The Netherlands 2020

Netherlands DI PLOM ACY

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FOCUS ON

THE CHEESE VALLEY

THE KLOMPEN

COFFEE DRINKERS

Gouda cheese makes up around 50% of the world’s cheese consumption. It’s not produced actually in the southern Dutch city which shares its name, but instead in the nearby towns and villages that surround Gouda.

The EU gave the traditional allwooden Dutch clogs a CE trademark as safety shoes. They can withstand almost any penetration, and are actually safer than steel-capped protective shoes in some circumstances.

The Dutch were the first to import coffee to Europe on a large scale as early as the 1600s and 1700s.

The Dutch are the world's biggest coffee drinkers with an average of 140 litres of coffee a year or 3.2 cups a day.

CITY OF LIGHT The Dutch city of Eindhoven is also known as the "City of Light" because the electronics giant Philips started there with products like light bulbs.

1000 MUSEUMS There is in total just over 1,000 museums, of which most were located in Zuid-Holland with roughly 170 museums. 150 museums can be found in Gelderland, whereas Noord-Holland holds a little more than 120 museums.

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The Netherlands Stays Committed Partner to Serbia Since my arrival to Belgrade, my message towards the Serbian people and authorities has been consistent: Serbia is part of the European family, with a clear path towards EU membership

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he Netherlands has been, and remains a committed partner to Serbia, both bilaterally and within the framework of Serbia’s EU accession process. The Dutch Minister of Foreign Affairs and our Director General for European Affairs reconfirmed this during their visit to Belgrade in November of last year, when they had a series of successful meetings with the Prime Minister, several cabinet ministers as well representatives of civil society and the Dutch business community.

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Your Excellency, you arrived in Serbia in August 2019 and presented your credentials in September. What are your impressions and views of the current economic and diplomatic relations between our two countries?

— It is difficult to imagine that it has already been ten months since my wife and I arrived to Belgrade. Time has flown by, and we consider ourselves lucky to live in a vibrant and dynamic country such as Serbia. I also feel privileged to work in a context in which our diplomatic and economic relations are excellent already, and I look forward to working on improving them further still during my time here.

Serbia and the Netherlands are tied in many ways and on many different levels, diplomatically, economically, culturally. We continuously work to maintain that relationship. The visit of our Minister of Foreign Affairs is an example of that. So is the meeting between our two Prime Ministers in Davos ear-

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lier this year. Netherlands remains one of the largest sources of FDI in Serbia, and our bilateral trade is well on its way to approaching €1 billion in trade. Of course, as someone from Amsterdam, I cannot omit mentioning the positive effects Dušan Tadić playing for Ajax has had on our bilateral relationship as well.

The whole world is now suffering because of the global pandemic caused

by COVID-19. What can you say about the Dutch response and fight against the virus, regarding protecting population`s health and the Dutch economy?

— The countries around the world are being severely affected by the corona virus and all are looking for best measures to alleviate this unexpected situation. The Netherlands’ approach is aimed at keeping the virus under control as much as possible in order to protect vulnerable groups and make sure the healthcare system can cope. Thanks to people complying with the measures, the situation has improved since March.

The figures show a positive trend and the Netherlands is moving slowly towards having more freedom On 1st June several measures were relaxed (e.g. cafés, bars, cultural institutions). However, the basic rules still apply: wash your hands, keep a distance of 1.5 metres, avoid busy places, stay at home if you have symptoms and work from home as much as possible. These rules also apply in shopping streets, parks and recreation areas as well. To ensure everyone can follow the rules, the government is working

H.E. GILLES BESCHOOR PLUG Ambassador of the Netherlands

We will continue to assess Serbia’s efforts based on merits and sustainable impact

together with businesses and organisations, including employers’ federations, trade unions, sector associations and Dutch rail company NS. Developments permitting, more measures will be relaxed on 1 July (opening of gyms, spas, clubhouses, casinos). The basic rules and additional measures will apply at these locations too. Each step can only be taken if the virus stays under control, this must be done with great care, and this is why the Netherlands is taking a step-by-step approach. If circumstances require, any decision to relax measures will be reversed.

You stayed in Serbia during the state of emergency. The Serbian government has devised measures to protect the Serbian economy. Have you any information about how Dutch companies responded to the crisis and how it affected their operations?

— The Corona-crisis has affected economies around the globe in unforeseen ways, and Governments have had to respond quickly in an effort to minimize the negative consequences. I was very glad to see that the Serbian government took decisive measures to minimize the risk to people’s health and lessen the blow to businesses. It is also encouraging that Serbia was in a good financial position to design and implement such an effective package of measures.

The work done in the past years to ensure healthy and balanced state finances has certainly paid off.

Naturally, the crisis has affected Dutch companies in Serbia, just like

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all businesses. That said, the experiences and responses differ from company to company. Dutch companies are active in a wide range of sectors in the Serbian economy. They are part of Serbia’s economic heartbeat, with companies being successful in areas such as agriculture, shipbuilding, tourism, beer brewing, retail, IT, textile and many others. This also means that companies are experiencing the crisis in different ways, depending on the sector in which they are active. While some companies have had to scale-down operations, others have to do the opposite and increase capacities due to higher demand. As you can imagine, demand for bicycle tours of Belgrade dropped, while demand for goods in supermarkets went up sharply.

Because we were not able to visit companies physically, the Embassy organized a videoconference with the Dutch business community in Serbia, in order to hear how companies were experiencing these challenging times.

While individual experiences differ, I was glad to hear that overall, the Dutch business community is in good shape and in a strong position to weather the storm. It is still unclear what the exact effects of the crisis will turn out to be, but I find comfort in the fact that both the Dutch and Serbian people have two very important characteristics in common – resourcefulness and resilience.

I’m proud of the way Dutch companies have weathered the crisis, with responsible social-economic policies and contributions to fight the pandemic.

The Netherlands remains committed to Serbia’s EU perspective, but is also a strict, fair and committed partner that judges the progress in the accession process based on merits. What are Serbia’s next steps on its path to the EU membership in terms of reforms and opening of chapters?

— On its path to the EU, Serbia can count on the Netherlands as a strict, fair and committed partner. Therefore, we maintain an open dialogue with Serbia, both with the authorities as well as with civil society in order to reflect on the reforms, which are necessary, not solely because of EU membership, but ultimately because of the need to improve the lives of the citizens of Serbia.

