Economy of Belgium

From Wikipedia, the free encyclopedia

Economy of Belgium

View of Brussels' financial district over the Botanical Garden Rank Currency Fiscal year Trade organisations Statistics GDP GDP growth $381.4 billion (PPP, 2009 est.) 2.1% (2010 est.) 30th (2008) Euro Calendar year EU, WTO and OECD

GDP per capita $38,600 (2010 est.) GDP by sector Inflation (CPI) Population below poverty line agriculture (1%), industry (24.2%), services (74.9%) (2008 est.) 2.5% (2010 est.) 15.2% (2007 est.)

Gini index Labour force Labour force by occupation

28 (2005) 5.08 million (2009 est.) services (73%), industry (25%), agriculture (2%) (2007 est.)

Unemployment 8.0% (Jan. 2011) Average gross salary Average net salary

[1]

4,097 / $5,530, monthly (2006)

[2]

1,825 / $2,464, monthly (2006)

[3]

Main industries engineering and metal products, motorvehicle assembly, transportationequipment, scientific instruments,processed food and beverages, chemicals, basic metals, textiles,glass, petroleum Ease of Doing Business Rank External Exports Export goods $254.3 billion f.o.b (2009 est.) machinery and equipment, chemicals, finished diamonds, metals and metal products, foodstuffs Main export partners Imports Import goods Germany 19.58%, France 17.71%,Netherlands 11.84%, United Kingdom7.21%, United States 5.37%, Italy4.77% (2009) $253.1 billion f.o.b. (2009 est.) raw materials, machinery and equipment, chemicals, raw diamonds, 22nd
[4]

pharmaceuticals, foodstuffs, transport equipment, oil products Main import partners FDI stock Netherlands 17.93%, Germany17.14%, France 11.69%, Ireland6.26%, United States 5.74%, United Kingdom 5.07%, China 4.09% (2009) $742.4 billion (31 December 2009 est.)

Gross external $1.354 trillion (2008) debt Public finances Public debt Revenues Expenses Economic aid Credit rating $471 billion (96.6% of GDP) (2010 est.) $226.4 billion (2009 est.) $253.3 billion (2009 est.) $1.978bn (2006) AA+ (Domestic) AA+ (Foreign) AAA (T&C Assessment) (Standard & Poor's) Foreign reserves Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars The modern, private enterprise economy of Belgium has capitalised on its central geographic location, highly developed transport network, and diversified industrial and commercial base. The first country to undergo an industrial revolution on the continent of Europe in the early 19th century, Belgium developed an excellent transportation infrastructure of ports, canals, railways, and highways to integrate its industry with that of its neighbors.
[8] [6] [5]

US$30.017 billion (April 2011)

[7]

Industry is concentrated mainly in the populous Flanders in the north,

around Brussels and in the 2 biggest Walloon cities, Lige and Charleroi, along the sillon industriel.

Belgium imports raw materials and semi-finished goods that are further processed and re-exported. Except for its coal, which is no longer economical to exploit, Belgium has virtually no natural resources. Nonetheless, most traditional industrial sectors are represented in the economy, including steel, textiles, refining, chemicals, food processing, pharmaceuticals, automobiles, electronics, and machinery fabrication. Despite the heavy industrial component, services account for 74.9% of GDP, while agriculture accounts for only 1% of GDP.
[8]

With exports equivalent to over two-thirds of GNP, Belgium depends heavily on world trade. Belgium's trade advantages are derived from its central geographic location and a highly skilled, multilingual, and productive work force. One of the founding members of the European Community, Belgium strongly supports deepening the powers of the present-day European Union to integrate European economies further.
[8]

About three-quarters of its trade is with other EU countries.

[9]

Belgium's public debt is about 99% of GDP.

The government succeeded in balancing its budget during

the 2000-2008 period, and income distribution is relatively equal. Belgium began circulating the euro currency in January 2002. Economic growth and foreign direct investment dropped in 2008. In 2009 Belgium is likely to have negative growth, growing unemployment, and a 3% budget deficit, stemming from the worldwide banking crisis.
[9]

Belgian economy in the twentieth century

Evolution of the Belgian GDP For 200 years through World War I,French-speaking Wallonia was a technically advanced, industrial region, with its industry concentrated along thesillon industriel, while Dutch-speakingFlanders was predominantly agriculturalwith some industry, mainly processing agricultural products and textiles. This disparity began to fade during theinterwar period. When Belgium emerged from World War II with its industrial infrastructure relatively undamaged thanks to the Galopin doctrine, the stage was set for a period of rapid development, particularly in Flanders. The postwar boom years, enhanced by the

establishment of the European Union and NATO headquarters inBrussels, contributed to the rapid expansion of light industry throughout most of Flanders, particularly along a corridor stretching between Brussels and Antwerp, which is the second largest port in Europe after Rotterdam.
[8]

Foreign investment contributed significantly to Belgian economic growth in the 1960s. In particular, U.S. firms played a leading role in the expansion of light industrial and petrochemical industries in the 1960s and 1970s.
[8]

The older, traditional industries of Wallonia, particularly steel industry, began to lose their competitive edge during this period, but the general growth of world prosperity masked this deterioration until the 1973 and 1979 oil price shocks and resultant shifts in international demand sent the economy into a period of prolonged recession. In the 1980s and 1990s, the economic center of the country continued to shift northwards to Flanders with investments by multinationals (Automotive industry, Chemical industry) and a growing local Industrial agriculture (textiles, food). The early 1980s saw the country facing a difficult period of structural adjustment caused by declining demand for its traditional products, deteriorating economic performance, and neglected structural reform. Consequently, the 1980-82 recession shook Belgium to the coreunemployment mounted, social welfare costs increased, personal debt soared, the government deficit climbed to 13% of GDP, and the national debt, although mostly held domestically, mushroomed. Against this grim backdrop, in 1982, Prime Minister Martens' center-right coalition government formulated an economic recovery program to promote export-led growth by enhancing the competitiveness of Belgium's export industries through an 8.5% devaluation. Economic growth rose from 2% in 1984 to a peak of 4% in 1989. In May 1990, the government linked the Belgian franc to the Deutsche Mark, primarily through closely tracking Germaninterest rates. Consequently, as German interest rates rose after 1990, Belgian rates have increased and contributed to a decline in the economic growth rate. In 1992-93, the Belgian economy suffered the worst recession since World War II, with the real GDP declining 1.7% in 1993. A boost in business investment and exports for recovery.
[citation needed] [when?]

provided the economy's impetus

On May 1, 1998, Belgium became a first-tier member of the European Monetary Union. Belgium switched from the Belgian franc to the Euroas its currency after January 1, 2002. Belgian per capita GDP ranks among the world's highest. In 2008, the per capita income (PPP) was $37,500. The federal government has managed to present balanced budgets in recent years, but public debt remains high, at 99% of 2009 GDP. GDP growth in 2009 was negative at -1.5%.
[8]

ECONOMY
Belgium, a highly developed market economy, belongs to the Organization for Economic Cooperation and Development (OECD), a group of leading industrialized democracies. With a geographic area about equal

to that of Maryland, and a population of 10.8 million, Belgian per capita GDP ranks among the world's highest. In 2010, per capita income (PPP) was estimated to be 32,592 (approx. $43,220). The federal government ran large primary surpluses in recent years until 2009. Public debt remains high, at about 97.2% of GDP at the end of 2010. GDP growth in 2010 was estimated to be 2.1%. Densely populated Belgium is located at the heart of one of the world's most highly industrialized regions. The first country to undergo an industrial revolution on the continent of Europe in the early 1800s, Belgium developed an excellent transportation infrastructure of ports, canals, railways, and highways to integrate its industry with that of its neighbors. One of the founding members of the European Community (EC), Belgium strongly supports deepening the powers of the present-day European Union to integrate European economies further. With exports and imports approximately equal to GDP, Belgium depends heavily on world trade. Belgium's trade advantages are derived from its central geographic location and a highly skilled, multilingual, and productive work force. The Belgian industrial sector can be compared to a complex processing machine: It imports raw materials and semi-finished goods that are further processed and re-exported. Except for its coal, which is no longer economical to exploit, Belgium has virtually no natural resources. Nonetheless, most traditional industrial sectors are represented in the economy, including steel, textiles, refining, chemicals, food processing, pharmaceuticals, automobiles, electronics, and machinery fabrication. Despite the heavy industrial component, services account for 77.4% of GDP (2009). Agriculture accounts for only 1% of GDP. Belgian Economy in the 20th Century For 200 years through World War I, French-speaking Wallonia was a technically advanced, industrial region, while Dutch-speaking Flanders was predominantly agricultural. This disparity began to fade during the interwar period. As Belgium emerged from World War II with its industrial infrastructure relatively undamaged, the stage was set for a period of rapid development, particularly in Flanders. The postwar boom years contributed to the rapid expansion of light industry throughout most of Flanders, particularly along a corridor stretching between Brussels and Antwerp (now the second-largest port in Europe after Rotterdam), where a major concentration of petrochemical industries developed. The older, traditional industries of Wallonia, particularly steelmaking, began to lose their competitive edge during this period, but the general growth of world prosperity masked this deterioration until the 1973 and 1979 oil price shocks sent the economy into a period of prolonged recession. In the 1980s and 1990s, the economic center of the country continued to shift northward to Flanders. Foreign Investment Foreign investment contributed significantly to Belgian economic growth in the 1960s. In particular, U.S. firms played a leading role in the expansion of light industrial and petrochemical industries in the 1960s and 1970s. The Belgian Government encourages new foreign investment as a means to promote employment. With regional devolution, Flanders, Brussels, and Wallonia now have substantial autonomy in courting potential foreign investors, as each deems appropriate. Foreign direct investment (stock) totaled more than $705 billion (cumulative) in 2009. U.S. and other foreign companies in Belgium account for approximately 11% of the total work force, with the U.S. share at about 6%. U.S. companies are heavily represented in the chemical sector, automotive assembly, petroleum refining, and pharmaceutical sectors. A number of U.S. service industries followed in the wake of these investments--banks, law firms, public relations, accounting, and executive search firms. The resident American community in Belgium now exceeds 20,000. Attracted by the EU 1992 single-market program, many U.S. law firms and lawyers have settled in Brussels since 1989. Monetary On May 1, 1998, Belgium became a first-tier member of the European Monetary Union. Belgium switched from the Belgian franc (BF) to the Euro as its currency after January 1, 2002.

Trade Most of Belgium's trade is with fellow EU member states. As a result, Belgium seeks to diversify and expand trade opportunities with non-EC countries. Through November 2010, Belgium ranked as the 14thlargest market for the export of U.S. goods. Bilaterally, there are few points of friction with the U.S. in the trade and economic area. The Belgian authorities are, as a rule, anti-protectionist and try to maintain a hospitable and open trade and investment climate. As a result, the U.S. Government focuses its market-opening efforts on the EU Commission and larger member states. Moreover, the Commission negotiates on trade issues for all member states, which in turn lessens bilateral trade disputes with Belgium. Employment The social security system, which expanded rapidly during the prosperous 1950s and 1960s, includes a medical system, unemployment insurance coverage, child allowances, invalid benefits, and other benefits and pensions. With the onset of a recession in the 1970s, this system became an increasing burden on the economy and accounted for much of the government budget deficits. The national unemployment figures mask considerable differences between Flanders and Wallonia. Unemployment in Wallonia is mainly structural, while in Flanders it is cyclical. Flanders' unemployment level equals only half that of Wallonia. The southern region continues a difficult transition out of sunset industries (mainly coal and steel), while sunrise industries (chemicals, high-tech, and services) dominate in Flanders. Belgium's unemployment rate was 8.3% in November 2010. A total of 4.47 million people make up Belgium's labor force. The majority of these people (73%) work in the service sector. Belgian industry claims 25% of the labor force and agriculture only 2%. As in other industrialized nations, pension and other social entitlement programs have become a major concern as the "baby boom" generation approaches retirement. Budget Although Belgium is a wealthy country, public expenditures far exceeded income for many years, and taxes were not diligently pursued. The Belgian Government reacted with poor macroeconomic policies to the 1973 and 1979 oil price hikes by hiring the redundant work force into the public sector and subsidizing industries like coal, steel, textiles, glass, and shipbuilding, which had lost their international competitive edge. As a result, cumulative government debt reached 121% of GDP by the end of the 1980s. However, thanks to Belgium's high personal savings rate, the Belgian Government financed the deficit from mainly domestic savings, minimizing the deleterious effects on the overall economy. The federal government ran a 7.1% budget deficit in 1992 at the time of the EU's Treaty of Maastricht, which established conditions for Economic and Monetary Union (EMU) that led to adoption of the common Euro currency on January 1, 2002. Among other criteria spelled out under the Maastricht treaty, the Belgian Government had to attain a budget deficit of no greater than 3% of GDP by the end of 1997; Belgium achieved this, with a total budget deficit in 2001 (just prior to implementation of the Euro currency) that amounted to 0.2% of GDP. The government had a positive primary balance between 1993 and 2007, during which time Belgiums debt to GDP level fell from 133% to just over 84%. In 2009, due to the financial and economic crisis, Belgiums deficit and debt levels increased to 6% and 96.2% of GDP respectively, with debt rising to close to 97% of GDP in 2010. Thanks to improving economic growth, Belgiums budget deficit was 4.6% in 2010. According to the countrys Stability Program, the deficit is planned to be 4.1% in 2011 and 3.0% in 2012, although the government signaled in early 2011 that it wants to bring the 2011 deficit to below 4.0%. GDP (PPP, 2010 est.): 352 billion (approx. $466 billion). Annual real growth rate (2010 est.): 2.1%. Per capita income (PPP, 2010 est.): 32,592 (approx. $43,220). Natural resources: Coal.

Agriculture: (1% of GDP) Products--livestock, including dairy cattle, grain, sugarbeets, milk, tobacco, potatoes, and other fruits and vegetables. Industry: (24.3% of GDP) Types--engineering and metal products, motor vehicle assembly, transportation equipment, scientific instruments, processed food and beverages, chemicals, basic metals, textiles, glass, petroleum Trade: Exports (2010 est.)--$261 billion: transportation equipment, diamonds, metals and metal products, foodstuffs, chemicals. Export partners: Germany 19.6%, France 17.7%, Netherlands 11.8%, U.K. 7.2%, U.S. 5.4%, Italy 4.7%. Imports (2010 est.)--$261 billion: Machinery and equipment, chemicals, diamonds, foodstuffs, pharmaceuticals, transportation equipment, oil products. Import partners (2010 est.): Netherlands 17.9%, Germany 17.1%, France 11.7%, Ireland 6.3%, U.S. 5.7%, U.K. 5.1%, China 4.1%.

http://www.traveldocs.com/be/economy.htm

Belgium: Economy Overview

07 October 2009 by Ina Dimireva -- last modified 23 November 2010

Belgium's modern, private-enterprise economy has capitalized on its central geographic location, highly developed transport network, and diversified industrial and commercial base.

