Dutch exports to exceeded Netherlands imports from other European countries by $127.1 billion in 2014. Similarly, Netherlands achieved a $4.1 billion trading surplus with Middle Eastern nations.
The fact that Netherlands earns these country-specific trade surpluses indicates Dutch competitive advantages for a specific set of export products highlighted below.
These major product supply advantages are root causes behind why Netherlands generated the world’s seventh-biggest trade surplus during 2014, albeit lagging front-runner China’s $384.3 billion balance for the year.
Netherlands’ trade surplus in 2014 has grown by 20.2% since 2010 when its surplus stood at $52.7 billion.
Netherlands Major Product Supply Advantages
Top 10
Presented in descending order, the following list showcases the general product categories under which Netherlands earned the highest trade surpluses in 2014.
- Machinery: US$12.7 billion (12.9% of all product surpluses)
- Plastics and plastic articles: $11 billion (11.2%)
- Live trees and plants: $8.8 billion (9%)
- Pharmaceuticals: $6.4 billion (6.5%)
- Dairy, eggs and honey: $5.7 billion (5.8%)
- Meat: $5.6 billion (5.7%)
- Vegetables: $5 billion (5.1%)
- Organic chemicals: $4.6 billion (4.7%)
- Optical, technical and medical apparatus: $3.6 billion (3.7%)
- Cereal/milk preparations: $3.2 billion (3.2%)
The above top 10 product categories represent 65.5% of Netherlands’ overall product-category surplus subtotal which amounted to $101.8 billion. For that subtotal, 52 of Netherlands’ 97 general product categories delivered a surplus in 2014 while the remaining 45 categories incurred deficits.
Growth
Netherlands enriched its trade surplus amounts at the fastest-pace during 2010 to 2014 under the product categories below.
- Musical instruments: Up 3,666% since 2010 (US$147.6 million)
- Miscellaneous manufactured articles: Up 2,293% ($476 million)
- Lead: Up 777.6% ($77.1 million)
- Pharmaceuticals: Up 537.4% ($6.4 billion)
- Aircraft, spacecraft: Up 161.3% ($512.9 million)
- Cereal/milk preparations: Up 115.5% ($3.2 billion)
- Furskins and artificial fur: Up 102.9% ($252.8 million)
- Optical, technical and medical apparatus: Up 79.4% ($3.6 billion)
- Raw hides, skins not furskins, leather: Up 72.6% ($227 million)
- Fish: Up 57.4% ($640.9 million)
Detail
From the perspective of the more detailed 4-digit harmonized tariff system (HTS) level, below are 15 products that enabled Netherlands to achieve the highest surpluses in its international trade with other countries.
- Processed petroleum oils: US$24.7 billion
- Petroleum gases: $7.4 billion
- Machinery for making semi-conductors: $6 billion
- Medication mixes in dosage: $4.7 billion
- Tractors: $4 billion
- Miscellaneous live plants: $3.7 billion
- Fresh or dried flowers (for bouquets, ornamental): $3.7 billion
- Polyacetal/ether/carbonates: $3.5 billion
- Cheese, curd: $3.1 billion
- Blood fractions (including antisera): $3.1 billion
- Cyclic hydrocarbons: $2.7 billion
- Flour/meal/starch/malt extract food preparations: $2.6 billion
- Miscellaneous animal feed preparations: $2.3 billion
- Ethylene polymers: $2.3 billion
- Electro-medical equip (e.g. xrays): $2.1 billion
Among these, petroleum gases had the fastest-growing Dutch surplus with a 2,572% gain since 2010. In second place were blood fractions including antisera up 2,308% while exported flour/meal/starch/malt extract food preparations moved ahead in value by 117.1%.
Netherlands Major Product Supply Advantages by Country
Top 10
Presented in descending order, the following list shows with which trade partners Netherlands earned the highest trade surpluses in 2014.
- Germany: US$55 billion (28.5% of Dutch country-specific surpluses)
- France: $23.9 billion (12.4%)
- United Kingdom: $14.8 billion (7.7%)
- Italy: $14.1 billion (7.3%)
- Belgium: $13.8 billion (7.1%)
- Spain: $6.7 billion (3.5%)
- Poland: $4.7 billion (2.4%)
- Switzerland: $4.5 billion (2.3%)
- Austria: $4 billion (2.1%)
- Turkey: $3.5 billion (1.8%)
The above 10 trade partners represent 77.4% of Netherlands’ subtotal surplus of $193.1 billion from the 143 geographic entities with which Netherlands demonstrated competitive trade advantages. That subtotal excludes the 79 trade partners with which Netherlands incurred trade deficits.
