Composition of Dutch international trade
This chapter considers the development and composition of Dutch trade in goods and services. What was the situation in 2020? Which goods and services saw falls in imports and exports and which saw rises? Which sectors are responsible for this international trade and what proportion is generated by independent SMEs? The chapter also examines the concentration of international trade by type of company as well as the concentration by country. It also assesses the composition of export growth in 2019 – a year earlier. These and more questions are addressed in this chapter.
4.1Key findings
Total Dutch goods exports amounted to nearly €483 billion in 2020. That is around 6.3% less than in 2019. The contraction occurred mainly in Q2. Exports by volume fell by 2.2% in 2020. The economy and international trade were severely impacted by the coronavirus pandemic. Lockdown measures interrupted production processes and international value chains and cut demand for goods and services among consumers and businesses. Trade prices were also low in 2020 due to a sharply lower oil price and when demand for goods picked up in the second half of the year, there were shortages of specific raw materials and components.
Exports of mineral fuels were hit hardest in 2020, falling by more than 34.4% compared to the previous year. Lower demand for these products and lower oil prices both played a role in this decrease. Exports of chemical products nevertheless increased by 1.6%. Exports of medical and pharmaceutical products in particular grew rapidly in 2020. Independent small and medium-sized enterprises (SMEs) accounted for 19.6% of the total value of goods exports, while large enterprises accounted for more than 51.7%. An increase of 0.8% was nevertheless recorded in exports by independent SMEs in 2020. Goods exports by large enterprises decreased by 5.7%.
Domestic exports were worth more than €263 billion in 2020, a decrease of 8.0% compared to 2019. Re-exports, amounting to around €219 billion, contracted by 4.3% compared to 2019.
The Netherlands imported goods worth close to €424 billion in 2020, around 7.8% less than in the previous year. The decrease in imports was seen mainly in mineral fuels, as well as in transport equipment (–15.8%); far fewer lorries, cars and parts were imported in 2020. Imports of chemical products, food and beverages, as well as raw materials and natural products, nevertheless increased in 2020. Machinery was still the main import category in 2020.
Trade in services was also impacted by the coronavirus pandemic and the associated economic downturn. Exports of services fell by more than 6.6% to almost €230 billion in 2020. Travel in particular was hit hard by the lockdowns and travel restrictions. There were also significant impacts on travel agents and transporters, with business services and the transport sector seeing sharp falls in service exports compared to the year before. Exports of financial services and remuneration received for the use of intellectual property nevertheless increased in 2020. The growth in financial services was due to an increase in online payments. The rise in exports of intellectual property is attributable to streaming services providing music, films and series.
Service imports totalled over €209 billion in 2020, a decrease of 11.7% compared to the previous year. The large decrease in service imports was once again due to travel and associated business services.
4.2Goods exports by type of goods
Goods exports decreased by over 6% in 2020
The Netherlands exported goods worth more than €483 billion in 2020. Goods exports thus contracted by 6.3% compared to 2019, marking the first time that exports had failed to increase since 2015. In 2020 the global economy and international trade were severely impacted by the outbreak of the coronavirus pandemic, which also caused a substantial reduction in Dutch goods trade. Lockdown measures hampered production processes worldwide and production in some countries was cut or shut down completely, interrupting supply chains. Consumer and business demand for goods and services fell. Lower trade prices, partly due to a substantially lower oil price in 2020, were a major factor in the lower exports (CBS, 2020a; Schwartz, 2021). Disagreements between the oil producers Russia and Saudi Arabia combined with lower demand due to the coronavirus crisis led to substantially lower oil prices in 2020. Exports by volume fell by 2.2% in 2020.noot1
Export value down more than 20% in April and May
Trade fell substantially, particularly in Q2 2020. Many countries went into lockdown, causing a dramatic slump in demand for many goods (ING, 2020). Factories worldwide were also shut down to protect workers from infection (Van de Weijer, 2021). The biggest year-on-year changes, reductions of over 20%, were recorded in April and May. Partly due to the rapid economic recovery in China (UNCTAD, 2021; CGTN, 2020) and the end of the first ‘wave’ of the pandemic in Europe, global trade and Dutch imports and exports of goods recovered fairly quickly. Various sectors worldwide, such as the automotive and consumer electronics industries, found it difficult to scale up production immediately, partly due to high demand for electronics and shortages of specific raw materials such as chips and batteries (Bown, 2021; Hijink, 2021; Leswing, 2021). Furthermore, when demand picked up again and production resumed, international transport was also hampered by shortages of containers. Major transport operators had taken ships and containers out of service after the outbreak of the pandemic. China’s strong recovery combined with a long period of lockdowns and downturns in other parts of the world led to an imbalance particularly in container transport, causing transport costs to rise (ING, 2021; Rabobank, 2021).
| Maand | Volume | Value |
|---|---|---|
| Jan | 3.2 | 4.7 |
| Feb | 1 | 0.5 |
| Mar | -4.7 | -4.8 |
| Apr | -12.7 | -20.8 |
| May | -11.6 | -24.1 |
| Jun | -2.9 | -5.7 |
| Jul | 0 | -5.2 |
| Aug | -3.4 | -10.7 |
| Sep | 0.8 | -2.8 |
| Oct | 2.7 | -5.6 |
| Nov | 1.3 | -1.1 |
| Dec | -0.8 | 1.1 |
Exports fall less during coronavirus crisis than during financial crisis
After 2009 Dutch goods exports increased almost every year and reached a record level in 2019 (Figure 4.2.2).noot2 A 6.3% contraction in 2020 took the value of exports below the 2018 level. The fall was not as large as in 2009, however, when the export value of goods decreased by 16.5%. The crisis of more than a decade ago was very different from the 2020 crisis. In 2009 it started as a credit and financial crisis but quickly spread to the real side of the economy. The sharp downturn in global trade in 2008 also caused a steep fall in Dutch exports. Banks and financial institutions needed substantial government support to stay afloat and had to adopt a cautious approach to lending. Corporate investment stalled, construction plummeted and jobs were lost. As a result, consumers reined in their spending (CBS, 2009). Global trade did nevertheless cool in 2019 and much of 2020. The contraction in international trade that affected the world in 2020 had little to do with underlying economic factors and was mainly due to the unexpected worldwide shock of the coronavirus pandemic. Global trade – and along with it Dutch trade – recovered swiftly, partly due to the rapid reopening of the Chinese economy and broad support programmes introduced by national governments. By the end of 2020 global trade in goods was already almost back to the pre-coronavirus crisis level (CPB, 2021).