In that sense, reforms and their implementation need to reflect a true acceptance of the values, which underlie both our Union as well as Serbia’s own society – values such as democracy, the independence of the judiciary, and the fight against corruption and organized crime. Here I would also emphasize the importance of freedom of expression and media freedom as a

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priority, because independent, responsible and pluralistic media are part of the necessary checks and balances in a society governed by the rule of law.

Within the EU as well as within the Netherlands, we are constantly assessing to what extent we are able to uphold and live up to these values, thus it is only logical that we do and expect the same of candidate member states.

When talking about the next steps, let me stress that in the short term, it will be paramount that the general elections in Serbia are held in a free and fair manner. Every effort is necessary to ensure elections where parties feel they can participate on an equal footing and all voters can cast their vote freely, as this will reflect the extent to which core democratic values are embraced.

Looking beyond the elections, the impact of Serbia’s sustained reforms will continue to determine the speed of Serbia’s progress towards full EU membership. Hence, when it comes to the opening of new chapters, the Netherlands will continue to assess not only the technical readiness to do so, but also the overall developments in the rule of law area. However, the EU accession-narrative should not be reduced to the counting of opened or closed chapters. In fact, Serbia still needs to decide whether it will accept the principles of the revised enlargement methodology, which the Netherlands would very much welcome. Whatever the decision

of Serbia may be, our expectations of Serbia, as one of the frontrunners in the accession process, remain high. On our side, as one of the founding member states of the European Union, we will continue to assess Serbia’s efforts based on merits and sustainable impact, which does not imply a need for immaculate perfection, but does require full and unequivocal political commitment and responsibility.

The Dutch and Serbian people have two very important characteristics in common – resourcefulness and resilience

An initiative facilitating a joint economic development of the region, the so-called Mini-Schengen has been launched. Regional Economic Area (REA) has already received the support of all six WB partners, unlike the Mini-Schengen. What can expedite the process of the EU accession of all Western Balkan countries?

— The European Union is, in its very essence, a framework for cooperation, which aims to ensure peace and prosperity for its member states. Economic cooperation and joint economic development are, and have been from the very beginning, central to that framework.

The elimination of barriers to trade, harmonization of standards, increase in connectivity, creation of joint institutions and many other steps that have been taken over the decades, have ensured unprecedented economic development and stability in Europe.

It is, in my opinion, only natural for the countries of the Western Balkans to aspire to work together in a similar manner, and I am very glad that the EU-facilitated WB6-process had led to effective strategies and tangible results.

The economic potential of the region is substantial, with its favourable climate, strategic geographic location and resilient, resourceful and well-educated population. The true extent of that potential can only be achieved if the countries of the region work together to unlock it.

By ensuring better connectivity, improved border-crossing procedures, encouraging labour mobility and many other things which are included in the action plan for a regional economic area, the region will become an even more interesting and competitive investment destination for global companies. Most importantly, such cooperation allows for a continuous open political dialogue between partners, which furthers reconciliation and helps shape a common future for the region within Europe. By the way, the political and economic cooperation by Belgium, Luxembourg and the Netherlands (the so-called Benelux that started as a customs union) was an important aspect of the creation of the European Union. Therefore, there is a very good example here.

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Dutch Companieas are Here to Stay I am particularly proud of the fact that Dutch companies in general are part of Serbia’s economic heartbeat

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he fact that the DSBA now nearly has 40 members, among which are some of the largest and most successful companies and brands in Serbia, is a testament to the potential of the initiative as well as a clear signal that Dutch companies are here to stay.

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You were involved in establishment of the Dutch-Serbian Business Asso-

ciation. What is the current state of operations of Dutch companies, and what our country can do to attract even more investors?

— I am very glad to have been a part of the DSBA’s establishment from both a personal and professional perspective.

I firmly believe the initiative embodies part of the reason why I chose to come to Serbia and what my job here is- to strengthen the ties between Ser-

OLIVER ŠAROV Senior Policy Adviser for Economic Affairs & Trade Embassy of the Netherlands

There is a strong similarity in both countries in terms of the values that drive people to become entrepreneurs

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bia and the Netherlands. Having a sparring partner in the form of the DSBA, whom I can work together with toward achieving that goal is great, and I look forward to our future joint endeavors.

I am particularly proud of the fact that Dutch companies in general are part of Serbia’s economic heartbeat and are successfully active in a wide range of sectors, ranging from agriculture, shipbuilding, beer brewing, IT, manufacturing, consultancy, design and many others. That success is based, for a large part, on combining Dutch ways of doing business, which include innovation, creative management and sophisticated business processes with Serbian craftsmanship, resourcefulness and drive. It has proven to be a recipe for success, and I am glad the Dutch business community in Serbia is thriving because of it.

As far as what can be done to attract more investors, be they from the Netherlands or elsewhere, I believe it is straightforward. A level playing field and clear, efficient and predictable regulations and procedures are key. Much has been done to improve that, but much still remains to be done, particularly when it comes to the efficiency of the judicial system.

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Can you compare the period when you arrived in Serbia five years ago and today, in terms of investments, business climate. What is different and what has changed the most?

— That is an interesting question, thank you for that. It is hard to believe that I have already spent half a decade in Belgrade. Much has changed, while much has remained the same. I think that one walk through the city then and now would make clear that there has been significant progress. There is a certain dynamism in the air and a sense that things are, at least economically, changing for the better.

A look at the numbers would confirm that. Serbia has consistently been attracting significant amounts of FDI, managed to achieve economic growth despite austerity and reduce unemploy-

ment, just to name a few parameters. In fact, when I arrived in 2015 the country had a spiraling sovereign debt and an unsustainably large fiscal deficit.

Non-performing loans were at a historic high and the grey economy significantly larger than it is today. Had the Corona-crisis hit then, I am unsure how the country’s economy would have been able to cope. The situation is, thankfully, very different today. Much has also been done to improve government services through digitalisation, simplification and modernisation.

Having said all that much has also stayed the same. While excellent initiatives and well-laid out plans exist, implementation is now, as it was then, often lacking due to procedural inertia, a lack of will or other factors. That leads to many missed opportunities, which is

unfortunate because Serbia is in a position to take advantage of its many resources, both human and natural, and able to make quick strides in positioning itself as a competitive.

