Although the Netherlands is small with a surface area of 41,500 square kilometers, due to its strategic geographical location it serves as an important transit country for global trade and commerce, earning its name as “Gateway to Europe”. In the north and west the country is bordered by the North Sea, Germany in the east and Belgium in the South. In addition, the three large European rivers which reach far into the continent, the Rhine, Meuse and Schelde pass through the Netherlands out to the North Sea. These factors together with integrated transportation infrastructure, streamlined customs procedures and bonded warehousing facilities have contributed to the Rotterdam port being the largest in the world and the Dutch to become masters in trade and distribution.

With a population size of 16 million, the Netherlands is one of the most densely populated countries in the world, with the majority living in the four principal cities – Amsterdam, Rotterdam, The Hague, Utrecht - in the western part of the country that form the “Randstad”. The capital Amsterdam is known as the cultural and financial center with the major airport, Schiphol International Airport, located nearby. The government is seated in the Hague where most foreign consulates and embassies are also located. The other large cities are Rotterdam where the sea port and related activities are concentrated and Utrecht with a large service sector industry.

Most major economic centers in western Europe can be reached from the center of the Netherlands in one or two hours flight time or one day by road – crucial when considering that 170 million European consumers (half of the total EU population) are only within a 500 kilometer radius of Amsterdam.

European Union

Since the establishment of the European Union (“EU”) on 9 May 1950, the on-going process of further European integration has resulted in the current 15 member states and the groundwork for accession of 13 other Eastern and Southern European countries. It is governed by five institutions - Parliament, Council of Ministers, Commission, Court of Justice and Court of Auditors. In addition, the Heads of State and Government and the Commission President meet at least twice a year in European Council summits to provide overall strategy and political direction. The European Central Bank is responsible for monetary policy and managing the euro in the Economic and Monetary Union. Unlike the United States, the EU government is based on international treaties among sovereign nations rather than a Constitution. Another distinguishing feature is the power to enact laws that are directly binding on all EU citizens throughout the EU territory.

The successful creation of the European Economic Area (“EEA”) on January 1, 1994, unites the 15 EU member states and the three out of four European Free Trade Association states (Iceland, Liechtenstein and Norway) into one single market. This resulted in the world's largest trading bloc, comprising a population of approximately 380 million and accounting for almost 18% and 20% of world imports and exports respectively (excl. intra-EEA trade). Furthermore, another 330 million people live in eastern Europe, a region that is bound to increase in economic strength and consumer affluence in the near future. The formation of the EEA means the regulations and directives of the EU are applied across a wider geographical area than ever before, and that the European economy is increasingly integrated and interdependent.

EU Membership

Union membership is open to any European country with a stable democratic government, a good human right record, a properly functioning market economy, and the macro-economic fitness to fulfill the obligations of membership. Candidates must have the capacity to fulfill and implement EU laws and regulations.

To date, four enlargements have taken place in the evolution of the European Union. Norway had negotiated and signed an accession treaty in 1994, but Norwegian voters narrowly rejected membership in a referendum. Although it was not officially an enlargement, the five Laender of the former German Democratic Republic entered the Union as a part of the united Germany on October 3, 1990. The EU is currently preparing for a fifth enlargement towards Central and Eastern Europe.