Domestic goods exports were hit harder than re-exports, falling by 8.0% compared to 2019. Re-exports contracted by 4.3%.
| Domestic exports | Re-exports | |
|---|---|---|
| 2008 | 212.5 | 157.9 |
| 2009 | 169.4 | 139.9 |
| 2010 | 199.9 | 171.6 |
| 2011 | 231.1 | 178.3 |
| 2012 | 233.7 | 196 |
| 2013 | 233.3 | 199.8 |
| 2014 | 238 | 195.5 |
| 2015 | 242.4 | 176.5 |
| 2016 | 237.8 | 185.4 |
| 2017 | 260.8 | 206.7 |
| 2018 | 278.6 | 219.2 |
| 2019 | 286.1 | 229.2 |
| 2020 | 263.2 | 219.4 |
Exports of chemical products up 1.6%
A focus on the different types of goods exported by the Netherlands shows that machinery was again the most important Dutch export in 2020 (Figure 4.2.3). At around €123 billion, this commodity group accounted for nearly 26% of total exports in 2020. The 1.6% decrease in machinery exports was relatively small. After machinery, manufactured goods (21% share) made up the largest group of exports. Examples include goods such as medical instruments and devices, iron and steel products, metal and glass products and clothing. Manufactured goods exports decreased by 4.9% in 2020, however. Chemical products (18% share) were the only commodity group whose exports increased in 2020 compared to 2019, rising by 1.6%. Chemical products include chemicals, but also perfume, soap and medicines, for example. In particular, exports of medical and pharmaceutical products, such as certain medicines, laboratory supplies as well as vaccines and antisera, grew by almost 20% between 2019 and 2020. This increase was a direct consequence of higher demand for medical supplies during the coronavirus pandemic.
Export value of mineral fuels shows biggest fall in 2020
The export value of mineral fuels was hit hardest, falling by 34.4% compared to 2019. Exports of these goods fell from €68 billion in 2019 to €44 billion in 2020. There were falls particularly in the export value of natural gas and refined petroleum products such as petrol, diesel and kerosene. In 2020 there was not only lower demand for oil and gas, but the prices of these mineral fuels were also substantially lower. Mineral fuels thus accounted for 71% of the total contraction of goods exports in 2020. If mineral fuel exports are excluded, exports of all other goods decreased by 2.1% in 2020.
| 2020 | 2019 | |
|---|---|---|
| Machinery | 123.3 | 125.2 |
| Manufactured goods | 102.8 | 108.1 |
| Chemicals | 88.9 | 87.5 |
| Food and beverages | 69.4 | 69.5 |
| Mineral fuels | 44.4 | 67.7 |
| Raw materials and natural products | 29.7 | 29.6 |
| Transport equipment | 24.3 | 27.7 |
Domestic exports fall relatively sharply by 8%
Dutch companies exported domestic goods worth over €263 billion in 2020. These are goods that have either been produced or undergone significant processing in the Netherlands. A relatively large amount of income is earned from these goods: as can be seen in Chapter 2 of this publication, domestic goods exports generated around 54 cents per euro in 2019, while re-exports generated around 13 cents per euro. Domestic goods exports also supply around 1 million direct and indirect jobs in the Netherlands (see also Chapter 2). Exports of Dutch-manufactured goods are therefore particularly important for the Dutch economy. Almost 55% of total Dutch exports in 2020 comprised domestic goods, a share that has stayed fairly constant over the past decade.noot3 Partly due to the relatively large share of mineral fuels, domestic goods exports were impacted to a relatively greater degree by the coronavirus crisis and lower trade prices than re-exports. Domestic exports decreased by almost 8% in 2020 compared to 2019. This contraction occurred in almost all domestic goods groups, as can be seen in Figure 4.2.4. Exports of mineral fuels (–30.2%) and transport equipment (–16.2%) in particular fell substantially. Only machinery (–0.1%), raw materials and natural products (–1.1%) and food and beverages (–1.4%) saw limited falls in exports. The growth in exports of chemical products in Figure 4.2.3 was therefore due to re-exports rather than exports of domestic goods.
| 2020 | 2019 | |
|---|---|---|
| Chemicals | 50.7 | 52.8 |
| Food and beverages | 49.3 | 50 |
| Machinery | 48.1 | 48.1 |
| Manufactured goods | 45.8 | 49 |
| Mineral fuels | 30.5 | 43.7 |
| Raw materials and natural products | 21 | 21.3 |
| Transport equipment | 17.7 | 21.2 |
The contraction of mineral fuel exports increased the relative shares of other goods groups in total domestic exports in 2020. The main goods groups in 2020 were food and beverages (18.7% share), chemical products (19.3% share), machinery (18.3% share) and manufactured goods (17.4% share), each with an export value of around €50 billion.