While excellent initiatives and well-laid out plans exist, implementation is now, as it was then, often lacking due to procedural inertia, a lack of will or other factors

2ND GENERAL ASSEMBLY IN 2020 The Dutch-Serbian Business Association held its first meeting of the Board of Directors in 2020. and the second General Assembly to discuss plans for the coming year. The Ambassador of the Netherlands to the Serbia, r. Gilles Beschoor Plug, and Oliver Šarov, Senior Policy Adviser for Economic Affairs & Trade, Embassy of the Netherlands, also attended the meeting. They recalled the importance of the Dutch business community in Serbia and wished everyone success in their future work.

The SME sector is the second largest sector in the Netherlands and plays a very important role in the Dutch economy. What can we learn from the Netherlands?

— It is true that many Dutch people decide to start their own business. In fact, I am the ‘’odd one out’’ amongst my friends for working in the public sector. Most of them own their own business, or work in a SME. I honestly believe that could be the same in Serbia, because there is a strong similarity in both countries in terms of the values that drive people to become entrepreneurs. A desire to be independent, to challenge oneself, to innovate and, perhaps most importantly, a stubborn persistence to succeed. ‘’Za inat.’’ Both, the Dutch and Serbians, have strong affinity with those concepts and values.

What is quite different, however, is the business environment. It is very important to have a level playing field, simple and efficient administrative processes, legal certainty and a good incentive structure. Serbia is well on its way to providing that kind of environment, in fact most of my friends here are also successful entrepreneurs with me being the ‘’odd one out.’’ That said, much still remains to be done and it is crucial for the government to continue implementing measures that work towards improving the business environment and government services in general. I am glad that there are plans to do exactly that but, as always, implementation will be key.

As every year, you connect people in Serbia with the Netherlands in innovative and creative ways. What activities do you plan to carry out by the year-end?

— Unfortunately, I can be quite brief in answering that question. Due to the pandemic, we have had to cancel all of our events for the near future and it is difficult to say whether we will be able to organize something for this year. Personally, I am quite disappointed because we had some very interesting events planned this year. There may have even been an orange Yugo 45 involved….

That said, safety is the absolute priority so we will simply have to wait and see how the pandemic develops.

However, you can always count on us to come up with something interesting as soon as the opportunity arises. So, as always, keep in touch with the Dutch!

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Rapid Adaption is Guideline for Further Action I think it is extremely important for business associations and companies assembled under them to collaborate and exchange experiences, because those experiences are practical and real, to say the least. Based on these experiences, we can find out what is good and bad in the Serbian market, and what to do next

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lthough the DSBA is the youngest business association in Serbia, we have already made acquaintances and established cooperation with almost all other business associations in Serbia. I must say that we have been very well received by all our colleagues.

On the other hand, the Netherlands has been the largest investor in Serbia in the last nine years, investing over 2.5 billion euro in Serbia and employing over 15,000 people. The experiences of the companies gathered in the DSBA are very substantial and significant, and in cooperation with other business associations, we are trying to highlight the things that need to be corrected.

The plan is to organize joint events with other business associations in 2020. I am confident that this cooperation will only deepen in the future, said Đorđe Petrović, DSBA Director.

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The Netherlands is one of the largest investors, as it has invested over 2.5 billion euro in the past nine years in Serbia and Dutch companies employ

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ĐORĐE PETROVIĆ Director of the Dutch-Serbian Business Association

We are really proud that for the short time we managed to gather almost 40 members in the DSBA

about 15,000 people. What else can Serbia do to attract Dutch investors?

— As you mentioned, The Netherlands has a significant business presence in Serbia across different industries. The experience that Dutch companies have with doing business in Serbia is quite positive and almost all companies operating here have constant growth. Existence of the DSBA is an important indicator for the potential new Dutch investors in Serbia because it signals that the country is a good choice to invest in, that there is already a group of successful business people with whom they can share experience, exchange knowledge and learn how the business is done in Serbia. Important factor is also involvement of the Dutch embassy in Serbia, who is promoting Serbia through various activities to the Dutch investors, but also providing them a support in starting their businesses here.

As with any other things, there is also space for the improvement of the business climate in Serbia and we see one part of our role as DSBA in providing a feedback from the field to the

Serbian government and institutions and suggesting some ideas.

If we compare the reaction of the Netherlands and the protective measures for the Dutch economy against the consequences of the coronavirus, and on the other hand, the measures implemented by the Serbian Government, what parallels can we draw? To what extent have Dutch companies in Serbia responded to the crisis and what does their business look like today?

— Both countries in our opinion did the best they could, having in mind resources that they had available. The main goal on both sides was to save jobs and to provide short term help to companies in order that they could survive this crisis. As all Serbian companies, the Dutch companies in Serbia faced the same problems. Depending on the industries they are operating in, some companies were hit harder than others. We recently had a video conference, organized by the Dutch embassy in Serbia, with 36 participants from the Dutch business community, where

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we could hear experiences from other colleagues, how they were affected with the crisis and what they did on order to overcome the challenges. As with the hits the companies took, that depended on the industries, the same is with recovery. Some sectors are recovering with a fair speed, while for some it will take more time.

The Dutch-Serbian Business Association was founded a year and a half ago. Although a young association, it seems that you have implemented a lot of projects, established many contacts and carried out quite a few activities so far. What are you most proud of and what are the Association’s future plans?

— We are at this moment the youngest bilateral business association in Serbia.

Despite of our age and the fact that we do not have employees in DSBA, but all the work is based on volunteering, as you kindly noticed we’ve organized a lot of events. We had a great support from our colleagues, from other business associations, who shared their experience with us and helped us in many ways. The crucial was, and still is, the support that we have from the Dutch embassy in Serbia who is unselfishly supporting everything that we do and I would like to thank them in the name of the whole DSBA for that.

We are really proud that for the short time we managed to gather almost 40

The project includes setting up of three Dutch demonstration pilots in three major production areas in Serbia with different micro climates - Intensive orchards with the state-of-the-art technology.

