Luxembourg’s Top Trading Partners

Luxembourg's Top Trading Partners

Luxembourg City

Luxembourg shipped US$15.7 billion worth of products around the globe in 2017. That figure represents a tiny 0.1% of overall global exports estimated at $15.952 trillion one year earlier in 2016.

From a continental perspective, $13.5 billion or 85.7% of Luxembourg exports by value were delivered to fellow European nations while 5.6% were sold to Asian importers.

Luxembourg shipped smaller percentages to North America at 3.5% with 1.3% going to clients 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 2017. Also shown is each import country’s percentage of total Luxembourg exports.

  1. Germany: US$3.8 billion (24.4% of Luxembourg’s total exports)
  2. Belgium: $2.8 billion (17.5%)
  3. France: $2.2 billion (13.9%)
  4. Netherlands: $791.9 million (5%)
  5. United Kingdom: $636.6 million (4.1%)
  6. Italy: $624.2 million (4%)
  7. United States: $411.8 million (2.6%)
  8. Switzerland: $346.2 million (2.2%)
  9. Spain: $342.7 million (2.2%)
  10. Poland: $335.2 million (2.1%)
  11. Austria: $268.8 million (1.7%)
  12. China: $224.1 million (1.4%)
  13. Sweden: $202.3 million (1.3%)
  14. Czech Republic: $197.5 million (1.3%)
  15. Russia: $163.5 million (1%)

Well over four-fifths (84.8%) of Luxembourg exports in 2017 were delivered to the above 15 trade partners.

China (down -1.8%) and the United States (down -0.2%) were the only top importers to decrease its purchases from Luxembourg from 2016 to 2017. Among the other 13 countries, gains ranged from a minimum of 8.8% for the Netherlands up to a 41% uptick for the United Kingdom and an 82.6% increase for Luxembourg’s export sales to Belgium.

Deficits

Luxembourg incurred an overall -$6.8 billion trade deficit during 2017, up by 8.5% from -$6.3 billion in red ink one year earlier.

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$4.3 billion (country-specific trade deficit in 2017)
  2. Germany: -$1.6 billion
  3. Mexico: -$855.3 million
  4. United States: -$819.3 million
  5. Japan: -$504.4 million
  6. Netherlands: -$290.7 million
  7. France: -$290.2 million
  8. China: -$125.6 million
  9. Ireland: -$114.3 million
  10. Bermuda: -$68.5 million

Among Luxembourg’s trading partners that cause the greatest negative trade balances, Luxembourg transitioned from a $15.5-million surplus exchanging exports and imports with Mexico during 2016 to -$855.3 million in red ink for 2017. Similarly, Luxembourg’s trade balance with the Netherlands reversed $78.8 million in black ink to become a -$290.7 million deficit year over year.

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$333.2 million (country-specific trade surplus in 2017)
  2. Switzerland: $208.8 million
  3. Russia: $147.5 million
  4. Italy: $126.5 million
  5. Austria: $125.6 million
  6. Sweden: $112.7 million
  7. Turkey: $107.8 million
  8. Spain: $89.7 million
  9. Poland: $68.7 million
  10. Romania: $65.8 million

Luxembourg’s trade balance with Italy went from -$14.5 million in red ink to a $126.5 million surplus from 2016 to 2017. Among Luxembourg’s other top trading partners that generate the greatest positive trade balances, Luxembourger surpluses with Switzerland (up 568.6%), Spain (up 158.5%) and United Kingdom (up 153.2%) grew at the fastest pace from 2016 to 2017.

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, including the bank Espirito Santo Financial. Below are the other major Luxembourg companies that Forbes included:

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

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 March 31, 2018

The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on March 31, 2018

Trade Map, International Trade Centre. Accessed on March 31, 2018

Investopedia, Net Exports Definition. Accessed on March 31, 2018

Wikipedia, List of Companies of Luxembourg. Accessed on March 31, 2018

Forbes 2015 Global 2000 rankings, The World’s Biggest Public Companies. Accessed on March 31, 2018