Re-exports of mineral fuels down 42% in 2020
Re-exports concern goods that are imported by Dutch companies and undergo little or no processing in the Netherlands before being re-exported. Re-exports in 2020 amounted to €219 billion, representing over 45.5% of total Dutch goods exports. Most re-exports comprised machinery (34.2% share), followed by manufactured products (26.0% share) and chemical products (17.4% share). Re-exports of chemical products rose substantially over the past year, by around 9.9%. Growth in this goods group was driven particularly by the coronavirus pandemic, with increases in re-exports of medicines and other pharmaceutical products. Re-exports of food and beverages and of raw materials and natural products also increased by 3.2% and 3.3% respectively. Re-exports of the other goods groups decreased slightly, with a substantial contraction being recorded in the case of mineral fuels (–42.1%).
4.3Exports of goods by sector and business size
Biggest exporters are wholesale and manufacturing
Dutch goods exports are driven largely by two sectors: manufacturing and wholesale.noot4 Manufacturing is naturally the sector that produces or processes the bulk of goods in the Netherlands; in the case of wholesale and retail trade, economic activity is based on the purchase and sale of goods. Manufacturing companies exported 28.8% of all goods in 2020, while wholesalers exported 27.3%. The contraction in the wholesale sector was very limited, at less than 1.0%, while manufacturing exported 8.0% less in 2020 than in 2019. This clearly shows that the impact of the coronavirus crisis on exports was felt more strongly by manufacturing than by wholesale. This is also related to the type of exports in each sector (manufacturing exports more domestic goods, whereas wholesale is more often an intermediary for re-exports) and the impact of falling demand for certain products (mineral fuels, clothing, cars), but also the interdependence of global production chains.
Figure 4.3.1 shows a more detailed breakdown of exports by manufacturing companies. A wide variation can be seen in the increase or decrease in 2020 compared to 2019. Exports by the chemical industry in 2020, for example, amounted to €20.8 billion, or 4.3% of total exports, a decrease of 12.1%. Manufacturing of other machinery and equipment (€25 billion and a 5.3% share) decreased by 3.3%, whereas the food industry (€28 billion and a 5.8% share) recorded a decrease of just 0.6%. Other large falls were recorded in the motor vehicle industry (–20.4%) and the primary metal industry (–17.5%). Some manufacturing sectors nevertheless saw growth in 2020. Exports by the pharmaceutical industry, for example, grew by 14.4% and companies manufacturing electrical equipment exported 4.6% more than in 2019.
| 2020 | 2019 | |
|---|---|---|
| Refineries and chemicals | 38.5 | 45.3 |
| Machinery and electrotechnical products | 35.4 | 36.5 |
| Food, beverages and tobacco | 29.4 | 29.6 |
| Basic metals and metal products | 11.7 | 13.3 |
| Transport equipment | 10.0 | 11.3 |
| Paper and printing | 3.5 | 3.8 |
| Textiles, clothing and leather | 2.0 | 2.1 |
| Timber and building materials | 1.7 | 1.8 |
| Other industries | 6.7 | 7.3 |
In 2020 there were around 117,000 companies in the Netherlands exporting goods. These companies can be classified by business size (see Chapter 3). The independent small and medium-sized enterprises (independent SMEs) include all Dutch-owned businesses employing fewer than 250 people across the whole organisation. Companies that employ fewer than 250 people but are part of a foreign multinational are included in large enterprises (part of a foreign multinational). In this chapter Dutch multinationals (companies with foreign subsidiaries) employing fewer than 250 people are included in independent SMEs because no data on subsidiaries abroad are yet available for the 2020 reporting year. Large enterprises comprise all Dutch businesses that are part of a group employing at least 250 people and/or part of a foreign-owned group.
Independent SMEs saw exports rise in 2020
Independent SMEs accounted for 19.6% of the total value of goods exports in 2020. Large enterprises accounted for almost 52% of goods exports. As in the case of the sectors, nearly 29% cannot be attributed to an individual company, so the size category is unknown. This mainly concerns exports by foreign companies that do not report production facilities, sales or employment in the Netherlands. It is notable that although total exports decreased in 2020 compared to 2019, exports by independent SMEs increased, albeit very slightly by 0.8%. These exports were worth approximately €94.4 billion in 2020, versus €93.6 billion in 2019. Growth in exports by independent SMEs was driven both by autonomous growth of independent SMEs and by companies that were still classified as large enterprises in 2019 and as independent SMEs in 2020.
Large enterprises generated exports worth almost €250 billion in 2020, around 5.7% less than a year earlier. The decrease in exports by companies of unknown size category was steepest at –11.6%.
Figure 4.3.2 shows that independent SMEs and large enterprises mainly export domestic goods, while unclassified companies mainly engage in re-exports.
| Domestic exports | Re-exports | ||
|---|---|---|---|
| Independent SMEs | 2020, Independent SMEs | 67.4 | 27.0 |
| Independent SMEs | 2019, Independent SMEs | 66.5 | 27.1 |
| Large enterprises | 2020, Large enterprises | 145.6 | 104.1 |
| Large enterprises | 2019, Large enterprises | 156.3 | 108.6 |
| Not attributable to individual enterprises |
2020, Not attributable to individual enterprises |
50.2 | 88.4 |
| Not attributable to individual enterprises |
2019, Not attributable to individual enterprises |
63.2 | 93.5 |
One-eighth of domestic exports is accounted for by the five largest exporters
Figure 4.3.3 shows the largest exporting companies’ shares in total exports. It can be seen that the five exporters with the highest export value accounted for 10% of the total export value in 2020. The figure in 2019 was 11%. The same pattern can be seen in domestic exports. Here the five largest exporters accounted for 12% of exports of Dutch-manufactured goods in 2020 and the 10 largest accounted for 16%. The 50 largest Dutch exporters collectively account for 29% of domestic exports. The companies outside the top-1,000 account for the largest share of exports; their share of both total exports and domestic exports is around 30%.
