Trading Partner Portal: Luxembourg
Luxembourg lies in between France and Germany in Western Europe. With a population of 640,064 people and a gross domestic product (GDP) of $85.51 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 2022, the US exported $1.65 billion worth of goods and products to Luxembourg. Almost half of those exports was transportation equipment, which had a total value of $667 million. The US also exported $356 million of non-electrical machinery and $151 million of secondhand merchandise. In the same year, the US imported $735 million of goods from Luxembourg. Reimports made up $193 million of the total, followed by primary metals which made up just over $191 million of the total. Another key imported category was fabricated metals, which accounted for $74 million of the total, followed by textiles and fabrics and non-electrical machinery. US Department of Commerce
The United States and Luxembourg have healthy flows of investment across their borders. In 2021, the US had $715.59 billion in foreign direct investment (FDI) in Luxembourg. Additionally, Luxembourg had $46.64 billion of investment in the United States. Luxembourg FDI into the US supported 39,500 jobs and contributed $270 million to expanding US exports. The top industry sectors for Luxembourg’s FDI were: real estate, metals, software and IT services, business services, communications, and plastics. Select USA
Luxembourg- California Trade
California is one of the largest exporting states to Luxembourg in the US. California exported $430 million of goods to Luxembourg in 2022. The top export category from California to Luxembourg was transportation equipment totaling $324 million. Other exports from California were used or second hand merchandise, computer products, and chemcials. In 2022, California was a top importing state of goods from Luxembourg, importing approximately $20 million worth of goods. Some of the major imports were non-electrical machinery which accounted for $6 million and reimports that accounted for $5 million of total imports into California from Luxembourg, followed by plastic and rubber products and nonmetallic minerals. US Department of Commerce
In California, the seventeenth largest source of FDI through foreign-owned enterprises (FOEs) is Luxembourg. In 2022, FOEs from Luxembourg in California provided 7,897 jobs through 215 firms amounting to $785 million in wages. The top jobs by sector are: manufacturing, transportation/warehousing/utilities, wholesale trade, professional/business services, and retail trade (World Trade Center Los Angeles FDI Report).
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.