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CONFIDENTIAL - DRAFT
The Netherlands’ Economic and Trade Relationship with Australia
13 September 2010
Dutch trade and investment 1
Quick facts about the Netherlands:
 16th largest economy
 7th largest trade nation
 5th largest exporter of goods
 2nd largest exporter of agricultural products
 7th largest importer
 5th largest foreign investor
 7th largest financial sector
Although the Netherlands makes up only 0.2 per cent of the world’s population, it accounts
for 1.4 per cent of world GDP and 3.5 per cent of world trade. In domestic terms, trade
accounts for almost one third of GDP, as do financial and business services, while industry
and retail each account for around 14 per cent. Agro-food production accounts for around
10 per cent of the economy and about 20 per cent of exports.
Most of the Netherlands’ trade is with EU countries, especially Germany and Belgium. The
US is the Netherlands’ largest export destination outside Europe, while China is rapidly
growing in importance as a supplier. Dutch trade mainly comprises machinery and transport
equipment, chemical products, fossil fuels and agricultural products.
The Netherlands is an important international investor in its own right, being home to a
number of large companies with multinational operations, including Royal Dutch Shell, ING
Group and Rabobank. The Netherlands has one of the world's most highly developed
pension fund industries, with private assets under management far in excess of the levels in
most of the other countries in relative terms. In addition, the Dutch venture-capital market
is among the best developed in Europe.
Financial crisis
The Netherlands was hit hard by the global financial crisis in 2009 and real GDP growth fell
4.0 per cent. The Netherlands played an important and influential role in the global response
to the financial crisis, with many of its ideas and measures picked up by the EU and others,
including the G20. The Netherlands sought stronger supervision of the international banking
and finance industries, including strengthening of the IMF and other global financial
institutions. It also urged the freeing of world trade to stimulate the global economy.
Unless otherwise indicated, this information is sourced from: 2009 Netherlands Country Brief,
DFAT. Available: http://www.dfat.gov.au/geo/netherlands/netherlands_country_brief.html.
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The Bilateral Economic Relationship
Trade2
Australia and the Netherlands are significant trading partners. In 2009, the Netherlands was
Australia’s 20th largest merchandise trading partner with total exports and imports of
almost A$3,5 billion.3 In 2009, the value of Australia’s exports to the Netherlands were A$2
billion. Significant Australian exports to the Netherlands in 2008 included coal, oil seeds and
medicaments. Significant imports included medicaments, pharmaceutical products and
coffee. Australian services exports to the Netherlands in 2009 totalled A$461 million.
Services imports totalled A$1 billion. Both ways, trade in services was mainly composed of
recreational travel. See appendix 1 for recent trade and investment figures.
Investment
The EU is Australia’s largest investor, accounting for 33 per cent of total investment ($A567
bn) and 34% of foreign direct investment ($A133 bn) in 2008.4 In 2008, the Netherlands was
the fourth-largest contributor of foreign direct investment ($A25 bn) after the US, UK and
Japan, and the eighth-largest for total foreign investment ($A32.9 bn).5 In the same year, the
Netherlands was the sixth largest destination for total Australian investment abroad (A$30
bn) and the eighth largest destination for Australian direct investment abroad (A$5.6 bn).
In 2007-08, the Netherlands was the third largest contributor of proposed investment from
Europe after the UK and Germany, and the 10th largest overall with $A3.6 billion.6 The
largest shares of proposed investments were in real estate (A$1.5 bn) and manufacturing
(A$1.2 bn), followed by the services sector (A$0.2 bn). 7 Appendix 2 lists the investment
approvals for Dutch companies according to location and industry between 2006 and 2008.
Dutch companies in Australia8
Approximately 55 Dutch companies operate in Australia. The largest Dutch companies in
Australia are financial institutions - such as ING Group, ABN-AMRO and Rabobank - and
resource companies such as Shell. See appendix 3 for a listing.
Unless otherwise indicated, this information is sourced from: 2009 Netherlands Country Brief,
DFAT. Available: http://www.dfat.gov.au/geo/netherlands/netherlands_country_brief.html.
3
The Netherlands Fact Sheet, DFAT. Available: http://www.dfat.gov.au/geo/fs/neth.pdf
4
2009 EU Investment Survey Update, 16 Oct. 2009, European Delegation to Australia and New
Zealand.
5
2009 Netherlands Country Brief, DFAT. Available:
http://www.dfat.gov.au/geo/netherlands/netherlands_country_brief.html.
6
In 2006-07 the Netherlands recorded the fifth largest amount of proposed investment in
Australia (A$ 12.9 bn) that financial year. This is 3,5 times the value of proposed investments the
subsequent year (A$ 3.6 bn). This increase was due to a single proposal in the mineral exploration and
development industry, which explains the high level of investment in Western Australia at the time:
Foreign Investment Review Board, Annual Report 2006-07. Available: http://www.firb.gov.au/.
7
Foreign Investment Review Board, Annual Report 2007-08. Available: http://www.firb.gov.au/.
8
Unless otherwise indicated, this information is sourced from: 2009 EU Investment Survey
Update, 16 October 2009, Delegation of the European Commission to Australia and New Zealand.
