Washington, DC – The National Foreign Trade Council today applauded the ratification of the U.S.-Netherlands Protocol. The Protocol amends the decade-old tax treaty between the two countries.
“The trading relationship between the Netherlands and the United States is one of our oldest and most significant, as both countries have long been advocates of open markets and expanded free trade. Ratification of the treaty ensures that both countries will continue to prosper from this important relationship,” said Bill Reinsch, President of the National Foreign Trade Council.
The Netherlands is the third largest investor in the U.S., and is also a significant importer of U.S. goods and services. Important provisions in the Protocol are expected to enhance the already vigorous cross- border investments between the two countries. One of the most important provisions is the elimination of the 5% withholding tax on related-entity dividends, making further progress on the standard set in recent agreements between the U.S. and the United Kingdom, Australia, Mexico, and Japan. The elimination of the dividend withholding tax is another important step toward removing this impediment to cross-border investment flows for U.S. companies.
The U.S. Treasury has achieved remarkable success in the completion of seven important tax agreements in this session of Congress. That success has been matched by U.S. Senate Foreign Relations Committee Chairman Dick Lugar’s leadership as he has guided them through ratification. The NFTC praises their commitment to the international competitiveness of U.S. business.
www.nftc.org is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC serves its several hundred member companies through its offices in Washington and New York.
The National Foreign Trade Council (NFTC)