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Presentation at Seminar Doing Business: NL vs USA (2012 April 19, Amsterdam) Organised by: - Leading Edge Alliance - Bol International - Van Oers International

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  • 1. An Introduction to AmChamDoing Business: NL versus USAApril 19, 2012

2. AmCham: What is our mission? We are concerned with matters affecting the investmentclimate in the Netherlands. We actively promote increasedUS investment in the country. We are the voice of US business in matters of trade andinvestment. When we speak, governments listen in TheHague, in Brussels and in Washington DC. 2 3. AmCham Netherlands: Conceived in June 1961, born in October of the same yearand up and running since January 1962 A non-profit, non-governmental, non-political organization AmCham organization consists of a Board of Directors(28 persons), 11 Committees and 4,2 fte staff AmCham offices are located at WTC, Schiphol Airport Member of the European Council of American Chambersof Commerce - representing 40 Chambers: 17.000employers and over 20 million workers Fully accredited member of the U.S. Chamber ofCommerce our avenue in Washington DC 3 4. Who are our Members? American companies operating in the Netherlands Dutch companies exporting to or investing in the USA(Netherlands is third largest investor in USA) Professionals and other individuals whose activities arerelated to US-Dutch economic and business relations= Almost 400 companies, represented by about 800individuals, interested in commercial relations betweenthe USA and the Netherlands= 45 Patron members137 Corporate members185 Contributing members 4 5. What do we do?Committees: Human Resources (People Platform), Legal,Tax, Policy, Pharmaceutical and Diversity Marketing & Membership, Nominations Rotterdam Chapter & Brabant Chapter Young Professionals GroupPublications: AmCham Membership Directory AmCham Newsletter and Digital Newsletter Investors Agenda of Priority Points5 6. What else do we do? AmCham events focus on current business issues, networking, and social functions Seminars, Late Afternoon Briefings, Lunch andDinner meetings with political and business leaders,biennial Black Tie Dinner, annual Golf Tournament,annual Wine & Cheese Party, Young Professionalevents 6 7. Champs on Stage From August 2007, pilot in Rotterdam with 66studentsTO School year 2010-2011 14 schools 3 cities 1210 students in program More than 430 companies and organizations participating 375 company mentors involved Champs on Stage Foundation per 1 July 2010 7 8. AmCham,Working for a Better Business Climate Valuable opportunities for networking Business presentations given by experts A voice for your opinions and concerns Better investment and trade conditions Up to date information via publications and website A guide for contacts and new trends Active demonstration of your support for bettertransatlantic business8 9. Priority PointsInvestors Agenda of Priority Points:Our advocacy program to improve NL investment climateIn 2012 we will focus on: Stimulate labor flexibility and engage in strategic (labor)immigration policy Stimulate Innovation - Implement what works! Taxation - Consistent, predictable & simple9 10. Tax-related Priority Points Ensure stability, consistency,predictability and simplicity in tax legislation Adopt the proposal of the Chairman TopteamHoofdkantoren in respect of interest expense relating tothe financing of subsidiaries Simplify the existing interest deduction limitation rules toincrease clarity among the business community Have tax losses carried forward indefinitely Reduce the tax wedge on labor Conclude tax treaties with important trade partners andwith emerging economies with high growth 10 11. US Investment in the Netherlands The first investors in the Netherlands came in the late 19thcentury. One was Standard Oil. Also at around the sametime was Quaker Oats. Theyre both still here! US total investment stake in NL in 2010 over $520 billion(almost 25% of total EU) US FDI in 2010 to NL: $40 billion (= 22% of all investmentto EU in 2010) US majority-owned companies employed 225,000 personsin NL in 2009 NOTE: NL is 3rd largest investor in US 11 12. Six Largest Sources of Foreign Investment in NL the US is still number 1 (there are about 1,700 US companies in NL)90807060USAUK50L40FB30D20100 Stock of foreign investment in 2009; billions of euros Source: De Nederlandsche Bank12 13. OK, but how many mailbox companies arewe talking about? The Netherlands, the New Tax Shelter Hot Spot(Headline in The New York Times of February 4, 2007) Just over 39% of US investment abroad is in foreign affilliates classified as holding companies. For the Netherlands this figure is 73% - i.e. some $380 billion. That still leaves some $140 billion of hard business investment almost as much as in Germany and France combined, or almost twice that in all the Scandinavian countries combined. 