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Appendix 1 – Recent trade and investment figures9
MERCHANDISE TRADE
Exports to Netherlands
(A$m; % share; rank)
Imports from Netherlands
(A$m; % share; rank)
Total trade (exports + imports)
(A$m; % share; rank)
Major Australian Exports
Coal
Oil seeds & oliaginous fruits, soft
Medicaments (incl vetinary)
Alcoholic beverages
Zinc ores & concentrates
Major Australian Imports
Medicaments (incl vetinary)
Medicinal & pharmaceutical products
Coffee & substitutes
Mechanical handling equipment
Road tractors for semi-trailers
Merchandise trade relationship
Australia as import source (rank)
Australia as export destination (rank)
TRADE IN SERVICES
Exports to Netherlands
(A$m; % share)
Imports from Netherlands
(A$m; % share)
Total trade (exports + imports)
(A$m)
Major Australian Exports
Personal travel excl education
Professional & business
Transportation
Royalties & licence fees
Major Australian Imports
Royalties & licence fees
Personal, cultural & recreational
INVESTMENT RELATIONSHIP
Australia’s investment in the NL
(A$m; FDI)
Dutch investment in Australia
(A$m; FDI)
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10
2007
2008
2009
2,779
1.7
15
1,458
0.8
25
4,236
1.2
18
3,183
1.4
15
1,771
0.8
23
4,954
1.1
18
2,010
1.0
15
1,525
0.8
25
3,535
0.9
20
10
823
1390
139
110
425
293
136
315
98
58
163
57
60
75
75
104
653
236
207
98
154
85
61
59
55
33
410
0.9
669
1.5
418
0.8
811
1.4
461
0.9
1,041
1.9
163
163
168
85
49
56
196
175
210
223
350
266
30,020
5,647
32,901
25,085
The Netherlands Fact Sheet, DFAT. Available: http://www.dfat.gov.au/geo/fs/neth.pdf.
Includes A$291m of confidential items, 14% of total exports.
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Appendix 2 – Investment approvals for Dutch companies in 2006-07 and 2007-0811
Location of investment
2006-07
Total
NSW (A$m)
VIC (A$m)
QLD (A$m)
WA (A$m)
SA (A$m)
TAS (A$m)
ACT (A$m)
NT (A$m)
Various (A$m)
Offshore (A$m)
Total (A$m)
Ranking (world)
Ranking (Europe)
13,621
7,541
10,113
22,320
1,552
237
473
214
97,217
3,099
156,387
Netherlands
2007-08
Total
Netherlands
944
6
49
10,610
259
28
66
850
69
12,881
19,028
12,068
21,286
19,352
1,453
954
252
977
112,084
4,424
191,879
118
84
175
500
4
22
0
2,725
3,629
5
2
10
3
Industry sector
# Approvals
Agriculture, forestry and fishing (A$m)
Finance & insurance (A$m)
Manufacturing (A$m)
Mineral exploration & development
(A$m)
Real estate (A$m)
Resource processing (A$m)
Services (A$m)
Tourism (A$m)
Total (A$m)
2006-07
Total
2007-08
Netherlands Total
Netherlands
6,441
104
5,635
62,847
32,279
122
319
10,654
8,354
2,488
9,198
31,273
64,275
123
1,209
467
21,389
3,660
28,930
1,543
156,387
743
963
203
12,881
45,502
221
35,719
3,202
191,879
1,452
Ranking (world)
Ranking (Europe)
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2
Foreign Investment Review Board, Annual Report 2006-07 and 2007-08. Available:
http://www.firb.gov.au/.
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4
480
22
3,629
10
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Appendix 3 – Dutch companies in Australia12
Company
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
ABN-AMRO
AKZO-Nobel Chemicals Ltd
AKZO-Nobel Coatings Ltd
Atradius
Basell Australia (Holdings) Pty Ltd
Bekaert Textiles
Boskalis Australia Pty Ltd
CCH Australia
Corporate Express Australia Limited
Douwe Egberts Australia
Douwe Egberts Australia
DSM Food Specialities Australia
DSM Nutritional Products Australia Pty Ltd
Exquira Australia
Fortis Information Banking
Fugro Holdings Pty Ltd
IMCD Australiasia PTY Ltd (Swift Australia)
ING Direct, Real Estate and Investment Management
Groeneveld Australia
Groupair Australia
Heineken Lion Australia
Hunter Douglas Group
ING
ING Direct
Intergen Energy Holdings Pty Ltd
Internatio-Muller Australia/New Zealand Pty Ltd (IMCD)
Organon (Aust) Pty Ltd
Philips Australia Limited
Rabobank Australia & New Zealand
Randstad Holdings Pty Ltd
Reed Elsevier
Shell Company of Australia
Swift Australia
Stork Food Systems Australasia Pty Ltd
TNT Express
Unilever Australia
Van Oord Australia Pty Ltd
Van Leeuwen Pipe & Tube Australia Pty Ltd
Vopak
Collated from data from two IBIS World inventories (2009 and 2006) and a Dutch survey (2006)
(provided by the Delegation of the EU Commission) and a survey by the Netherlands Embassy (2009).
Most figures were checked in November 2010.
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40 Wolters Kluwers Australia Pty Ltd
41 Zernike Australia
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Appendix 4 – Australian companies in the Netherlands13
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
13
Company
Babcock & Brown (office was recently closed down)
BHP-Billiton
Bovis Lendlease BV
Cochlear
Constellation Wines
Garment Corporation BV
Goodman
Henderson Global Investors
James Hardie (will probably move its HQ to Ireland)
Legal IT Solutions BV
Logistics Recruitment
Macquarie
Orli-Tech Europe BV
Out Now Consulting
Pasminco Budel Zink
Paul Lange P/L
Protocom Development Systems P/L
Qantas Airways
Quiktrak Telecommunications BV
Seawise Australia
Skins
Southcorp Wines Europe Ltd
Data from Austrade Netherlands branch.
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