Economy - overview: Industry is concentrated mainly in the populous Flemish area in the north. With few natural resources, Belgium must import substantial quantities of raw materials and export a large volume of manufactures, making its economy vulnerable to volatility in world markets. Roughly three-quarters of Belgium's trade is with other EU countries and its overall current account deficit widened to 4% of GDP in 2009. Public debt is nearly 100% of GDP. On the positive side, income distribution is relatively equal and the government succeeded in balancing its budget during the 2000-2008 period. In 2009 Belgian GDP contracted by 3.1%, the unemployment rate rose slightly, and the budget deficit worsened because of large-scale bail-outs in the financial sector. Belgian banks have been severely affected by the international financial crisis with three major banks all receiving capital injections from the government. An ageing population and rising social expenditures are also increasing pressure on public finances, making it likely the government will need to implement unpopular austerity measures to restore fiscal balance. GDP (purchasing power parity): $383.4 billion (2009 est.) country comparison to the world: 30

$394 billion (2008 est.) $390.9 billion (2007 est.) note: data are in 2009 US dollars GDP (official exchange rate): $470.4 billion (2009 est.) GDP - real growth rate: -2.7% (2009 est.) country comparison to the world: 161 0.8% (2008 est.) 2.8% (2007 est.) GDP - per capita (PPP): $36,800 (2009 est.) country comparison to the world: 30 $37,900 (2008 est.) $37,600 (2007 est.) note: data are in 2009 US dollars GDP - composition by sector: agriculture: 0.6% industry: 22% services: 77.4% (2009 est.) Labor force: 5.08 million (2009 est.) country comparison to the world: 73 Labor force - by occupation: agriculture: 2% industry: 25% services: 73% (2007 est.) Unemployment rate: 7.9% (2009 est.) country comparison to the world: 81 7% (2008 est.)

Investment (gross fixed): 21.4% of GDP (2009 est.) country comparison to the world: 78 Budget: revenues: $226.4 billion expenditures: $253.3 billion (2009 est.) Inflation rate (consumer prices): 0% (2009 est.) country comparison to the world: 25 4.5% (2008 est.) Agriculture - products: sugar beets, fresh vegetables, fruits, grain, tobacco; beef, veal, pork, milk

Industries: engineering and metal products, motor vehicle assembly, transportation equipment, scientific instruments, processed food and beverages, chemicals, basic metals, textiles, glass, petroleum Industrial production growth rate: -7.6% (2009 est.) country comparison to the world: 129 Oil - production: 11,220 bbl/day (2009 est.) country comparison to the world: 82 Natural gas - production: 0 cu m (2008 est.) country comparison to the world: 205 Current account balance: $4.398 billion (2009 est.) country comparison to the world: 39 -$12.88 billion (2008 est.) Exports:

$254.3 billion (2009 est.) country comparison to the world: 15 $371.5 billion (2008 est.) Exports - commodities: machinery and equipment, chemicals, finished diamonds, metals and metal products, foodstuffs Exports - partners: Germany 19.58%, France 17.71%, Netherlands 11.84%, UK 7.21%, US 5.37%, Italy 4.77% (2009) Imports: $253.1 billion (2009 est.) country comparison to the world: 15 $387.7 billion (2008 est.) Imports - commodities: raw materials, machinery and equipment, chemicals, raw diamonds, pharmaceuticals, foodstuffs, transportation equipment, oil products Imports - partners: Netherlands 17.93%, Germany 17.14%, France 11.69%, Ireland 6.26%, US 5.74%, UK 5.07%, China 4.09% (2009) Debt - external: $NA (31 December 2009) $1.354 trillion (31 December 2008) Stock of direct foreign investment - at home: $742.4 billion (31 December 2009 est.) country comparison to the world: 6 $671.1 billion (31 December 2008 est.) Stock of direct foreign investment - abroad: $691.2 billion (31 December 2009 est.) country comparison to the world: 10 $615.4 billion (31 December 2008 est.) Exchange rates: euros (EUR) per US dollar - 0.7338 (2009), 0.6827 (2008), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005)

Source: CIA - The World Factbook

http://www.eubusiness.com/europe/belgium

Belgium GDP (purchasing power parity)

Belgium > Economy
ShareThis

GDP (purchasing power parity): $394.3 billion (2010 est.) $386.7 billion (2009 est.) $397.3 billion (2008 est.) note: data are in 2010 US dollars Definition: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Source: CIA World Factbook - Unless otherwise noted, information in this page is accurate as of October 14, 2011
See Also

GDP (purchasing power parity) by year chart

GDP (purchasing power parity) rank chart GDP (purchasing power parity) - comparative map GDP, PPP (current international $) - thematic map - World Bank indicator GDP, PPP (current international $) - country comparison - World Bank indicator GDP - real growth rate GDP - per capita (PPP) GDP - composition by sector GDP (official exchange rate)

Related Data From the International Monetary Fund

Variable: Gross domestic product based on purchasing-power-parity (PPP) valuation of country GDP Note: These data form the basis for the country weights used to generate the World Economic Outlook country group composites for the domestic economy. The IMF is not a primary source for purchasing power parity (PPP) data. WEO weights have been created from primary sources and are used solely for purposes of generating country group composites. For primary source information, please refer to one of the following sources: the Organization for Economic Cooperation and Development, the World Bank, or the Penn World Tables. For further information see Box A2 in the April 2004 World Economic Outlook, Box 1.2 in the September 2003 World Economic Outlook for a discussion on the measurement of global growth and Box A.1 in the May 2000 World Economic Outlook for a summary of the revised PPP-based weights, and Annex IV of the May 1993 World Economic Outlook. See also Anne Marie Gulde and Marianne Schulze-Ghattas, Purchasing Power Parity Based Weights for the World Economic Outlook, in Staff Studies for the World Economic Outlook (Washington: IMF, December 1993), pp. 106-23. Units: Current international dollar

Scale: Billions Country-specific Note: See notes for: Gross domestic product, current prices (National currency). Source: International Monetary Fund - 2011 World Economic Outlook

Year

Gross domestic product based on purchasing-power-parity (PPP) valuation of country GDP

Percent Change

1980

96.245

1981

105.419

9.53 %

1982

112.499

6.72 %

1983

117.412

4.37 %

1984

124.383

5.94 %

1985

130.516

4.93 %

1986

135.873

4.10 %

1987

143.135

5.34 %

1988

154.812

8.16 %

1989

166.471

7.53 %

1990

178.237

7.07 %

1991

187.877

5.41 %

1992

194.893

3.73 %

1993

197.82

1.50 %

1994

208.636

5.47 %

1995

222.094

6.45 %

1996

228.827

3.03 %

1997

241.973

5.74 %

1998

249.399

3.07 %

1999

261.999

5.05 %

2000

277.829

6.04 %

2001

286.132

2.99 %

2002

294.721

3.00 %

2003

303.278

2.90 %

2004

320.557

5.70 %

2005

337.398

5.25 %

2006

357.67

6.01 %

2007

378.326

5.78 %

2008

389.79

3.03 %

2009

383.453

-1.63 %

2010

396.035

3.28 %

http://www.indexmundi.com/belgium/gdp_(purchasing_power_parity).html Belgium
Belgium's purchasing power fell by a small margin (approximately 2%) compared to other European countries. As a result, Belgium climbs in the rankings from 12 to 9. The regional distribution of purchasing power in Belgium reflects the country's distinct linguistic and economic areas: The district with the lowest per capita purchasing power is located in the Wallonia region. All districts in this region (with the exception of Nivelles) have below average purchasing power levels. The Flanders region has the most inhabitants and disposable income, with a per capita purchasing power of 17,380. While Brussels has a below average purchasing power, the surrounding municipalities make up the country's most affluent district: Halle-Vilvoorde. Antwerp, Belgium's most populated municipality, has a slightly below average purchasing power. Purchasing power levels within the city vary substantially: Inhabitants of the Borgerhout city quarter have a per capita purchasing power of 13,601, while inhabitants of the Wilrijk quarter have one-and-a-half times as much at their disposal.

http://www.gfkgeomarketing.de/en/gfkgeomarketing/gfk_purchasing_power_europe_20092010/gfk_purchasing_powe r_belgium_2009.html

Belgium country brief

Overview
Australia enjoys positive and constructive relations with Belgium, with a growing bilateral commercial relationship. We share similar approaches to many international issues, including climate change, arms control, whaling and Antarctica. Australia and Belgium are partners in NATO's International Security Assistance Force (ISAF) in Afghanistan. Belgium is a member of the Australia Group on Chemical Weapons. Belgium is a focus of European government with the European Council, the European Commission and the North Atlantic Treaty Organisation (NATO) all based in Brussels. Belgium held the rotating EU Presidency to the end of December 2010. Belgium held the rotating EU Presidency to the end of December 2010. Former Belgian Prime Minister Mr Herman Van Rompuy took up his role as the inaugural permanent President of the European Council on 1 January 2010. Former Belgian Foreign Minister Mr Karel De Gucht is currently EC Commissioner for Trade (2010-2014).

Political overview
System of government
Belgium is a constitutional monarchy. King Albert II (who acceded to the throne in 1993) is head of state. The country became a federal state in 1995. There are three main forms of government in Belgium: the federal government, regional governments and community councils. The Federal government is responsible for issues such as justice, the interior, foreign policy, defence, social security and some health matters. Belgium is divided into three regional government areas. Flanders comprises mainly Dutch speakers while Wallonia and Brussels are French speaking regions (a small German speaking community also exists). The regions have jurisdiction over a wide range of policy areas, including economic, transport, public works, and industrial policy. Education and other 'cultural issues' are devolved to three community councils that have similar levels of authority to regional governments. These are divided along linguistic, not geographic, lines representing the Dutch, French and German speaking peoples. The Belgian government devolved agriculture and foreign trade responsibilities to the regional governments through part of a June 2001 institutional reform program. The regions were also granted greater fiscal autonomy, and there was a restructuring of finances for the linguistic community councils.

Major parties

There are four main groups of mainstream political parties in Belgium, which are then split along linguistic lines: Christian Democrat (CD&V, CdH); Liberal (Open VLD, MR); Socialist (PS, SP.A); and Environment Groups (Ecolo-Groen). The far-right Vlaams Belang party is also a key player in Flanders, although Belgium's other political parties have agreed to not enter into coalition agreements with the Vlaams Belang, in an arrangement known as the cordon sanitaire.

Political developments
In recent years, the Belgian federal government had been in crisis, largely due to political and cultural divisions between the Dutch-speaking region of Flanders and francophone Wallonia. Regional elections in Flanders, Wallonia and Brussels-Capital held on 7 June 2009, delivered mixed results for the main political parties, showing a divide in voter preferences, with Christian Democrats winning in Flanders, Socialists holding on in Wallonia, and the Liberals narrowly ahead in the Brussels-capital region. The CD&V, New Flemish Alliance party (N-VA) and the Socialist Party Different (SP.A) formed government in Flanders, and the Socialist Party (PS), Humanist Democratic Centre (CdH) and Ecolo worked in coalition in both Wallonia and the Brussels-Capital region. In a federal government reshuffle on 17 July 2009, Mr Yves Leterme was appointed Minister for Foreign Affairs and Foreign Trade. On 19 November 2009, EU heads of government appointed former Belgian Prime Minister Mr Herman Van Rompuy as the inaugural permanent President of the European Council, a post he took up on 1 January 2010. This appointment led to a further reshuffle of portfolios in the Belgian Government, with Mr Leterme replacing Mr Van Rompuy as Belgian Prime Minister, and Deputy Prime Minister Mr Steven Vanackere being appointed Minister for Foreign Affairs and Foreign Trade. The governing coalition of CD&V, Flemish Liberal Open-VLD, Francophone Liberal (MR), Francophone Socialists (PS) and Francophone Christian Democrats (CdH) remained in office with only minor changes to the ministerial line-up until federal parliamentary elections were held on 13 June 2010 following the collapse of the coalition in April 2010. The N-VA won the most seats, followed by the PS, the CD&V, and other parties Coalition formation negotiations have begun. While this process takes place, the Belgian Government is in caretaker mode and Mr Leterme remains Prime Minister, with Mr Vanackere remaining Minister for Foreign Affairs and Foreign Trade. While Yves Letermes caretaker Government has drawn praise for its solid performance, particularly during Belgiums EU Presidency, Belgium remains unable to form a permanent Government. Mr Leterme has announced that he will resign from office by the end of this year to take up a position as Deputy Secretary-General at the Organisation for Economic Cooperation and Development (OECD) in Paris. A breakthrough agreement on the treatment of a crucial electorate on 15 September may see the formation of a new government in coming weeks.

Economic overview
Since 1921 Belgium has had an economic union with Luxembourg, the Belgium-Luxembourg Economic Union (BLEU). The BLEU is Australias 10th largest investor with total inward investment valued at A$32.4 billion at December 2010. The BLEU is the fifth largest European Union (EU) investor in Australia. Total two-way trade between Australia and the BLEU is also substantial, reaching A$3.1 billion in 2010. Both Belgium and Luxembourg have sophisticated open market economies although, as members of the EU, their agriculture sectors remain subject to market access limitations. The currency in Belgium is the Euro. Belgium is a major trade gateway to the rest of Europe. Belgium's top export markets are its neighbours in the EU Germany, France and the Netherlands. More than two-thirds of Belgium's GDP is derived from foreign sales, one of the highest percentages among industrialised nations.

Country Reports on Terrorism 2010 - Belgium

Overview: Belgium's government remained vigilant in its counterterrorism efforts. The Ministers of Interior and Justice oversee a capable but understaffed federal police corps, state security service, threat analysis unit, and federal prosecutor's office. Belgian courts set a high standard for prosecutors to prove a suspect is a terrorist. Terrorism investigations were often long, requiring several months to more than a year before a case can be built that leads to arrests. Legislation and Law Enforcement: Belgium instituted enhancements to airline passenger screening in December 2009. Air cargo screening enhancements were adopted in summer 2010. A law that allows Belgium's security services to use new investigative techniques against suspects in terrorism and national security cases came into effect in September 2010. Seven defendants in an ongoing terrorism case, including Malika El-Aroud (the socalled "Internet jihadist") were convicted in May under Belgium's 2005 terrorism law. This was the first successful prosecution under the law. Nine suspected terrorists were detained on November 23 and were held in custody through the end of the year. Seven of the nine, plus an additional suspect detained later, were arrested in Antwerp; they were accused of membership in the Caucasus Emirate, a terrorist organization that seeks to create an emirate in the northern Caucasus. Two suspects were detained in Brussels for financing and recruiting in Iraq and Afghanistan. The Belgian government continued to work with the U.S. government on the extradition to the United States of convicted terrorist Nizar Trabelsi, who had not yet exhausted his appeal options on the extradition request.

Countering Terrorist Finance: Belgium led the effort in late 2009 to find a solution that would allow EU countries to continue to freeze terrorist assets under UNSCR 1267 after European court cases ruled there must be a workable means for a person to contest his or her listing and be delisted, if appropriate. Belgium also hosted meetings to respond to the European Court's 2010 ruling that UNSCR 1904 did not go far enough in allowing those listed to contest a listing. Belgium is a member of the Financial Action Task Force. Regional and International Cooperation: Belgium chaired the EU's counterterrorism working group during Belgium's Rotating Presidency of the European Council from July 1 to December 31. Belgium voted in favor of UNSCR 1904. Countering Radicalization and Violent Extremism: Belgium's Ministry of Interior began developing its own Countering Violent Extremism (CVE) strategy in 2010. The Belgian Federal Police distributed a Community Policing Preventing Radicalism and Terrorism guide to assist local police to recognize the signs of radicalization. The Belgian police worked on this guide for several years with seven other EU member states. Belgium held two CVE seminars in September and October during its rotating EU presidency. Participants, including representatives of the U.S. Department of Homeland Security, the State Department, and the National Counterterrorism Center, discussed approaches governments can take to recognize and counteract violent extremism.
http://www.unhcr.org/refworld/country,,,,BEL,,4e524836c,0.html
OECD System of Unit Labour Cost Indicators Contact person/organisation OECD statistics contact: stat.contact@oecd.org Sector coverage This system provides annual and quarterly time series of unit labour cost indicators and related series for the following economic activities according to the International Standard Industrial Classification (ISIC Rev. 3):
.UL.......

