The Dutch General Elections of March 17 are approaching rapidly. In a call for action titled ‘Choosing a Strong Netherlands’ that was sent to the leaders of the major political parties, AmCham has formulated its recommendations for a futureproof business and investment climate.
U.S. companies are the largest foreign investor in the Dutch economy and account for approximately 450.000 direct and indirect jobs, hundreds of millions of R&D investments and roughly 5% of the Dutch GDP. While the Dutch environment offers many opportunities, American as well as other international and Dutch companies are also confronted with challenges. In its call for action, AmCham addresses a number of these opportunities and challenges while broadening its advocacy scope beyond Tax to include themes that will be high on the agenda the coming years: Sustainability, Innovation and Diversity & Inclusion. Naturally, the call for a European level playing field, consistency in policy and good public-private collaboration are important in all of the highlighted areas. ‘Choosing a Strong Netherlands’ includes the following six topics:
1. One for all, all for the European Union
2. We can only achieve economic recovery after COVID-19 together
3. Innovating is investing
4. Get started now with sustainability and climate policy with equal rules for the whole of Europe
5. Inclusion - because every voice counts
6. Tax policy
In addition to sharing its vision on above themes, AmCham has conveyed the message that we want to be a reliable and long-term discussion partner.
Download 'Choosing a Strong Netherlands'. An English translation of the letter is available below. For a copy of the letter in Dutch, click here.
For the key messages of the Investment Climate Study 2022, click here.
Amsterdam, 22 February 2021
Dear Sir/Madam Party Leader,
On March 17, 2021, the Dutch voter will go to the polls. The new cabinet cycle that follows coincides with an eventful time in which we find ourselves, in the Netherlands and in the world. Together we face major challenges. As leader of your party you have a great responsibility to shape policy decisions for a consistent course of the Netherlands. The American Chamber of Commerce in the Netherlands (AmCham) considers it its responsibility to contribute to this course on behalf of its 347 members. In the accompanying document Choosing for a Strong Netherlands we set out the contours of our vision.
With the themes outlined, we build on the decades of collaboration between Dutch policymakers, social stakeholders and AmCham, in order to create a consistent, predictable and attractive business climate. Naturally, that mission has to be continuously developed in an ever-changing environment. This requires companies to combine short-term agility and flexibility, with a vision of the long-term goal. Members of AmCham continue to work hard to contribute to a changing society. American companies are the largest foreign investor in the Netherlands, providing 450,000 jobs. More than 3,000 American companies in the Netherlands generated a turnover of € 211 billion in 2018 (source: Statistics Netherlands). However: for AmCham, a stable business climate is explicitly about more than just economic or financial interests. The fact that the public and political sentiment is hardening towards multinational companies and that growing protectionist tendencies can be observed within Europe, is something we are concerned about.
American and Dutch companies that are members of AmCham regard themselves as part of Dutch society. We therefore remain involved and willing to continue to work together with politicians, policymakers and civil society organizations over the next four years to tackle the themes described in the appendix. We do this in the role that is assigned to us: as a sounding board, driver, stimulator, contributor of ideas and / or investor. Our members are thereby pleased with the renewed enthusiasm for the Transatlantic relationship, both in the United States and in Europe.
On behalf of AmCham, we wish you wisdom during the elections, the formation period and the underlying policy choices that have to be made. If you would like to appeal to AmCham or one of our members, we are gladly available. After March 17, we will contact you to find out your willingness to exchange views on the topics covered in this letter. In the meantime, you are cordially invited to contact the undersigned about this.
Sincerely,
On behalf of the board and members of AmCham,
Jasper van Ouwerkerk Marc ter Haar
President Executive Director
A copy of this letter is sent to members of the Standing Parliamentary Committees on Finance and Economic Affairs and Climate.
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Choosing a Strong Netherlands
February 2021
The American Chamber of Commerce in the Netherlands (AmCham) is the association of American subsidiaries in the Netherlands and of Dutch companies that invest and trade between the United States and the Netherlands. The greatest common denominator between our members is the belief in limiting trade barriers and the pursuit of an attractive investment climate in the Netherlands. In doing so, we recognize the value and importance of good public-private collaboration and of creating mutual social and economic well-being in the Netherlands, Europe and America. From this perspective, our members have been driving economic activity between our countries for decades. American companies form a substantial part of the Dutch economy with a turnover of € 211 billion in 2018. American companies account for more than 450,000 jobs in the Netherlands, of which 218,000 are direct jobs. In 2018, these direct employees produced € 144 billion worth of goods and services in the Netherlands, with an added value of 37.3 billion accounting for almost 5% of Dutch GDP. In addition, exports to the United States are also important for the Dutch economy. In 2019, € 26 billion worth of goods was exported from the Netherlands to the United States and € 20 billion worth of services (source: Statistics Netherlands).
