Presentation at Seminar
Doing Business: NL vs USA
(2012 April 19, Amsterdam)
Organised by:
- Leading Edge Alliance
- Bol International
- Van Oers International
2. AmCham: What is our mission?
• We are concerned with matters affecting the investment
climate in the Netherlands. We actively promote increased
US investment in the country.
• We are the voice of US business in matters of trade and
investment. When we speak, governments listen – in The
Hague, in Brussels and in Washington DC.
2
3. AmCham Netherlands:
• Conceived in June 1961, born in October of the same year
and up and running since January 1962
• A non-profit, non-governmental, non-political organization
• AmCham organization consists of a Board of Directors
(28 persons), 11 Committees and 4,2 fte staff
• AmCham offices are located at WTC, Schiphol Airport
• Member of the European Council of American Chambers
of Commerce - representing 40 Chambers: 17.000
employers and over 20 million workers
• Fully accredited member of the U.S. Chamber of
Commerce – our avenue in Washington DC
3
4. Who are our Members?
• American companies operating in the Netherlands
• Dutch companies exporting to or investing in the USA
(Netherlands is third largest investor in USA)
• Professionals and other individuals whose activities are
related to US-Dutch economic and business relations
= Almost 400 companies, represented by about 800
individuals, interested in commercial relations between
the USA and the Netherlands
= 45 Patron members
137 Corporate members
185 Contributing members
4
5. What do we do?
Committees:
• Human Resources (People Platform), Legal,
Tax, Policy, Pharmaceutical and Diversity
• Marketing & Membership, Nominations
• Rotterdam Chapter & Brabant Chapter
• Young Professionals Group
Publications:
• AmCham Membership Directory
• AmCham Newsletter and Digital Newsletter
• Investors’ Agenda of Priority Points
5
6. What else do we do?
AmCham events focus on current business issues,
networking, and social functions
• Seminars, Late Afternoon Briefings, Lunch and
Dinner meetings with political and business leaders,
biennial Black Tie Dinner, annual Golf Tournament,
annual Wine & Cheese Party, Young Professional
events
6
7. Champs on Stage
• From August 2007, pilot in Rotterdam with 66
students
TO
• School year 2010-2011
14 schools
3 cities
1210 students in program
More than 430 companies and
organizations participating
375 company mentors involved
• Champs on Stage Foundation per 1 July 2010
7
8. AmCham,
Working for a Better Business Climate
• Valuable opportunities for networking
• Business presentations given by experts
• A voice for your opinions and concerns
• Better investment and trade conditions
• Up to date information via publications and website
• A guide for contacts and new trends
• Active demonstration of your support for better
transatlantic business
8
9. Priority Points
Investor’s Agenda of Priority Points:
Our advocacy program to improve NL investment climate
In 2012 we will focus on:
• Stimulate labor flexibility and engage in strategic (labor)
immigration policy
• Stimulate Innovation - Implement what works!
• Taxation - Consistent, predictable & simple
9
10. Tax-related Priority Points – Ensure stability, consistency,
predictability and simplicity in tax legislation
• Adopt the proposal of the Chairman Topteam
Hoofdkantoren in respect of interest expense relating to
the financing of subsidiaries
• Simplify the existing interest deduction limitation rules to
increase clarity among the business community
• Have tax losses carried forward indefinitely
• Reduce the tax wedge on labor
• Conclude tax treaties with important trade partners and
with emerging economies with high growth
10
11. US Investment in the Netherlands
• The first investors in the Netherlands came in the late 19th
century. One was Standard Oil. Also at around the same
time was Quaker Oats. They’re both still here!
• US total investment stake in NL in 2010 over $520 billion
(almost 25% of total EU)
• US FDI in 2010 to NL: $40 billion (= 22% of all investment
to EU in 2010)
• US majority-owned companies employed 225,000 persons
in NL in 2009
• NOTE: NL is 3rd largest investor in US
11
12. Six Largest Sources of Foreign Investment in NL – the
US is still number 1 (there are about 1,700 US
companies in NL)
90
80
70
60 USA
UK
50 L
40 F
B
30
D
20
10
0
Stock of foreign investment in 2009; billions of euros
Source: De Nederlandsche Bank
12
13. OK, but how many mailbox companies are
we talking about?
