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by nroets 2729 days ago
One would not expect The Netherlands to export so much in the presence of "high trade barriers". But I strongly suspect that trade barriers between European Union Members to be very low.

Low transport costs also helped The Netherlands achieve this position. Numerous highways, railways and waterways connect it to it's neighbours.

2 comments

He means trade barriers against cheap food from developing countries like Africa. The EU blocks such imports with high tariffs mostly to protect French agriculture, but it has the advantage of allowing the Dutch to invest in super high tech farming. Sucks for consumers though. Food is more expensive in Europe than the USA and that's why.
The Netherlands is in the EU. They have total unrestricted access to the EU market, which is exactly where the vast majority of their agricultural exports go.
The EU isn't a free market when it comes to agricultural produce at all, thanks to the CAP (Common Agricultural Policy)[1].

E.g. just in the last year[2] central planning for how much quantity of sugar beets each country could produce was finally phased out, with the Dutch expecting in production of up to 25% as a result[3].

This was one of the grand bargains of the EU. In exchange for the likes of France, Spain etc. joining the union they wanted guarantees that these politically sensitive sectors of their economy wouldn't be subject to real competition.

So production in countries like The Netherlands is artificially low since a combination of quotas and other central planning restricts production.

1. https://en.wikipedia.org/wiki/Common_Agricultural_Policy#Equ...

2. http://europa.eu/rapid/press-release_MEMO-17-3488_en.htm

3. https://www.dutchnews.nl/news/2017/01/dutch-sugar-cooperativ...