Total economy Manufacturing (ISIC D) Industry (ISIC C_E) Construction (ISIC F) Trade, transport and communication (ISIC G_I) Finance and business services (ISIC J_K) Market services (ISIC activity based proxy G_K) Business sector excluding agriculture (ISIC activity based proxy C_K)

Related Links: ISIC Rev. 3

Key statistical concept Unit labour costs (ULCs) measure the average cost of labour per unit of output. They are calculated as the ratio of total labour costs to real output, or equivalently, as the ratio of mean labour costs per hour to labour productivity (output per hour). As such, a ULC represents a link between productivity and the cost of labour in producing output. The OECD System of Unit Labour Cost Indicators calculates annual and quarterly ULC measures and related indicators (e.g. indices of labour productivity) according to a specific methodology to ensure data are comparable across countries.

Annual Total Labour Costs

.ULABAC.......

Key statistical concept The target variable for annual total labour costs is compensation of employees (COE) compiled according to the System of National Accounts 1993, adjusted for the self employed by multiplying COE by the ratio of total hours worked by all persons in employment to total hours worked by all employees of businesses. This target variable covers a significant part of total labour costs such as wages and salaries; bonuses; payments in kind related to labour services (e.g. food, fuel, housing); severance and termination pay and employers' contributions to pension schemes, casualty and life insurance and workers compensation. However, COE excludes some relevant items of total labour cost such as the cost of employee training, welfare amenities and recruitment; taxes on employment (e.g. payroll tax) and fringe benefits tax. Furthermore, the adjustment for the self employed assumes that labour compensation per hour or per person is equivalent for the self employed and employees of businesses. This assumption may be more or less valid across different countries and economic activities. In the interest of producing the longest possible time series for annual total labour costs, current series are often linked to related historical time series provided to the OECD sometime in the past. As a result time series extend back to 1970 for most OECD Member countries. The variables and their sources used for each country and economic activity are noted in the country metadata under the heading Sources'.

Aggregation and consolidation Total labour costs for economic activities G_K (Market Services) and C_K (Business Sector) are compiled by summing their respective activity components.

Annual Real Output

.ULABRV.......

Key statistical concept The target variable for annual real output is constant price value added compiled according to the System of National Accounts 1993. In the interest of producing the longest possible time series for annual real output, current series are often linked to related historical time series provided to the OECD sometime in the past. As a result time series extend back to 1970 for most OECD Member

countries. The variables and their sources used for each country and economic activity are noted in the country metadata under the heading 'Sources'. Aggregation and consolidation All volume series of real output are re-referenced such that the national currency series are expressed in prices of the prevailing OECD base year. Series for activity aggregates G_K and C_K are compiled through annual chain linking of their respective components, using current price value added data as weights. Other manipulations The real output of activity J_K is adjusted to remove the (estimated) component attributed to the services provided by a dwelling to its occupants as this activity has no associated labour input. For a detailed explanation of this issue and the methodology used to perform the adjustment, see: Adjustment for ownership of dwellings. Consequently the published time series of real output for activities, J_K, G_K and C_K will differ from related national source data.

Annual Unit Labour Costs

.ULABUL.......

Key statistical concept Annual unit labour costs (ULCs) are calculated as the quotient of total labour costs and real output. Time series are presented in both level and index form where the base year of real output is 2005. Recommended uses and limitations Every effort has been made to ensure that data are comparable across countries. Therefore cross country comparisons of unit labour cost levels (in ratio form) can be used for static analysis (i.e. comparison of unit labour cost levels across countries or economic activities at a point in time) together with indexes which show comparable development in unit labour costs over time. However, for some countries unit labour cost levels are not presented due to a lack of data to make an adjustment for the self-employed. For these countries only unit labour cost indexes are made available for analysis. Furthermore, the adjustment for the self employed assumes that labour compensation per hour or per person is equivalent for the self employed and employees of businesses. This assumption may be more or less valid across different countries and economic activities thus affecting the comparability of unit labour cost level data.

Annual Labour Compensation per Employee

.ULAICE.......

Key statistical concept Labour compensation per employee is defined in this database as compensation of employees divided by total employees. Data series are available for all countries except Iceland and Switzerland.

Annual Labour Compensation per Hour Key statistical concept

.ULAICH.......

Labour compensation per hour is defined in this database as compensation of employees divided by total hours worked by employees. Data is available for the following countries: Australia, Austria, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Korea, Lithuania, Mexico, Netherlands, Norway, Slovak Republic, Spain, Sweden and the United States.

Annual Labour Compensation per Unit Labour Input

.ULAICU.......

Key statistical concept Labour Compensation per unit labour input is defined in this database as compensation of employees divided by total hours worked by employees of businesses (Australia, Austria, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungary, Italy, Korea, Lithuania, Mexico, Netherlands, Norway, Slovak Republic, Spain and Sweden) or total employees of businesses (all other countries).

Annual Exchange Rate Adjusted ULC

.ULAIEU.......

Estimation The annual exchange rate adjusted ULC measure is obtained by converting total labour costs to a USD basis and dividing this by a real output series which is also $US converted using the prevailing exchange rates in the OECD base year. Recommended uses and limitations Exchange rate adjusted unit labour costs can be useful to compare developments in unit labour costs across countries in a common currency. Short-term movements can be very volatile as they are largely dependent on developments in the exchange rate.

Annual Labour Productivity per Person Employed

.ULAILE.......

Key statistical concept Labour productivity per person employed is defined in this dataset as real output (gross value added) divided by total employed persons. Data series are available for all countries except Iceland.

Annual Labour Productivity per Hour

.ULAILH.......

Key statistical concept Labour productivity per hour is defined in this dataset as real output (gross value added) divided by total hours worked by all persons in employment. Data is available for the following countries: Australia, Austria, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Korea, Lithuania, Mexico, Netherlands, Norway, Slovak

Republic, Spain, Sweden and Switzerland.

Annual Labour Productivity per Unit Labour Input

.ULAILP.......

Key statistical concept Labour Productivity is defined in this dataset as real output divided by total labour input. The labour input measure used is total hours worked by those in employment for Australia, Austria, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungary, Italy, Korea, Lithuania, Mexico, Netherlands, Norway, Slovak Republic, Spain, Sweden and Switzerland. For all other countries total employment in persons is used as the labour input measure. Recommended uses and limitations The main purpose of the Labour Productivity measure compiled through the OECD System of Unit Labour Cost Indicators is to enable users to decompose movements in the annual Unit Labour Cost into a numerator which shows Labour Compensation per Unit Labour Input and a denominator which shows Labour Productivity. Estimates of Labour Productivity are very sensitive to the quality of data used for the labour input measure. This issue is explained in depth in the OECD Productivity Database which also presents measures of Labour Productivity at the Total Economy level which may differ from those shown in this database for some countries. The main source of this difference is the labour input measure used. The OECD Productivity Database uses total hours worked as the labour input measure for all countries where this is defined as the product of series for average hours per worker or per job multiplied by total number of workers or the total number of jobs. National accounts are the default for this data, complemented by data from labour force surveys for those countries and years for which national accounts provide no information on hours worked. By contrast, all labour input data (i.e. total hours worked or total employment) used for this database is sourced from the OECD System of National Accounts Database. This implies that where a country has only a short-time series of hours worked data available, the historical series will have been linked to the series on total employment. The period for which hours worked data is available in those countries where it is used as the labour input measure is shown in the country data sources. There are other minor reasons which may also lead to discrepancies between the Labour Productivity measures presented at the Total Economy level between the two respective databases. A detailed description of these reasons and an analysis of discrepancies on a country by country basis are available on request.

Annual Labour Compensation per Employee $US (PPP adjusted)

.ULAIPE.......

Key statistical concept $US (PPP adjusted) Labour compensation per employee is defined in this dataset as compensation of employees converted from national currency to $US using private consumption purchasing power parities, divided by total employees.

Annual Labour Compensation per Hour $US (PPP adjusted)

.ULAIPH.......

Key statistical concept $US (PPP adjusted) Labour compensation per hour is defined in this dataset as compensation of employees converted from national currency to $US using private consumption purchasing power parities, divided by total hours worked by employees. Data is available for the following countries: Australia, Austria, Bulgaria, Canada,Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Korea, Lithuania, Mexico, Netherlands, Norway, Slovak Republic, Spain, Sweden and the United States.

Annual Labour Compensation per Unit Labour Input $US (PPP adjusted)

.ULAIPU.......

Key statistical concept $US (PPP adjusted) Labour compensation per unit labour input is defined in this dataset as compensation of employees converted from national currency to $US using private consumption purchasing power parities, divided by total hours worked by employees (for Australia, Austria, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungary, Ireland, Italy, Korea, Lithuania, Mexico, Netherlands, Norway, Slovak Republic, Spain and Sweden) and total employees for all other countries. Note, for those countries with hours worked data, where a longer time series for total employees exists the data is linked to extend the time series.

Annual Labour Income Share (Real ULC)

.ULAIRU.......

Key statistical concept The annual labour income share is calculated for this database as total labour costs divided by nominal output. The term labour income share is used as the total labour costs measure relates to compensation of employees adjusted for the self employed and thus essentially relates to labour income. The division of total labour costs by nominal output is sometimes also referred to as areal unit labour cost - as it is equivalent to a deflated unit labour cost where the deflator used is the GDP implicit price deflator for the economic activity (i.e. sector) concerned. Recommended uses and limitations The adjustment for the self employed made in the calculation of total labour costs assumes that labour compensation per hour (or per person if hours data is not available) is equivalent for the self employed and employees of businesses. This assumption may be more or less valid across different countries and economic activities and thus can affect the reliability (and thus comparability) of the resulting labour income share ratios.

Annual self employment ratio

.ULAR.......

Key statistical concept The self-employment ratio (either using 'hours worked' or 'persons') is calculated simply as: Total employment divided by employees. The resulting ratio gives the user an understanding of the proportion of the self-employed to employees in total employment. Looked across economic activities over time, the ratio can also give the user an understanding of the changing self-employed/employee composition of the country's labour force. The ratio is based on hours worked data for Australia, Austria, Bulgaria, Canada,Cyprus, Denmark, Estonia, France, Germany, Greece, Hungary, Italy, Korea, Lithuania, Netherlands, Norway, Slovak Republic, Spain, and Sweden. For all other countries data on persons is used, with the exception of Iceland where data is not available to perform the calculation and Switzerland which has both 'hours worked' and 'persons' data available, but only for 'Total employment', therefore the calculation cannot be calculated. Recommended uses and limitations In compiling the ULC's the ratio is multiplied by compensation of employees (national accounts base) to give an adjusted compensation of employees measure more suitable for use in the Unit Labour Cost (ULC) compilation process. Compensation of employees as defined in the national accounts does not include labour compensation for the self-employed which is covered in the item 'operating surplus and mixed income'. However, the output of the self-employed contributes to value added and thus introduces an inconsistency between the numerator and denominator when deriving ULC indexes. If an adjustment is not made to the labour compensation measure to account for the impact of the selfemployed, this has the potential to distort the comparability of ULC indexes across countries if there are large differences in the level or, more importantly, changes over time in the number of selfemployed persons across countries. Also, this impact is likely to vary across industries, as some industries are more likely to have a higher proportion of self-employed (e.g. Agriculture) than others.

Annual Nominal Output Key statistical concept Annual nominal output is current price value added compiled according to the SNA 93.

.ULAWVC.......

Aggregation and consolidation Annual Nominal Output series are used as weights when compiling annually chain linked Real Output series for economic activities G_K (Market Services) and C_K (Business Sector). The Annual Nominal Output series for each economic activity are also used as the denominator for the Labour Income Share ratio - also known as the Real Unit Labour Cost.

Other manipulations The real output of activity J_K is adjusted to remove the (estimated) component attributed to the services provided by a dwelling to its occupants as this activity has no associated labour input. For a detailed explanation of this issue and the methodology used to perform the adjustment, see: Adjustment for ownership of dwellings. Consequently the published time series of real output for activities, J_K, G_K and C_K will differ from related national source data.

Quarterly Total Labour Costs - Benchmarked

.ULQBBC.......

Key statistical concept The target variable for the quarterly indicator of total labour costs is compensation of employees compiled according to the SNA 93. Where this variable is not available a suitable proxy is sought, with the following general order of preference: gross wages and salaries; labour cost index multiplied by an appropriate total labour input measure (i.e. total hours worked or total employment / employees); average hourly / weekly / monthly earnings multiplied by an appropriate total labour input measure. Further details on where proxy variables have been used for particular countries and an evaluation of their quality can be found at: Quality evaluation of quarterly proxy variables for total labour costs. In the interest of producing the longest possible time series for the quarterly indicators, current series are often linked to related historical time series provided to the OECD sometime in the past. The variables and their sources used for each country are noted in the country metadata under the heading Sources'. Aggregation and consolidation Quarterly indicators of total labour costs for economic activities (i.e. sectors) G_K and C_K are compiled by either summing their respective activity components or as a weighted aggregation of proxy indices for the components. The quarterly indicator of total labour costs for each economic activity is then benchmarked to the annual total labour costs time series to compile a temporally disaggregated quarterly time series of total labour costs in national currency, which is the series published. The temporal disaggregation (benchmarking) methodology used is that of Fernndez, see Fernndez R.B. (1981), A methodological note on the estimation of time series, The Review of Economics and Statistics, 63: 471-478. This methodology is used via the software ECOTRIM' designed by Eurostat.

Quality comments The temporally disaggregated quarterly time series of total labour costs does not cover some aspects of labour costs such as the cost of employee training and recruitment and taxes on employment (e.g. payroll tax).

Quarterly Unit Labour Costs

.ULQBBU.......

Key statistical concept Unit labour costs (ULC) measure the average cost of labour per unit of output and are calculated as the ratio of total labour costs to real output. Estimation Raw quarterly unit labour costs are calculated as the quotient of the temporally disaggregated (benchmarked) quarterly time series of total labour costs and real output. This raw ULC is then seasonally adjusted using the TRAMO-SEATS package. In addition to the seasonally adjusted series,

TRAMO-SEATS produces a Trend-Cycle series which includes all non-seasonal and non-irregular movements in the underlying time series. This series can be regarded as a smoothed seasonally adjusted series, where the degree of smoothing is dependent on the underlying ARIMA model and will thus vary from series to series. Quarterly unit labour cost indexes in OECD base year are available in raw, seasonally adjusted and trend-cycle form. Furthermore quarter-on-previous-quarter and annual rates of change are presented for the seasonally adjusted and trend-cycle series.

Seasonal adjustment Seasonal adjustment is performed using the TRAMO-SEATS package. The seasonal model for each series is reviewed annually. For quarterly updates within each year the model is held constant but the parameters (coefficients) are allowed to vary - referred to as concurrent adjustment. If major revisions to input quarterly indicator series are observed then model re-identification may be undertaken. Other manipulations In the interest of producing long time series for empirical analysis, the quarterly unit labour cost index trend-cycle series for each economic activity have been extended to have the same length as the corresponding annual series (i.e. in most cases back to 1970). This has been achieved by interpolating the annual unit labour cost index to create a quarterly series using the Denton temporal disaggregation technique. This interpolated quarterly series is then linked to the actual quarterly trend unit labour cost index to extend this time series at the point where quarterly indicator data is no longer available. This linked part of the trend series is clearly indicated with a control code of E' in all electronic outputs. The structure of the trend series may often appear different after the link point, given that the most recent years of the time series are derived from an ARIMA model and the historical linked part is an interpolated annual series. Recommended uses and limitations The OECD has performed extensive testing of the TRAMO-SEATS trend-cycle methodology and found that it significantly reduces the volatility of estimated quarter-on-previous-quarter rates of change whilst still effectively extracting the underlying signal in the raw data. Due to the volatility inherent in a derived series such as the ULC, the OECD recommends the trend-cycle series be used for the purpose of short-term analysis, in particular when interpreting the latest movements in the quarterly series.

Quarterly Real Output - Benchmarked

.ULQBBV.......

