NEW DUTCH TRADE MINISTER TO FOCUS ON BUSINESS

UNCLAS SECTION 01 OF 03 THE HAGUE 000728

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E.O. 12958: N/A
TAGS: ECON ETRD EINV PGOV USTR WTRO PINR NL
SUBJECT: NEW DUTCH TRADE MINISTER TO FOCUS ON BUSINESS
CLIMATE

REF: THE HAGUE 325

THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE
ACCORDINGLY.


1. (SBU) SUMMARY. New Dutch Trade Minister Heemskerk's
positive experience in America as a young student should bode
well for maintaining Dutch support within the EU for U.S.
positions in WTO/Doha talks and related trade issues.
Heemskerk recently told Ambassador Arnall that support for
"one-stop shops" aimed at improving the business climate for
foreign businesses and expatriate workers in the Netherlands
would be a priority during his tenure. He said he looked
forward to his first official visit to Washington in
mid-June. He also plans to lead the Dutch delegation to the
September High Tech Connections III mission to San Francisco
and will speak at a Commerce-initiated "Go-Zone" investment
event in June in the Netherlands. END SUMMARY.


2. (U) On April 17, Ambassador Arnall called on Frank
Heemskerk in his new capacity as Dutch Trade Minister.
Heemskerk serves as the State Secretary for Foreign Trade and
Deputy to new Minister of Economic Affairs Maria van der
Hoeven. Given the division of portfolios at the Ministry of
Economic Affairs (MEA),Heemskerk also carries the title of
Trade Minister and represents the Netherlands abroad on trade
matters. Heemskerk took up his position along with other
members of the center-left Balkenende IV cabinet in February
(reftel). EconCouns accompanied the Ambassador to the
meeting. Other MEA participants included Marten van den
Berg, Deputy Director General for Foreign Economic Relations,
and Wink Joosten, Policy Officer, Trade Policy Department.

GOOD RELATIONS WITH US KEY
--------------


3. (U) Heemskerk opened the meeting by underscoring the
strength of U.S.-Dutch economic and trade relations and the
importance of maintaining this relationship. The Netherlands
is the fourth largest direct investor in the U.S. ($171
billion accumulative total in 2005) and the eighth largest
recipient of U.S. exports ($26.5 billion in 2005). The U.S.
remains the largest direct investor in the Netherlands ($181
billion in 2005),with some 1,600 U.S. companies with
subsidiaries or offices in the Netherlands.


4. (SBU) Heemskerk said he often reflected on his own
positive American experience as a senior high school exchange
student in Wichita, Kansas in 1988. He remained in close
contact with his American host family and had traveled back
to Kansas several times. His American host brother had also
visited him in the Netherlands, he added.

SEEKING PROGRESS ON WTO
--------------


5. (SBU) There appeared to be "good progress" recently on
the WTO/Doha Round negotiations, Heemskerk noted. He said
the Netherlands continued to favor a multilateral approach
but also recognized the benefits of bilateral Foreign Trade
Agreements. He said he was looking forward to his first
official visit to Washington, tentatively planned for
mid-June, to learn more about U.S. positions in these talks
and other U.S.-Dutch trade issues. The Ambassador stressed
the U.S. Administration's continued commitment to achieving a
successful Doha agreement. He also offered Embassy
assistance in securing productive and beneficial meetings for
Heemskerk during his Washington visit.

"ONE-STOP SHOPS" FOR EXPATS
--------------


6. (SBU) Ensuring a good business climate for foreign
businesses and their expatriate workers, Heemskerk
emphasized, would be one of his top priorities during his
four-year term. He praised the role of the American Chamber
of Commerce and its members' active part in serving as the
MEA's "eyes and ears" on identifying ways to improve services

THE HAGUE 00000728 002 OF 003


for foreign businesses operating in the Netherlands. He
noted the establishment of "one-stop shops" in Amsterdam,
Rotterdam, and Wassenaar for foreign companies and expatriate
workers to help ease some of the start-up administrative
burdens related to operating and working in the country. As
one of his first projects, Heemskerk said he planned to bring
together the planners behind these various "one-stop shops"
to share experiences and best practices. He was hopeful that
such an initiative would lead to better services and a
proliferation of "one-stop shops" in other cities and regions
in the country.


7. (SBU) Heemskerk said the MEA was also exploring options
that would include charging Dutch and foreign companies a set
local tariff for local services (e.g., security, street
cleaning) in their communities. Such a system would replace
the current subsidy system funded through tax revenues and
redistributed to municipalities to cover the costs of such
services, which Heemskerk indicated was time-consuming and
inefficient. Adoption of such a system, he explained, would
require approval by a majority of businesses in a community.

HIGH TECH CONNECTIONS III
--------------


8. (SBU) Heemskerk said he planned to lead the Dutch
delegation to the September 23-27 High Tech Connections (HTC)
III Mission to San Francisco. (HTC is a public and private
consortium that includes participation by Embassy The Hague's
Foreign Commercial Service.) He noted that earlier HTC
missions to Silicon Valley (2004) and Boston (2005) had been
very successful from a Dutch perspective in promoting
technological exchanges to drive innovation and business
matchmaking among American and Dutch companies, institutions,
and universities. Heemskerk suggested that the Ambassador's
participation could play a key role in ensuring the mission's
success, given his own ties to California. He also asked for
the Ambassador's support in approaching California Governor
Arnold Schwarzenegger as a guest speaker at the event.

"GO-ZONE" INITIATIVE
--------------


9. (SBU) Heemskerk expressed great interest in the
Department of Commerce "Invest in America" initiative aimed
at attracting general investments into the U.S. and the
"Go-Zone" initiative, which specifically targets investments
into Louisiana and Mississippi. EconCouns noted cooperation
between the MEA and the Embassy's Foreign Commercial Service
and Economic Section in hosting a early June event to
introduce potential Dutch firms to investment opportunities
in various sectors in these two states, which were hit
hardest by Hurricane Katrina. Heemskerk confirmed his
participation as a speaker at the June event and offered his
assistance in ensuring its success.

COMMENT/BIO INFORMATION: "THE RED BANKER"
--------------


10. (SBU) Trained as an economist, Heemskerk (37) had made
a career at the Dutch bank ABN Amro, where he specialized on
the Middle East, before becoming a member of the Second
Chamber of parliament for the PvdA (Labor) party in 2003.
Heemskerk is considered a close confidant of new Finance
Minister and former Labor leader Wouter Bos. He was a member
of Niet Nix, a political reform movement within the PvdA that
sought to introduce major changes in the party. His
affiliation with this group and banking background earned him
the nickname of the "Red Banker." Red is the color of the
Labor party. His consideration of non-traditional Labor
ideas such as a local service tariff for businesses versus
government subsidies suggests that he remains unafraid to
propose and test new ideas.

11 (SBU) Heemskerk's fondness for America and his time
there as a young man was clear during the meeting. Such
leanings should bode well for maintaining the Dutch as an
ally within the EU for U.S. positions in the WTO/Doha talks

THE HAGUE 00000728 003 OF 003


and on related trade matters. While acknowledging a need to
master the technical details within his trade portfolio,
Heemskerk told the Ambassador he was excited about his new
position and was confident that his economic and banking
experience would prove to be strong assets. He also
commented that the new coalition government appeared to be
working well together, despite initial skepticism about the
feasibility of a coalition among the two more conservative
parties -- Christian Democrats and Christian Union -- and the
more social-oriented Labor party.
ARNALL