The pilots should offer local producers a sneak peek into the Dutch “kitchen” of fruit production technology and knowhow, a showcase of the latest varieties, state of the art growing techniques, innovative harvest and post-harvest handling in the soft fruit world.

members in the DSBA, ranging from small companies to big corporations, and that together we really did a lot of good things, based only on volunteer work. We expect that, with the experience which we gather for this time, in the coming period we will be able to achieve many more great things, both for our members, but also for the community and Serbia as a country.

In November last year, Dutch companies visited Serbia. How did that go and are new visits and exchanges of experiences planned?

— The trade mission, which took place in November, was a huge success. After that trade mission he government of the Netherlands and a consortium of eleven companies representing the Dutch soft fruit sector have developed a public-private partnership called “Netherlands Soft-Fruit Solutions”, which will assist in developing an efficient, sustainable soft fruit chain in Serbia. The partnership is a 3-year-long project within the program Partners for International Business. Through this project, the Dutch soft fruit sector - which is a world leader in applying the most modern techniques in a sustainable way - will contribute to the improvement of Serbian berry production. With this project the Netherlands aims to conclude cooperation agreements with Serbian soft fruit growers but also with relevant knowledge centres in the fruit sector in Serbia.

We must keep in mind that “it is not the strongest, nor the most intelligent that survives, but the one that is most adaptable to change”

We are really existed about this project and we expect that it will hugely intensify cooperation between the two countries in government, knowledge and business level.

— What are your predictions regarding the business sector in Serbia and the Netherlands, as well as at the global level, in light of the pandemic and current economic trends?

At this moment, there are still a lot of things we do not know and it’s hard to make predictions. We all hope that the recovery of the global economy will have a “V” shape, but that will also depend a lot on will we have a “second wave”.

As with any big disruption, some businesses will grow and some will disappear. We must keep in mind that “it is not the strongest, nor the most intelligent that survives, but the one that is most adaptable to change”, hence we need to be prepared to adapt, regardless on circumstances.

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CLICK ON ICON 

We Expect to Have a Great Winds Windvision decided to the group level to extend its portfolio, so at the moment, we are exploring possibility to start project development of PV power plant of 80MW installed capacity, also in Vojvodina

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NEDA LAZENDIĆ Country Manager of WindVision Development

he company Windvision is active in Serbia since 2010 when it began developing the project of construction of wind power plants 'Alibunar' with total installed capacity of 174 MW. We spoke with Mrs. Neda Lazendić, WindVision Country Manager about challenges they faced out in Serbia, business activities and plans, as well as experience during a building of a wind park: “Both, development and operations are long-term activities. Compared to running, our business is being seen as a marathon rather than a sprint race,” said Mrs. Lazendić.

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Windvision works on two continents and in eight countries, in Serbia as well. How COVID-19 global pandemic will affected so called “green energy” and what will be the consequences in Serbia?

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— Windvision has been company with very developed “sense of human” also before pandemic situation, so this was the usual challenge for the management to put the health and security of the employees and their families as the defined priority. Fortunately, none of our contacts have not been infected so in my opinion, that goal has been achieved.

Besides that, since Windvision`s business activity is development of projects of construction of power plants using renewable energy sources mostly wind and sun, organization of home work was not that challenging. Each team member put the maximum effort that everything runs smoothly, and thanks to the new technologies even daily follow up meetings have been very true to original.

Serbia is moving well in this direction, and wind plays the most crucial role in moving closer to the threshold in

Windvision has been company with very developed “sense of human” also before pandemic situation

time. What Serbia needs to do in order to fasten the development of this industry sector?

— Having in mind general European binding target that 32% of total energy consumption to be from renewable energy sources until 2030, I would dare to say that Serbia is moving well in this direction. Wind plays the crucial role in moving closer to the threshold in time, as well as to upgrade national energy diversity. First round of wind farms with granted “feed in tariff” have been constructed and connected to the grid, so now it is the time for the switch to “premia” system when all marker participants should bid concurrent electricity price. In this transition to a competitive procurement scheme for renewable energy, the Serbian Ministry of Mining and Energy has requested the assistance of the European Bank for Reconstruction and Development (EBRD) in the preparation and implementation of competitive renewable energy auctions, and implementation of this goal is of the highest interest of energy sector of Serbia.

How long did entire process from the decision to build a wind park

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through location selection to opening, and what are experiences of Wind Vision in Serbia since the beginning?

— Compared to running, our business is to be seen as a marathon rather than a sprint race. In other words, both development and operations are long-term activities. We need to make sure various technical, legal, macroeconomic, and political conditions are met before we even consider investing.

Windvision started its business activity 2010, but first 3 years were actually spent on exploring the environment. So I would say that it took us 6 years to secure fully permitted project of construction of wind farm Alibunar of total capacity 174MW and to initiate development of new portfolio of Wind farm Banat projects of total capacity 332MW. How important is it for you a foreign investor in Serbia to have local support, from local authorities, state support, etc.?

— Local support is of the crucial importance for investments of the range as wind farm. We consider municipality Alibunar, where our projects are located, as a partner. We have our local office there and on daily basis, we communicate both with local authorities and with citizens meeting our project goals together and do our best to improve their life standards.

I will take this opportunity to thank all official institutions involved in permitting for renewable energy projects, primarily Ministry on mining and energy, Provincial Secretariat for Energy, Construction and Transport and all in-

stitutions of Alibunar, for all the efforts they are making for the progress that is constant and obvious.

Serbia works constantly on a making a better environment for investors. You are a member of DSBA. What can be done more in our country in order to attract more Dutch`s investors?

— I feel privileged to be board member of DSBA, representing my company but also the interests of the Dutch business community as a whole. While we are an association that is very young, we gather important companies for the Serbian economy. Our idea with the association is to be able to promote the Dutch business culture, business ethics, strong

My team and I will use this 2020 to finalize project development of Banat project in order to be ready to participate on the auctions

commitment to CSR, and sustainability and importance of the public-private dialogue. We believe that the consultation process between businesses, the Government, and us will contribute to a higher quality of regulations and lower the compliance costs wherever possible. We are committed to cooperating with other business associations and most importantly, The Embassy of The Netherlands and its economic and agricultural departments. In my view, we need even more joint work and associations within our economy, as this is probably the best way to promote your business and advocate for regulatory improvements.

How did you personally respond to this global crisis, and with what challenges you have faced as a Country manager?

— Since I am mother of 2 boys, I have to point out that home work was very challenging both for myself and the boys. I had to organize myself more efficient and they have to understand that, although in pajamas, mom has to work .

