Dutch Trade in Facts and Figures 2020: Exports, investment and employment – An introduction

Dutch Trade in Facts and Figures 2020: Exports, investment and employment is a publication that has been developed by the Expertise Centre for Globalisation at Statistics Netherlands (CBS), commissioned by the Dutch Ministry of Foreign Affairs. The current edition (2020) is the second release of this publication. It is a publication with annually recurring key economic figures and indicators. The publication contains many time series, primarily at the upper macro or meso level, with a number of topics specifically geared towards the priorities that have been set in the trade agenda of the Dutch government. It addresses the need for quick access to the most important data on internationalisation of the Dutch business economy and the wider economy.

Dutch Trade in Facts and Figures 2020: Exports, investment and employment consists of six descriptive chapters, illustrated with many figures, infographics and tables. These chapters present the key trends, figures and developments. The datasets that form the basis of these chapters are so extensive that they have not been included in full here; they can be accessed and downloaded from the home page of this publication. The main chapters are preceded by a dashboard (Chapter 1) that provides an overview of the key findings from the other chapters and forms the common thread throughout the publication. This thread runs through essential information such as: how much is earned through Dutch exports (Chapter 2), who is involved in international trade (Chapter 3), what is being traded (Chapter 4), with whom we are trading (Chapter 5), the main markets for our intermediate goods (Chapter 6) and the size of inward and outward foreign direct investment (Chapter 7).

A number of adjustments have been made in relation to the 2019 edition. For example, more attention is devoted to female entrepreneurship in Chapter 3, and Chapter 4 focuses for the first time on the composition of the growth in the trade in goods and on carry-along trade. Among other things, it examines (1) the type of enterprises responsible for the growth of goods exports; how these enterprises grow – by tapping into the potential offered by new destinations and/or by exporting new products; and (2) the export strategy through which enterprises enrich their own product range by exporting products that they have not manufactured themselves, but which they supply bundled together with their own products. In Chapter 5, there is greater emphasis on the distinction between trade with the EUnoot1 and with non-EU countries, and also on the development of the market share of the Netherlands in foreign goods markets. In another change, the distinction by top sector in Chapters 3 and 4 has been removed. This is because CBS has officially discontinued the Monitor Topsectoren [Top Sectors Monitor], which it produced for the Ministry of Economic Affairs and Climate Policy. With the transition to a mission-driven innovation policy, there is no longer a need for drawing up this monitor. Furthermore, the distinction between regions has been omitted in Chapter 4. To make space for the various new sections, those on imports of goods and services have been simplified and the section on the total trade flow (imports plus exports) in Chapter 5 has been removed.

Chapter 2 presents the total earnings generated in the Netherlands by exports and the differences in earnings between domestic exports, re-exports and exports of services. The significance of exports is also illustrated by the large number of jobs across exporting industries and additional jobs that are created by their suppliers. The Netherlands is interwoven with international production chains. Much of the manufacturing that takes place here requires raw materials and semi-finished products from other countries. In turn, the Netherlands is a supplier of inputs for products manufactured abroad. The import content of exports is an indicator of the degree to which these production chains are interconnected.

The enterprises that are active in international trade differ in many respects. Some of them merely export, some merely import, while others trade both ways; the latter group are known as two-way traders. Businesses active in international trade are more likely to be large enterprises than independent small and medium-sized enterprises. Multinationals, whether under Dutch or foreign control, are also more often active in international trade than non-multinational enterprises. In addition, there are differences between the various groups of international traders in terms of company age, productivity, wages and the male/female ratio of entrepreneurs. Chapter 3 describes these characteristics for the whole Dutch business economy.

Exports and imports involve trading in different types of goods and services. All this trade is conducted by enterprises that are active in different sectors and industries. The actual goods and services that are traded, and by which sectors, is described in Chapter 4. This chapter also highlights products that manufacturers do not make themselves, but which they supply together with their own products. This is known as carry-along trade. The reasons for the growth in goods exports are also examined.

International trade in goods takes place with different countries, within and outside the European Union. As part of the Netherlands’ official trade agenda, there is extra monitoring by the Ministry of Foreign Affairs of the development of Dutch trade relations with 40 selected countries. Which countries are the main export markets and which are the major suppliers of imports? What is the position of the Netherlands in the external goods trade of the United States, China or Russia, for example? How important is the European Union to the Netherlands and how important is the Netherlands to other EU countries? Chapter 5 examines these questions.

As is mentioned in Chapter 2, the Netherlands is increasingly operating as part of global value chains. The question arises whether this is also evident from the types of goods entering and then possibly leaving the country. What is the role of intermediate products such as raw materials and semi-finished goods in the external goods trade of the Netherlands? Many of these imported intermediate products are used by Dutch manufacturers. The Netherlands also produces such intermediate goods by itself, part of which end up abroad. Which countries are the largest markets for Dutch intermediate goods, and how are the ratios developing? These questions are addressed in Chapter 6.

Aside from exporting or importing goods and/or services, enterprises can also conduct international business by making foreign direct investments. The Netherlands is a substantial foreign investor, but also receives large flows of foreign direct investment. These investments are often undertaken by multinational corporations that are under either Dutch or foreign control. The questions of how many multinationals are active in the Dutch business economy and how much employment these enterprises generate are discussed in Chapter 7.