of goods were also frequent at the border, most often to avoid paying high Italian levies on certain categories of Yugoslav goods. Th ese types of manipulations were most often initiated by Italian importers and accepted by Yugoslav exporters, profiting at the expense of the Italian state. Smuggling was also a frequent occurrence and was most often organized in collaboration with Yugoslav and Italian criminal groups, or on a smaller scale, by individual citizens. Although informal practices occasionally helped the functioning of trade between the two countries and in the short term improved the economic situation of individuals or certain companies, in the long run, they represented an obstacle to the development of trade relations between the two countries in a sound basis and hindered the development of the Yugoslav (and Italian) economy as competitive partners on the international market.