Re-exports show an even more concentrated picture. Mid-tier companies in particular, for example the six to 100 largest re-exporters, account for a larger share of these exports than mid-tier domestic exporters. The 10 largest re-exporting companies exported over a fifth of total re-exports in 2020 and the top 100 companies over half. This picture was similar in 2019.
| 1-5 | 6-10 | 11-20 | 21-50 | 51-100 | 101-500 | 501-1,000 | 1,001 and more | |
|---|---|---|---|---|---|---|---|---|
| Re-exports | 17.5 | 10.2 | 11.8 | 17.3 | 12.6 | 30.3 | 11.9 | 19.6 |
| Domestic exports | 26.3 | 8.0 | 10.7 | 17.1 | 16.3 | 45.4 | 21.7 | 67.4 |
| Total export value | 34.1 | 16.2 | 19.0 | 31.2 | 27.5 | 75.9 | 34.9 | 105.3 |
Most companies export to Belgium
Figure 4.3.4 shows the main countries to which Dutch exporters supply goods. Most independent exporting SMEs, as well as large exporting companies, supply goods to Belgium. In 2020 over 5,800 large enterprises exported to our southern neighbours, while in the case of independent SMEs the figure was almost 10 times higher. The position with regard to exports to Germany is very different; the number of independent SMEs exporting to Belgium is more than 10,000 higher than to Germany. The difference is much smaller in the case of large enterprises. Although most exporters export to Belgium, the scale of goods exports to Germany by exporters of both types is therefore much greater. Independent SMEs exported goods worth €26.6 billion to Germany and almost €12.4 billion to Belgium in 2020 (Figure 4.3.5). Chapter 5 of this publication examines the origin and destination of Dutch goods trade in more detail.
| Land | Large enterprises | Independent SMEs |
|---|---|---|
| Belgium | 5888 | 56872 |
| Germany | 5785 | 45175 |
| United Kingdom | 4404 | 18876 |
| France | 4249 | 19153 |
| Spain | 3583 | 12888 |
| Italy | 3425 | 12292 |
| Poland | 3263 | 12801 |
| United States | 3044 | 6534 |
| Denmark | 3034 | 11349 |
| Switzerland | 3020 | 7404 |
United Kingdom sinks further as an export destination for large companies
In terms of export value the top three export destinations for large exporters were Germany, Belgium and France (Figure 4.3.5). In the case of independent SMEs the United Kingdom was still in 3rd place in 2020, although the gap between the UK and the number 4, France, is narrowing. In the case of large enterprises the UK sank further as an export destination in 2020; in 2019 the UK was still in fourth place, but in 2020 it fell to fifth place, after the United States. The decrease in the UK share may have been in anticipation of the UK’s departure from the EU on 1 January 2021. Generally speaking, exports by large enterprises more often go to more distant destinations such as the United States or to non-EU countries such as Switzerland than those of independent SMEs. It is easier to trade within the EU, so it is more accessible for exporters, including small businesses. Figure 4.3.5 also shows that exports to more distant countries more often comprise domestic products than exports to surrounding countries.
| Land | categorie | Re-exports | Domestic exports |
|---|---|---|---|
| Germany | Large enterprises, Germany | 24.8 | 24.4 |
| Germany | Independent SMEs, Germany | 9.3 | 17.2 |
| Belgium | Large enterprises, Belgium | 11.0 | 14.9 |
| Belgium | Independent SMEs, Belgium | 3.8 | 8.6 |
| France | Large enterprises, France | 8.8 | 10.1 |
| France | Independent SMEs, France | 2.0 | 4.3 |
| United States | Large enterprises, United States | 5.7 | 11.2 |
| United States | Independent SMEs, United States | 0.4 | 2.4 |
| United Kingdom | Large enterprises, United Kingdom | 7.1 | 9.4 |
| United Kingdom | Independent SMEs, United Kingdom | 1.7 | 5.0 |
| Italy | Large enterprises, Italy | 5.1 | 5.2 |
| Italy | Independent SMEs, Italy | 0.8 | 2.2 |
| China | Large enterprises, China | 1.8 | 7.3 |
| China | Independent SMEs, China | 0.3 | 1.6 |
| Spain | Large enterprises, Spain | 3.8 | 3.7 |
| Spain | Independent SMEs, Spain | 0.8 | 1.6 |
| Poland | Large enterprises, Poland | 2.7 | 3.1 |
| Poland | Independent SMEs, Poland | 0.9 | 2.0 |
| Sweden | Large enterprises, Sweden | 2.1 | 2.1 |
| Sweden | Independent SMEs, Sweden | 0.6 | 1.3 |
4.4Composition of growth in goods exports in 2019
The preceding sections showed that Dutch goods exports grew almost every year after 2009, and even reached a record level in 2019. Goods exports rose by €17.5 billion to €515 billion in 2019. That represents an increase of 3.5% compared to 2018, when the Netherlands exported goods worth €498 billion. This section describes the composition of that growth: did companies start exporting new products or did they find new destination countries for their goods exports? Which types of company were responsible for the growth? These questions and more are addressed below. Figures are only available on the composition of the increase or decrease in goods exports up to and including 2019. This section will therefore discuss 2019.
Behaviour of the exporter
There are several ways in which companies can generate higher or lower exports (see infographic below). First, companies exporting for the first time in 2019 generated growth of 1.1%. On the other hand there were companies that had exported before 2019 but which had no goods exports in 2019; they stopped exporting. These were responsible for a 0.5% contraction, so taken together the companies that started or stopped exporting in 2019 jointly accounted for growth of 0.6% compared to 2018. The difference between companies starting and stopping exports is also referred to as the extensive margin.
Growth in the intensive margin represents an increase in exports of existing products to existing destinations: a company sees its exports grow as sales to existing companies rise. The average export value per company, product or destination thus increases or decreases. In this case the growth is 12.5% and the contraction is 11.6%. The intensive margin thus represents growth of 0.9%.
