Trading Partner Portal: Luxembourg

Overview

Trade Overview

Flags of USA, Luxembourg, California

Luxembourg lies in between France and Germany in Western Europe. With a population of 590,600 people and a gross domestic product (GDP) of $62.4 billion, Luxembourg is classified as a high income country. Luxembourg’s economy is centered on its leading financial sector that accounts for over 35% of its GDP. Luxembourg has one of the highest GDP per capita in the world and is the highest in the Eurozone, which results in a prominent high standard of living. Some of Luxembourg’s main trading partners are Belgium and Germany; however, the United States is its fourth largest importer. World Bank, CIA

In 2018, the US exported $1.025 billion worth of goods and products to Luxembourg. A quarter of those exports were used or second-hand merchandise, which had a total value of $263.34 million. The US also exported $202.8 million of transportation equipment and $165.6 million of chemicals. In the same year, the US imported $552 million of goods from Luxembourg. Primary metal manufacturing made up 28.4% of the total, followed by reimports which made up just over 17% of the total. Another key imported category was fabricated metal products, which accounted for 14.1% of the total, and plastics and rubber products, which accounted for 7.8% of total imports from Luxembourg into the US. US Department of Commerce

The United States and Luxembourg have healthy flows of investment across their borders. In 2017, the US had $676.4 billion in foreign direct investment (FDI) in Luxembourg. Additionally, Luxembourg had $410.7 billion of investment in the United States. Luxembourg FDI into the US supported 7,000 jobs and contributed $22 million to research and development, as well as another $89 million to expanded US exports. The top industry sectors for Luxembourg’s FDI were: real estate, consumer products, metals, communications, software and IT services, and business services. Select USA

Luxembourg- California Trade

California is one of the largest exporting states to Luxembourg in the US. California exported $69.67 million of goods to Luxembourg in 2018. The top export category from California to Luxembourg was used or second hand merchandise totaling $32 million and 46.1% of the total exports. Other exports from California were transportation equipment 18.9%, non-electrical machinery 13.5%, and computer products 12%. In 2018 California is the top ten importers of goods from Luxembourg, importing approximately $28 million worth of goods. Some of the major imports were primary metals that accounted for $8.65 million and 30.9% of total imports into California from Luxembourg, followed by reimports which made up 20% of the total. US Department of Commerce

Trade Agreements

Trade Agreements and Issues

Transatlantic Trade and Investment Partnership (TTIP)

Luxembourg is one of the nations that is currently involved in negotiations for the Transatlantic Trade and Investment Partnership (TTIP) with the rest of the European Union and the United States. The United States and the European Union have a strong bilateral trade relationship totaling $698.7 billion in 2015. A free trade agreement, such as TTIP, desires to strengthen that relationship by eliminating tariffs, aligning compatible regulations to open trade, and furthering trade in the service sector.

Transatlantic Trade and Investment Partnership

USTR Transatlantic Trade and Investment Partnership