This Country Commercial Guide (CCG) presents a comprehensive look at the Netherlands' commercial environment, using economic, political and market analysis. The CCG's were established by recommendation of the Trade Promotion Coordinating Committee (TPCC), a multi-agency task force, to consolidate various reporting documents prepared for the U.S. business community. Country Commercial Guides are prepared annually at U.S. Embassies through the combined efforts of several U.S. Government agencies.
The United States' partnership with the Netherlands is its oldest continuous relationship and dates back to the American Revolution. Our excellent bilateral relations with the Netherlands are based on close historical and cultural ties and a common dedication to individual freedom and human rights. An outward looking nation, the Netherlands shares with the U.S. a commitment to open markets and free trade. The two countries share similar positions on a number of trade and policy issues and work together bilaterally and through multilateral organizations on matters concerning trade, economic cooperation, and regional and global problems.
The Netherlands is about the size of the State of Maryland, with a population of 16 million.
So why should American exporters 'Go Dutch?'
The Netherlands is one of the top dozen trading countries in the world. It is currently ranked 13th in GNP, eighth in imports of goods and services from the U.S., and is the third largest foreign investor in the U.S., behind the United Kingdom and Japan. The U.S. is the largest foreign investor in the Netherlands and has its largest bilateral trade surplus in the world with this country ($12.3 billion in 2000).
The Netherlands is a key center within the global business network. Its advanced infrastructure is geared towards the transportation of goods, people, and electronic data. Core distribution points within the Netherlands include Rotterdam, the world's largest port, and Amsterdam Schiphol Airport, the fourth largest in Europe. More than half the Netherlands' GDP is generated by activities beyond the national borders.
Over 160 million consumers (more than half the population of the European Union) live within a 300-mile radius of Rotterdam. Use of English is widespread and 73 percent of the Dutch population is fluent in one or more foreign languages.
Strong economic performance beginning in 1996 was a result of a combination of rigorous and stable macroeconomic policy, with wide-ranging structural and regulatory reforms. These reforms continue to stimulate market flexibility and the creation of more dynamic and deregulated capital and financial services markets.
After four years of sustained economic growth, falling unemployment and modest inflation, the Dutch economy has shifted into lower gear. The slowdown has been affected by both domestic and foreign demand. Unexpected first quarter growth slowdown and the negative impact of Bovine Spongiform Encephalopathy (BSE) and foot-and-mouth disease have reduced the official growth estimate for the year 2001 to just 2.5 percent. Dutch economic performance will have to improve to meet even this conservative growth forecast and to return to its potential three percent growth path. On the positive side, merchandise exports and imports in 2000 grew at almost the same rate (6.6% and 6.7% year-on-year).
With a relatively robust economy, continuing budget surpluses, and a declining national debt, the Netherlands is well positioned for the coming of the Euro. The latest Netherlands Central Bank Euro survey projects increased revenues for the Dutch business sector resulting from the introduction of the Euro of close to $4 billion, chiefly as a result of lower transaction costs. The survey also predicts the Euro to bring around $3 billion in new investment into the Netherlands.
The range of export potential for products and services in the Netherlands is amazingly broad-based. American exporters considering the Dutch market should follow the conventional wisdom that an American product with strong sales in the U.S. can expect to do well in the Netherlands.
More than 7,000 U.S. companies have appointed Dutch agents and distributors in the Netherlands. Approximately 1,600 American companies or affiliates have operations here, employing over 150,000 people. In 2000, ninety-four new foreign direct investment projects were registered with the Netherlands Foreign Investment Agency with a value of $435 million, creating more than 5,000 new jobs. More than half were from the U.S. The Netherlands was the third largest recipient of U.S. direct investment worldwide in 2000, up from fifth position in 1995, and moving ahead of countries like France and Switzerland.
The country's strategic location combined with the relative ease of doing business makes the Netherlands an ideal European operations location for American companies. The Netherlands boasts a world-class and user-friendly transportation and distribution infrastructure, as well as a full menu of business services. Companies may want to start by taking advantage of the state-of-the-art Dutch distribution system that includes "value added logistics" (VAL) services.
American firms expanding into Europe should seriously consider the Netherlands as a springboard into the rest of Europe - geographically, structurally and culturally the most logical choice.
If you are interested in doing business in the Netherlands, the Commercial Service should be your first point of contact. Please contact your nearest U.S. Export Assistance Center. For a list of US Export Assistance Centers around the U.S., go to: www.usatrade.gov.
Detailed information on our services and programs in the Netherlands is available on the following website: www.usemb.nl. For information on the U.S. Department of Commerce's programs in Europe, see www.sce.doc.gov.
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