Another aspect of the intensive margin is that there is one new (or discontinued) dimension. A new destination country for an existing product generated growth of 1.5%, which was offset by a 1.1% contraction in respect of a discontinued destination country. The net growth was 0.4%. A new product exported to an existing destination country generated export growth of 0.5%, with the discontinuation of a product leading to a 0.4% contraction. Hence there was limited growth of 0.1% overall. A new combination of product and destination resulted in growth of 1.9%, whereas a discontinued combination led to a contraction of 1.5%. Once again the combined result was therefore export growth of 0.4% in 2019. Finally, there is once again an unknown portion: not all exports can be attributed to a company, so with regard to the unattributed portion of exports no statement can be made about the composition of the growth in goods exports in relation to the exporter’s behaviour. The unknown portion generated export growth of 1.1%. All the combined dimensions of the exporter’s behaviour – for example growth offset against contraction – generated export growth of 3.5% in 2019.
Export growth by business size
The export growth can be broken down further according to other characteristics, the first being business size. Companies can be broken down into large enterprises with at least 250 employees (including subsidiaries of foreign multinationals) and independent small and medium-sized enterprises (SMEs) with fewer than 250 employees. Here we break down independent SMEs further into micro (fewer than 10 employees), small (10 to 49 employees) and medium (50 to 249 employees).
Large enterprises accounted for more than 51% of the total value of goods exports in 2019. The growth generated by companies in this size category is fairly limited at 0.3% (Figure 4.4.1). Independent SMEs had a considerably smaller share (19.5%) of the total export value of goods but contributed more than half (1.9%) of the 3.5% growth in goods exports. Of that amount, 0.9% was generated by medium-sized SMEs with 50 to 249 employees; micro-SMEs contributed 0.7% and small SMEs a further 0.3%. The growth of companies that cannot be classified by business size amounted to 1.3%.
| Bedrijfsomvang | Independent SMEs (0-9) | Independent SMEs (10-49) | Independent SMEs (50-249) | Large enterprises including (subsidiaries of) foreign multinationals | Unknown |
|---|---|---|---|---|---|
| Contribution to export growth | 0.7 | 0.3 | 0.9 | 0.3 | 1.3 |
Highest growth in exports to non-EU countries
In 2019 the highest growth was recorded in exports to more distant destinations, such as the United States (0.7%) and Taiwan (0.7%), outside the EU. Previous sections have already shown that a relatively large proportion of domestic exports go to more distant destinations, including large volumes of machinery and other high-tech goods. Chapter 5 of this publication analyses exports by destination in greater detail. Other destinations contributing to the export growth were the neighbouring countries to which the Netherlands already exports large volumes, namely Germany (0.3%) and Belgium (0.3%).
Export growth driven mainly by non-multinationals in 2019
In 2019 the largest growth in goods exports came from non-multinationals (excluding the unknown portion) (Figure 4.4.2). Non-multinationals generated export growth of 1.3%, while Dutch and foreign multinationals jointly accounted for export growth of 0.8%. This is a notable development, because in the previous year non-multinationals generated export growth of barely 0.2% and multinationals 3.1%.
| Multinationaliteit | Dutch multinationals | Foreign multinationals | Non-multinationals | Unknown |
|---|---|---|---|---|
| Contribution to export growth | 0.5 | 0.3 | 1.3 | 1.4 |
Main sectors for export growth are wholesale and retail trade and manufacturing
Section 4.3 has already shown that manufacturing and wholesale and retail trade account for a large proportion of goods exports by type of production and economic activity. These two sectors also play an important role in the growth of exports. Manufacturing accounted for the bulk of export growth (1.4%) in 2019. More specifically, the petroleum industry (0.3%), the machinery industry (0.4%) and repair and installation of machinery (0.4%) were key drivers of export growth. In the trade sector a large part of the export growth came from wholesale trade (0.9%).
4.5Goods imports by type of goods, sector and business size
The Netherlands is not only a major exporter but also a major importer of goods. These two facts are largely interrelated, since around half of imports are re-exported after little or no processing (re-exports). The other half are immediately consumed in the Netherlands or used as intermediate goods in production processes in the Netherlands. Chapter 6 of this publication focuses in greater detail on the destinations of goods (and services) imported by the Netherlands.
Imports down almost 8% in 2020
Total goods imports amounted to more than €424 billion in 2020, 7.8% less than in 2019. Here too the impact of the coronavirus crisis, lower demand and disruptions to production chains were clearly evident. Imports of mineral fuels again play a major role. The import value of these products was hit hardest, declining by 35.8%. Both the volume and price of mineral fuel imports were lower than a year earlier. If mineral fuel imports are excluded, Dutch imports fell by 2.3% in 2020. This was largely due to a 15.8% decrease in imports of transport equipment. Fewer lorries, cars and parts were imported, as well as fewer aircraft components. This is reflected in the 6.9% decrease in turnover in the motor vehicle and motorcycle industry in 2020. Importers of new cars in particular had a tough year: they were the first to be hit by plant closures in the Netherlands and abroad and saw their turnover decrease by 10.5% compared to the same period a year earlier, partly due to lower consumer demand for new cars (Bovag, 2021; CBS, 2021a). The other goods groups showed small falls or even growth in imports, as in the case of chemical products (vaccines and antisera, laboratory supplies, medicines), food and beverages (pork, tropical fruit, cocoa and prepared foods), raw materials and natural products (rape- and colzaseed, plants, vegetable seeds). Figure 4.5.1 shows imports by commodity group in 2019 and 2020.
| 2020 | 2019 | |
|---|---|---|
| Machinery | 116.6 | 118.2 |
| Manufactured goods | 103.1 | 107.3 |
| Chemicals | 59.4 | 58.6 |
| Mineral fuels | 48.4 | 75.4 |
| Food and beverages | 46 | 45.8 |
| Transport equipment | 26.8 | 31.9 |
| Raw materials and natural products |
23.9 | 22.8 |
The main import category in 2020 was machinery, which accounted for 27.5% of total imports. Next came manufactured products (24.3% share) and, some distance behind, chemical products (14.0% share), mineral fuels (11.4% share) and food and beverages (10.8% share).