Key statistical concept The target variable for quarterly real output is constant price value added compiled according to the SNA93. Where this variable is not available a production index covering the respective economic activities is sought. Further details on where proxy variables have been used for particular countries and an evaluation of their quality can be found at: Quality evaluation for quarterly proxy variables of real output. In the interest of producing the longest possible time series for the quarterly indicators, current series

are often linked to related historical time series provided to the OECD sometime in the past. The variables and their sources used for each country are noted in the country metadata under the heading sources. Aggregation and consolidation Quarterly indicators of real output for economic activities (i.e. sectors) G_K and C_K are compiled by either summing their respective activity components or as a weighted aggregation of proxy indices for the components. The quarterly indicator of real output for each economic activity is then benchmarked to an annual real output time series to compile a temporally disaggregated quarterly time series of real output in national currency, which is the series published. The temporal disaggregation (benchmarking) methodology used is that of Fernndez, see Fernndez R.B. (1981), A methodological note on the estimation of time series, The Review of Economics and Statistics, 63: 471-478. This methodology is used via the software ECOTRIM' designed by Eurostat. Annual data used as the benchmark for the temporal disaggregation procedure for activities G_K and C_K are aggregated using an annual chain-linking methodology. As a result the temporally disaggregated quarterly time series of real output will inherit this effect.

Other manipulations The real output of activity J_K is adjusted to remove the (estimated) component attributed to the services provided by a dwelling to its occupants as this activity has no associated labour input. For a detailed explanation of this issue and the methodology used to perform the adjustment, see: Adjustment for ownership of dwellings. Consequently the published time series of real output for activities, J_K, G_K and C_K will differ from related national source data.

Quarterly total labour costs - Raw Data Validation Quality evaluation for quarterly proxy variables of total labour costs

.ULQC.......

Unit Labour Costs (ULC) are calculated as the ratio of total labour costs to real output. In the OECD System of Unit Labour Cost Indicators the target variable for the quarterly indicator of total labour costs is compensation of employees compiled according to the System of National Accounts 1993 (SNA93). Where this target variable is not available a suitable proxy is sought, with the following general order of preference: gross wages and salaries; labour cost index multiplied by total hours worked; average earnings multiplied by total employment. Where the use of proxy variables is required, an indicator of their quality can be determined by evaluating the correlation between annual growth rates in the proxy indicator and that of the SNA93 benchmark data. The following table (as collated on 16 March 2007) presents these correlations and also describes the type of proxy variable used. The correlations give an indication of the reliability of the total labour cost proxy variable used in the compilation of the ULC for the relevant country and economic activity. A low correlation implies that users should take caution when viewing the resultant quarterly ULC prior to reconciliation with annual

benchmark data (which generally occurs with a 12-18 month lag). However the following processes used in the OECD System of Unit Labour cost Indicators also need to taken into account when understanding how these proxy variables are treated:

Benchmarking: As part of the compilation, all quarterly variables are benchmarked (temporally disaggregated) against annual SNA93 values; and for all countries SNA93 data is available. This benchmarking procedure, using the Fernandez method in the software package Ecotrim, will in simple terms ensure that the proxy quarterly total labour cost value has a correlation of 1 with the annual value for the overlapping period. As part of the Fernandez method also, the quarterly end points where there is no supporting annual data will in essence be smoothed and trend towards the long-term series average. Seasonal adjustment: The final quarterly ULC are seasonally adjusted using the TRAMO-SEATS method in the software package Demetra. In addition to the seasonally adjusted series, TRAMOSEATS produces a trend-cycle series that includes all non-seasonal and non-irregular movements in the underlying time series. This series can be regarded as a smoothed seasonally adjusted series, where the degree of smoothing is dependent on the underlying ARIMA model. The OECD has performed extensive testing of both the Fernandez and TRAMO-SEATS methodologies. These methodologies together ensure that the quarterly series is in line with the countries authoritative annual SNA93 data and the quarterly volatility is reduced but at the same time effectively extracting the underlying signal from the raw data.

Country - Activity

Quarterly Proxy Variable Survey of Wages and Salaries Survey of Wages and Salaries Survey of Wages and Salaries Survey of Wages and Salaries Survey of Wages and Salaries Survey of Wages and Salaries

Overlap

Correlation

Australia - Manufacturing

1984-2005

0.826

Australia - Industry

1984-2005

0.847

Australia - Construction

1984-2005

0.565

Australia - Trade, transport, and communication

1984-2005

0.746

Australia - Finance and business services

1984-2005

0.824

Australia - Market services

1984-2005

0.851

Australia - Business sector

Survey of Wages and Salaries Gross Wages and Salaries Index Survey of Wages and Salaries Survey of Wages and Salaries Survey of Wages and Salaries Survey of Wages and Salaries Survey of Wages and Salaries Survey of Wages and Salaries Survey of Wages and Salaries Monthly Labour Survey Monthly Labour Survey Monthly Labour Survey

1984-2005

0.921

Belgium - Manufacturing

1981-2005

0.847

Canada - Manufacturing

1971-2002

0.993

Canada - Industry

1971-2002

0.990

Canada - Construction

1971-2002

0.976

Canada - Trade, transport, and communication

1971-2002

0.981

Canada - Finance and business services

1971-2002

0.897

Canada - Market services

1971-2002

0.974

Canada - Business sector

1971-2002

0.989

Japan - Manufacturing

1971-2005

0.981

Japan - Industry

1991-2005

0.866

Japan - Construction

1991-2005

0.628

Japan - Trade, transport, and communication

Monthly Labour Survey Monthly Labour Survey Monthly Labour Survey Monthly Labour Survey Monthly Labour Survey Monthly Labour Survey Monthly Labour Survey Monthly Labour Survey Monthly Labour Survey Monthly Labour Survey Monthly Labour Survey Monthly Labour Survey

1991-2005

0.432

Japan - Finance and business services

1991-2005

0.746

Japan - Market services

1991-2005

0.500

Japan - Business sector

1991-2005

0.801

Korea - Total economy

1990-2005

0.874

Korea - Manufacturing

1993-2004

0.800

Korea - Industry

1994-2004

0.803

Korea - Construction

1994-2004

0.655

Korea - Trade, transport, and communication

1994-2004

0.760

Korea - Finance and business services

1994-2004

0.512

Korea - Market service

1994-2004

0.799

Korea - Business sector

1994-2004

0.848

Mexico - Manufacturing

Compilation 1981-2004 Index1 Earnings 1990-2004 and Employment Survey Earnings 1990-2002 and Employment Survey Earnings 1990-2002 and Employment Survey Earnings 1990-2002 and Employment Survey Earnings 1990-2002 and Employment Survey Earnings 1990-2002 and Employment Survey Earnings 1990-2002 and Employment Survey Earnings 1990-2002 and Employment Survey Gross Wages and Salaries Index Gross 1996-2006

0.982

New Zealand - Total Economy

0.934

New Zealand - Manufacturing

0.925

New Zealand - Industry

0.957

New Zealand - Construction

0.727

New Zealand - Trade, transport, and communication

0.843

New Zealand - Finance and business services

0.894

New Zealand - Market services

0.900

New Zealand - Business sector

0.959

Portugal - Manufacturing

0.718

Portugal - Industry

1996-2006

0.747

Wages and Salaries Index Portugal - Construction Gross Wages and Salaries Index 2001-2006 0.273

Portugal - Market services

Compilation 2001-2006 Index2 Compilation 2001-2006 Index2 Compilation 2000-07 Index3 Gross Wages and Salaries Index Gross Wages and Salaries Index Gross Wages and Salaries Index

0.278

Portugal - Business sector

0.718

Romania - Total Economy

0.822

Romania - Manufacturing

1999-2005

0.493

Romania - Industry

1999-2005

0.664

Romania - Construction

1999-2005

0.817

Romania - Trade, transport and communication

Compilation 2000-05 Index3 Compilation 2000-05 Index3 Compilation 2000-05 Index3 Compilation 2000-05 Index3 Current 1971-2005 Employment Statistics

0.818

Romania - Financial and business services

0.093

Romania - Market services

0.835

Romania - Business sector United States - Manufacturing

0.832 0.938

Survey United States - Industry Current 1971-2005 Employment Statistics Survey Current 1971-2005 Employment Statistics Survey Current 1973-2005 Employment Statistics Survey Current 1973-2005 Employment Statistics Survey Residual 1971-2005 Compilation4 0.939

United States - Construction

0.926

United States - Trade, transport, and communication

0.789

United States - Finance and business services

0.827

United States - Market services

0.900

Notes: For Japan, Korea, and the United States, the proxy is the multiplicative sum of: average earnings; and, number of employees. For Belgium, Portugal and Romania - data is sourced via Eurostat. Footnotes: 1. Compilation index for Manufacturing is the multiplicative sum of: Average earnings; average weekly hours of work; and, number of employees. 2 Compilation index for Market Services and the Business Sector is the multiplicative sum of: Labour cost index and Number of employees. 3. Compilation index is the product of: Labour cost index for the activity and number of employees for the activity. 4. Market Services for the US is a residual calculation compiled as: the Business Sector minus Industry minus Construction. The calculation (and the correlation) takes place after the benchmarking procedure. For more metadata see: USA Unit Labour Cost Metadata

Quarterly real output - Raw Data Validation

.ULQV.......

Quality evaluation for quarterly proxy variables of real output Unit Labour Costs (ULC) are calculated as the ratio of total labour costs to real output. In the OECD System of Unit Labour Cost Indicators the target variable for the quarterly indicator of real output is constant price value added compiled according to the System of National Accounts 1993 (SNA93). Where this target variable is not available a production index covering the respective economic activity is sought. Where the use of proxy variables is required, an indicator of their quality can be determined by evaluating the correlation between annual growth rates in the proxy indicator and that of the SNA93 benchmark data. The following table (as collated on 16 March 2007) presents these correlations and also describes the type of proxy variable used. The correlations give an indication of the reliability of the quarterly real output proxy variable used in the compilation of the ULC for the relevant country and economic activity. A low correlation implies that users should take caution when viewing the resultant quarterly ULC prior to reconciliation with annual benchmark data (which generally occurs with a 12-18 month lag). However the following processes used in the OECD System of Unit Labour cost Indicators also need to taken into account when understanding how these proxy variables are treated:

Benchmarking: As part of the compilation production process of the OECD System of Unit Labour Cost Indicators, all quarterly variables are benchmarked (temporally disaggregated) against annual SNA93 values; and in all cases SNA93 data is available. This benchmarking procedure, using the Fernandez method in the software package Ecotrim, will in simple terms ensure that the quarterly proxy of real output has a correlation of 1 with the annual value for the overlapping period. As part of the Fernandez method also, the quarterly end points where there is no supporting annual data will in essence be smoothed and trend towards the long-term series average. Seasonal adjustment: The final ULC are seasonally adjusted using the TRAMO-SEATS method in the software package Demetra. In addition to the seasonally adjusted series, TRAMO-SEATS produces a trend-cycle series that includes all non-seasonal and non-irregular movements in the underlying time series. This series can be regarded as a smoothed seasonally adjusted series, where the degree of smoothing is dependent on the underlying ARIMA model.

The OECD has performed extensive testing of both the Fernandez and TRAMO-SEATS methodologies. These methodologies together ensure that the quarterly series is in line with the countries authoritative annual SNA93 data and the quarterly volatility is reduced but at the same time effectively extracting the underlying signal from the raw data. Quarterly Proxy Variable Industrial Production Index Industrial Production Index Industrial Production Index Industrial Production Index Industrial Production Index

Country - Activity Belgium - Manufacturing Ireland - Manufacturing Japan - Manufacturing Japan - Industry Japan - Construction

Overlap

Correlation

1971-2004 0.727 1977-2005 0.867 1971-2005 0.900 1971-2005 0.891 1971-2005 0.702

Japan - Trade communication Japan - Financial Services Japan - Market Services Japan - Business Sector Romania - Manufacturing United States - Manufacturing United States - Industry United States - Construction United States - Market Services

Index of Services Production Index of Services Production Aggregation of activity Service indices Aggregation of activity indices Industrial Production Index Industrial Production Index Industrial Production Index Industrial Production Index Residual Compilation1

1981-2006 0.688 1981-2006 0.573 1979-2006 0.518 1979-2006 0.838 2000-05 0.766

1971-2005 0.898 1971-2005 0.898 1971-2005 0.526 1971-2005 0.799

Footnotes: 1. The Market Services Residual Compilation for the United States is compiled as: the Business Sector minus Industry minus Construction. The calculation (and the correlation) take place after the benchmarking procedure. For more metadata see:USA Unit Labour Cost Metadata

http://stats.oecd.org/mei/default.asp?lang=e&subject=19

BELGIUM FACTS
General situation
Belgium is one of the smaller countries of the European Union, surrounded by the Netherlands, Luxemburg, Germany, France and, with the Channel in between, the UK. Belgium has a surface of 30528 km2 and 10.5 million habitants. This results in a very high population density (344/km2 in 2006). Belgium is divided in two principal regions, Flanders and Wallonia, both with their own official language: Dutch and French. There is also a small German speaking minority. Today agriculture is of minor importance: Only 1% of the gross national product GNP is realized through agriculture. The total agricultural area is about 1371955 hectares (in 2007) with 47936 farms.

In 2004, Belgian families spent 15.8% of their budget on food, drinks and tobacco. That makes food, drinks and tobacco the second most important group. Belgium uses the Euro as currency.
To top

Development of the sector, comparison with surrounding countries, expectations for growth
Status quo of the Belgian organic sector
The Belgian organic sector has known an important growth in the late nineties until 2001. After five years of fall and stabilization, the sector has grown again slowly since 2006. This evolution should however not be seen apart from the general evolution in agriculture: the number of farms tends to decline every year (in 2007 by 4 percent) as well as the agricultural area (minus 0.8% in 2007). From that point of view, the growth in organic is rather remarkable. The regional differences in the organic sector in Belgium are quite important: Flanders reaches only 0.6 percent (in 2007) whereas Wallonia comes up to 3.9% (2007). As a whole, Belgium achieves 2 percent which is comparable to the Netherlands. The weak growth in Belgium has several causes. The intensive character of the agriculture in Belgium, and especially in Flanders makes the conversion difficult. Belgian agriculture demands a lot of (expensive) work and capital; organic agriculture is even more demanding, and the conversion is financially difficult to bear. Moreover the country is very small, quite urbanized (especially Flanders) and import from the surrounding countries (like France, Germany, the Netherlands) is very common. The Belgian population is rather conservative and is not easily convinced to change its buying habitudes. Finally, until 2007 the most important general farmers organization was only marginally interested in organic production and did not stimulate conversion.

Expectations
Since the early 1990s several non-profit organizations have been promoting organic agriculture: Velt, Belbior, Probila-Unitrab, Unab, Nature & Progrs and others. In order to

strengthen their actions, they professionalized and some of them united in Flanders into one organization - BioForum Vlaanderen - in 2008. The demand for organic products seems to be growing. In 2007, domestic sales were evaluated at about 283 million Euros. The organic sector has a share of approximately 1.87 percent of food sales. Politically, organic production gains more and more recognition and has been supported over the last few years by several Ministers of Agriculture. However it has been considered more as an experimental agriculture, interesting enough to try out techniques that can stimulate agriculture in general to become more environmental friendly, but not as a full alternative. In June 2008, the Flemish government started a new action plan to stimulate organic agriculture. The most important farmers organization finally seems to be interested in organic agriculture, which could make a big difference in the number of conversions. In Wallonia the growth of the organic area is obvious.
To top

Labelling

Logo of Biogarantie

Most organic products bear the Belgian label Biogarantie. This label is a private label existing since more than 25 years. Being private, it can only be used after having received an additional certificate and after payment of the royalties. The label is owned by the nonprofit organization Biogarantie vzw. During 2008, BioForum will become the licence holder of the label. However, this label is not compulsory. Some organic products only mention the word 'biologisch' or 'biologique', with additionally the name or code of the inspection body. With the words 'biologisch' and 'biologique' being legally protected, they guarantee the organic character of the concerned product.

