The Netherlands: Gateway for Canadian businesses to the European market
Canada and the Netherlands have long enjoyed a strong and friendly trade relationship. With CAD 7.1 billion in imports from Canada, the Netherlands is a key partner within the European Union, presenting countless opportunities for Canadian companies looking to expand their business to Europe.
EU: Canada’s # 2 trading partner
Netherlands: $7.1 bil. imports from Canada
Strategic and long-term trade relationship
European opportunities for Canadian businesses
Over 75% of Canadian exports are currently destined for the United States, with Ontario and Alberta accounting for 60% of this volume. However, recent shifts in American trade policies have created barriers for Canadian manufacturers, making it increasingly difficult to compete in the U.S. market.
To continue growing and diversifying, Canadian companies need to look beyond their traditional borders. Europe, with its stable economy and robust trade policies, offers a wealth of opportunities for expansion.
Why Europe?
The European Union is Canada’s second-largest trading partner, with a thriving trade relationship built on decades of collaboration and shared values. In 2023 alone, total trade volume between Canada and the EU reached CAD 123 billion, with key exports including energy, raw materials, aircraft parts, and agricultural products.
CETA
The Comprehensive Economic and Trade Agreement (CETA) between Canada and the EU has further strengthened this bond. Since its implementation in 2017, CETA has eliminated tariffs on 98% of Canadian goods entering the EU market, significantly reducing costs and simplifying customs processes. It also opens up access to government procurement, improves intellectual property protections, and simplifies service market entry for Canadian businesses. This comprehensive agreement provides Canadian companies with a competitive edge, making Europe a logical next step for expansion.
Why the Netherlands?
Leading importer from Canada in the EU
The business relationship between Canda and the Netherlands has been flourishing over the years. The Netherlands is Canada’s second-largest EU trade partner after Germany. It is however the largest importer of the Canadian goods with EU, with an estimated import value of CAD 7.1 billion in 2023 alone.
This strong trade relationship is driven by shared values in innovation, logistics expertise, and a commitment to sustainable growth.
Infrastructure and connectivity
The Netherlands boasts world-class infrastructure, with Rotterdam—the largest port in Europe—serving as the primary gateway for Canadian goods entering the continent. The trade lane between Montreal and Rotterdam is particularly vital, offering seamless connectivity for transatlantic shipments.
Besides the lartest European sea port, the Netherlands is also home to Europe’s best connected airport, Amsterdam Airport Schiphol. The airport servers over 300 direct destinations of which 120+ are intercontinental. With its Smart Cargo Mainport Programme optimizing processes and connectivity, Schiphol aims to become the smartest cargo hub.
The port and airports in the Netherlands facilitate the movement of high-value goods such as pharmaceuticals, electronics, and perishables and offers extensive cargo connections to key global markets.
Thanks to a dense network of multi-modal connections into the European hinterland, goods arriving in the Netherlands from Canada can be distributed efficiently across Europe through road, rail, inland waterways or short-sea shipping.
Empowered logistics sector in the Netherlands
The Dutch transport and logistics sector accounts for approximately 14% of Dutch GDP and 5% of all employment in The Netherlands, making it one of the key sectors in the country. Next to a many highly experienced Dutch logistics providers, all major international logistics players, including DHL Supply Chain, GXO, C.H. Robinson have a significant presence in the Netherlands, with state-of-the-art fulfilment centres strategically located across the country.
Moreover, there are many collaborative initiatives, often supported by governmental funding, to further enhance efficiency in the industry and to make supply chains more sustainable and secure.
The high-quality logistics services offered in the Netherlands by numerous providers make it even easier for Canadian companies to find a logistics services provider that meets your specific logistics needs.
World class business environment
The Netherlands traditionally scores high in global rankings for customs efficiency and trade facilitation, due to the pro-business attitude of Dutch customs authorities, its clear rules and administrative procedures and a high level of digitization. This leads to speedy transshipment of goods and a low risk of product being delayed at ports or in distribution centers.
Besides, the Dutch ‘VAT deferment system’ allows companies to defer the payment of import VAT to periodical VAT return, which can lead to considerable cash flow advantage.
Dutch Agrifood excellence
The agrifood sector represents a significant portion of trade between Canada and the Netherlands. Canadian products like grains, pulses, and specialized agricultural technologies are highly valued in the Dutch market.
The Netherlands, with its advanced agricultural practices and global leadership in sustainable food production, provides a natural complement to Canada’s agricultural strengths. Opportunities for collaboration include large-scale precision agriculture, cold-climate crop innovation, and sustainable farming technologies.
Pharmaceuticals, life sciences and healthcare
Canadian innovation in pharmaceuticals and biotech aligns seamlessly with the Netherlands’ expertise in cold chain logistics and life sciences.
The Netherlands is home to a world-class distribution network for medical supplies and biotech products, ensuring the efficient and secure movement of temperature-sensitive goods across Europe. This creates fertile ground for collaboration in cutting-edge healthcare solutions.
The perfect starting point for your European expansion
For Canadian companies seeking to expand into Europe, the Netherlands offers the perfect starting point. Its strategic location, world-class logistics infrastructure, and strong trade relationships provide a seamless pathway into the European market. By partnering with Dutch experts, Canadian businesses can tap into new opportunities and scale with confidence.
Are you considering expanding your business to Europe and setting up your logistics operations in one of the European Union countries?
HIDC offers free of charge advisory services to international company entering the Euroean market and our experts are happy to talk to you about your plans.
Any questions about expanding your business to Europe?
Get in touch with one of our experts for free advice and explore how the Netherlands can be your gateway to European success.