Wholesale imports down almost 1%
As in the case of exports, imports were also dominated by the same two sectors, namely manufacturing and wholesale. The latter sector imported goods worth almost €135 billion in 2020, representing 32% of the total import value. The decrease in imports was limited for wholesale businesses (–0.8%). This limited decrease partly reflects the wide range of goods imported by wholesalers, but also the fact that demand for certain goods (such as refined petroleum products) fell more sharply than demand for other products. For example, wholesale imported more plastic (for example packaging material and plastic products), more fruit, more medicines and pharmaceutical products, furniture and certain consumer and high-tech electronics (computers, chips) in 2020.
Goods imports by manufacturers down more than 15% in 2020
Manufacturing, by contrast, had a more difficult year in 2020 with regard to import opportunities, although here too there were exceptions. Overall, manufacturing imports amounted to more than €89 million in 2020. That is €16 billion less than in 2019 (–15.2%). The manufacturing share in 2020 was still 21.1% of the total import value, compared to 22.9% in 2019. Some manufacturing sectors recorded sharp falls, including the motor vehicle industry (–30.0%), the chemical industry (–15.5%) and the petroleum industry (–38.0%). There were also manufacturing sectors that imported substantially more in 2020, namely the pharmaceutical industry (+29.5%) and the manufacture of other transport equipment (+12.6%). Companies in the other transport equipment industry imported particularly bicycles, motorcycles and parts thereof in 2020. Trading and maintenance of ships and pleasure yachts also took place in 2020, which is directly reflected in high import and export values in the trade figures. The share of imports that cannot be attributed to a sector amounts to 26.5% of the total import value.
One-fifth of goods imported by independent SMEs
As in the case of exports, it was mainly large companies that imported less in 2020. In the case of large enterprises, the value of goods imports decreased by 11.2%; imports by independent SMEs grew slightly, by 0.6%. The large enterprises’ share of total goods imports thus decreased from 54.8% in 2019 to 52.7% in 2020. The independent SMEs’ share increased from 19.1% to 20.9%. The import value of unknown companies remained unchanged. Figure 4.5.2 shows the shares of the various categories.
| Independent SMEs | Large enterprises | Not attributable to individual enterprises | |
|---|---|---|---|
| 2020 | 88.5 | 223.6 | 112.1 |
| 2019 | 87.9 | 251.9 | 120 |
Five largest importers accounted for 9% of goods imports
Figure 4.5.3 shows the largest importing companies’ share of total goods imports in 2020. In 2019 the five largest importing companies accounted for 10.9% of the total import value, whereas in 2020 this figure was 8.8%. This pattern of a declining share of the total can be seen among the 100 largest importers, which means that the hundred largest companies in particular lost substantial ground compared to 2019. The 101st to 1,000th largest importers were able to maintain their share of total imports in 2020. The smallest importers saw their share grow compared to 2019. In absolute terms, however, imports in each category decreased between 2019 and 2020.
| Top-x bedrijven | Value |
|---|---|
| 1-5 | 27.6 |
| 6-10 | 12.2 |
| 11-20 | 16.4 |
| 21-50 | 27.4 |
| 51-100 | 22.9 |
| 101-500 | 62.7 |
| 501-1,000 | 29.6 |
| 1,001 and more | 113.2 |
4.6Service exports
The coronavirus crisis had a major impact on goods exports, as can be seen in section 4.2. The impact on service exports was even greater in relative terms, as can be seen in Figure 4.6.1. Compared to 2019, this export value fell by 6.6% to €230 billion.noot5 The steepest falls were in service exports to Germany (–9.7%), the United Kingdom (–8.7%), Singapore (–18.1%) and the United States (–5.0%).
| Jaar | Export value |
|---|---|
| 2014 | 155.3 |
| 2015 | 178.3 |
| 2016 | 172.5 |
| 2017 | 195.4 |
| 2018 | 220.3 |
| 2019 | 246.4 |
| 2020 | 230.0 |
Biggest falls in 2020 were in exports of other business services, travel and transport services
The lockdowns and travel restrictions that countries introduced to curb the coronavirus outbreak had an unprecedented impact on international tourism and travel (CBS, 2021b). Spending on goods or services by foreign business travellers, tourists and day visitors during their stay in the Netherlands is measured as an export of travel services. This export value fell by €9 billion in 2020, as can be seen in Figure 4.6.2, which means it halved compared to 2019 (CBS, 2021c). The travel restrictions and lockdowns also had a major impact on travel agents and travel and holiday platforms. This is reflected in a sharp fall in exports of business services of around €9 billion (–11.5%). Exports of transport services also contracted sharply in 2020, by €4 billion (–9.5%). This decline was largely associated with the contraction in air passenger transport and associated services. The number of airline passengers entering the Netherlands fell by 71% in 2020 (CBS, 2021c).