There are quite a lot of foreign organic products on the Belgian market, with one or more labels. The current European label for organic production is not very common due to some additional conditions. Most of the European countries have their own organic label. In Belgium, the most known are 'EKO' from the Netherlands and 'AB' from France. Foreign organic products can obtain the Belgian label Biogarantie as soon as they have been certified as equivalent. This will facilitate recognition by the Belgian consumer. Some products comply with the standards of the organic-dynamic movement. They are considered to be the pioneers of the organic sector and respect an additional range of standards. Their label 'Demeter' is the same in the whole world. The Demeter-label and standards are developed by Demeter International. In Belgium only few farmers follow Demeter. Demeter products are only sold in specialized organic shops.
To top

Production and processing: scale & evolution

The organic area has known an important growth in the late nineties (1998 - 2000), partly due to some food scandals. At that time organizations and a single minister had the ambition of reaching 10% organic area in 2010. However, after a short period of expansion (until the end of 2001), organic production lost much ground. By the end of 2007, the organic area had recovered and counted for 2.4 % of the total agricultural area.
To top

Land area and farms

Table 1: Evolution of the organic area (organic and in-conversion) in Belgium 2002 to 2007
Land area (in hectares) 2002 2003 2004 2005 2006 2007

Belgium

29 118

23 966

23 728

22 994

28 636

33056.72

- of which Flanders

3897

3444

3219

3153

3267

3835.62

- of which Wallonia

25 221

20 522

20 509

19 841

25 369

29.221

Source: BioForum Belgium Table 2: Development of the number of organic farms in Belgium 2002-2007
Number of farms 2002 2003 2004 2005 2006 2007

Belgium

713

671

659

720

803

852

- of which Flanders

246

233

231

236

232

230

- of which Wallonia

467

438

428

484

571

62

Source: Bioforum

Graph: Development of the organic land area in Belgium 1994-2007. Source: BioForum Belgium, Eurostat; Graph: FiBL To top

Land use
In the Northern part of Belgium organic production is very diversified with pasture, arable land, vegetables and fruit. In the southern part, organic production concentrates mainly on pasture for the cattle.

Graph: Main land use types in organic farming in Belgium 2007. Source: BioForum, Graph: FiBL To top

Processing
Organic food processing can be found in the most diverse sectors: fruit and vegetables, dairy products, meat, cereals, soups and sauces. Unlike farm production, it is relatively easy to combine conventional and organic processing. Processors can therefore convert and respond quite quickly to a growing demand. Table 3: Development of organic processors in Belgium 2003-2007
Number of companies 2003 2004 2005 2006

Belgium

627

701

- Flanders

487

443

421

465

- Wallonia

206

23

Source: Bioforum Organic food processing can be found in the most diverse sectors: fruit and vegetables, dairy products, meat, cereals, soups and sauces. Unlike farm production, it is relatively easy to combine conventional and organic processing. Processors can therefore convert and respond quite quickly to a growing demand.
To top

The most important organizations

Politically, agriculture is a regional matter; this means that the politics on organic agriculture is quite different in the Flemish (northern) and Walloon (southern) part of Belgium. The Flemish government has, since a few years, stimulated organic agriculture by means of an action plan (seehttp://lv.vlaanderen.be/nlapps/docs/default.asp?fid=34 ). This action plan includes among other things, financial support for organic farmers and for the umbrella organization BioForum Vlaanderen, actions to manage the supply chain, to promote organic products, to integrate organic agriculture in educational programs, to improve the coordination of scientific investigation on organic agriculture, etc. The new action plan for 2008 is being written in close cooperation with the organic sector and the conventional professional organizations. It will be presented in June, during the national 'Organic Week': 'Bioweek'. For organic processors or distributors, there is no specific support. The Walloon government is favorable towards organic agriculture and they strongly hold on to the principles of organic agriculture. However, the support for the organic sector is rather minimal and is focused more on supporting the professional market channel. The interest group BioForum Wallonie receives less support than in Flanders. Among the organizations that stimulate organic consumption and production, we need to mention the following:
To top

BioForum

BioForum

BioForum (www.bioforum.be

) is the umbrella organization of the whole organic sector

and unites farmers, processors and retailers. BioForum is separated in two regional chambers that operate distinctively due to the different approach of the regional government. Both offer information to all professionals as well as consumers, organize several promotional campaigns (for example 'Bioweek'), follow up the legislation etc. BioForum is member of the International Federation of Organic Agriculture Movements IFOAM (www.ifoam.org ).

Velt
Velt (www.velt.be ) is one of the most known 'amateur organic gardeners' organizations

that promote an ecological way of life. Eating (local) organics is one of their mottos. Their action radius is Flanders.

Nature & progrs

is a similar organization to Velt but operates mainly in Wallonia.

Belbior
used to be the Flemish organic farmers organization and Probila-Unitrab the national professional organization for organic processors. However, both organizations merged with BioForum Vlaanderen during spring 2008.

Unab
is the Walloon organic farmers organization.

Naredi
is the national federation for food supplements and dietary products. They support both organic and non-organic supplements.

Vredeseilanden
is an development organization that battles for sustainable and fair agriculture in the South and in Belgium. In Belgium their actions mainly concentrate on organic agriculture. They organize organic fruit supply in elementary schools (www.biofruitopschool.be support the production of products that bear both fair trade and organic labels. ) and

Bond Beter Leefmilieu

is the umbrella organization of the environment action groups. They support organic agriculture for being more environment-friendly.

VLAM
is a division of the Ministry of Agriculture and Fishery responsible for the promotion of all farm products. They also promote organic products.
To top

Action plan
As stated above the Flemish government works out action plans on regular bases with financial support for organic farmers and for the umbrella organization BioForum Vlaanderen, actions to manage the supply chain, to promote organic products, to integrate organic agriculture in educational programs, to improve the coordination of scientific investigation on organic agriculture, etc. Action plans for organic production are always linked to the Ministry of Agriculture. Other Ministries like Health, Economics, Environment did not yet formulate goals for organic agriculture or food products.
To top

The market for organic food: Consumption - scale and evolution

Since several years, organic food sale in Belgium is evaluated by GfK, commissioned by VLAM, the Flemish promotion bureau for agriculture and fishery. Their figures are based on the purchases of a selected consumer panel. According to GfK, the sales of organic food products reached 184 million euros in 2006. However this figure is in conflict with the figures gathered by BioForum Vlaanderen based on actual sales figures of the different distribution channels. According to BioForum Vlaanderen, organic sales reach an amount of 245 million euros in 2006 and of 283 million Euros in 2007. As BioForum Vlaanderen only just started the market evaluation, there are no figures for the years before 2006 and comparison is not possible.

Graph: Development of the Belgian market for organic food 2006 and 2007; Sales in million Euros Share of total domestic market. Source: BioForum, Graph: FiBL To top

The market share of organic products is about 1.65% in 2006 and 1.83 % in 2007 (only 1.3% in 2006 according to GfK). However, we see a great difference between the different product groups. Table: Importance of organic products by product group
Product group Eggs Marketshare in 2006 (%) 7

Rice

3,9

Marmalade

3,4

Flower

3,2

Vegetables

3,1

Pasta

2,7

Bread

2,3

Fruit

1,6

Diary products

1,1

Potatoes

Poultry

Meat

0,

Source: BioForum
To top

Marketing channels
On the Belgian market, food is sold in supermarkets and discounter, groceries, bakeries, at the butcher's shop, on the market and at farms. The last decennia we have seen the independent groceries in city centers disappear under the pressure of supermarkets and hard discounts. The last years, supermarkets tend to reinstall small 'grocery-like' shops in city centers. Bakeries and butcher's shops seem to be able to withstand the pressure of the supermarkets by their personal service and a broad range of fresh products. Organic food is nowadays available in many different ways. We can distinguish supermarkets, specialized organic shops, market sales and farm shops. Unlike the common food market, there are very few organic bakeries and butcher's shops.
To top

Supermarkets
The supermarkets of Delhaize and Colruyt both offer a wide range of products. Their shops are dispersed through the whole country in the neighborhood of every town. Most of the organic products that they offer are packed under their own name and label. The Colruyt group also has an organic supermarket chain, named Bioplanet. With only 4 shops in 2007 (of which one in the Netherlands), they plan starting up several additional shops. Carrefour, the third important supermarket chain has only few organic products, mostly under their own label.

These supermarkets reach a broad variety of consumers and therefore help the sector to grow and to improve market penetration. The Belgian branches of discounters such as Lidl and Aldi do not yet follow the trend of organics.
To top

Specialized shops
Apart from the supermarkets, there are approximately 365 specialized organic shops, most of them independent. However, there are two chains of shops organizing themselves together for purchase, promotion and quality check, using the same name and identity. In Flanders the Bioshop-chain unites +/- 26 of them. Origin'O is a small but important chain with 5 shops. These shops usually offer a range of organic products quite different from the supermarkets: whole grain products, products without any sugar, without food additives, all kinds of vegetarian products and so on. Apart from fresh products (like fruit and vegetables) and food that keeps well, they usually sell a great amount of (often imported) organic bread and a choice of organic cheese. Often they not only sell food but also ecological cleaning products and ecological beauty products. These shops mainly reach a public that is already regular buyer and convinced of the quality of organic products. Quite a lot of organic farmers (32%) market their organic products themselves. They sell at the farm, at the market or offer a weekly package of fruit and vegetables that the consumer can pick up in a sales point of their choice. (cfr. Voedselteams).

Graph: Marketing channels for organic food in Belgium 2007. Source. Bioforum. Graph FiBL To top

Import und export

Belgian food products in general and especially vegetables and fruit have an excellent international reputation. Nevertheless, the majority of organic farms and companies are relatively small and diversified. This makes it difficult to the sector to compete with the larger farms and companies abroad. The Belgian market cannot be seen apart from the surrounding European market. If the demand on the English or German market is very high, the Belgian producers do not only have more export opportunities, they also have less competition of imported goods. However, the country being so small, having such an extensive road system and such a small organic sector, imported products take an important part of the market for primary products, food ingredients as well as for processed food products. A lot of imported products come from The Netherlands, France and Germany. Exact figures on import and export for organic produce are however not available. The sector being so small, there are no separate (NACE-) codes to identify organic from conventional products. The National Institute of Statistics can therefore not provide figures. (see http://www.statbel.fgov.be/home_en.asp ) Also the University of Ghent and the Flemish government have tried in 2007 to quantify import and export but without success. Nevertheless, it should be mentioned that, for fresh products, the Belgian sector prefers local produce. When the supply of organic milk cannot follow the demand for example, the sector will in the first place try to convince local farmers to convert and invest in organic. Several actors are actually working on more conversion within Belgium.

To top

Analysis per subsector

Beef and pig production
Especially in Wallonia, beef production is an important part of the organic sector. Since food crisis of 1999 and 2000/2001, the demand for organic meat grew explosively. However, after the crises the demand decreased again clearly. In 2004, 1.3% of the national beef cattle was organic. Organic pigs are much more limited in number. Only 12000 animals were kept organically in 2006. This is less than 1%. Only 10 butcher's shops are organic. The supermarkets of Delhaize have offered organic meat for several years. Colruyt supermarkets just started to offer a very limited number of meat products. Bioplanet has a wider range. Unlike the non organic meat sector, organic meat usually comes from the Belgian farms and processors. According to a study of BioForum Wallonie, more than half of the organic meat is exported. At the same time, there is a great demand for fresh ham to be dried (Corma).
To top

Vegetables and fruit

Some cooperatives/auctions as Brava and BFV sell organic fresh fruit and vegetables of their farmer members. They concentrate on Belgian products. In the supermarkets a great deal, even more than 50%, of the fruit and vegetables are imported because of the lack of the Belgian products. Most farms are small and a lot of farmers sell their products directly to the consumer. As the weather does not permit all year round production of all vegetables, these producers are not interesting for the big purchase units of the supermarkets who tend to import. In off-season (January to April), vegetables tend to come from further away like Spain, Morocco and Egypt. A lot of fruit is imported from the Southern hemisphere in off-season (e.g. apples from Chile, Argentina, New-Zealand or South Africa).
To top

Processed food products

A great deal of the organic processed food products are imported. Bread, pasta, other cereals, dairy products come from abroad. Belgian companies also export a lot of their organic products. High quality products like Ganda ham, fruit juices and other local specialties are exported through Europe.
To top

Strengths and weaknesses of Belgian organic sector

Among the strong points of the sector, should be mentioned the following: There is a tendency for healthy food in which organic food fits perfectly. There is a growing interest in environment friendly production; it is more and more accepted and known that organic agriculture is indeed more environment friendly than non organic agriculture. There is a national market for organic products that seems to be growing each year by 10% to 15%. Organic products can be found in most supermarkets which stimulates sales and market penetration. On the other hand, it is clear that the sector also has several weak points: Non-organic food products also try to sell themselves as healthy. Within the mass of products with health claims, the consumers cannot see the wood for the trees. Belgium is a very small country with a very extensive road system; import from the surrounding countries is very easy. The price for organic products is relatively high compared to the price for non organic products, which reduces the opportunities of the sector to grow substantially. Only few farmers dare to convert to organic agriculture; financial, social and practical problems prevent them to do so.

Contents

[edit]

[edit]Trade
About 80% of Belgium's trade is with fellow EU member states. Given this high percentage, it seeks to diversify and expand trade opportunities with non-EU countries. The Belgian authorities are, as a rule, anti-protectionist and try to maintain a hospitable and open trade and investment climate. The European Commission negotiates on trade issues for all member states, which, in turn lessens bilateral trade disputes with Belgium.[8] The Belgian Government encourages new foreign investment as a means to promote employment. With regional devolution, Flanders,Brussels, and Wallonia are now courting potential foreign investors and offer a host of incentives and benefits.[8] Foreign companies in Belgium account for approximately 11% of the total work force, with the U.S. share at about 5%. Attracted by the EU 1992 single-market program, many foreign firms and lawyers have settled in Brussels since 1989.[8]

[edit]Employment
The social security system, which expanded rapidly during the prosperous 1950s and 1960s, includes a medical system, unemployment insurance coverage, child allowances, invalid benefits, and other benefits and pensions. With the onset of a recession in the 1970s, this system became an increasing burden on the economy and accounted for much of the government budget deficits. The national unemployment figures mask considerable differences between Flanders and Wallonia. Unemployment in Wallonia is mainly structural, while in Flanders it is cyclical. Flanders' unemployment level equals only half that of Wallonia. The southern region continues a difficult transition out of sunset industries (mainly coal and steel), while sunrise industries (chemicals, high-tech, and services) dominate in Flanders.[8] Belgium's unemployment rate was 6.5% in 2008. A total of 4.99 million people make up Belgium's labor force. The majority of these people (73%) work in the service sector. Belgian industry claims 25% of the labor force and agriculture only 2%. As in other industrialized nations, pension and other social entitlement programs have become a major concern as the baby boom generation approaches retirement.[8]

Science and technology in Belgium

From Wikipedia, the free encyclopedia
Science and technology in Belgium is well developed with the presence of several universities and research institutes. As Belgium is afederal state, science is organized at several levels. At the national level, there is the Belgian Federal Science Policy Office (BELSPO) and each of the three regions: Brussels-Capital Region, Flanders and Wallonia have their own regional science and technology de

http://en.wikipedia.org/wiki/Science_and_technology_in_Belgium

Bilateral economic and trade relationship

Australias investment relationship with Belgium significantly overshadows the trading relationship. In 2010, total Belgian investment in Australia was valued at A$14.7 billion, of which A$4.9 billion was foreign direct investment (FDI). Total investment outwards from Australia to Belgium totalled A$6.2 billion. The Macquarie Group, as a whole, owns 75 per cent of Brussels International Airport. The European headquarters and regional headquarters for the Middle East and Africa of Ansell Limited (formerly Pacific Dunlop) are located in Brussels. Rio Tinto Diamonds NV and BHP Billiton Diamonds sell their rough diamonds throughout the world via offices in Antwerp. The Belgian branch of De Bortoli Wines (Europe) NV distributes the company's wines throughout continental Europe. Amcor has two manufacturing sites in Belgium and a corporate office near Brussels International Airport. Nyrstar is a Belgian publicly-listed joint-venture between Australian zinc miner Zinifex and Belgian metals company Umicore. In 2010, Belgium was ranked as Australias 23rd largest merchandise trading partner, with total two-way trade in goods with Belgium valued at A$2.8 billion, consisting of Australian exports of goods to Belgium worth A$1.2 billion and imports of goods worth A$1.6 billion. Australias major merchandise export to Belgium was coal (A$279 million). Major Australian imports from Belgium included medicaments (including veterinary) and passenger motor vehicles. Australia exported A$127 million worth of services to Belgium/Luxembourg in 2009-10 (note: the Australian Bureau of Statistics does not separate services trade data for Belgium and Luxembourg). Major services exported were recreational travel services (A$53 million). Services imports from Belgium were valued at A$92 million in 2010 and were dominated by business and professional services (A$37 million).
Updated September 2011

http://www.dfat.gov.au/geo/index.html

Facts about Belgium

WHAT IS THE CAPITAL OF BELGIUM?

