Luxembourg - Market Overview
Table of content
Source: Statistics Canada
Note: Data on Luxembourg-Canada service trade is not available.
2015 Trade and Investment between Luxembourg and Canada (C$, Millions)
|Trade and Investment||(C$, Millions)|
|Canadian Merchandise Exports to Luxembourg||$205.4|
|Canadian Merchandise Imports from Luxembourg||$184.6|
|Luxembourgish Direct Investment in Canada||$60,824.0|
|Canadian Direct Investment in Luxembourg||$50,173.0|
|Canadian Service Exports to Belgium/Luxembourg||$930.0|
|Canadian Service Imports from Belgium/Luxembourg||$710.0|
- Luxembourg is Canada’s 15th largest market in the EU for exports, despite being the second smallest state in the EU by population.Footnote 1
- At €89,600 in 2015, Luxembourg’s GDP per capita is the highest in the EU, more than 60 percent higher than second-place Ireland.Footnote 2
- Luxembourg is the second-largest EU source of direct investment in Canada, after the Netherlands, and the second-largest EU destination for Canadian investment in the EU, after the UK.Footnote 3
- Luxembourg is strategically located, sharing a border with Belgium, France and Germany.
- Luxembourg is a global destination for the financial sector. Many opportunities exist given the importance of Luxembourg’s financial and banking developments.
Read the guide Exporting to the EU.
Canada’s single most significant export to Luxembourg in 2015 was aircraft and aircraft parts. The removal of 22 percent tariffs on aircraft parts will make it even more attractive for Canadian aerospace manufacturers to export to Luxembourg.
Luxembourg’s population is extremely affluent; per capita GDP was over US$ 102,700, the highest in the worldFootnote 7. Luxembourg is thus a natural market for premium-quality specialty agricultural or seafood products, and the reduction of tariffs on these products will make selling to Luxembourg simpler and more lucrative.
Vehicle exports represented 1.2 percent of the $205.4 million in exports from Canada to Luxembourg. Affluent Luxembourg is a natural market for high-quality automobiles. The removal of steep tariffs on imported automobile products – previously up to 22 percent – will make the Luxembourg market even more attractive.
Luxembourg’s internationally-competitive clean-tech sector focuses on waste management, water treatment and eco-construction and is a focus of the country’s economic diversification plan. The sector is highly co-operative internally; a majority of companies execute collaborative R & D and innovation projects as part of the ‘EcoInnovation’ cluster. Luxembourg thus presents a highly receptive (although competitive) market for exporting eco-friendly products, as well as a great place to import high-quality Clean-Tech products from. Canadian clean-tech companies establishing themselves in Luxembourg can expect highly-educated, multi-lingual employees with a great deal of support from the government.
Luxembourg’s manufacturing industry is growing as part of the country’s new economic diversification plan. With its high per-capita personal income, Luxembourg is a strong market for premium-quality consumer products.
Machinery, precision and technical instruments, electronics and electrical machinery and equipment represent a large portion of Canada’s exports to Luxembourg. High-quality and specialized machinery also holds a large part of Canadian imports from Luxembourg. NATO’s supply and procurement agency is headquartered in Luxembourg and awards billions of dollars in contracts annually – 550 Canadian companies have already been awarded contracts.
Information and Communications Technology (ICT)
Luxembourg ranks 9th place worldwide in the 2016 WEF Network readiness index, compared to Canada’s 14th. Canada’s bilateral trade in services with Belgium and Luxembourg totaled $1.7 billion in 2014Footnote 8. SES, a massive Luxembourgish commercial satellite communications group, is active in Canada. Luxembourg is known for having employees with excellent ICT infrastructure and know-how. Given Luxembourg’s central location and its inhabitants’ exceptional language skills– many Canadian companies have used the country to recruiting personnel and to open up offices.
Luxembourg’s domestic Life Sciences industry features many SMEs and public research laboratories focused on personalized medicine, diagnostics, bioinformatics and HealthIT. There is a supportive business environment and substantial public investment, reflecting the government’s goal of making the Grand Duchy an attractive destination for health sciences research and a world leader in molecular diagnostics. Many Luxembourgish Life Sciences firms innovate and research together as part of the Luxembourg BioHealth Cluster, which also supports international businesses interested in establishing themselves in, or doing business with, the Luxembourg market.
Luxembourg has a highly-productive domestic mining and metal-works industry; top imports were iron, steel, aluminum, as well as articles constructed from those metals. Much of the $60.8 billion Luxembourg invests into Canada targets the mining industry, especially for diamonds and iron.
For more information on trade and investment opportunities in Luxembourg, contact your Trade Commissioner in Brussels, Belgium who also covers Luxembourg.
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