Period behind us was a quite lesson for me what are the real life priorities and I am very happy to be back in the office with my team.

What will be your business goals, and future projects to the end of this year?

— My team and I will use this 2020 to finalize project development of Banat project in order to be ready to participate on the auctions. Also, Windvision decided to the group level to extend its portfolio, so at the moment, we are exploring possibility to start project development of PV power plant of 80MW installed capacity, also in Vojvodina.

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Great Cooperation Should be Nurtured and Deepened There are numerous initiatives on both the Dutch and Serbian side to further improve economic cooperation between the two countries

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n terms of external trade, according to the latest available data from the State Statistical Office, the total trade in goods with the Netherlands, for the first 4 months of 2020, amounted to 236 million EUR, which is a 3% decrease compared to the same period in 2019 (243.5 million EUR). Our exports decreased by 6% compared to the observed period in 2019 and amounted to 108.1 million EUR. Serbia is still recording deficit in the Netherlands which amounts to 19.8 million EUR. The export to import ratio stands at 84.5%.

The value of the total foreign trade (in goods) with the Netherlands in 2019 stood at 755.5 million EUR, which is

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an 11% increase relative to 2018 when it amounted to 682.5 million EUR. Our exports increased by 16% compared to 2018 and amounted to 376.3 million EUR. Serbia has recorded a deficit, in the amount of 2.9 million EUR, in trading with the Netherlands, while the export to import ration stands at 99.2%.

Based on the data collated by the Serbia Ministry of Finance, by 2019, 3,670 business entities in Serbia cooperated with the Netherlands. According to the data of the Business Registers Agency of the Republic of Serbia, by the beginning of June 2020, 495 active business entities were registered in Serbia, whose majority owners are the Dutch citizens, i.e. legal entities registered in the Netherlands.

Based on the data collated by the Serbia Ministry of Finance, by 2019, 3,670 business entities in Serbia cooperated with the Netherlands

THE MOST IMPORTANT SECTORS OF COOPERATION AND ROOM FOR IMPROVEMENT Economic cooperation between the Republic of Serbia and the Kingdom of the Netherlands takes place in several sectors - agriculture, metal processing industry, renewable energy sources and the IT sector.

Agriculture is of special importance for the economic development of Serbia. Its position is peculiar, because it is not only the driving force behind rural development, but it also has great economic, social and ecological significance. Today, when the European Union is entering the final phase of shaping the single market, which vision was

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outlined more than five decades ago, that is very important for Serbia. Single market projects contain a complex set of measures at the institutional, economic, technological and organizational level, and for Serbia, the EU represents a potential market of about 500 million consumers who are ready to spend almost a quarter of their earnings on food. In order to facilitate and speed up this journey, three projects are vital for Serbia: 1. Slaughterhouse waste treatment project that deals with the perception of problems that are significant in the slaughterhouse-meat processing industry in Serbia.

2. Project regarding the improvement of the genetic status in cattle and pig breeding (reproduction and artificial insemination).

3. Application of food safety system and Global G.A.P. in the entire food industry for small and medium-sized enterprises.

Agricultural cooperation is especially promising. Agriculture is one of the areas where cooperation could be much more intensive, since the Netherlands, although a small country, is the second largest exporter of agricultural products in the world, right behind the United States.

The Dutch recognize the good quality of Serbian agricultural products, while the Serbian partners see the Dutch partners as leading collaborators when it comes to cattle breeding, seed and flower production. Dutch companies are very advance in agricultural innovation, as well as in distribution, i.e. knowledge transfer, milk production, animal husbandry, health food products, but also in the development of new products.

Metal processing is the second branch where the cooperation so far has been pronounced, especially having

in mind that large Dutch investments in Serbia were made in shipbuilding industry. Out of six shipyards in Serbia, three are owned by Dutch investors. Given that shipbuilding requires the participation of related metal processing services, there are great opportunities for production cooperation.

The cooperation between the Republic of Serbia and the Netherlands in the energy sector is visible through the renewable energy resource programmes implemented by the two governments.

Dutch experience in water management should also be utilized, given that Serbia faces certain challenges in this area. In some parts of Serbia, there is a surplus, while in some there is a lack of water and Dutch know-how could be used to a large extent for education and finding solutions to rectify this imbalance.

PERSPECTIVES OF ECONOMIC COOPERATION BETWEEN SERBIA AND THE NETHERLANDS There are numerous initiatives from both the Dutch and Serbian side for further improvement of economic cooperation, through joint cooperation and investments in food, chemical industry, production of construction materials, wood industry and furniture production, machinery and metal-processing industry, transport and logistics, textile industry and high technologies - especially in the field of services. The already established good relations should be nurtured and deepened, with the aim of joint entry into third markets, with an emphasis outsourcing programming services in production, transport and the automotive industry.

In order to attract even more Dutch investments, Serbia needs to work more on promoting its economy and its economic potential through various sem-

inars and workshops in cooperation with the Chamber of Commerce of the Netherlands.

The cooperation between the Republic of Serbia and the Netherlands in the energy sector is visible through the renewable energy resource programmes implemented by the two governments

NET INVESTMENTS FROM THE KINGDOM OF THE NETHERLANDS IN THE REPUBLIC OF SERBIA Total net investments of Dutch residents in Serbia in the period 2010-2018 amounted to 2.7 billion EUR, making the Netherlands one of the largest investors in Serbia. In 2019, the total net investments of Dutch residents in Serbia amounted to 707 million EUR. SERBIAN CHAMBER OF COMMERCE’S ACTIVITIES ON BOOSTING COOPERATION The Chamber of Commerce and Industry of Serbia (CCIS) has been actively participating in promoting the potential of the Serbian economy by organizing numerous meetings of Dutch and Serbian businesspeople. From 2016 to date, various appearances of Serbian companies have been organized at trade fairs, but also at forums in cooperation with the Embassy of the Kingdom of Netherlands.

The most important gatherings last year were the Water and Energy 2019 business forum held in April 2019 at the CCIS premises, where over a hundred Serbian companies discussed the possibilities of cooperation with nine Dutch companies engaged in advanced technologies in the field of environmental protection, renewable energy and processing and wastewater treatment.