Higher intellectual property income and exports of financial services
Exports associated with the use of intellectual property grew from €61 billion to over €67 billion in 2020. This increase was mainly generated by companies engaged in the distribution of audiovisual products such as streaming services for music, films and series to consumers outside the Netherlands. The fees that countries paid to the Netherlands for these grew strongly in 2020 – as in 2019 – by 10.5%. Exports associated with the use of intellectual property thus became the largest export category in 2020, as can be seen from the infographic at the beginning of this chapter. Exports of financial services also grew in 2020. This was due particularly to the strong growth in online payments resulting from the strong growth of online purchases (including internationally), for which Dutch companies provide supporting payment services.
| Dienstensoort | Change |
|---|---|
| Use of intellectual property |
6.4 |
| Financial services | 1.6 |
| Insurance services | 0.1 |
| Public services | -0.1 |
| Maintenance and repair |
-0.2 |
| Construction services | -0.4 |
| Cultural and recreational services |
-0.6 |
| Industrial services | -0.7 |
| Telecommunications, computer and information services |
-0.9 |
| Transport services | -4.0 |
| Business services | -8.6 |
| Travel | -9.0 |
Biggest service exporters are consulting, research and other specialised business services
Service exports grew by 11.8% to a total of over €246 billion in 2019.noot6 Of all non-financial business sectorsnoot7, the consulting, research and other business services sector provided the most services in 2019, with a value of almost €42 million, as shown in Figure 4.6.3. That amounts to 17.0% of total service exports. Compared to 2018, service exports by this sector grew by €5 billion (+13.7%). This sector includes companies in legal services and administration, research, (non-financial) holding companies and management consulting firms. Holding companies in particular are often involved in international trade in services, such as scientific and other technical services, R&D and licences. Holding companies often trade with associated companies in the group, sometimes exclusively. Within international groups, they recharge costs from one country to another (Smit & Balabay, 2018).
Another large service-exporting sector is the information and communication sector. In 2019 this sector exported services worth almost €33 billion, over €6 billion more than in 2018. Service exports in this sector largely comprise computer and information services, such as software development or the provision of database services (Smit & Balabay, 2018).
The transportation and storage sector, with an export value of almost €28 billion, was the third largest exporter of services in 2019. These include, for example, goods and passenger transport by land (freight and rail traffic), water (inland shipping and sea and coastal shipping) and air for residents outside the Netherlands. This sector also includes the provision of transport-related services, such as storage.
| Bedrijfstak | Export value |
|---|---|
| Consultancy and research | 41.8 |
| Information and communication | 32.9 |
| Transportation and storage | 27.7 |
| Rental of movable property | 18.9 |
| Wholesale and retail trade | 16.6 |
| Manufacturing | 12.7 |
The five largest exporting businesses collectively account for one-fifth of service exports
Figure 4.6.4 shows the largest exporting companies’ share of total service exports in 2019. Compared to goods trade, service trade is even more concentrated among a limited number of companies (over 82,000). The five largest exporting companies collectively accounted for 20.6% of the total value of service exports in 2019. The 50 biggest exporters collectively account for almost half of total service exports. This pattern does not differ greatly from that of 2018.
| Aantal bedrijven | 1-5 | 6-10 | 11-20 | 21-50 | 51-100 | 101-500 | 501-1,000 | 1,001 and more |
|---|---|---|---|---|---|---|---|---|
| 2019 | 34.5 | 10.0 | 13.8 | 21.8 | 16.6 | 34.3 | 12.2 | 24.1 |
Nine out of 10 service exporters trade only within the EU
Figure 4.6.5 shows the destinations of Dutch service exports. Over 21% of the value of service exports by Dutch businesses in 2019 was attributable to companies that only export within the EU. Just under 3% of service exports are carried out by companies that only export to countries outside the EU. The bulk (76%) of the export value is generated by exporters that export to both EU and non-EU countries. The picture is very different with regard to the number of service exporters. This shows that around 90% of service exporters operate only within the EU. Only just over 10% trade both within and outside the EU and a fraction of service exporters export only to non-EU countries. That means that – like companies exporting goods – proximity to the trading partner also appears to be important for service exporters (Smit & Wong, 2017).
| Intra-EU trade only | Extra-EU trade only | Both | |
|---|---|---|---|
| Value | 20.9 | 2.8 | 76.4 |
| Number | 88.8 | 0.4 | 10.8 |
4.7Service imports
As in the case of service exports, service imports were severely impacted by the coronavirus crisis in 2020. With a contraction of 11.7% this impact on imports of services was even greater than on exports. The import value thus amounted to more than €209 billion. Service imports have not fallen as sharply as in 2016, when the contraction was almost 14% (Figure 4.7.1). In 2020 there were falls particularly in service imports from the UK (–10.8%), Germany (–11.8%), Switzerland (–29.8%) and the United States (–5.6%).
| Jaar | Import value |
|---|---|
| 2014 | 145.3 |
| 2015 | 192.4 |
| 2016 | 165.8 |
| 2017 | 191.7 |
| 2018 | 219.7 |
| 2019 | 237.2 |
| 2020 | 209.5 |
Sharp fall in foreign spending by Dutch travellers due to coronavirus crisis
The measures introduced to limit the coronavirus outbreak also had an unprecedented impact on imports particularly of travel services (Figure 4.7.2). This includes spending by Dutch business travellers, tourists and day visitors during their stay abroad. This import value fell by more than €13 billion in 2020, a reduction of almost 67% compared to 2019. On the other hand, the number of Dutch people taking holidays in the Netherlands in the summer of 2020 was a quarter higher than in 2019 (CBS, 2020). People took far fewer holidays abroad and, of those who did, 98% stayed in Europe (compared to 86% in 2019).
As in the case of service exports, imports of other business services also contracted sharply in 2020, by more than €8 billion (–10.4%). Imports of associated technical services, such as those relating to mining and oil and gas extraction and trade-related services, fell sharply by almost €5 billion. Imports of professional and management consulting services, including accounting or legal services and advice, fell by almost €4 billion. Imports associated with the use of intellectual property fell by around €6 billion in 2020 to a total of almost €55 billion (–9.2%).
