The economic and trade relations between the Netherlands and Australia are excellent. Both countries have open and dynamic economies, which are to a large extent export oriented. Furthermore, both countries are major exporters of agricultural commodities. The Netherlands is Australia’s second source of foreign direct investment from Europe (following the UK). World-wide, the Netherlands is Australia’s sixth largest foreign investor. Many large Dutch companies have an office in Australia; conversely, the Australian companies Qantas, Pasminco, BHP, AMP and James Hardie have branch offices or daughter companies in the Netherlands. Per 30 June 2000, total outstanding Dutch FDI in Australia amounted to AUD 16 billion, whereas Australia had total investments to the amount of AUD 4.6 billion in the Netherlands.

These last few years trade between the Netherlands and Australia has shown a slight deficit for the Netherlands. In 2000, Dutch import from Australia amounted to 752 million Euro, whereas Australian imports from the Netherlands amounted to 710 million Euro. A year later, in 2001, total Dutch exports to Australia amounted to 672 million Euro, Australian exports to the Netherlands to 761 million Euro. Possibly due to the large geographical distance separating the two countries, trade volume between the Netherlands and Australia is less than what could be expected in light of the size and the openness of the two economies. Clearly, opportunities abound to increase two-way trade.

The most important export categories for the Netherlands in the past few years have been chemical products, various fabricated products, coffee and tobacco, medicaments, machines and transportation tools. The most important export categories for Australia have been coals, metal ore, mineral fuels, chemical and pharmaceutical products and dairy. It is noteworthy that, whereas Dutch exports to Australia consist of a wide variety of products, Australian exports to the Netherlands are largely made up of coal, ore and medicaments.