13 14. Top 7 Destinations for US Direct Investment in Europe 2010 (historical-cost basis)Billions of Dollars 14Source: US Dept. of Commerce 15. Europe still most important destination for US Direct Investment Abroad over 55% of total in 2010US Direct Investment Abroad - Historical cost basis 2010Billions of dollarsSource: US Dept. of Commerce 15 16. US Investment in NL compared with other countries almost as much (ex. holdings) in NL as in BRIC16 17. Total US Foreign Direct Investment 1990 2008 17 18. US Direct Investment NL punching above its weight class (excluding holding cos; billions of US dollars rounded to nearest whole billion; percentage indicated is portion of total US investment in Europe)1990 2003 2005 2010NL$19 9% $7312% $84 11%$14012%UK$7334% $210 36% $27936%$37132%D $2813% $5610% $638%$797%CH$2512% $30 5% $446%$736%B $104.4%$24 4% $466%$676%Europe$215 $585 $766 $1,17518 19. Last Minute! Developments in 2011 US FDI to Europe in 2011 topped $200 billion for only thesecond time on record. Investment flows reached $215billion a 23% jump from 2010. In first 9 months of 2011 US FDI flows rose by 35% to NL US investment fell 52% in Italy, 50% in Belgium and 26% inUK. Worldwide corporate US foreign assets totaled $20 trillionin 2010. 58% located in Europe. Largest share: UK (22%,$4.4 trillion); second largest share: NL ($1.6 trillion) US affiliates in 2010 earned 4 times more in NL alone ($54billion) than they did in China and India combined ($13.5billion)19 20. Added Value of Foreign Investment Foreign investors are catalysts for productivity andgrowth in the Dutch economy. They are:Are more successfulCreate more employmentHire more skilled workersOutsource more locallythan their Dutch counterparts.Source: Min. of Economic Affairs - Buitenlandse Investeerders zijn Groeiversnellersvoor de Nederlandse Economie (July 2007)20 21. The same study notes that more of thesecatalysts can be attracted by: Continually improving the investment climateThe challenge for government is similar to that ofcompanies in a competitive environment: a systematic,sustained effort is needed to continually upgrade all theparameters that make a nation competitive. 21 22. AmCham in a decade from now? 22 23. Where is AmCham in 10 years time?Several reasons for membership decline may be discerned. The comparatively (among western economies) very goodinvestment climate in the Netherlands as a whole for USand other foreign companies. Many initial advocacy aims formulated in the early 1960shave been largely achieved leaving less need for anadvocacy platform.23 24. Where is AmCham in 10 years time? The rise of the global company who does not see itselfhaving a nationality at all.Many American companies do not want to be seen as beingUS in origin, but as being international. Some companieseven have a general policy that forbids membership inorganizations such as AmCham. 24 25. Other Associations also in state of flux One can also see a parallel development in employer andlabor organizations in the Netherlands (and elsewhere forthat matter). Protestant, catholic and secular employer associationsand trade unions have lost their distinctive characters andhave either disappeared or have merged. Many foreign employer associations in the Netherlandssimilar to AmCham have disappeared or adopted a moresocial than a business advocacy function.25 26. Where is AmCham in 10 years time? The challenge to secure AmChams future may lie indistinguishing a role for itself within employersorganizations in the Netherlands as the coordinating voicefor all foreign investors.26 27. Working for a Better Business Climateadvocacy - information - networkingwww.amcham.nl