Brussels (French: Bruxelles); Dutch: Brussel). Brussels is the capital of Belgium and the administrative centre of the European Union. This has earned the city the title of the Capital of Europe.

Officially the Brussels Capital-Region, is the de facto capital city of the European Union (EU) and the largest urban area in Belgium. Brussels includes the City of Brussels municipality which is the capital of Belgium, of Flanders and of the French Community of Belgium. Official website of the City of Brussels: www.brussels.org

TOTAL AREA OF BELGIUM

total: 30,528 sq km land: 30,278 sq km water: 250 sq km

POPULATION OF BELGIUM
10,364,388 (July 2005 est.)

LANGUAGES OF BELGIUM
Dutch (official) 60%, French (official) 40%, German (official) less than 1%, legally bilingual (Dutch and French) http://wwp.greenwichmeantime.com/time-zone/europe/european-union/belgium/facts/index.htm

Introduction The first conversions from conventional to organic farming took place during the 1960s, but significant numbers of farmers only began organic farming in the last ten years or so. Most organic farmers are found in the Walloon Region, where conventional farming in the hilly region is already extensive (mostly pastures for dairy production), enabling farmers to be certified organically without major changes in their farming practices. Conventional agricultural practices in the northern part of the country, the Flanders Region, are rather intensive, especially in the case of production of fruit and vegetables. Although fewer farmers have converted to organic farming so far in this part of the country, a recent policy adjustment, in which subsidies per hectare for organic vegetable production more than tripled in Belgium, is expected to lead to a significant increase in the number of organic farmers in the Flanders Region over the next few years. In 1999, the number of organic farmers was 550 (Table 1), while it increased to 636 during the year 2000 (an increase of almost 16 percent) (Ministry of Agriculture, 2001). Besides these organic farmers, 571 certified organic enterprises are found: 529 wholesalers, packers, distributors, etc. with the remaining being importers (42). Despite the growth rate observed during the last decade (average annual growth rate of about 20 percent), organic farming is still a small sector in Belgium, accounting for about 1 percent of total area under agricultural production.

Table 1: Number of (organic) farms per region and percentage of total farms (1999) Flanders Region Walloon Region Belgium (total) Total number of farms 42 289 21 558 63 848 Number of organic farms 172 378 550 Percentage 0.41 1.75 0.86

Source: Heuschen, 2000 During the year 2000, the total area under organic production increased from 18 515 hectares to 20 663 hectares (an increase of almost 12 percent). The highest growth was in organic pasture land. The area under organic horticultural production (including flowers) accounts for 3.6 percent of the total organic surface (751 hectares (Table 2)) (Ministry of Agriculture, 2001).
Table 2: Area under organic production (including under conversion) and percentage increase, by region (2000) Total organic agriculture(including Of which organic horticulture(including pastures) flowers) Area Increase in %(compared Area Increase in %(compared (ha) with1999 figure) (ha) with1999 figure) Walloon 16 905 6.8 205 34.6 Region Flanders 3 758 43.5 546 12.6 Region Belgium Total 20 663 11.4 751 17.9

Source: Ministry of Agriculture, 2001. 1. Organic farming in Belgium The main part of the certified organic area is dedicated to pastures for dairy farming (about 75 percent). The second main usage is cereal production (9 percent of total organic area). Organic production of fruit and vegetables is modest (3 percent), and is mostly found in the Flanders Region. The distribution of the area under organic fruit and vegetable production per region is given in Table 3 (1999).
Table 3: Fruit and vegetable area (in conversion, organic and cumulated) per region, 1999 Year 1999 In conversion (ha) Organic (ha) Cumulated (ha) Flanders Region Fruits 55.5 139.4 194.9 Vegetables 32.1 257.1 289.2 Walloon Region Fruits 12.4 47.6 60.0 Vegetables 1.4 66.6 68.0 TOTAL Fruits and vegetables 101.4 510.7 612.1

Source: Ministry of Agriculture, 2001.

The most common products among vegetables are potatoes, carrots, cabbage and onions, while apple is the main organic fruit produced, followed at a distance by pears. Quantities per product could not been obtained. 1.1 Governmental policy on organic farming In Belgium, Council Regulation (EEC) No. 2092/91 applies for organic farmers, processors, traders, etc. The state authority for organic farming is the Ministry of Agriculture (Direction Gnrale 4 (for plant production) and Direction Gnrale 5 (for animal production)). The Ministry recognises two inspection bodies: Blik and Ecocert. Both are accredited according to EN 45005 and EN 45011. Farmers and processors who meet the private standards of Biogarantie and Nature & Progrs (in addition to the official standards for organic production) may use the labels Biogarantie (mainly used in the Flanders Region) and Nature & Progrs (used in the Walloon Region, see Figure 1) (Heuschen, 2000).

Figure 1: The logos of Nature & Progrs and Biogarantie

Direct support for organic farmers has been granted since 1994 by the Belgian Government. In 2001, the annual subsidy per hectare for vegetable production more than tripled, from 300 per hectare to 930 (during the first two years of conversion, average figure) (see Table 4). The other support amounts have not been changed.
Table 4: Government support per hectare (2001) Land use 1st and 2nd year of conversion (in ) Annual crops eligible for arable area 180.52 payment (such as cereals and oilseeds) Other annual crops 300.87 Pastures 297.47

Following 3 years (year3-5) (in ) 111.55

223.10 173.52

Vegetable crops Perennial crops (fruit trees)

1st year: 991.57 2nd year: 867.63 842.46

743.68 743.68

Source: Ministry of Agriculture (2001). Other state support activities include co-financing of two research centres for organic agriculture: (i) Proefcentrum voor de biologische teelt (PCBT)(in the Flanders Region); and (ii) Centre technique pour le dveloppement de lagriculture et de lhorticulture biologique (CEB) (in the Walloon Region). These centres concentrate on field experiments of organic agriculture. 1.2 Production constraints As the above has made clear, despite remarkable growth figures over the last years, organic farming in Belgium still represents only one percent of total agricultural production. In the northern Flanders Region intensive conventional production methods require a major change in farm management if converted to organic farming. The subsidy per hectare supported by the Belgian Government has not been sufficient to attract many farmers. In 2001 the premium per hectare for vegetable production more than tripled. It is now expected that also the northern part of the country will become more organic. However, organic production lags behind demand. Bearing in mind the conversion period of three years, it will not be before 2004 that national production of organic vegetables could catch up with demand. Therefore, a significant share of Belgian organic vegetable consumption is likely to continue to be imported. One problem identified by various market operators is the lack of organic spirit among farmers. Many of the farmers interested in conversion are said to be interested in the level of the subsidy per hectare only, instead of seriously committing themselves to other farming practices. Many see an attractive income alternative for the short term, but do not look at the longer term. This observed lack of commitment might result in a large number of newly converted farmers not continuing organic farming after a few years. 2. The Belgian market for organic fruit and vegetables The total value of organic sales in Belgium are estimated at BF6 billion (2000), of which about one quarter is organic fruit and vegetable sales. 2.1 Sales of organic fruit and vegetables in value and volume Although organic products have been sold on farms and in some specialized organic shops since the first farmers started producing organically in the 1960s, the awareness of most consumers of the availability of organic fruit and vegetables started once the main supermarket chains included these products in their assortment, about 10 years ago. The first retailer to carry organic products was Delhaize, which started in 1989, followed by Colruyt and GB (now owned by French retailer Carrefour) in 1991. Those supermarkets requested the organic products to be (at least) of the same quality as non-organic products,

not accepting any inferior physical appearance of the product. Moreover, the taste of the organic products had to be as good (or better) compared to the conventional products. Initially, only a few products were displayed, namely those readily available after the domestic production season (mostly vegetables with a longer shelf life, such as potatoes, carrots and onions). Gradually, over the last 10 years, more and more products and varieties have been included, and the availability throughout the year (including imports during the off-season period) has increased, resulting in a current annual supply of over 50 fresh fruits and vegetables. However, the initial products mentioned above (potatoes, carrots, onions) remain the ones with the highest sales volumes. The strongest growth of the Belgian organic market has been observed in the second half of the 1990s, especially during the last three years (1998-2000). Fuelled by major food scares, including the dioxin crisis that hit Belgium hard, the organic market boomed. Immediately after the outbreak of the dioxin crises in 1999, in which high levels of dioxin and other toxics were found first in chicken meat and eggs and later in other foodstuffs as well, organic sales were up 80 percent from the preceding year. Average annual growth rates of 50 percent were observed during the 1998-2000 period. No statistical data on processing and marketing of organic products, or on their development, is available (Heuschen, 2000). Therefore, what follows is based on information obtained through face-to-face and telephone interviews with traders and retailers. Total sales of organic fruit and vegetables in 2000 were estimated at BF1.5 billion (37.2 million). This is a rather reliable estimate since most informants, both at wholesale and retail level, confirmed this figure. Total volume is estimated at around 15 000 tonnes, of which the major part (70-80 percent) is vegetables (locally grown or imported from nearby countries such as the Netherlands or France). The major sales outlet is supermarkets, at some distance followed by specialized organic shops, and lastly by other distribution channels (see section 2.3). The main products include (in decreasing order of magnitude): potatoes, apples, onions, carrots, cabbage (red and white), tomatoes, broccoli, cauliflower, bananas, and kiwi, among others (see Table 5). 2.2 Average prices at retail level Figures on prices at retail level and premiums over conventional products are difficult to obtain, and vary widely among different products and during different seasons throughout the year. However, anecdotal information obtained from market sources and some nonrepresentative samples obtained by the author, suggest that the average price premium ranges between 30 and 50 percent over conventional products, with exceptions beyond that range. These observations confirm earlier assessments of price premiums in Belgium (Michelsen et al, 1999) in which premiums for vegetables were estimated at 40 percent above the conventional price, and for fruits at 50 percent.
Table 5: Market for organic fruit and vegetables by product

Product Potatoes Onions Cabbage (white/red) Cauliflower Broccoli Carrots Leek Celery Lettuce Cucumber Tomatoes Peppers Other Apples Bananas Kiwi Oranges Berries Pears Other TOTAL

Quantity (in tonnes) Vegetables 1 600 - 1 700 1 100 - 1 200 850 - 900 700 - 750 800 - 850 1 000 - 1 100 450 - 500 350 - 400 500 - 550 450 - 500 750 - 800 650 - 700 n.a. Fruits 1 350 - 1 400 800 - 850 650 - 700 550 - 600 200 -225 850 - 900 n.a. 14 000 - 15 500

Source: Author calculations based on information obtained from market sources. During some of the interviews it was felt that on average the price premiums have gone down over the last ten years. Many expressed the expectation that, in view of the increasing market size and the increasing number of organic producers, wholesalers and outlets, the decline in price differences between organic and conventional products was likely to continue during the forthcoming years. 2.3 Distribution channels Distribution channels are generally short: it takes only a few handlers to get the product from the field (or import harbour) to the final sales outlet. Two wholesalers (Biofresh and Biomarch) account for an estimated 70-80 percent of all wholesales of fresh organic fruit and vegetables. Biofresh, which besides organic fresh fruit and vegetables trades in other fresh products such as dairy products, meat and vegetarian specialities, supplies only specialized shops (no supermarkets). Out of the total 700 of these outlets, over 50 percent are supplied by Biofresh. Biomarch, specialized in fruit and vegetables, is the only supplier of Delhaize, a supermarket chain. Biomarch has some packaging lines, where the organic products which are bought in bulk, are packed in bags, nets and trays (legislation requires organic

products sold in outlets where also conventional products are available to be packed separately). Other distributors include Brava (a cooperative with about 50 farmers under contract) and some small companies. Figure 2: The Belgian organic market for fruit and vegetables

Source: Authors calculations based on information obtained from market sources In 2000, an estimated 60-70 percent of all organic fruit and vegetables was sold in supermarket chains (almost 10 000 tonnes with an estimated value of 24 million or BF975 million, see Figure 2). The major part of this is sold by Delhaize, which accounts for an estimated 30 percent of total organic fruit and vegetables sold in Belgium. The other two main supermarket chains selling organic products are GB and Colruyt. These three supermarket chains have their own organic brands, of which the logos are shown in Figure 3.

Figure 3: the bio-brands of supermarket chains Delhaize, Colruyt and GB (Carrefour)

Sources: www.delhaize-le-lion.be, www.colruyt.be and www.gb.be An estimated 25 percent of organic fruit and vegetables is sold in specialized shops (3 750 tonnes with an estimated value of 9.3 million or BF375 million). The remaining are farm sales, subscription schemes, weekly markets and so-called food-teams (groups of consumers, mostly neighbours, buying collectively organic products). New in Belgium is the organic supermarket, which only sells organic products. In March 2001 the first organic supermarket called Bio Square was opened in Uckel, an economically wealthier neighbourhood of Brussels. The relatively small shop (120 m 2), which operates under the logo of Delhaize, is expected to be the first in a series of five fully organic outlets, to be operational before the end of 2002. At the time of writing of this report (mid 2001), Bio Square has been open for about four months, and sales are said to be four to five times higher than expected. The main problem faced is supply to the shop, i.e. logistics. Another supermarket chain, Colruyt, is said to have a similar initiative forthcoming. 2.4 Consumer attitudes The profile of organic consumers has not yet been studied (Heuschen, 2000); at least no studies are publicly available. However, in an issue of BioVisie (Blivo, 2000), the quarterly magazine of the organic sector in the Flanders Region, two questionnaires concerning organic food products (not just fruit and vegetables!) are quoted. Although the outcomes of the research does not necessarily fully reflect the attitude of all Belgian consumers towards organic products (respectively 1 000 and 750 persons replied), the results give some useful indications.

More than half of the respondents (55 percent) buy no (or almost no) organic products. The most important considerations when purchasing a product (both organic and conventional) are the price and its freshness, followed by the physical appearance and taste. Whether the product is organic or conventional comes after these aspects in the consumers choice. Sixty percent of the respondents said that the Belgian dioxin crisis (see 2.1) had no influence on their purchasing behaviour. However, 20 percent replied that the crisis had changed permanently their purchasing behaviour. The remaining 20 percent bought more organic products during the crisis, but their organic purchases decreased slowly after the scandal, eventually reaching pre-crisis levels. About half of the respondents are not familiar with the Biogarantie label (the label used in the northern part of Belgium where the assessments took place). Organic brands are generally not known (over 55 percent of respondents do not recognize an organic product). Many others have doubts about the reliability of the organic labels. More than three-fifths consider the price of organic products too high.