In November of the same year, the Chamber of Commerce and Industry of Serbia, in cooperation with the Embassy of the Kingdom of Netherlands, organized a visit of the Dutch trade mission from the soft fruit sector. Ten Dutch companies met with 20 soft fruit producers in Serbia. The mission stayed in Serbia for three days, during which they visited raspberry producers in Arilje, Požega and Šabac.

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COVID-19 Impact on European Logistics The Netherlands plays a vital role in European supply chains, therefore, the Dutch government has identified air and sea freight chains, road transport, as well as food and medical supply chains as vital processes in view of COVID-19 ECONOM Y

he blow of the coronavirus crisis hit many companies hard. However, not all sectors were hit equally hard.

Striking are the declines in the sector culture, recreation, sports and other services, the sector public services, education and care and the sector trade, transportation and accommodation and food services.

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The Netherlands plays a leading role in the import of goods from all around the world into Europe, with huge throughput of goods flows, and in the export of products to global destinations. Logistics is therefore a key enabler for the success of other sectors, such as hightech, agriculture, agro-food, chemicals and energy. Good logistics are vital for com-

panies in these sectors in order to achieve punctuality and delivery reliability and to reinforce their (international) market positions. Logistics is of huge importance to the Dutch economy, providing increasing benefit to the GDP of 10% and contributing towards employment, with around 813,000 jobs. Logistics is thus a top priority for the Dutch government.

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REGIONALIZATION OF GLOBAL SUPPLY CHAINS Covid-19 will fundamentally reshape trade, accelerating the trend towards shortening supply chains. Just-in-time manufacturing using global suppliers will give way to a greater focus on use of regional supply chains, strategic use of inventories and a new approach to viewing risk in the C-suite. This can’t happen overnight but surely manufacturing companies have mapped their supply chains and are in the process of finding alternatives for their ‘high-risk’ or distant production locations and suppliers. Many companies will build supply chains that are quasi-independent in Europe and North America, fueling the near- and reshoring trends that were already in motion. The double-digit trade growth between the Netherlands and Eastern Europe is an indication of this trend.

BUILDING STOCK IN STRATEGIC PLACES REGAINS IMPORTANCE A second effect could be the re-val-

uation of building stock. Where supply chain best practices have been about optimizing the logistics process to minimize storage costs, now multinationals will put greater weight on the risks this brings. In the current crisis, companies are seeing greater value in storing inventory in strategic locations from where it can be easily accessed and delivered to customers. A strategic location is a low risk location, close to the market, with a strong political, economic and infrastructural environment.

The Netherlands is a ‘top performer’ on these factors.

Therefore, there will be a shift from “Gateway the Netherlands” as an efficient instrument to distribute China-based production, to the Netherlands as “a key logistics hub” for regionalized supply chains and strategic stockpiling. Furthermore – and not directly related to the coronacrisis – major opportunities for the Netherlands will come from circular supply chains (repurposing ‘waste’ streams) and more value add close to the customer, which will increase the economic value of the sizeable Dutch logistics sector.

The Netherlands plays a leading role in the import of goods from all around the world into Europe, with huge throughput of goods flows, and in the export of products to global destinations

WILL E-COMMERCE DRIVE THE DUTCH LOGISTICS TOP POSITION IN THE FUTURE? Container volume growth in the Netherlands is mostly driven by e-commerce. More and more brands and plat-

forms are using the Netherlands as their pan-European fulfilment hub, due to its world class infrastructure, business environment and central location between Europe’s main markets Germany, UK and France that can be served within 48 hours. Brands are quickly redesigning their supply chains to serve the European consumer directly, now that they are getting their essential and lifestyle items online. The Dutch locations – especially the inland locations – are ranked highest from a quality perspective. Main drivers for this strong position are good physical infrastructure (road, rail, waterway), favorable labor regulations (flexibility, night work), relatively close proximity to the market and favorable conditions concerning tax and import duties (VAT deferment, postponed accounting).

The answer may be-yes. The Corona crisis is reshaping the European retail landscape. Consumers are turning to the internet for their lifestyle needs and continue to be demanding. Not only the usage of internet and e-commerce, but overall the digital technology is playing an important role in the maintenance of daily life and social activities. In addition, probably even more in the recovery of industries and business activities. The current situation could become a tilting point for putting the Dutch logistics at the top, by accelerating the maturity of digital technology.

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19 Ways to Become Dutch

PEOPLE AND T R A DI T ION

5 A CTIVELY HATE THE NATIONAL RAILWAYS (NS) They can’t do anything right in our eyes.

If you ever ask a Dutchmen about the train system, most likely all you will hear are complaints.

Always wondered what it would be like to live in the Netherlands as a local? Or are your hopes and dreams already shattered because you just didn’t fit in? We are giving you some (tongue in cheek) advice on how to become a proper Dutchie 1 JUMP INTO THE FREEZING SEA On new year’s day the Dutch gather on the many beaches the country has to jump into the freezing North Sea. The ‘Nieuwjaarsduik’, as the Dutchies call it, is an ongoing tradition and every year around 200 different dives are organized throughout the country.

2 E AT HERRING WITH ONIONS, UPSIDE DOWN You’ll see them on every market: fish stalls that sell herring, best served with chopped onions. You’ll also notice the strange way this fish is eaten.

3 BIKE EVERYWHERE Amsterdam is often called the bicycle

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6 SQUISH YOUR FOOD A Dutch dinner means eating potatoes, meat and veggies, accompanied with gravy or some kind of sauce. To mix the potatoes with the gravy, the Dutch tend to ‘squish’ their potatoes with their fork – in Dutch this is called prakken – to break and flatten it. If you ever see people doing this around the world, there’s a 99% chance they are Dutch.

capital of the world, but don’t underestimate the rest of the country! The Dutch love to ride their bicycles everywhere.

Shopping, taking the kids to school or going to work; a bicycle is all you will ever need. But don’t get attached! There’s a Dutch saying in Amsterdam that says that every bike has at least been stolen twice.

7 ACT NORMAL The Dutch phrase ‘Doe maar normaal, dan doe je al gek genoeg.’ (meaning Act normal because that’s crazy enough), is not just a saying, it’s a lifestyle. The Dutch love modesty, so acting over the top – or

4 S IT OUTSIDE ON THE FIRST SPRING DAY ‘Don’t care that it’s the first week of March, last week it snowed and now it’s 12 degrees, I’m sitting outside!’ Is what every Dutchmen seems to think on the first – not even official – day of spring.

