The Netherlands and the US: Trade and Investment
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Historically, the Dutch have valued international trade because it is one of the most important engines that drive the Dutch economy. Products and services delivered to the European Union, America, Asia, and Africa generate close to 60% of the Dutch Gross Domestic Product (GDP). In 2006, exported goods amounted to 319 billion Euros while imported goods totalled 285 billion Euros in 2006.
Commercial services – especially transportation and logistics — is the largest economic sector in the Netherlands, due to the country’s geographic location. The rest of Europe is easily reached by sea and air through the major ports of Rotterdam and Amsterdam, and through Amsterdam Schiphol Airport. Rotterdam is the world’s largest sea port, surpassing Singapore and Shanghai, and Schiphol Airport is Europe’s third largest cargo airport.
In addition to trade and transportation, other exported services include construction, dredging, technical and financial services. Exported products include machinery and transport equipment, chemicals, alcoholic beverages, photographic and cinematographic equipment, technical and measuring instruments, raw vegetable products, manufactured goods, and basic raw materials.
The most important market for Dutch exports is the European Union (almost 80% of total exports). Exports to the United States were valued at $8.5 billion in 2006.
Dutch expertise in trade, transportation, and distribution has attracted many companies looking to reach the European market. Companies recognize the value of an excellent geographic location, stable business climate, and a well-educated, multilingual workforce whose productivity per hour is among the highest in the world.
Of US companies that have chosen to establish a European operation center, 57% have chosen the Netherlands as their base. US companies invested $7.6 billion in the Netherlands in 2004 and the US is the second largest investor in the Netherlands.
Many U.S. companies that established a distribution or call centre in the Netherlands were involved with information and communication technology products and services. Other industries in which U.S. firms invested include biotechnology, medical technology, food processing, and commercial services. Currently, there are over 1600 US companies located in the Netherlands employing over 150,000 people.
Likewise, the Dutch rank among the top four foreign investors in the United States (Dutch accumulated direct investment in the United States in 2005 was $171 billion). Major industries in which the Netherlands invested include manufacturing, insurance, petroleum, trade, banking and real estate. 800 Dutch companies in the U.S. employ 350,000 Americans, and many of these firms are world leaders in their industries: Shell, Heineken, Grolsch, Royal Ahold, Unilever, Fortis International, Hunter Douglas, Akzo Nobel, Aegon, ABN Amro, Océ, Wolters Kluwer, Rabobank, ING Barings, Philips Electronics, KPN, DSM Chemicals, Hoogovens, and Nedlloyd.