The report concludes that it is a likely that the number of organic clients is not increasing very fast, and that the market growth comes mostly from more purchases per organic consumer. Anecdotal information obtained from market sources suggest that the typical organic consumer belongs to the higher educated, higher income strata, often having young children. It is no coincidence that the new Delhaize organic supermarket Bio Square is situated in Uckel, an economically wealthier neighbourhood of Brussels, where many of these typical organic consumers live. 2.5 Trends The market has been growing at growth rates of up to 50 percent over the last few years. This growth, fuelled by food scares in conventional products, is realized through a combination of higher amounts per organic products sold (partly thanks through import based year-round supply) as well as the introduction of new organic varieties. New products that recently have been launched in the organic market, include cherry tomatoes (imported from Israel and Italy), red pomelo and vacuum packed maize and red beet, among others. Monthly magazines published by the main supermarkets dedicate more and more space to organic food. In order to enhance and strengthen awareness among consumers on organic products, these magazines contain information about new products, explanations about what the organic labels stand for, and provide recipes for organic cooking. Some specialized organic shops have joined forces in this consumer-education and jointly print similar brochures. Another trend observed is the use of biodegradable packaging for many organic products (see Figure 4). (Poirier, 1999.)

Figure 4: Biodegradable packaging: an extra selling point for the environmentally-conscious organic food consumer Source: www.colruyt.be 2.6 Main constraints to market development It is expected that the organic market will continue to expand rapidly, and demand will continue to surpass domestic supply. The major food scares that have hit the European continent in general and Belgium in particular over the last few years have permanently eroded confidence in conventional products among groups of consumers. However, as referred to in paragraph 2.3, about half of the respondents to a questionnaire are not familiar with the Biogarantie label and over 55 percent of the surveyed persons do

not recognize an organic product. Moreover, more than 60 percent consider organic products too expensive. Based on this information it seems valid to conclude that the fast growth of organic sales in Belgium over the last years is the result of high volumes bought by one group of consumers, whereas other groups of consumers are not (yet) familiar with organic products and/or do not buy these due to various reasons, among which the significant price difference between organic and conventional fruit and vegetables is the overriding argument. Therefore, constraints to further market development include a combination of lack of awareness among certain groups of consumers and the price difference between organic and conventional products. Supermarket chains are poised to take a leading role in consumer education through their monthly magazines, but also a promotional campaign at national level could enhance consumer awareness of organic products and reduce the current lack of knowledge and misunderstanding. Moreover, the noted shortage in supply of organic fruit and vegetables, due to the low domestic production, has a slackening influence on further market growth. To what extent the low domestic supply provides opportunities for organic exporting countries, in particular developing countries, to meet Belgian organic demand, will be analyzed in Section 3. 3. Imports of organic fruit and vegetables 3.1 Market access For imports of organic fruit and vegetables into Belgium, Council Regulation (EEC) No. 2092/91 applies. However, organic certification is only one of the requirements needed to enter the market. As has become evident in the previous section, supermarket chains (in Belgium by far the leading outlet for sales of organic fruit and vegetables) require high product standards as they do not accept any inferior quality or taste. Therefore, postharvest handling and transport are key, and must ensure that the product reaches the consumer in top quality. 3.2 Total imports of organic fruit and vegetables As in most other countries where market surveys have been carried out for this publication, no official data on imports of organic fruit and vegetables exist in Belgium. In February 2001, a new project with the title "Bio-theek" was started, coordinated by BioForum, the Belgian umbrella organization for the organic sector. The objective of the project is to collect and disseminate for free the most recent data available on production, consumption, imports and exports of organic products. However, since the information is not expected to be available before early 2002, what follows in this section is an analysis of imports of organic fruit and vegetables based on interviews with importers and traders. During the analysis, a wide range of uncertainties and other difficulties were faced, which, include, among others:

Although Belgium is a net importer of organic fruit and vegetables, re-exports do exist as well. Precise information on re-exported quantities could not be obtained. Related to this, trade flows within the European Community (EC) do not necessarily reflect the country of origin of a product. Especially in the case of the Netherlands and Belgium, which thanks to their geographical location and infrastructure are important entrances into the European hinterland. Many products imported into these countries are re-exported to other European countries. Therefore, organic fruit and vegetables imported into Belgium from the Netherlands (a major supplier to the Belgian organic market for fresh horticultural products) are not necessarily produced in the Netherlands. Belgium is home to a significant number of food processing industries, including organic processors, where fresh fruit and vegetables are processed into canned or frozen products. These industries import significant amounts of fresh organic horticultural products, but those products are not sold on the fresh organic market (and are therefore not included in the BF1.5 billion organic horticultural market value) (see Section 2.1). The market survey was carried out in late February - early March 2001, a time of the year with typically high imports, due to a lack of local supply. Some market sources provided data based on the weekly amounts traded during the market survey, from which annual totals were derived by multiplying by 52 (weeks). Obviously, the seasonality of many products is likely to cause a certain standard deviation in the total amount imported. Moreover, the unusual high precipitation in Belgium during the second half of 2000 resulted in many crops not having been harvested. Therefore, in the period when the market survey was carried out, imports were even higher than normal for that time of the year, which might result in an overestimation of annual imports of fresh organic fruit and vegetables.

These points, combined with a certain reluctance among some traders and importers to provide detailed information, imply that this section is based on rough estimates. Therefore, caution should prevail when drawing conclusions based on the information provided. Table 6 gives estimated ranges of quantities of organic fruit and vegetable imports (year 2000), as well as the main countries of origin. For some products imports account for 50 percent of supply (e.g. for potatoes, onions, carrots, apples, pears, etc.), while for other products the imported share is between 70 and 80 percent (e.g. broccoli, celery, tomatoes). Import rates for fruits such as kiwi, oranges and banana, etc., are naturally 100 percent, as no domestic production exists. Total imports are estimated to range between 10 000 and 11 000 tonnes, or about twothirds of all organic fruit and vegetables consumed domestically.
Table 6: Imports of organic fruit and vegetables by product (year 2000) Product Quantity (in Countries of origin tonnes) Vegetables Potatoes 800 - 850 Netherlands, Italy, Spain, Egypt Onions 550 - 600 Netherlands, France, Italy, Spain

Cabbage (white/red) Cauliflower Broccoli Carrots Leek Celery Lettuce Cucumber Tomatoes Peppers Garlic Asparagus Other Apples Bananas Kiwi Oranges Berries Pears Other TOTAL

650 - 675 500 - 550 575 - 625 500 - 550 225 - 275 300 - 350 375 - 425 450 - 500 600 - 650 600 - 650 75 - 100 < 25 n.a. 650 - 700 800 - 850 650 - 700 550 - 600 150 - 175 500 - 550 n.a. 10 000 - 11 000

Netherlands, France, Netherlands, Italy, France, Spain Netherlands, Italy, Spain Netherlands, France, Spain Italy, Spain, France Italy, Spain, France, Italy, Spain, France, Netherlands, Italy, Spain, Morocco, Israel Netherlands, Spain, Morocco Argentina Argentina n.a. Fruits Netherlands, Argentina, New Zealand Dominican Republic, Ecuador, Peru, Colombia, Burundi, Rwanda Italy, New Zealand Spain, Italy, Israel France, Italy, Spain Netherlands, Argentina, New Zealand n.a. -

Source: Authors calculations based on information obtained from market sources. Imports from countries outside the EC other than those listed in Article 11 of Council Regulation (EEC) No. 2092/91, are registered at the Ministry of Agriculture. The information describes the imported product, the country of origin and the certification bodies involved, but does not provide quantitative information (Table 7).
Table 7: Imports of fresh organic fruits and vegetables from third countries in 2000 Product Country of origin Control body in third Control body in country Belgium Grapefruit South Africa Ecocert International Ecocert Belgium Bananas Colombia Ecocert International Ecocert Belgium Peru BCS-ko Garantie Ecocert Belgium Ecuador Q.A.I Blik vzw Dominican Republic BCS - kogarantie Blik vzw Burundi Ecocert International Ecocert Belgium Rwanda Ecocert International Ecocert Belgium Apples (organic and in New Zealand S.G.S-Netherlands Blik vzw conversion) Pineapple Togo Ecocert International Ecocert Belgium

Avocados Passion fruit Papayas Mango Zucchini Egg-plant Leek Asparagus Plums Lime

Burundi/South Africa/Mexico Burundi Burundi Rwanda/South Africa/Mexico Burundi Burundi Burundi Burundi South Africa Mexico

Ecocert International Ecocert International Ecocert International Ecocert International Ecocert International Ecocert International Ecocert International Ecocert International Ecocert International Ecocert International

Ecocert Belgium Ecocert Belgium Ecocert Belgium Ecocert Belgium Ecocert Belgium Ecocert Belgium Ecocert Belgium Ecocert Belgium Ecocert Belgium Ecocert Belgium

Source: Ministry of Agriculture, 2001 and market sources. 3.3 Re-exports Re-exports of organic fruit and vegetables do exist in several western European countries, including France, the Netherlands and Belgium. Belgium imports a number of products from France and the Netherlands, and it is therefore difficult to verify, especially for temperate zone products, if imports into Belgium consist of re-exports from these countries, or if these products are produced in France or the Netherlands. An example of the difficulty to analyse trade-flows include kiwifruit imported into Belgium. Information provided by the Ministry of Agriculture in Belgium, the State Authority responsible for import licenses for organic products from countries other than those listed in Article 11 (as described in Council Regulation (EEC) 2092/91), does not mention any imports of organic kiwi from New Zealand, although the fruit is readily available on the market. Zespri, a New Zealand kiwi producer and importer into Belgium, reports that it sells about one-fifth of their organic kiwis in the Netherlands, while one Belgium wholesaler stated that they buy all non-EC imports from Eosta, an organic wholesaler in the Netherlands. Therefore, it seems likely that part of the New Zealand kiwi fruit is, through the Belgium offices of New Zealand producers/importers, imported into the Netherlands, from where it continues its journey (back) to Belgium. The fruit from New Zealand is finally consumed in Belgium, but no import licenses concerning imports from non-Article 11 countries are registered at the Ministry of Agriculture in Belgium. 3.4 Main importers Some of the main importers include the wholesale companies Biofresh and Biomarch (see section 2). Other major importers include foreign companies such as Zespri (New Zealand), Enzafruit (New Zealand) and Capespan (South Africa). Although based in Belgium, their activities include all major European markets. De Grieck and Havenbedrijf Noord are among the bigger domestic importers. Contact details of the main importers are provided in Annex I.

3.5 Constraints to import growth At first sight, no major constraints to imports exist. Demand in the Belgium organic market is expected to continue to outgrow domestic supply and therefore imports are likely to keep their prominent position in the supply of organic fruit and vegetables. Additionally, some traders referred to the ongoing discussion on the energy balance per organic product (all energy used during the lifecycle of the product: production, transport, storage, cooling, etc.) and noted that this does not necessarily discriminate against imported products. Some market sources indicated a clear preference for fresh (off-season) organic products shipped in from countries far away over domestically produced products which are stored for some months in cooled warehouses (Better a fresh pear from the southern hemisphere, than a domestic pear which has been stored for 4 months). Despite the high percentages of imported organic fruit and vegetables, one should note that the main part of imports originates from other European countries. Therefore, prospects for third countries to export to the Belgian market do exist, but for certain products and during certain months face strong competition from European organic supply. 4. Conclusions and market opportunities for developing countries The major food scares that have hit the European continent in general and Belgium in particular over the last few years have permanently eroded confidence in conventional products among groups of consumers, resulting in fast growth of the organic horticultural market over the last three years, with annual growth rates of 50 percent. Demand for organic fruit and vegetables in Belgium has outgrown domestic supply, resulting in significant imports over the past decade. A relatively small number of Belgian farmers have converted away from conventional farming practices so far and although a recent policy adjustment, in which subsidies per hectare for organic vegetable production more than tripled, is expected to lead to an increase in domestic organic supply, imports are likely to remain the main source of fresh organic fruit and vegetables. Despite the generally high percentage of organic imports in Belgium, most of these products are imported from other European countries, such as the Netherlands, France, Italy and Spain. Imports from outside the EC are much smaller, and include countries like Morocco, Egypt, Israel, New Zealand, Argentina, the Dominican Republic, Burundi and Rwanda, among others. The best commercial prospects for developing countries organic horticultural exports to Belgium are seen for off-season temperate products as well as for exotic fruits. It should be stressed that the combination of organic certification requirements, the controls involved, and the high quality requirements of the products taste and physical appearance make professional post-harvest handling, storage and transport key features, in order to succeed in delivering fresh organic products in top condition to the Belgian consumer.
http://www.fao.org/docrep/004/Y1669E/y1669e06.htm#TopOfPage http://ccso.eldoc.ub.rug.nl/FILES/root/1999/199904/199904.pdf

Being centrally located in the European continent, Belgiums trade is the hallmark of all its activities. Belgiums trade is further helped by its well developed transportation network, diversified commercial and industrial base.
However, as Belgium must import a substantial amount of raw material to flourish, the nation relies heavily on imports and thus is exposed to global market volatility. Thus, the year 2008-09 proved challenging for the country. The GDP dipped from $394.9 billion in 2008 to $381.4 billion in 2009.

Belgium Trade, Exports and Imports

As raw materials and natural resources are not sufficient, the balance of trade is usually towards imports and thus there is always some trade deficit in Belgium.

According to the 2009 estimates, Belgium had an export volume of $296.1 billion and ranked 13thin the world. This, however, showed a tremendous drop from the 2008 figures, which shone bright at $371.5 billion. The various export commodities include: Machinery and equipment Chemicals Finished diamonds Metals and metal products Foodstuffs

The following countries are the biggest export partners of Belgium:

Germany France Netherlands UK US Italy This is how the aforementioned countries contribute (in percentage)

The trade balance is slightly skewed towards imports. According to the 2009 estimates, Belgium reported its import volume at $315 billion and ranked 11 th in the world. This was, however, lower than the 2008 figure of $387.7 billion.

The various imported commodities are: Raw materials Machinery and equipment Chemicals Raw diamonds Pharmaceuticals Foodstuffs Transportation equipment Oil products

The various Belgium import partners are: Netherlands Germany France UK US China

This is how the aforementioned countries contribute (in percentage)

Overall, Germany and the Netherlands remain major trading partners of Belgium.

http://www.economywatch.com/world_economy/belgium/export-import.htmls

Exporting
Overview
Exporting should be a natural step for any successful business. It not only abates reliance on your indigenous customers, but also allows for greater market reach and profit. But, as with most things in business, the theory is easier than the practical. Exporting can pose an entirely different set of problems than your business is used to. Starting a business in Belgium without any contextual knowledge can often lead to expensive errors. Fundamental to success, then, is a comprehensive analysis and research of your intended market. Your polar findings will be either an overwhelming or underwhelming response to a product or service, and its probably better to know this before parting with reluctant sums of money.

Naturally, you need to think about people. You need to think aboutplaces. You need to contextualise your product or service socioeconomically. Who will be buying your product? Can they find an easier or cheaper alternative? Whos your competition? Whats themarket situation in Belgium? And its not just the basic relocation issues and protocol you have to consider. Indeed, it''s pragmatics such as your route to market, logistics, regulation, barriers, tariffs and suppliers too. Many will differ vastly to your accustomed practices.

Planning & Preparation

In preparing to export your goods or services in Belgium, you must not just assess, but scrutinise your potential, and prepare for the worst. This doesn''t mean you have to negate all optimism; just dont get consumed by it. These are the market essentialities to examine: Structure of industry Demand for your product or service Your competition and how your company will forge itself alongside it Acclimatisation - adapting your company operations, product or service to Belgium

Next is the process of market entry, which will always seem simpler on paper. Your main considerations will be: A market strategy that, if needed, acknowledges international trade development Financial resources and backing People, and how they can help develop your product for export / a new market Erudition in local requirements: packaging, pricing, labelling, etc Again, erudition, but in the costs and payment procedures of exporting Some of these factors alone may establish an unsuitability for your intended market, so research them thoroughly.