Growth
Netherlands enriched its trade surplus amounts with the countries below at the fastest-pace during 2010 to 2014.
- Chad: Up 1,859% since 2010 (US$49.5 million)
- Kiribati: Up 1,788% ($320,000)
- Northern Mariana Is: Up 1,515% ($323,000)
- Marshall Islands: Up 1,295% ($5.6 million)
- Tanzania: Up 660% ($49.3 million)
- Togo: Up 636% ($1.2 billion)
- Estonia: Up 605% ($748.5 million)
- Hungary: Up 559% ($1.5 billion)
- Lesotho: Up 483% ($2.2 million)
- Liberia: Up 457.2% ($33.6 million)
From the above list, Netherlands showed major product supply advantages over trade partners with comparatively small populations and for generally small surplus amounts. However, Netherlands did generate a trade surplus with Hungary that exceeded $1 billion.
Germany
Below are the products that gave Netherlands the highest surpluses in its international trade with Germany.
- Processed petroleum oils: US$10.7 billion (19.4% of Netherlands’ surplus vs. Germany)
- Petroleum gases: $9 billion (16.4%)
- Crude oil: $6.2 billion (11.2%)
- Phone system devices: $2.5 billion (4.5%)
- Computers, optical readers: $2.2 billion (4.1%)
- Printing machinery: $1.4 billion (2.6%)
- Fresh or dried flowers (for bouquets, ornamental): $1.3 billion (2.4%)
- Miscellaneous live plants: $1.2 billion (2.2%)
- Computer parts, accessories: $1.2 billion (2.1%)
- Aluminum (unwrought): $1.1 billion (2%)
Among these, crude oil had the fastest-growing Dutch surplus with Germany posting a 6,172% gain from 2010 to 2014. In second place were petroleum gases up 1,036% followed by unwrought aluminum ahead by 74.1%.
France
Below are the products that gave Netherlands the highest surpluses in its international trade with France.
- Petroleum gases: US$2.1 billion (8.9% of Netherlands’ surplus vs. France)
- Computers, optical readers: $1.8 billion (7.4%)
- Medication mixes in dosage: $1.3 billion (5.3%)
- Phone system devices: $1.2 billion (4.9%)
- Processed petroleum oils: $1.1 billion (4.8%)
- Printing machinery: $999 million (4.2%)
- Electro-medical equip (e.g. xrays): $633.9 million (2.7%)
- Cigars/cigarellos, cigarettes: $620.3 million (2.6%)
- Fresh or dried flowers (for bouquets, ornamental): $585.4 million (2.5%)
- Miscellaneous live plants: $460.2 million (1.9%)
Among these, petroleum gases had the fastest-growing Dutch surplus with France posting a 3,467% gain from 2010 to 2014. In second place were medication mixes in dosage up 156.1% followed by printing machinery ahead by 19.1%.
UK
Below are the products that gave Netherlands the highest surpluses in its international trade with the United Kingdom.
- Phone system devices: US$2.3 billion (15.6% of Netherlands’ surplus versus UK)
- Computers, optical readers: $1.7 billion (11.6%)
- Printing machinery: $1 billion (6.9%)
- Fresh or dried flowers (for bouquets, ornamental): $834 million (5.6%)
- Poultry meat: $699.9 million (4.7%)
- Electro-medical equip (e.g. xrays): $696 million (4.7%)
- Petroleum gases: $619.8 million (4.2%)
- Electrical energy: $472.3 million (3.2%)
- Salted/dried/smoked meat: $469.2 million (3.2%)
- Biodiesel: $463.3 million (3.1%)
Among these, electrical energy had the fastest-growing Dutch surplus with the UK posting a 549.8% gain from 2010 to 2014. In second place was biodiesel up 169.5% followed by printing machinery ahead by 46.7%.
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on December 6, 2015
Trade Map, International Trade Centre. Accessed on December 6, 2015
Investopedia, Net Exports Definition. Accessed on December 6, 2015