American Chamber of Commerce

Toespraak | 25-05-2011

Madam Ambassador, ladies and gentlemen,

On April 19, 1782, John Adams was admitted by the States General of the Dutch Republic as Minister of the United States of America.
That meant more than a cup of coffee and – in the good old Dutch tradition – one biscuit; it made the Dutch Republic the second country to recognize the United States as an independent nation.
This recognition was a key step in the United States’ taking its rightful place in the world community.
A few months later Adams persuaded us to sign the first Treaty of Amity and Commerce between our two countries.

In 1982 President Ronald Reagan signed a proclamation making April 19 each year Dutch-American Friendship Day.
He wrote, a “recognition of common interests and shared ideals has been a hallmark of the peaceful and productive relationship between the United States and the Netherlands for two hundred years.”
And peaceful and productive is indeed what our relations have been.  

The Netherlands and the US are still important economic partners.
Our relatively small country is the third largest investor in the US and the seventh largest market for US exports.
We are also the largest recipient of US investments in the world, followed by the UK and Canada.
According to the US Department of Commerce, in 2008 US companies invested over USD 440 billion in the Netherlands.
Today about 1,750 US companies are active in this country.
Together they employ over 225.000 people here, and are the source of almost 5% of Dutch GNP.
And the number is still growing.
Asset manager Neuberger Berman, the investment firm Dimensional and of course MasterCard Europe are all companies that recently followed your fine example and moved their operations to the Netherlands.
Now they only need to follow another good example and join the American Chamber of Commerce! Almost 500 US companies already have, and I’m sure their membership brings them more than it costs: always a good starting point for a business relationship.
But more about that later.

First, though, a question of great importance to a Dutch Minister of Finance: why are we honored with all this American business interest? Why do American companies have such high esteem for our Low Countries?
How have we been able to sustain and expand our 200-year-old economic ties?

The question is easy to answer: because we take every business, every company, every entrepreneur as seriously as we took John Adams.
Because we always try to keep an open mind about good contracts, fine initiatives or new ideas, even something as farfetched as a new liberal nation on the other side of the ocean.
And last but not least, because we still prefer peace and productivity to strife and struggle.

On a more practical level: because we have a very business-friendly investment climate.
Studies by Ernst & Young show that foreign investors choose the Netherlands because of our favorable location, our world-class seaport and airport, our excellent links to the rest of Europe and our outstanding reputation for storage, distribution, transport and logistics.
A highly skilled, multilingual workforce and modern ICT infrastructure are other major reasons why foreign companies locate here.
These assets also allow us to benefit from business opportunities in emerging markets like China and India, and our business partners benefit in turn.

The Netherlands is a hub in many ways – of knowledge, logistics and business cultures.
It is well placed as a springboard from the euro countries to other financial centers.
And I haven’t even mentioned our landscape and quality of life, or the high standard of our theatre, music, art and cultural life.

At the same time, an attractive business climate has to include transparent legislation and taxes, flexibility and reliability.
Companies want to know exactly where they stand, and the government and oversight agencies need to respond effectively.
This government is working hard – even harder than the last one – to make the Netherlands more competitive.

Previous governments reduced the administrative burden, abolished capital duty, cut dividend tax, introduced tax-exempt investment institutions, and lowered corporation tax to between 20 and 25%.
And this government is working to improve our investment climate even more.

For instance, we have identified nine top sectors of the Dutch economy for development, through a new form of public-private partnership.
Some of those are sectors where we have a strong history, like agrifood, horticulture, water and logistics.
Others are in line with our aim to stimulate more innovative industries, like high-tech materials and systems, energy, creative industries, life sciences and chemicals.
What all nine have in common is their strong international position; the companies and universities involved all have a good reputation and have worked together on innovations before.
And their products or technologies help solve social problems.
For example: the food industry invests in developing healthy foods and diets for consumers.
This lowers healthcare costs and absence through sickness.

Not the government, but the entrepreneurs and researchers themselves are in the driver’s seat as the projects are being launched in each of these nine sectors.
Two months ago the teams were completed, each consisting of a leading figure from inside the sector, an innovative SME leader and a researcher, assisted by a senior civil servant.
This summer the teams will publish their work plans, showing how the Netherlands can compete on the world market.
They will also take a look at unnecessary red tape, any weaknesses in vocational education, and ways of facilitating start-ups and fast growers.

It’s not an easy job, but that’s why we call them “top teams.”

It’s not laziness that leads the government to leave the important work of launching these projects to the top teams.
It’s because this government firmly believes – because I firmly believe – that government should neither try to be an entrepreneur nor stand in the way of enterprise.
International enterprise is first and foremost the responsibility of the entrepreneur, who has the expertise required.

The government’s role is to support and facilitate international enterprise. For instance by lowering or eliminating barriers to cross-border trade and investment.
One of the best ways to do that is by getting to know your business partner.
In this respect too, John Adams had the right idea: if you want something done, go visit the people you want to do it.
So that’s what I’m going to do.

Next month I am visiting the US to meet with representatives of Dutch and American companies, both financial and non-financial, and of the US government.
This will give us all a chance to explore ways of innovating in the financial sector and striking a better balance between the financial markets and the real economy.
As you know, in the Netherlands we have a more traditional capital market, where finance is usually provided by banks.
In the US you have more experience with private funding and venture capitalism.
During my visit I will see whether American experience may suggest possible new funding structures for Dutch companies, both in the US and here.

My US tour will include San Francisco and Houston, where I will visit several Dutch and American IT companies.
As you know, there is significant interaction between the IT sector and financial markets.
IT companies need finance to build and develop; the financial sector is highly dependent on robust and innovative IT systems.
Of course my relatively brief visit to the States cannot possibly live up to the results John Adams got with his visit to the Low Countries over 200 years ago.
But I do hope it will deepen the relations between our countries.

That, of course, is also the task of the American Chamber of Commerce, and I have to say: you do a great job.
Your Priority Points are always interesting, discussions with your Tax Committee are always constructive, and you always seem to be able to entice a minister to your lunches.
Impressive!

This invitation allows me to be the first member of the government to congratulate you on your 50th anniversary.
I know that you are not letting this milestone pass without a celebration. On the contrary, I’ve seen an impressive list of events and seminars, a wine and cheese party and even a Grand Gala Ball.
It will be interesting to see how many of my colleagues you can persuade to attend one or more of these events.
We always have trouble saying ‘no’ when business and trade are on the agenda.
John Adams was the first to benefit from that knowledge, and all your members are successfully following in his footsteps.

So may I propose a toast: to our mutual advantage!

Thank you.