Mission Statement

Gateway to Europe Trade Mission

Amsterdam and Brussels

May 14-18, 2006

Mission Description

The Commerce Department’s International Trade Administration (ITA) and its U.S. Commercial Service (USCS) posts in the Netherlands and Belgium will organize a Gateway to Europe Trade Mission, May 14-18, 2006.   This mission will promote U.S. products and services in seven dynamic sectors offering excellent potential for U.S. exports:   Environmental, medical, information and communications technology, safety and security, travel and tourism services, automotive equipment, and consumer goods.   Both the Netherlands and Belgium offer exceptional possibilities for American companies interested in entering the European market.   At each stop, mission participants will benefit from market briefings, networking receptions, and one-on-one business appointments with prospective agents, distributors, partners, and end-users.

Commercial Setting

The Netherlands

The long-standing bilateral relationship between the United States and the Netherlands is based on shared cultural ties and common business policies.   The Netherlands occupies a strategic commercial location that makes it a true gateway to Europe.   More than 160 million consumers reside within a 300-mile radius of Rotterdam, and more than half the Netherlands’ GDP is generated by activities beyond its national borders.   The Netherlands ranks among the top dozen trading countries in the world.   Its core distribution points include Rotterdam, one of the world’s largest ports, and Amsterdam Schiphol Airport, the fourth largest airport in Europe.   The country ranks 13th in GNP, eighth in imports from the United States, and third in direct investment in the United States.   The United States is the largest foreign investor in the Netherlands and has its largest bilateral trade surplus in the world with this country ($10 billion).

• Telecommunications:   About 80 percent of the Netherlands’ fast-growing $19.5 billion telecommunications market consists of services, and the remaining 20 percent consists of products and equipment.   Positive developments in recent years include increased competition, decreased end-user prices, infrastructure investments, expanding labor opportunities, and the introduction of additional services, particularly in the areas of fast Internet, e.g., ADSL (Asymmetrical Digital Subscriber Line).   Best prospectsinclude mobile and fixed-line telephony services, switched data and leased line services, cable services, broadband services, mobile (value-added) data services, all types of Internet related communication services, products for infrastructure expansion, WiFi and VoIP services, and all types of security applications for mobile communications.

• Automotive Parts and Accessories:   Prospects are favorable for the Netherlands’ $129 million garage equipment market and $29 million hand-tools market.   Increasingly complex high-tech applications, customer demand for quick service, and growing environmental concerns drive demand for all types of testing and diagnostics equipment and for products such as sealed and recyclable batteries, asbestos-free brake and friction materials, exhaust gas extraction equipment, paint thinner, waste recycling, storage, and transportation systems, and filter installations for auto paint spraying.   Promising developments also include a dramatic increase in the use of computers, software, data storage, in-car navigation, electronic maps, infrared blind-spot detectors, radar enhanced cruise control, and speed/distance displays.   In addition, the car-customizing trend has fueled demand for high-quality, price-competitive audio equipment, and a range of interior and exterior car accessories.  

• Medical Equipment:   Aleader in cutting-edge technology, the Netherlands hosts more than 500 medical technology companies and 35 specialized research centers developing medical instruments and systems.   Imports continue to play a major role in supplying this $1 billion market.   Dutch medical technology importers are highly specialized in terms of product knowledge and understanding of the Dutch healthcare system.   Best prospects include equipment for diagnostic imaging, physiotherapy, radiotherapy, cardiovascular treatment, biosensors, medical lasers and, radio-diagnostic devices.

• Environmental Technology:   The Netherlands is one of the most densely populated countries in the world.   Its high level of industrialization and freight transport make air and water pollution control a continuing environmental concern.   The Dutch government’s strong commitment to environmental improvement focuses on soil remediation and reduction of air and noise pollution caused by motor vehicles and airplanes.   Best prospects in the $2.9 billion Dutch environmental market include equipment for soil remediation, water testing and sampling, measurement and analysis, and emission filtration.
  
• Safety and Security:   The Port of Rotterdam was the first in the world to participate in the U.S. Department of Homeland Security’s Container Security Initiative and also cooperates with the Department of Energy’s radiation detection program.   Upcoming compliance with the International Ship and Port Facility Security Code (protection against terrorism) will require about $121 million for the 141 firms in Rotterdam and $73 million for the 86 in the Port of Amsterdam.   These amounts will go toward control equipment, camera surveillance, security personnel, and training.   Amsterdam’s Schiphol Airport has also tightened security and seeks more improvements.   Despite a comparatively low crime rate, demand is rising in the country’s $485 million residential and commercial safety market and $380 million fire protection market.   Best prospects are closed circuit television (CCTV) systems, access control, biometrics, explosives, nuclear and metal detectors, and residential alarms.
  