The Netherlands, the New Tax Shelter Hot Spot
(Headline in The New York Times of February 4, 2007)
Just over 39% of US investment abroad is in foreign
affilliates classified as holding companies. For the
Netherlands this figure is 73% - i.e. some $380 billion.
That still leaves some $140 billion of hard business
investment – almost as much as in Germany and France
combined, or almost twice that in all the Scandinavian
countries combined.
13
14. Top 7 Destinations for US Direct Investment in Europe
– 2010 (historical-cost basis)
Billions of Dollars 14
Source: US Dept. of Commerce
15. Europe still most important destination for US Direct
Investment Abroad – over 55% of total in 2010
US Direct Investment Abroad - Historical cost basis 2010
Billions of dollars
Source: US Dept. of Commerce
15
16. US Investment in NL compared with other countries
– almost as much (ex. holdings) in NL as in BRIC
16
18. US Direct Investment – NL punching above its weight class
(excluding holding co’s; billions of US dollars rounded to nearest whole billion; percentage
indicated is portion of total US investment in Europe)
1990 2003 2005 2010
NL $19 9% $73 12% $84 11% $140 12%
UK $73 34% $210 36% $279 36% $371 32%
D $28 13% $56 10% $63 8% $79 7%
CH $25 12% $30 5% $44 6% $73 6%
B $10 4.4% $24 4% $46 6% $67 6%
Europe $215 $585 $766 $1,175
18
19. Last Minute! Developments in 2011
• US FDI to Europe in 2011 topped $200 billion for only the
second time on record. Investment flows reached $215
billion – a 23% jump from 2010.
• In first 9 months of 2011 US FDI flows rose by 35% to NL
• US investment fell 52% in Italy, 50% in Belgium and 26% in
UK.
• Worldwide corporate US foreign assets totaled $20 trillion
in 2010. 58% located in Europe. Largest share: UK (22%,
$4.4 trillion); second largest share: NL ($1.6 trillion)
• US affiliates in 2010 earned 4 times more in NL alone ($54
billion) than they did in China and India combined ($13.5
billion)
19
20. Added Value of Foreign Investment
• Foreign investors are catalysts for productivity and
growth in the Dutch economy. They are:
Are more successful
Create more employment
Hire more skilled workers
Outsource more locally
than their Dutch counterparts.
Source: Min. of Economic Affairs - Buitenlandse Investeerders zijn Groeiversnellers
voor de Nederlandse Economie (July 2007)
20
21. The same study notes that more of these
catalysts can be attracted by:
• Continually improving the investment climate
The challenge for government is similar to that of
companies in a competitive environment: a systematic,
sustained effort is needed to continually upgrade all the
parameters that make a nation competitive.
21
23. Where is AmCham in 10 years time?
Several reasons for membership decline may be discerned.
• The comparatively (among western economies) very good
investment climate in the Netherlands as a whole for US
and other foreign companies.
• Many initial advocacy aims formulated in the early 1960s
have been largely achieved leaving less need for an
advocacy platform.
23
24. Where is AmCham in 10 years time?
• The rise of the global company who does not see itself
having a nationality at all.
Many American companies do not want to be seen as being
US in origin, but as being international. Some companies
even have a general policy that forbids membership in
organizations such as AmCham.
24
25. Other Associations also in state of flux
• One can also see a parallel development in employer and
labor organizations in the Netherlands (and elsewhere for
that matter).
• Protestant, catholic and secular employer associations
and trade unions have lost their distinctive characters and
have either disappeared or have merged.
• Many foreign employer associations in the Netherlands
similar to AmCham have disappeared or adopted a more
social than a business advocacy function.
25
26. Where is AmCham in 10 years time?
• The challenge to secure AmCham's future may lie in
distinguishing a role for itself within employers'
organizations in the Netherlands as the coordinating voice
for all foreign investors.
26
27. Working for a Better Business Climate
advocacy - information - networking
www.amcham.nl