When the weather is great, outside is the place to be, enjoying, another typically Dutch thing, a beer.

If you want to experience the Netherlands, eat the cheese.

Be the cheese

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as we call fake – is not an option. Bragging is simply considered to be rude.

8 MAKE APPOINTMENTS Having a social life is high on the list of life standards. However, the Dutch like to plan their social life. Dropping by unexpected – although it does happen – is considered to be slightly less thoughtful than let’s say making an appointment.

Social events are mostly scheduled and coming on time is highly appreciated.

9 ‘BAKFIETS’ IS A WAY OF LIFE

ty and enjoys their day. You can find little flea markets everywhere and… yes, a lot of orange.

You’ll see people with ‘carrier bikes’ riding around everywhere, most of the time accompanied by their kids (who sit in the front). Dutchies use them to bring their kids to school, to do groceries or to scare the heck out of bus drivers by parking half of it on the street.

Although more and more people are starting to use it, upper class families are known to drive them. That’s how it’s considered to be a different kind of lifestyle.

13 THE ONLY WAY TO GROW UP IS BY EATING PINDAKAAS

If there’s something stuck between your teeth, a Dutchmen never fails to tell you straight away. This might come across as bluntness, but it’s actually meant in the nicest way. We just don’t want you to walk around like a fool, so we honestly tell you what’s up.

11 ORANGE IS THE ONLY COLOR

You’ll see people with ‘carrier bikes’ riding around everywhere, most of the time accompanied by their kids

Rain or shine, the Dutch get on their bike. With the necessary accessories, like an umbrella, they turn into a mobile shelter. It must be a strange sight.

17 WATER MANAGEMENT

Almost every kid grows up with pindakaas, the Dutch version of peanut butter.

Although this nutty paste is known all over the world, the Dutch version definitely tastes different from everything else out there. Any Dutchmen will tell you that.

Although the Netherlands has excellent water management, the country occasionally does flood. Luckily, the Dutchies do seem to cope with it, they like to bike everywhere.

14 EAT OUT OF THE WALL

18 LOVE THY NEIGHBOR

At train stations or in shopping streets you will find the typical Dutch snack foods that you can eat out of the wall.

Frikadel (a spiced sausage of minced… well, crap), kroket (a crispy croquette filled with ragout) and kaassoufflee (cheese soufflé) are some of the items you have to try when you stumble on one of them.

Because Holland is such a small country, most of the Dutch live close together. This makes that things like buying a new fence for the garden becomes a neighborhood related issue that should be carefully discussed with close neighbors. Sometimes people share a fence, which means that they all have to agree on the looks (and price) of the material.

Fencing, big trees and too many leafs are the main cause for neighborhood fights.

15 ‘GEZELLIG BAKKIE DOEN’ 10 BE HONEST

16 MOBILE SHELTER

‘Gezellig’ is a word that doesn’t have a proper English translation, but it comes closest to something fun, but low profile, you can do together, like drinking coffee (bakkie). A common Dutch phrase is ‘Bakkie doen?’, mostly answered by: ‘Gezellig!’. When you get together with friends, going to the movies or having dinner, this is considered to be ‘gezellig’.

19 BE THE CHEESE The Dutch are often called cheese heads, by themselves and the Flemish. It’s no wonder how they got this nickname if you look at the amount of cheese consumed in the Netherlands and in cheese production. If you want to experience the Netherlands, eat the cheese.

Be the cheese.

During soccer matches or Kings Day, we turn into an orange mass. Streets are decorated, people are dressed up and the nation unites.

12 D ON’T CARE FOR MONARCHY UNLESS IT’S KINGS DAY Some of the Dutch love the royal family, some think it costs a lot of money.

On Kings Day, the birthday of the king, everyone goes out on the streets to par-

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Whenever There is Dance Music, You’ll Find the Dutch The Dance Festivals Have Gone Dark: the Dutch dominated a global, multibillion-dollar industry employing tens of thousands and spawning millionaire D.J.’s. These days, it was shuttered t would have been a routine gig, playing electronic dance music in a sports stadium filled with 40,000 fans at a festival in Chengdu, China, last weekend. Martin Garrix, described as the world’s No. 2 D.J., performs at around 150 such events a year. But now, because of the coronavirus, electronic dance music parties and festivals across the world are over, even in Mr. Garrix’s home country, the Netherlands, where they are an important export product, an $8 billion industry employing around 100,000 people.

Nowadays, all shows and festivals have been cancelled until at least Sept. 1.

Such is the prominence of the business

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POPULAR C U LT U R E

The dance festivals have become a fixture of modern life in the Netherlands, where there are more of them per capita than anywhere in the world

in the Netherlands that the cancellation was announced by the Prime Minister, Mark Rutte, in a news conference.

Dutch D.J.’s, who normally roam the globe in private jets, now sit home wondering if this is the end of their profession. Dutch festival goers not only face a dance-less summer but now have $1 billion in advance tickets and no guarantee of refunds.

“Without a doubt this is the wisest thing to do,” Mr. Garrix said. “But I’ll miss the adrenaline, bringing thousands of people together, performing.”

At 23, Mr. Garrix is a multimillionaire with 17 million fans on Instagram, but now he is at home, with his parents, who temporarily moved in with him.

He hadn’t seen them for this long a period since he started touring at 16. “It’s a different life, we make puzzles and pancakes,” he said The dance festivals have become a fixture of modern life in the Netherlands, where there are more of them per capita than anywhere in the world; the country had 422 festivals in 2018.

“Whenever there is dance music, you’ll find the Dutch,” said Mr. Garrix, whose real name is Martijn Garritsen.

Most of the larger festivals, such as Mysteryland, Tomorrowland, Awakenings and Defqon 1, easily sell out months in advance, attracting over 50,000 visitors a day, usually for one or two days.

The dance festivals are hedonistic,

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The state tolerated dance music and this allowed it to grow much faster here compared to other countries it’s a weekend escaping from it all and so much better than a regular club. As Dutch D.J.’s like Mr. Garrix, Tiesto, Ferry Corsten and Armin van Buuren have become global brands, filling stadiums with their one-man shows, the concept has drawn interest from U.S. entertainment companies such as LiveStyle and Live Nation who have invested in Dutch festival organizers such as ID&T. The Netherlands is an open country where creativity and music are

embraced and appreciated. Organisers make 80 percent of all revenues in the summer months. It is expected that sector wide the turnover will be halved and that we’ll lose around 50,000 jobs.