• Consumer Products:   The Dutch market for consumer goods is very receptive to new products and is showing signs of recovering from a decrease in turnover in the last few years.   Consumer spending increased last year in leading subsectors such as household appliances (reaching $2.9 billion), sporting goods and recreational equipment ($2.3 billion), and apparel and textiles ($9.4 billion).   Best prospects for U.S. exporters are cosmetics, sporting goods, interior decorating products, toys, video games, and kitchen appliances.
  
• Travel and Tourism Services:   The Netherlands is an important market for the U.S. travel and tourism industry, ranking eighth in the number of visitors to the United States.   A s the top long-haul destination for the Netherlands , t he United States attracted 390,000 Dutch business and leisure visitors in 2004 and an estimated 421,000 in 2005.   Market indicators point to continued growth in the next three years.   Dutch travelers to the United States stay two weeks on average and visit several states during their stay.   Best prospects are national parks, resorts, water sports, downhill skiing, beaches, and camping.

Belgium

Densely populated Belgium is located at the heart of one of the world’s most highly industrialized regions.   Belgian per capita GDP ranks among the world’s highest ($34,518 in 2004), and the country ranks as the 11 th largest market for the export of U.S. goods and services.   Belgium’s diverse and competitive market makes it an ideal European test venue for American products.   Located within a 375-mile radius of 70 percent of the EU’s 370 million inhabitants, Belgium is home to the second largest port in Europe, Antwerp, and boasts an outstanding network of roads, rails and inland waterways that enable goods to be moved quickly and cheaply to European manufacturing and distribution centers.   An outward looking country heavily reliant on trade, Belgium sends more than 76 percent of its exports to EU member nations, making it a very attractive European distribution hub.

• Automotive Parts and Service Equipment:  Belgium is a world leader in the car assembly industry.   With more than 95 percent of its output destined for export, Belgium has the highest per capita production in the world and a vigorous automotive supply network.   More than 250 firms provide the industry with raw materials, components, services and systems, representing a turnover of about $11 billion and employment for some 25,000.   With new supplier parks planned for Genk and Ghent, this figure should rise steadily over the next few years.   Best prospects include anti-theft devices, fast-rotating replacement parts, in-car entertainment devices, customizing and sport accessories, car maintenance chemicals, hands-free telephone kits, and GPS devices.   Quality American garage and test equipment is highly respected, and there is good potential for equipment for air-conditioning maintenance, electronic diagnostics, and emissions and technical testing.

• General Consumer Goods:   The Belgian import and distributor market is constantly on the lookout for good quality and niche consumer products.   Retail trade, with a yearly turnover of $68.4 billion, represents about 50 percent of private household consumption.   A third of the purchasing power, about $23 billion, goes to the purchase of food.   Textiles and clothing represents about $10.5 billion, and furniture and household products $10.5 billion. There are about 55,000 enterprises active in wholesale, and 115,000 in retail trade.   Best prospects are infant and children’s clothing, educational toys, products related to nursing, wooden furniture, bio-food products, cosmetics, toiletries, wellness-related products, hearing aids, glasses, hair coloring products, luxury sporting goods, and interior decoration articles.

• Medical Equipment:   Belgium’s $1.55 billion medical equipment market has seen an annual growth of about 5 percent over the past five years.   While the Belgian national healthcare system is among the most extensive and efficient in Europe, the country produces less than 15 percent of its overall needs for medical equipment, leaving the market open to suppliers from the United States, France, Germany and Great Britain.   The United States holds a 30-percent share of total medical equipment imports into the Belgian market, which is open to a broad range of products and services, including electromedical, cardiology, orthopedic, noninvasive surgery and rehabilitation equipment.  

• Safety and Security:   The Belgian market for safety and security equipment and services has grown significantly in recent years, with alarm control management representing a booming subsector.   About 90 percent of such equipment is imported from neighboring countries.   Quite often, alarm systems are assembled in Belgium using parts from several different suppliers.   Safety apparel is usually fabricated in Belgium, while safety equipment is imported from other countries, including the United States.   Best Prospects includeintrusion alarm systems, sophisticated equipment like CCTV systems, video surveillance, access control, guarding services, and safety clothing.

