A new report by the Royal Netherlands Embassy shows the continuing strength of the economic ties between the United States and the Netherlands supported nearly 680,000 American jobs in 2011, an increase of 9 percent from the previous year.
The report, Economic Ties Between the USA and the Netherlands, A Partnership that Works, also shows a mutual and steady faith in both countries’ economies, as both Dutch and American businesses continue to invest in both countries.
“As the global economy continues on the road to financial recovery, our Economic Ties report proves that durable, bilateral ties consistently yield results for both nations,” stated Stephen Raes, Minister of the Economic Department of the Royal Netherlands Embassy. “Imagine how much stronger these ties can be when the US and European Union establish a Transatlantic Trade and Investment Partnership.”
The United States and the European Union, of which the Netherlands is a key nation, recently announced the start of negotiations on a Transatlantic Trade and Investment Partnership. The Netherlands strongly supports such a partnership.
“This agreement will be crucial to the continued growth of both our economies,” said Ambassador Rudolf Bekink. “The numbers in our Economic Ties report can be the seeds to the bountiful trade opportunities that will open up. In nearly every critical trade indicator, such as goods and services imported and exported to each country, the Dutch-US economic ties saw increases.”
Investment from and trade with the Netherlands creates dividends on both sides of the Atlantic. Economic Ties reveals:
- The Netherlands retained its place as the third largest foreign investor in the United States, where Dutch investment in American companies amounted to $240 billion.
- American companies increased their investment in the Netherlands to $595 billion, making the Netherlands the United States’ largest destination country of US foreign direct investment.
- The trade exchange of goods and services between the Netherlands and the United States increased to $81 billion, a 26% increase from 2010.
More than 850 Dutch companies called the United States home in 2011. Economic Ties illustrates their impact and gives a national and state-by-state analysis of the Dutch-US economic relationship. While this relationship can be seen in virtually every state in the US, Texas, California and Pennsylvania are the top three states where Dutch investment supports the most jobs. Texas and California also lead the states with the most Dutch foreign direct investment. Additionally, they also top the list of states that export the most goods and services to the Netherlands.
Top 5 States for Jobs in 2011
|1. Texas||98, 271|
|4. New York||42, 881|
Top 5 States for Dutch FDI in 2011
|4. New York||3.6%||3.7|
*This represents the share of Dutch FDI in total FDI for each state.
Top 5 States/Territories for Exports to the Netherlands in 2011
|4. Puerto Rico||13.8%||2.5|
|5. New York||2.6%||2.2|
*This represents the share of each state’s foreign exports.
Dutch investment in Texas and Texas’ exports to the Netherlands supported 98,271 American jobs, (an increase of 30% from the previous year) making Texas the top beneficiary of Dutch-US economic ties. More than 80 Dutch companies are based in Texas and include: Aegon, KLM, NXP Semiconductors, Shell, Philips, Reed Elsevier and SBM Offshore. The Netherlands was the 5th largest foreign investor in the state, with $12.6 billion in 2011. Texas imported $2.8 billion of goods from the Netherlands. The majority of these imports were in machinery products. Texas’ exports to the Netherlands totaled $8.8 billion, making the Netherlands its fifth largest export market. Nearly 45% of Texas’ exports to the Netherlands consisted of petroleum and coal products. Texas is also home to the Netherlands Business Support Office in Houston, which works directly to support Dutch businesses in Texas and helps Texas companies expand into the Dutch market.
“As a family owned Dutch company since 1929 with several branches all over the world; Mourik’s approach is to think globally but act locally.We are a proud member of the Houston business community and working with our Texas partners, we anticipate strong growth for the future,” said Albert Megens, General Manager Mourik LP.
In the Golden State, 63,278 jobs were supported by Dutch investment and California’s exports to the Netherlands. This figure equals the population of Lodi, California. In the area of foreign direct investment, the Netherlands was the 6th largest foreign investor there with $7.4 billion. California and the Netherlands have a robust trade relationship. Imports from the Netherlands totaled $1.1 billion. Nearly 20% of Dutch imports consisted of beverages and tobacco. The Netherlands was California’s 9th largest export market. The state exported $4.6 billion in goods to the Netherlands; the largest category of goods being computers and electrical equipment. The Dutch roots extend to California’s demographics, where almost 400,000 Californians are of Dutch descent. California is also home to more than 80 Dutch companies including Aegon, Philips, Deltares USA, Hansje Brinker and The Nielsen Company.
Dutch investment and Pennsylvania’s exports to the Netherlands supported 45,912 jobs in the Keystone State. The Netherlands was the 6th largest foreign investor with $2.6 billion in 2011, which amounted to 5.1% of total foreign direct investment. Dutch companies such as Akzo Nobel, American Beverage Corporation, DSM, and ING are a few of the businesses based in Pennsylvania. The Netherlands’ was Pennsylvania’s 7th largest export market. In 2011, the state exported $1.4 billion in goods (mostly petroleum and coal products) to the Netherlands. Imports from the Netherlands totaled $819.3 million. Chemical goods accounted for 36% of Pennsylvania’s imports from the Netherlands.
The Dutch Imprint
To illustrate the depth and breadth of the Dutch companies in the US, Economic Ties also profiles Dutch companies large and small such as Unilever and Suitsupply. Unilever, whose products can be found in millions of American homes, employs 10,000 personnel in the US. Suitsupply, a custom clothing line, has 50 employees.
The Dutch roots to the United States extend beyond the economic and include the more than 4.6 million Americans of Dutch ancestry. Economic Ties gives a state by state breakdown on the Dutch American population.
Source: Dutch embassy in the United States of America