While the Dutch descend from Calvinists, the Netherlands is the home of legalized marijuana and prostitution, the famed Dutch tolerance making the country fertile ground for the dance festivals.

Allowing hedonism is embedded in Dutch culture: the coffee shops, legal-

ized prostitution. The state tolerated dance music and this allowed it to grow much faster here compared to other countries. Where some countries cast a wary eye at the festivals as they developed in the 1990s, the Dutch government embraced them, even sending health workers to test the drugs the participants were taking to avoid overdoses. And from the industry, they prospered mightily. The Dutch used to ply the seven seas with ships, now they were flying around in private jets with digital beats.

The coronavirus caught the Dutch dance entrepreneurs completely off guard. As festivals began to be cancelled around the globe, many of the D.J.’s found themselves marooned. Sam Feldt, 26, had been looking forward to his set at the Avant Gardner in Brooklyn on March 13 but President Trump started closing America’s borders. “My show got cancelled and I found a seat on one of the last flights back,” he said.

He had been booked for the entire summer. But now, he said, while cooking dinner with his girlfriend in his house in Amsterdam, “I hope we can restart in September.”

Some D.J.’s were less optimistic. “I’m pretty sure I won’t be doing any gigs this year,” said Joris Voorn, 43, enumerating the reasons. “No. 1: I fly around the world. No. 2: I play in front of tens of thousands of people,” he said. “Unless there is a miracle, I don’t think these two things will be possible anywhere this year and perhaps not next year.”

In Amsterdam, an optimistic Mr. Garrix was already looking forward to the time when he could perform before a live audience once again. “Just think of the massive release, the energy and sense of freedom at the first party after coronavirus,” he said. “It’s going to be fantastic and insane. I can’t wait.”

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Martin Garrix

Armin van Buuren

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Artis Zoo

Things to do When in Amsterdam Aware of the fact that the coronavirus has disrupted all of our lives, we bring you an overview of things you can do in Amsterdam, if it weren’t for the coronavirus.

One of those “what if” stories talks about interesting sites in the city of Amsterdam, as well as ideas on how to spend time in the City of Freedom msterdam delivers the goods when it comes to memorable experiences. There’s what you do know: Amsterdam has more canals than Venice; that it’s liberal in matters of sex and drugs; that it rains a lot; that everyone

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cycles; and that some residents live on boats. Amsterdam’s historic Red Light District is rife with English-language city signs admonishing tourists: “Don’t pee in the street”; “No alcohol in public spaces”; “Put your trash in the bin”; “Fine: 140 euros.”

TOURISM

Look at what you probably didn’t know about the city, and it will useful someday when you decide to travel to Amsterdam.

1 STAY IN A PRINTED HOUSE

Artis has a botanical appeal too, with more than 200 tree species

Amsterdam might be best-known for its historic step-gabled dwellings, but the Dutch capital is not one to rest on its architectural laurels. In fact, the local authorities backed a pioneering scheme to 3D print a full-sized house in the heart of the city. The project is the brainchild of DUS Architects, which printed a cabin in Amsterdam Noord, the onetime industrial wasteland that’s fast becoming the city’s hippest new suburb. Avail-

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able for short-term lets, as of 2017, the diminutive dwelling was printed with bio-plastic and can be completely recycled (or, rather, reprinted).

runs to as many as 900 species. Artis has a botanical appeal too, with more than 200 tree species, and an oak in the chimpanzee enclosure thought to be at least 250 years old. Check the website for the planetarium schedule and for a timetable of keeper talks for griffon vultures, butterflies, African penguins, gorillas, red ruffed lemurs, sea lions and more.

2 D ISCOVER HISTORY IN AN ERSTWHILE ORPHANAGE

um, Funeral Museum and Museum Vrolik, where visitors will find an unnerving collection of human malformations (many pickled in jars) as accrued by the 18th-century scientist, Gerardus Vrolik.

6 S HOP AND EAT AT ALBERT CUYP MARKT

4 HIT THE BEACH WITHOUT LEAVING THE CITY Objects, stories, treasures and works of art from Amsterdam’s long and at times illustrious history, all form part of imaginative displays on the city’s past, present and even future at the Amsterdam Museum. The building was formerly the Burgerweeshuis (Municipal Orphanage), founded in 1520. It’s a rather moving experience to see the children’s lockers that are still there along one side of the courtyard.

3 Y OU MAY VISIT SOME EXTRAORDINARY MUSEUMS Amsterdam boasts a clutch of smaller, more eccentric museums, which deal with anything from drugs to deformities (yes, really). Highlights include the Torture Museum, Sex Museum, Hemp Muse-

Amsterdam boasts a clutch of smaller, more eccentric museums, which deal with anything from drugs to deformities

Strand Zuid at Europaplein has more than 2,000 square metres of soft sand, where you can sip a cocktail on a hammock or sun lounger. You can also cross the IJ once more to Pllek at NDSM in Amsterdam-Noord, which has a heart-rending view of the city and a sustainable outlook to go with it. Three quarters of Pllek’s menu is vegetarian, and along with live music there are yoga classes, mini festivals, workshops and art exhibitions on the beach.

5 V ISIT THE OLDEST ZOO IN THE NETHERLANDS Founded in 1838, Artis comes from its historic buildings, like the library (1867) and aquarium (1882). Children will be thrilled with the animal collection, which

In Oud-Zuid’s De Pijp there’s a streetlength outdoor market on Albert Cuypstraat, from Ferdinand Bolstraat to Van Woustraat. Originally, just a Saturday night affair, the market trades Monday to Saturday during daytime hours, with 300 stalls on both sides of the street completely shutting down traffic. You can find it all here; fresh produce, cheese, herring, spices, fabrics, cosmetics, fashion accessories, but also Surinamese, Moroccan and Antillean specialties. The high competition keeps prices low and there may not be a better place to see real Amsterdammers going about their day.

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Torture Muesum VISIT WEBSITE 

Sex Muesum

Strand Zuid

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