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US-Luxembourg Trade Relations: Alliance on Higher Standards
Empowering a Good Start

Luxembourg is considered as one of the heavily industrialized economies in Europe. With this standing in the community, it is regarded as one with higher standards of living in the entire continent. The southern portion of the country takes good care of the industry where iron deposits are mined. This is considered the heart of all world trade opportunities for Luxembourg. Diversity had been profound and was evident through the years. While iron and steel are the main thing, chemicals, plastics, rubber and synthetic fibers are also produced.

The central district takes care of the agricultural labor force. The north is where you could find the center for tourism. Luxembourg joined some associations to strengthen its global business capacities. In 1948, it went with the Benelux Customs Union while in 1958 it became part of the European Community. There are a lot of things which can be said about the highly technical industry of Luxembourg. In order to extend their abundance to the world, it had also joined forces with the United States. Both have high standards of living which only a few nations could cope up with. They started empowering their forces by putting a string that could bind them together.

These countries pulled through the tide of business trade by putting up a site which could help one benefit from the other. They believed that doing business with each other is necessary to improve their status in the world. In fact, the Luxembourg Embassy was put up to protect the interests of US companies which sprung in their area while giving equal attention to the goods exported from the US.

Major Exports and Imports for US and Luxembourg

Luxembourg must have benefited from the fact that it is considered a center for land transportation in the European continent. This paved the way to track and provide exports to other countries including the United States. The mobility also provided for its capacity to carry the loads of prime commodities coming from the United States as well.

Luxembourg is rich in goods that they have provided international trade which were topped by countries such as Germany, France, Italy, United Kingdom, Belgium, Spain and the Netherlands. Despite not finding United State at the top ranks, it still provided a good opportunity for foreign trade with the nation. The proof could be seen with the numerical data provided by the US Census Bureau for the year 2006 listed as follows:

  • Luxembourg's Exports to US. A calculation of $534.2 million worth of commodities was exported by Luxembourg to US. The goods which topped the chart were iron and steel products which resulted to a 17.2% increase amounting to $92 million. It was followed by nine more items which are semi-finished iron and steel mill products, other precious metals, finished textile industrial supplies, finished metal shapes, other industrial machinery, woodwork, glass, plastic and rubber machinery, measuring, testing and control instruments, electric apparatuses and parts, and on the number 10 spot are abrasives, boxes and belting glass. This garnered an earning of $16.7 million which is estimated at an increase of 3.1%.
  • Luxembourg's Imports from US. The highest value for a product went to computers which earned $73.9 million equivalent to 12.7% increase. Other commodities on top of the ranks are other industrial supplies, civilian aircraft parts, civilian aircraft engines, electric apparatuses, medicinal equipment, computer accessories, nuts, manmade cloth, and complete civilian aircraft. The last product earned a humble $16.7 million income which presented a percentage of 2.9%.
  • Fastest-Growing US Exports to Luxembourg. The highest percentage of sales of products from US to Luxembourg belonged to trucks, buses and special purpose vehicles which gained $1.1 million at a mark of 2,615%. It is followed by medicinal equipments, laboratory testing instruments, inorganic chemicals and industrial rubber products. The last product posted a very exemplary mark of 307% totaling to $8 million.
  • Fastest-Growing US Imports from Luxembourg. The remarkable growth in sales of US products from Luxembourg goes to other precious metals which gained an income of $78.5 million at a rate of 175,000%. The other commodities included in the top five are other military equipment, materials handling equipment, automotive tires and tubes and lastly machine metal working, molding and rolling tools. The last item was given a rate of 126% amounting to $3.4 million.
Luxembourg Friendship Establishment and Navigation Treaty

The friendship between Luxembourg and the United States was furthermore strengthened by the Luxembourg Friendship Establishment and Navigation Treaty. The agreement was signed in Luxembourg on February 23, 1962. This signified the start of good trade relations between the Luxembourg and US. The treaty included the following important parts:

  • On friendship. The pact provided that there should be a strengthening of the bond between the two nations. The cultural heritages of both nations were also addressed with respect for each others cause.
  • On trade and commerce. The agreement specifically provided for encouragement of closer economic relations between the United States and Luxembourg. It said that all rights and privileges on commerce and trade should work for both sides. All investments should pass the right standards as given by the laws of each land. All enterprises should be developed by contributing a substantial amount of capital.
  • On protection of human rights. All population from both nations needs to be treated fairly no matter where the boat's sailing status will bring them. Freedom of religion should be given to each party. Racial discrimination should be totally eliminated. There shall be promulgation of equal treatment for each camp no matter what the grounds are.
  • On established property. The treaty provides that there shall be no harm done on properties constructed on each land. The right to preserve the companies even if not of their own constitution shall always prevail. There shall be constant security for properties within their territorial jurisdictions.
Agreements such as this one entail world business opportunities. It gives total support to the other with the expectation of getting the same way in return. The trust built by both worlds could give a clearer atmosphere for economic trade.

Differences between Trade Agreements

There are two sides of a coin, so to speak. In this seemingly smarter scenario, the two sides may be bothered when one is more favored than the other. In simple parlance, conflict arises when there is a struggling effort to find out who among the two nations is found on top and who is lagging behind.

Some disparities between the trade of Luxembourg and United States are tracked from the North Atlantic Treaty Organization (NATO). The NATO is comprised by 26 member countries which includes both the US and Luxembourg among others. This was actually formed in order to help the trade relations between member nations. However, there were several disputes which had to be resolved

Conflict among NATO Countries became evident when there were posing problems on the oil crisis. The NATO European countries were fighting among themselves with the following reasons: First, the individual country's effort to secure oil sources without helping the other party and second, the problem on oil distribution among these countries. The US was caught in between this struggling battle between the other nations. Because of its willingness to settle the feud, it successfully ended the embargo and everything else was put back into place.

The Hopes of Tomorrow

The NATO war among European countries which placed US in the middle is now over. They were made to understand that so long as the pact binds them together, a better future would await them. Luxembourg continued its partnership with the US because it knows how powerful the country is to keep them breathing. The United States, at the same time found a great breathing ground in Luxembourg because both their foreign trades are prospering up to this point.

There is this remark which says that US is generally the leader in terms of productivity and technology. Well, this holds true and is acceptable for all of us. If this is not the case, why do all countries rely with the help that the United States government could give? See, how power, prestige and fame could work this time.

Luxembourg is not at all bothered by this statement. It does not matter if US is found on top as long as they benefit from what they have contributed to its growth. Come to think of it, all nations are affected once the US economy is down. We should not be blinded by our efforts to find our way to the top. What we all need now is to accept the realities and go with the flow.

Luxembourg and the United States will still continue building hopes for the future. There are still a lot of generations which will depend upon the friendship that they have established through the times. The fruit of their exports and imports and other portions of world trade should be improved all the more. There are no boundaries set for this type of high standard relationship.


Note: Trade statistics, industry links, economic projections and global business resources on this page have been compiled from hundreds of trade related websites, government guides and resources on the Internet. We provide this valuable information for industrial suppliers, manufacturers, exporters and importers seeking to enter or expland business opportunities in Luxembourg.

Market Research

Luxembourg has one of the strongest economies in the world with consistently one of the lowest unemployment rates. The country has made some progress in diversifying manufacturing, and produces items such as rubber and plastics, fabricated metals, glass, porcelain, computer products, and chemicals. Surprisingly to outsiders, Luxembourg still has attractive rural areas, and a viable agriculture sector that supports winemaking, meat and dairy production, and other forms of food processing.

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Major Goods Exported

Major Goods Imported

Industrial Outlook

Luxembourg's major industries include iron and steel, food processing, chemicals, metal products, engineering, tires, glass, and aluminum.

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