Strong growth in imports of financial services in 2020
Imports of financial services were one of the few service categories that grew in 2020. Imports of this type of service grew by almost 41% to nearly €13 billion. They comprise payments for intermediary and support services for financial transactions, including services provided by companies that process financial transactions for online retailers. The high growth in financial services may be due to the tremendous growth of e-commerce in 2020.
| Dienstensoort | Change |
|---|---|
| Financial services | 3.7 |
| Telecommunications, computer information services |
0.8 |
| Insurance services | 0.0 |
| Public services | -0.1 |
| Construction services | -0.1 |
| Maintenance and repair | -0.2 |
| Industrial services | -0.4 |
| Cultural and recreational services |
-1.1 |
| Transport services | -3.0 |
| Use of intellectual property |
-5.6 |
| Business services | -8.4 |
| Travel | -13.3 |
Wholesale was the largest service importer in 2019
With almost €36 billion of imports, the wholesale and retail trade and motor vehicle repairs sector was the largest importer of services among Dutch non-financial companies in 2019, as can be seen in Figure 4.7.3. By far the largest imports in this sector were carried out by wholesalers (€33.2 billion). These include wholesale trade in computers, peripherals and software, where licences are often imported under franchises and trademarks. Many services are also imported in other branches of wholesaling. Again these are often services provided under licence, but also trade-related and other business services (Smit & Balabay, 2018).
The second largest importing sector (by import value) in 2019 was the consulting, research and other business services sector. This sector imported services worth €32 billion during that year, representing 13% of total service imports. As in the case of exports, holding companies are often engaged in international trade in services in this sector, particularly scientific and other technical services, R&D and licences. Given the often central function of the holding company in a group and in international trade in services, it is logical that holding companies will also play a major role in service imports (Smit & Balabay, 2018).
The third largest service-importing sector is the information and communication sector, which imported services worth almost €30 billion in 2019. That represents an increase of over €7 billion compared to 2018, making it one of the strongest-growing importing sectors in 2019. As in the case of exports by this sector, the imports largely comprise computer and information services, such as software development or the provision of database services (Smit & Balabay, 2018).
| Bedrijfstak | Import value |
|---|---|
| Wholesale and retail trade | 35.7 |
| Consultancy and research | 32.0 |
| Information and communication | 29.9 |
| Manufacturing | 23.4 |
| Transportation and storage | 16.3 |
| Rental of movable property | 13.3 |
Fifty largest importers account for half of service imports by Dutch business
Dutch business included over 320,000 service import companies in 2019. Figure 4.7.4 shows the largest importing companies’ share of total service imports in 2019. As in the case of service exports, a large proportion of the import value is accounted for by a limited number of companies. The five largest importers collectively accounted for 20% of total service imports in 2019. The 50 largest importers collectively account for half of total service imports.
| Aantal bedrijven | 1-5 | 6-10 | 11-20 | 21-50 | 51-100 | 101-500 | 501-1,000 | 1,001 and more |
|---|---|---|---|---|---|---|---|---|
| 2019 | 33.1 | 13.8 | 14.5 | 21.1 | 16.9 | 33.5 | 10.3 | 23.1 |
Most service importers stay close to home
Almost 80% of service imports by Dutch businesses are carried out by companies that import from both EU and non-EU countries. In terms of the number of importers this group nevertheless represents a minority; only 4% of all service importers source services from both the EU and elsewhere. Most companies that import services do so from the EU. Service importers too therefore often stay close to home (Smit & Wong, 2017).
| Intra-EU trade only | Extra EU-trade only | Both | |
|---|---|---|---|
| Value | 18.9 | 1.6 | 79.5 |
| Number | 95.9 | 0.1 | 4.1 |
4.8References
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Noten
Exports measured according to transfer of ownership.
Between 2014 and 2015 there was a method break in the statistics on international trade in goods, so the figures before and after 2015 are not readily comparable. In the remainder of the chapter we therefore discuss the trade data from 2015 onwards. The data tables do nevertheless contain data from 2010. For more information on the method break, see ‘Oorzaken methodebreuk internationale goederenhandel, 2014-2015’ (only available in Dutch) (CBS, 2015a).
Elsewhere in this publication, for example in Chapters 2 and 6, it is stated that re-exports account for just over half of goods exports. The figures presented in this chapter are based on the International Trade in Goods source statistics. The figures in Chapters 2 and 6 are taken from the National Accounts. The source statistics use concepts that differ from those of the National Accounts; they are based on cross-border goods transport, for example, while the National Accounts focus on economic ownership. Integration into the National Accounts results in additional differences. The figures in Chapters 4 and 5 cannot therefore be compared directly with those in Chapters 2 and 6. For more information on these differences, see ‘CBS import and export statistics’ (CBS, 2015b).
Around 29% of Dutch exports cannot be attributed to a company established in the Netherlands. These exports take place in the name of foreign operators that have no representation in the Netherlands. They do not appear in the General Business Register (ABR), which means that this part of the trade in goods cannot be assigned to individual companies and therefore cannot be differentiated by sector or size of business. The ‘unknown’ share is much higher in the case of re-exports than in the case of domestic exports.
The service export figures in this chapter are based on the source statistics. Chapters 2 and 6 of this publication also provide information on service exports from the perspective of the National Accounts. These two figures differ. On the one hand there are inconsistencies due to the way in which the National Accounts and the source statistics have to deal with Special Purpose Entities. On the other hand the National Accounts compare service trade data with other source statistics, and any inconsistencies between the sources can lead to adjustments to the source data in order to provide a consistent picture of the economy as a whole. The focus on continuity in the National Accounts also leads to divergences in level between the source statistics and the National Accounts. This will be reviewed in a revision year.
No breakdown by sector and destination is yet available for 2020.
This section examines service exports by non-financial Dutch businesses (sectors B to N inclusive and S95, excluding K). Partly for this reason around 37% of service exports are not included in these charts for 2019. This particularly concerns transactions by the financial sector, which is overseen primarily by De Nederlandsche Bank (Smit & Wong, 2017).