Also in the future, AmCham wants to continue to contribute to maintain and strengthen the public-private foundation. This starts with sharing our vision on themes that we believe are most relevant for the Netherlands and that will play an important role in policy-making in the coming years. We express this vision on behalf of our 347 members, the board, various committees and our Young Professionals. First of all: tackling the pandemic now and in the future requires a contribution from all stakeholders. In general, it is necessary for the public and private to join forces even more to meet societal challenges. According to AmCham, at least six themes are crucial to maintain the leading position of the Netherlands in Europe and in the world, namely: the importance of the collective strength of Europe, sustainable economic recovery after COVID-19, innovation, climate policy, inclusion and fiscal policy.
1. One for all, all for the European Union
The European Union provides an indispensable framework for the development and growth of the Netherlands. A strong Europe is not only good for the Dutch – it is good for every European citizen. The pandemic demands a lot from all Europeans and recovery should work for everyone in Europe. On the world stage, the Netherlands, together with its social partners, but also with the other member states, must strive for a strong economic position and an attractive investment climate. The alternative is that other global powers seize the investment readiness and economic growth in the wake of COVID-19 and well beyond. AmCham The Netherlands has also shared this message with the 44 other AmCham associations in Europe.
As the Netherlands, strive for a careful balance between following and leading in Europe. With the Dutch business climate in mind, clear long-term positions must be formulated, prioritized and implemented. This is essential for the confidence ‘the market’ has in government and will encourage investment from the EU and from outside the EU;
- Continue to collaborate on innovation in academia, industry and government, including in a wider European and global context;
- Take advantage of Horizon Europe, the EU's investment program for research and innovation for the period 2021-2027. This program offers opportunities for innovation in academia, business and government, both within the Netherlands and internationally;
- Create a Capital Markets Union with more funding options for the investments needed for the recovery, for the green transition and for technological innovation. It will also help the Netherlands and Europe develop capital markets needed to serve Europe's key investors, including savers and retirees;
- Work on an unambiguous global sound from Europe to the rest of the world. According to AmCham, it is justified to pursue strong economic values and low trade barriers with the rest of the world, as an economic power bloc. Avoid protectionist tendencies in which traditional trading partners such as the United States are unfairly disadvantaged. Strive for Open Strategic Autonomy.
2. We can only achieve economic recovery after COVID-19 together
The COVID-19 crisis is a major threat to the global economy and has consequences for, among other things, the willingness of foreign companies to invest in the Netherlands. The choice for the Netherlands is not self-evident and must be cherished and preserved. The trade relationship with the United States is the largest in size and indispensable for the Dutch economy. Maintaining our position in the global economy and a strong public-private foundation are the basis of the economic recovery after COVID-19.
- Ensure coordination and consistency in policy between ministries. Transparency, coherence and clarity of policy and decision making is necessary for all stakeholders in the Netherlands, including companies;
- Not only support companies in their R&D, but also during the roll-out phase of innovations. This will support the sustainable transition and recovery after COVID-19;
- Promote sustainable careers that contribute to job security for people and give companies access to the right talent. Invest in public-private partnerships and a labor market infrastructure that is aimed at strengthening the agility and resilience of people and companies, and that facilitates transitions in the labor market;
- Increase employee resilience by stimulating retraining as a result of technological changes or a recession. Encourage continuous (digital) learning and further training;
- Deal with increasing pressure on infrastructure before it becomes a limiting factor for future sustainable growth. Focus on the future:
- Invest in efficient energy and digital infrastructure that meets growth needs;
- Use smarter and more sustainable (vacant) office space;
- Invest in expansion of housing and international schools in large cities;
- Continue the improvement of the flow of traffic.
3. Innovating is investing
In 2018, American companies invested more than € 3.6 billion in material goods and more than € 600 million in R&D in the Netherlands (source: Statistics Netherlands). However, R&D investments in the Netherlands are lagging behind compared to the rest of the world, and that position is getting worse. The COVID-19 crisis is also causing a decrease in the investment capacity of the business community. As a result of stricter regulations, the Netherlands is in danger of losing its leading position in terms of innovation and economy. The Netherlands and Europe benefit from strong innovation hubs in the Netherlands itself.
- Give priority to a broad investment agenda for the economic recovery in the coming years;
- Collaborate with multinational companies and promote this collaboration. Accordingly, do not exclude these companies from (European) cooperation programs. The following applies here: a good example tends to be followed. Implement policies that promote and stimulate innovation and investment instead of taxing them;
- Support and expand university research centers that collaborate with industry, ease access to funding and improve the quality of data collection;
- Facilitate and stimulate attracting international talent, in education as well as on the labor market;
- Keep an eye on the quality of all levels of education;
- Treat intellectual property respectfully and unambiguously.
