Capital - Amsterdam (GMT+1) Largest City - Amsterdam Population - 16,570,613 est. Languages - Dutch, Frisian Demonym - Dutch Currency - Euro (EUR) GDP per capita - $31,700 est. Calling Code - +31 Internet TLD - .nl
The Netherlands (Dutch: Nederland) is the European part of the Kingdom of the Netherlands (Dutch: Koninkrijk der Nederlanden), which consists of the Netherlands, the Netherlands Antilles (Dutch: Nederlandse Antillen), and Aruba. The Netherlands is a constitutional monarchy, located in northwestern Europe. It is bordered by the North Sea to the north and west, Belgium to the south, and Germany to the east. The Netherlands is often called Holland. This is incorrect as the provinces of North and South Holland in the western Netherlands are only two of the country's twelve provinces (for more on this and other naming issues see Netherlands terminology). The Netherlands is a densely populated and geographically low-lying country and is popularly known for its windmills, cheese, clogs (wooden shoes), delftware and gouda pottery, dikes, tulips, bicycles, and social tolerance. Also well-known are its liberal policies toward drugs, prostitution, gay rights, abortion and euthanasia.
Economy
The Netherlands has a prosperous and open economy, which depends heavily on foreign trade. The economy is noted for stable industrial relations, moderate unemployment and inflation, a sizable current account surplus, and an important role as a European transportation hub. Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs no more than 2% of the labor force but provides large surpluses for the food-processing industry and for exports. The Netherlands, along with 11 of its EU partners, began circulating the euro currency on 1 January 2002. The country continues to be one of the leading European nations for attracting foreign direct investment. Economic growth slowed considerably in 2001-06, as part of the global economic slowdown, but for the four years before that, annual growth averaged nearly 4%, well above the EU average.
Market Overview
The United States’ partnership with the Netherlands is its oldest continuous relationship and dates back to the American Revolution.
The Netherlands is a geographically small (approximately the size of the State of Maryland), densely populated (16.4 million people) country occupying a highly strategic commercial location that makes it the “Gateway to Europe”.
Over 160 million consumers (roughly one third of the population of the expanded European Union of 27 Member States) reside within a 300-mile radius of Rotterdam.
More than sixty percent of the Netherlands’ GDP is generated by foreign trade in goods and services.
The Netherlands is a key center within the global business network with an advanced infrastructure geared towards the transportation of goods, people, and electronic data.
Its core distribution points include Rotterdam, the world's third-largest port, and Amsterdam Schiphol Airport, the fourth largest airport in Europe.
The Netherlands has capitalized on its location and advanced economy to become one of the top dozen trading countries in the world.
It is currently ranked 16th in GDP in the world, eighth in imports of goods and services from the United States, and fourth in direct investment in the United States.
The United States is the largest foreign investor in the Netherlands and has its largest bilateral trade surplus in the world with this country (almost $11.5 billion in 2005).
Market Challenges
Except for EU-wide impediments, there are no significant trade barriers. Because of the size, accessibility, and competitive nature of the Dutch market, importers usually insist on an exclusive distributorship. Exporters may need to adapt their products and documentation for the Dutch market.
Market Opportunities
European Union rules have opened public procurement to U.S. firms, and there may be attractive opportunities for U.S. companies to participate in the renewal of the Dutch transport infrastructure, specifically, projects resulting from the development of the European high-speed railway network (HSL). Six "New Key Projects" (NSPs) have been launched to develop train stations and surrounding areas in Amsterdam, Rotterdam, The Hague, Breda, Utrecht, and Arnhem. For more information, go to: http://international.vrom.nl/pagina.html?id=7347. The Netherlands strategic location, the relative ease of doing business, the high level of proficiency in English, and its world-class and user-friendly transportation and distribution infrastructure make it an ideal market and European operations location for American companies. Best prospects are listed in Chapter 4 in this report. A rule of thumb is that products selling well in the U.S. market will generally have market potential in the Netherlands.