• Environmental Technology:   One of the most densely populated and industrialized areas in the world, Belgium is implementing more stringent goals for emission control, recycling, waste reduction, decontamination of polluted soils, and modernization of sewers and wastewater treatment facilities.   All industry sectors are under growing pressure to reduce pollution, driving a rapidly expanding market for environmental technologies and services.   Belgium’s combined public and private expenditure to meet EU environmental goals will cost an estimated $5.5 billion, divided among water treatment, waste management, soil remediation, air and noise pollution control, and environmental consultancy.   Best prospects include measurement, monitoring and analysis instruments, sludge treatment, small individual and semi-collective water treatment plants, recycling of waste streams, emissions treatment and control, on-site soil bioremediation, and off-site soil cleaning technologies.

• Telecommunications:   Telecom companies are reaching out to new technologies such as IP-VPN, xDSL, WLAN, and iTV, and major investments in competing new platforms are planned for the near future.   Belgacom, Belgium’s former telecom monopoly holder, recently announced its $500 million future investment program to create a fine-meshed fiber optic infrastructure with VDSL technology with speeds up to 10Mbps.   Telenet, Belgacom’s largest competitor, announced a similar $513 million investment program to upgrade its current cable network.   Both operators are also launching digital TV and iDTV projects and have entered the Wi-Fi market.   Mobile telecom operators continue to invest in 2.5G networks and 3G networks.   On the enterprise side, the new technologies of choice are IP, VPN, and VoIP.   In addition, numerous national and local initiatives to promote Internet use are expected to give a major boost to spending on ICT equipment.   U.S. suppliers of the technologies listed above should find excellent sales opportunities.

• Travel and Tourism Services:   The United States continues to be the long-haul favorite vacation destination among Belgians, who spend an estimated $328 million annually to visit this country.   Extensive business and cultural ties between the two nations, as well as a deep interest in the American way of life, natural parks, big cities, and tourist attractions, provide an excellent basis for market promotion of the U.S. tourism industry.   Best prospects are fly-and-drive packages, mobile home vacations, and event-specific packages (e.g., ski weeks, shopping trips, visits to famous theme parks).

Mission Goals

The goal of the Gateway to Europe Trade Mission is to match participating U.S. companies with qualified agents, distributors, representatives, licensees, and joint-venture partners in these European markets, which have a strong affinity for, and trading relationship with, the United States.    The mission will provide an opportunity for U.S. companies to gain first-hand market exposure, access to government and industry decision-makers, and one-on-one appointments with qualified business contacts.

Mission Scenario

The Gateway to Europe Trade Mission will include stops in Amsterdam, the Netherlands, and Brussels, Belgium.   In each city, delegation members will benefit from country briefings; customized, pre-arranged appointments with prospective business partners; high-level meetings with appropriate host government agencies; and networking events with local officials and company representatives.  

Mission Timetable

Criteria for Participation and Selection

• Relevance of a company’s business line to mission goals.

• Timeliness of a company’s signed application and participation agreement (including a participation fee of $2,750).  

• Potential for business in Europe for the company.

• Provision of adequate information on company’s products/services, and company’s primary market objectives, in order to facilitate appropriate matching with potential business partners.

• Certification that the company meets Departmental guidelines for participation.   A company’s product or service should be either produced in the United States, or, if not, marketed under the name of a U.S. firm and have at least 51% U.S. content of the value of the finished product or service.

Any partisan political activities (including political contributions) of an applicant are entirely irrelevant to the selection process.

Recruitment will begin October 3, 2005 and will close March 20, 2006.   The participation fee for the event will be $2,750 per company.   The participation fee does not include travel, meals, or lodging costs.   Participation will be limited to 15 U.S. companies.   Applications received after the closing date will be considered only if space and scheduling constraints permit.  

Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Commerce Department trade mission calendar – www.ita.doc.gov/doctm/tmcal.html – and other Internet web sites, press releases to general and trade media, direct mail and broadcast fax, notices by industry trade associations and other multiplier groups, and announcements at industry meetings, conferences, and trade shows.

Domestic Contact Information:

Mara Yachnin
Project Officer
Global Trade Programs
U.S. Commercial Service
Tel: 202/482-6238
Fax: 202/482-3113