4. Get started now with sustainability and climate policy with equal rules for the whole of Europe
Climate change is one of the greatest challenges of our time. Everyone in society must contribute to turn this tide. Politics and business must be at the forefront of this. We are in a global transition to more sustainably generated energy and are moving towards irreversible tipping points. Large companies play a crucial role in this in terms of feasibility and speed. Members of AmCham constantly set themselves commitments beyond shareholder objectives: how can we as a business community be part of society as well as the solution? These goals are actively monitored by companies and adjusted where necessary. There are plenty of good practices and sharing them is meaningful and inspiring.
- Ensure that the Netherlands and Europe contribute effectively to the energy transition. For the feasibility and speed of the transition, the same rules must be applied in all countries in such a way that there is a balanced playing field within the Union. In this we argue for a transparent ecological-economic framework, so that all public but also private investments generate maximum returns;
- Always keep this maximum European return for the longer term in mind when regulating and stimulating, and avoid short-term, local suboptimal spending and regulation;
- Encourage sustainable investments by making them tax deductible. Tax deductibility has declined in recent years and now actually hampers investment and establishment in the Netherlands;
- Continue grants that encourage businesses and consumers to adopt climate-friendly practices and products and expand them where they make the most ecological and economic sense;
- Take into account the use of innovative and technological applications for sustainable solutions, which also stimulates entrepreneurship in achieving the goals. Look at examples of global players established in the Netherlands. As such, good solutions from other parts of the world can also be applied here.
5. Inclusion - because every voice counts
AmCham wants to actively contribute to promoting inclusion and diversity, both within companies and in society, and to this end has a very active Diversity & Inclusion Committee since 2008. For us, promoting inclusion and diversity means, among other things, diversity at the top, more attention to cultural diversity and a commitment to equal opportunities and pay for everyone. Greater diversity and better inclusion contribute to the competitiveness of companies and the Netherlands. Companies with an inclusive culture use the full potential of their employees, and in general make even more profit in the long run. Studies show that more gender equality can yield billions to Dutch GDP. The business community and the government have a shared responsibility to allow this message to take root in society and to realize progress where necessary. Supporting and encouraging groups that - subtly or blatantly - are excluded or treated unfairly can help us achieve this ambition.
- Strive for greater cultural and gender diversity at all levels. Offer support to companies and employees who need it;
- Within AmCham we see many good practices, many members have:
- Inclusion & Diversity Managers or someone with that responsibility;
- Training for employees, for example on unconscious bias, inclusive collaboration and inclusive leadership;
- A programmatic approach for the various communities within their organization;
- Policies for integrating inclusion & diversity into their entire ecosystem (e.g. supply chain diversity);
- Maintain a collaborative dialogue between the government and the private sector. Encouraging and sharing good practices between companies can help, and that is what AmCham therefore also facilitates. Because: inclusion and diversity are taken very seriously, but they also require a lot of attention still for the future;
- Stimulate continuous learning throughout the entire career ('lifelong learning') to keep people from every group in the working population employable (and thus not to lose the gains from above efforts) in the continuous movement towards a new 'future of work '.
6. Tax policy
AmCham represents American companies that have added value for the Netherlands – as an employer, innovator, driver of sustainability and/or investor. On behalf of these companies, AmCham wants to contribute by thinking about the development of tax policy that ensures that the Netherlands is attractive in particular for companies with substantial activities, while preventing abuse.
National and international tax developments have a major impact on the attractiveness of the Netherlands for investments by American companies. In recent years, the Netherlands has done a lot to combat abuse of the international tax system by introducing national regulations and by taking the lead in international initiatives within the EU and the OECD.
- Continue to actively participate in international initiatives within the EU and the OECD, in the belief that a trading country such as the Netherlands benefits from multilateral solutions;
- Develop a vision for the future. Where in the past mainly legal structures were decisive within the international tax system, in the future - think of the CCCTB (EU) and Pillar 1 (OECD) - it is rightly about the location where important business functions are performed, where added value is delivered, where innovation and investment are taking place. These functions also offer great opportunities for inclusive employment, innovation and sustainability. AmCham has concrete ideas on how to stimulate investment in these functions on the one hand, while on the other hand increasing taxation on passive situations;
- Stimulate innovation and sustainability for companies and individuals by making these investments deductible in the tax base.
In conclusion
For AmCham, a stable business and investment climate is about more than financial, fiscal and economic interests alone. The fact that public and political sentiment is hardening towards multinational companies is something we are concerned about and that we would like to change. For example by more emphatically seeking dialogue. And by using a constructive exchange of views to better understand each other's positions and dilemmas. With this memorandum Choosing for a Strong Netherlands we have aimed precisely at that, and we look forward to following up on this in the near future.
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