Next, is your product cut-out for export? Think about: The standards and regulations of products in your overseas market The fees involved with altering your product, service and company for a foreign market

UKTI
UK Trade & Investment (UKTI) is the Government organisation that helps companies in the UK succeed in the global economy. Offering services to UK based firms wanting to gain access to global markets through export and foreign expansion, UKTI offer a range of services tailored to the needs of individual businesses, helping them to maximise their international success.

UKTI Services
Expert Trade Advice: The UKTI International Trade Team has 40 local offices around the UK through which they are able to meet business owners and offer advice and support on international trade and growing a business. Find out more. The Passport to Export Programme: The Passport to Export programme was devised to offer new and inexperienced exporters support and guidance in the following ways (find out more): Free Action Planning Support in Visiting Potential Markets Mentoring from a Local Expert Professional

 Customised and Subsidised Training Ongoing Support Gateway to Global Growth: A free service to experienced exporters which offers a strategic review, planning and support to help grow your company''s business overseas. Solutions could be complex requiring both UK Trade & Investment services and those offered by other public or private sector organisations. It could involve the acquisition of specialist information and skills or guidance on how to achieve a specific objective. It may even involve sharing your experience and problems with other experienced exporters. Find out more. Business Opportunities: With a team of expert advisors located overseas within British Embassies, High Commissions and Consulates, UKTI publish overseas business opportunities open to British companies. To benefit from these Business Opportunities you must register your UK-based business on the website. Find out more Access to UKTI Market Expertise: UKTI are able to provide help with the initial approach into a new market, offering help through research and advice through 2 principle services: Overseas Market Introduction Services (OMIS): This service will put a business in direct touch with local UKTI staff in their overseas offices who are able to provide support and access to country and sector-specific advice. Find out more. Export Marketing Research Scheme (ERMS): Administered on behalf of UKTI by the British Chamber of Commerce, companies may be eligible for a grant for market research projects to obtain commercial intelligence. Find out more. Help with Visiting an Overseas Market: UKTI provide grant support for eligible Small & Medium Sized Enterprises to attend trade shows overseas and help arrange groups of UK companies to attend tradeshows and missions. This is implemented through their Tradeshow Access Programme, allowing entrepreneurs to test market, attract customers, appoint agents and distributors, and develop international business. Find out more.

Selling & Distribution

To improve the chances of success in Belgium, you need to consider a few key issues. Sales presence, for instance, should be a top priority. Will you sell directly? Will you trade over the internet? Perhaps trade shows are more suitable? Could you benefit from a local partner who knows the market? Here are a few fundamental choices: Get yourself a distributor in Belgium who can sell on a local or national level Sales agents can either sell a product for you, or alternatively acquaint you with potential clients or customers Joint ventures with local companies have gained in popularity, primarily because of their knowledge and established presence in the market. It is often a pricey option, however Of course, you can also set up your own office, ensuring maximum control on all operations. This is obviously the most expensive of all your options

A few things to remember. Firstly, when drawing up any contracts with agents or distributors, it is imperative to unequivocally define obligations such as delivery and payment Next, your intellectual property (IP) may be jeopardised if it is not declared in each foreign country. This can often be a laborious process, so be prepared. Remember that patents are generally recognised only in their country of origin.

Marketing
Oh, the minefield of marketing in Belgium. Its no point squeezing a product or service into a new market with the shoehorn of indigenous merit. Your product or service must adapt, refine, alter, acclimatise, tailor and fashion itself to a market, not rely on some fatalistic hope of simply fitting in. Products are more pliable than people.

As aforementioned, the necessity to contextualise your product or service socioeconomically cant be overstated. It will be a paradoxical balance of market sensitivity and exploitation. Does your product require a drastic change to its image? Can it be changed to flatter a national idiom?

Legal Obligations
Needless to say, a keen attention to laws, legislation and regulation is paramount. VAT rules should be considered early; some products may not qualify for the HM Revenue & Customs zero-rate policy.

Controls & Licenses

Youll need to check if any of your products require an export license. Products such as chemicals and firearms, for instance, usually do.

Comprehension of the Law

Of course, upon entering a foreign country, a product or service is subject to, and must abide, national laws.

Developing Your International Trade Potential

This UK Trade & Investment (UKTI) programme was established to help novice entrepreneurs and exporters who are considering selling overseas. With its first-class knowledge of overseas business, it helps entrepreneurs through training, planning and continuing support. Here are some of the features of the programme: Free assessment of your preparedness for exporting and help devising an entry plan Training in all the essentialities of overseas trading Support and help with market research, and the possibility of financial assistance if needed Expert advice and help with overcoming protocol, such as language and cultural barriers Advice from specialist international trade advisors Continuing support for overseas development and trading

You can join the Developing Your International Trade Potential Programme if you meet the following requirements: Less than 250 employees Less than 50 million Euro turnover Your company makes 25% or less of turnover from exports You are a new, novice or passive exporter

Are You Ready To Export?

Entering into the export market through an existing business may seem like an obvious way to increase your current revenue. In many cases, it is a viable means of expanding a business, and generating greater income. However, it is important to consider the logistics, timing and practicalities before jumping into the unknown. Exporting can extend your market, boost your turnover and prevent you having too great a dependence on your UK-based customers. But it isn''t always an easy option. Starting to export poses a whole new set of challenges, from identifying promising markets and customers to ensuring that you can fulfil your export contracts. Developing new export markets takes time and money.

Exporting isn''t simply an add-on to your existing business. It should be part of an overall strategy to develop the business. Before you start exporting, it''s worth making sure you''ve developed a complete export plan looking at all the costs and risks involved. A well planned extension overseas can bring financial and reputational success, but a rushed job may just cause more damage than it is worth. Planning is key, so consider the following before making any decisions: Exporting presents all the normal challenges of marketing in the UK - it''s up to you to find customers and convince them to buy from you. Understanding the market and its requirements is very important. Dont assume that because you know the domestic market, you automatically know foreign ones. Exporting is usually a way of growing a successful business, rather than an easy way out for one that''s in trouble. If you''re struggling with limited finances or overworked employees, you may not have the resources to take on the extra work. As an international business, you will need to cope with extra logistical problems, contractual issues and paperwork. You''ll probably want a contract drawn up using internationally recognised terms and conditions and standard commercial practices to make it clear what your responsibilities are. There''s also a range of paperwork for sorting out transport, customs clearance and payments. These may take more time and effort than you expect, and must be dealt with in meticulous detail. You need to comply with regulations in both the UK and overseas. For example, some goods that are allowed in the UK might not satisfy another country''s standards. Exporting demands additional resources, both in terms of financing and skilled personnel. Be prepared for your expenditure on staff and expert advice and services to increase significantly before you start to see the benefits With the additional costs, such as international transport, you may find you simply can''t compete with local suppliers. If the market only offers low margins, or you haven''t got the resources you need, you may decide that exporting isn''t for you. Make sure that you plan carefully and know that you could present a competitive product or service overseas. Equally, if you''ve got a good product to offer and a well-run business, the chances are there will be opportunities for you out there in the export market. If the rewards you expect justify the investment and the risks, you should commit to your export plan and make it happen.

The Plan Assess your skills and resources

To start exporting successfully, you should take a systematic approach and decide what your export strategy is. You need to spend time and money planning, researching market opportunities and building relationships. You may also need to invest in modifying your product and service to suit overseas customers.

Buy in help
Once you''ve planned your exporting activities, you also need to devote extra resources to handling your exporting business. Marketing to overseas customers tends to be more demanding than selling within the UK. Exporting also needs special skills - such as organising international transport and handling customs clearance. Many businesses find that the best way to get started is to buy in the services they need, and build inhouse skills and resources later. For example, you might use a local agent to sell, and a freight forwarder to handle deliveries.

Source your capital

Exporting can also be financially demanding. Customers often want credit from the time they receive the goods. For a long distance shipment, this could be weeks after you produced and shipped the goods, so you get paid later than you would by a customer in the UK. At the same time, you may have to meet extra costs like transport and insurance. The more successful you are, the greater the demands placed on your business will be. It''s worth planning ahead to be sure you have the capacity to handle the extra production, selling and after-sales support.

Organise your paperwork

When trading internationally the right paperwork is crucial. Missing or inaccurate documents can increase risks, lead to delays and extra costs, or even prevent a deal being completed. Whether you are importing or exporting, you need to understand what paperwork is required. Even if you use a freight forwarder or an agent, it''s still up to you to make sure the right documentation is available. See our basic guide below for pointers to get you started.

Documentation Guide
This guide explains the key documentation you need to use. It outlines what should be in your contracts and what paperwork you need for customs, transport and payment. Key documentation for international trade There should be a clear written contract between buyer and seller, including details of exactly where goods will be delivered. Specific documents may be needed to get the goods through customs and to work out the right duty and tax charges. Requirements of both exporting and importing countries should be addressed. Documentation is needed to cover the transport of the goods and insurance during the journey. The right paperwork can be an important part of the payment mechanism. It''s important to cooperate with your counterpart on getting the paperwork right. NB: If you''re shipping goods to a customer overseas, they should tell you what paperwork they require at their end. If you are dealing with a non-English speaking country, it can be a good idea to provide one set of commercial documents in the local language.

International trade contracts and Incoterms

Different countries have different business cultures and even languages. It''s a good idea to make sure you have a clear written contract to minimise the risk of misunderstandings. To avoid confusion, internationally agreed Incoterms should be used to spell out exactly what delivery terms are being agreed, such as: where the goods will be delivered who arranges transport who is responsible for insuring the goods, and who pays for insurance who handles customs procedures, and who pays any duties and taxes As well as including delivery details, the contract should cover payment. This should include what currency payment will be made in, how much will be paid, when payment is due and what payment method will be used.

Export documentation

You may need an export licence to export goods. For example, there are controls on exports of chemicals and military technology. Licence requirements may also depend on which country you are exporting to.

Export declarations
If you are selling goods within the EU, most goods are in free circulation and can be easily moved from the UK to other countries without customs controls or charges. If you are selling to customers outside the EU, you need to declare your exports to HM Revenue & Customs (HMRC). This is generally done electronically, using the New Export System (NES). The declaration includes details of the classification of the goods being exported and which country they are going to. Alternatively, an authorised agent or freight forwarder can handle the customs declaration for you.

Export VAT
For VAT purposes, exports are generally zero-rated, but you should keep copies of your VAT invoices and proof of export. This helps you prove that the goods left the country and that you do not have to pay any output VAT on them. If your sales to EU countries exceed 260,000 - you must also complete the Intrastat supplementary declaration. Exports to countries outside the EU do not count towards the Intrastat threshold and do not need to be included.

Overseas imports
You should check what documentation is required for import into your customer''s country. Typically, you need a commercial invoice and shipping documents such as an Air Waybill. Other requirements can include a certificate of origin. Once you have considered the logistics of entering the export market either with an existing business or a new venture you can start planning. Just remember to be meticulous, and plan everything to the last detail, follow our pointers, and you should enjoy a lucrative business opportunity! Click here to Ask an Expert about Import/Export in Belgium

Organisations that can assist with Import/Export

mport Regulations - Belgium (and the European Union)

Belgium is part of the European Union which has developed a common trade policy for all member countries. The Belgian government has published regulations relating to customs and other pieces of tax legislation which can be found on the following website: The Tax Survey - An overview of the Belgian tax legislation. (full info only available in either French or Dutch). Brief presentation available through the following link.

Of special interest is the downloadable link to Part II, Indirect Taxation which includes a chapter on Customs and Procedures upon Importation, Exportation and Transit (P.45) Many of the trade issues are standardized across the European Union, and the text below describes briefly the highlights of the EU trade policy. For more information, please visit the EU's taxation and customs website where you will find specific information on:

Tariffs Customs Transit Customs Valuation Rules of Origin Cultural Goods Counterfeiting and Piracy

Licensing: The EU has a liberal import regime where import licensing is not common. Import licences are issued with due consideration for the provisions of relevant European Union trade agreements and the needs of the specific importing country. Quality Standards: Under the EU's "New Approach to Technical Harmonisation", certain products are required to meet the specific quality standards including toys, machinery, telecommunications terminal equipment, medical devices, electrical equipment, appliances, etc. Qualified products must carry a CE mark to show its compatibility, fixed onto the product by a manufacturer or importer as selfdeclaration of compliance. Visit the website. Import duties: Imports into the EU countries are subject to the respective import tariff (normally applied on the import c.i.f. value) plus the value-added tax (VAT) varies according to different importing countries. For Belgium, the most commonly applicable rate is 21% although the rates of 0%, 6% and 12% also exist. For more details, please refer to The Tax Survey, and the downlodable link to Part II, Indirect Taxation, Chapter 1.6 The VAT rates. You may also wish to consult the TARIC website for standardized EU tariffs for goods which allows the user to search using either the TARIC codes or TARIC descriptions. Canadian companies wishing to export to Belgium are first invited to consult the following web pages for information on Trade in Goods - Country Tariff Information and on Trade in Goods - Update on Tariffs and Non-Tariff Measures For any additional information or assistance required, they may also wish to contact the Foreign Affairs and International Trade Canada's Tariffs and Goods Market Access Division (TPG) in Ottawa to gather information on market access issues such as customs duties, taxes, rules of origin and some entry procedures. You may contact TPG by phone at 613 944 2910 or by fax at 613 992 6002 or by email atTPG@international.gc.ca. Please note however that you will be asked for the corresponding HS (Harmonized System) codes. Normally, your customs broker

should be able to provide you with that information. Should this not be the case, you may obtain HS codes for export by calling Statistics Canada at 1-800-257 2434 or by using their online search mechanism on their Web site. Clients may also obtain this information by calling the Canada Border Services Agency at 1-800-4619999. Eco-labels: This scheme has expanded to 219 products, particularly footwear, textiles and personal computer software. For more information on the product groups involved in the Eco-labelling scheme. Packaging: Manufacturers and exporters should minimise the packaging of their products exporting to the EU. For more specific details on importing goods and services to the EU, please consultfollowing page of the EU official web site. Certain alerts are regularly published on our web pages. See eg. the following pagedealing with a Temporary certificate for export of cattle to the EU, this page dealing with the Reintroduction of EU Import Duties for some Cereal Grain products, etc.

http://www.tradecommissioner.gc.ca/eng/document.jsp?did =18313

Climate
The climate of Belgium is temperate with marked seasons. Belgium experiences pleasant warm summer weather between May and September, and fairly cold winters with snowfalls commonplace.

Belgium
Belgium has a temperate maritime climate influenced by the North Sea and Atlantic Ocean, with cool summers and moderate winters. Since the country is small there is little variation in climate from region to region, although the marine influences are less inland. Rainfall is distributed throughout the year with a dryer period from April to September. Especially in fall and winter strong atlantic low-pressure systems can bring gales and uncomfortable weather. Sometimes easterly winds can cause a more continantal type of weather, warm and dry in the summer, but cold and clear in the winter with temperatures sometimes far below zero.

Belgium is a flat country and has often breezy conditions, although more in the winter than in the summer, and more among the

coastal areas than inland. In the eastern regions hills cause a cooler and wetter climate with more rainfall and sometimes heavy snowfall in the winter.

Required clothing: Lightweights with rainwear for summer, waterproof Medium- to Heavyweights for winter. A sweater is necessary almost any time of year.

Koeppen-Geiger classification: The climate of Belgium can be classified as Cfb Climate; a warm temperated humid climate with the warmest month lower than 22C over average and four or more months above 10C over average.

Advertisement

Climate of the World http://www.weatheronline.co.uk/reports/climate/Belgium.htm