Luxembourg’s Top Trading Partners

Luxembourg's Top Trading Partners

Luxembourg City

Luxembourg shipped US$15.8 billion worth of products around the globe in 2016. That figure represents a tiny 0.1% of overall global exports estimated at $16.236 trillion one year earlier in 2015.

From a continental perspective, $13.4 billion or 85% of Luxembourg’s total exports by value in 2016 were delivered to other European nations.

Asian importers purchased 7.1% of Luxembourg shipments while 3.4% worth of products arrived in North America.

At 1.2%, a much smaller portion of Luxembourg exports were bought by importers in Africa.

Luxembourg’s Top Trading Partners

Top 15

Below is a list showcasing 15 of Luxembourg’s top trading partners, countries that imported the most Luxembourg shipments by dollar value during 2016. Also shown is each import country’s percentage of total Luxembourg exports.

  1. Germany: US$3.5 billion (22.4% of total Luxembourg exports)
  2. Belgium: $2.6 billion (16.6%)
  3. France: $2.4 billion (15.3%)
  4. Netherlands: $809.4 million (5.1%)
  5. United Kingdom: $589.3 million (3.7%)
  6. Italy: $583.5 million (3.7%)
  7. Switzerland: $448.2 million (2.8%)
  8. Spain: $420.3 million (2.7%)
  9. United States: $414.4 million (2.6%)
  10. Poland: $288.1 million (1.8%)
  11. Czech Republic: $271.5 million (1.7%)
  12. Austria: $231.6 million (1.5%)
  13. China: $228.2 million (1.4%)
  14. Qatar: $219.9 million (1.4%)
  15. Sweden: $189.5 million (1.2%)

Over four-fifths (83.9%) of Luxembourg exports in 2016 were delivered to the above 15 trade partners.

United States was the only top importer that decreased its purchases from Luxembourg over 2009 to 2016, down in value by -1.3%. Among the other 14 countries, gains ranged from a minimum of 0.2% for Italy up to 2,245% for Qatar.

Deficits

Luxembourg incurred an overall -$5.8 billion trade deficit during 2016, down by -6.4% from -$6.2 billion in 2009.

As defined by Investopedia, a country whose total value of all imported goods is higher than its value of all exports is said to have a negative trade balance or deficit. It would be unrealistic for any exporting nation to expect across-the-board positive trade balances with all its importing partners. Similarly, that export country doesn’t necessarily post a negative trade balance with each individual partner with which it exchanges exports and imports.

Luxembourg incurred the highest trade deficits with the following countries:

  1. Belgium: -US$3.6 billion (country-specific trade deficit in 2016)
  2. Germany: -$1.5 billion
  3. United States: -$1.1 billion
  4. China: -$1 billion
  5. Mexico: -$882 million
  6. Japan: -$399.4 million
  7. Canada: -$146.4 million
  8. Netherlands: -$126 million
  9. Ireland: -$92 million
  10. Brazil: -$35.6 million

Among Luxembourg’s trading partners that cause the greatest negative trade balances, Luxembourg deficits with United States (up 1,161%), China (up 809.2%) and Canada (up 509.9%) grew at the fastest pace from 2009 to 2016.

These cashflow deficiencies clearly indicate Luxembourg’s competitive disadvantages with the above countries, but also represent key opportunities for Luxembourg to develop country-specific strategies to strengthen its overall position in international trade.

Surpluses

Based on Investopedia’s definition of net importer, a country whose total value of all imported goods is lower than its value of all exports is said to have a positive trade balance or surplus.

Luxembourg incurred the highest trade surpluses with the following countries:

  1. United Kingdom: US$342 million (country-specific trade surplus in 2016)
  2. Switzerland: $301.6 million
  3. France: $247 million
  4. Spain: $243.2 million
  5. Qatar: $219.9 million
  6. Russia: $130.4 million
  7. Italy: $129.7 million
  8. Turkey: $115.1 million
  9. Sweden: $111.4 million
  10. Czech Republic: $105.7 million

Among Luxembourg’s trading partners that cause the greatest positive trade balances, Luxembourg surpluses with Spain (up 2,436%), Qatar (up 2,246%) and United Kingdom (up 443.6%) grew at the fastest pace from 2009 to 2016.

These positive cashflow streams clearly indicate Luxembourg’s competitive advantages with the above countries, but also represent key opportunities for Luxembourg to develop country-specific strategies to optimize its overall position in international trade.

Companies

Companies Servicing Luxembourg Trading Partners

Seven corporations based in Luxembourg rank among Forbes Global 2000 for 2015, including the bank Espirito Santo Financial. Below are the other major Luxembourg companies that Forbes included:

  • ArcelorMittal (iron, steel)
  • Tenaris (oil services, equipment)
  • RTL Group (broadcasting, cable)
  • SES (broadcasting, cable)
  • Ternium (iron, steel)
  • Millicom International (telecommunications)

Wikipedia lists companies from Luxembourg, some of which are international trade players.

  • Brasserie Nationale (brewery)
  • Cargolux (cargo airliner)
  • Ceratizit (hard metals)
  • ROTAREX Group (medical equipment)


 
See also Luxembourg’s Top 10 Exports, Top EU Export Countries and World’s Wealthiest Nations Per Person

Research Sources:
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on April 6, 2017

The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on April 6, 2017

Trade Map, International Trade Centre. Accessed on April 6, 2017

Investopedia, Net Exports Definition. Accessed on April 6, 2017

Wikipedia, List of Companies of Luxembourg. Accessed on April 6, 2017

Forbes 2015 Global 2000 rankings, The World’s Biggest Public Companies. Accessed on April 6, 2017