Insight

With Jan Matthysen, Belgian Ambassador to the United States

Continuing with the theme of this month’s AmCham Connect on US/Belgian relations, AmCham Connect Editor Nick Klenske recently spoke to Jan Matthysen, Belgium’s Ambassador to the US, to get yet another perspective on this bilateral partnership.

Klenske: Can you start by giving us a little background on the history of US/Belgian relations from the Belgian perspective?

Ambassador Matthysen: It is somehow odd to talk, as we often do, about United States-Belgian relations for periods predating the very existence of the US and Belgium as countries. But we could say that Belgians have, from the very outset, steadily contributed to the pool of entrepreneurship, ingeniousness, craftsmanship and industriousness that has fashioned the modern American nation. This dates all the way back to the early expeditions from the Low Countries, leading up to the foundation of colonies on Manhattan (said to have been purchased by the Walloon Pierre Minuit), Staten Island and along the Hudson River in the 17th century. Like the Walloons on the Mayflower, the Ypres cartographer Plancius traveled with Henry Hudson. And Adrian Block, who repeated Hudson’s journey, in 1614 built four houses and a small fort at the extreme tip of Manhattan. The area was actually named “Novum Belgium”.

As far as modern history is concerned, since 1820 almost 200,000 Belgian immigrants have settled in the United States. Belgians formed two particularly important communities: Flemish settlements in Detroit, Michigan, and Moline, Illinois; and the Walloon settlements in Door, Kewaunee and Brown counties, Wisconsin. There are towns and villages in these areas with Belgian names: Brussels, Namur, Rosière, Champion and, indeed, Belgium! In Texas too there is a large Belgian colony and, according to the census of 1990, there are some 248,075 persons who declared themselves to be Belgian or of Belgian ancestry in the United States: 221,000 born in the U.S. and 27,000 foreign-born.

Some might find these ancient references quite anecdotic to explain modern US-Belgian links, but I find them deeply relevant – especially from a trade and investment point of view. In my opinion, they explain the sense of being-at-home-away-from-home that my compatriots commonly feel in the States, making their adaptation and their integration into the domestic society and business community often surprisingly fast and complete. In the other direction, since Belgium was liberated in 1944-1945 thanks to the sacrifice of tens of thousands of young Americans, we also witnessed a sustained flow of US citizens moving to Belgium for long periods: NATO-based officers and soldiers, management staff and employees of the numerous subsidiaries and representative offices of US corporations established on Belgian soil, students, lawyers, diplomats… And it is my understanding that, here too, the transition is often a rather smooth process, with American expatriates becoming real Montois or Gentenaars in a very short period of time!

Klenske: How would you describe US/Belgian relations today (both from a political and business standpoint)?

Ambassador Matthysen: Probably as good as they have ever been in post-WWII times. The sizeable Belgian military involvement in Afghanistan is extremely well received here, as are our campaigns for peace and development in other parts of the world. In the other direction, the current administration’s courageous handling of difficult issues like global warming or nuclear proliferation are viewed with much respect in Belgium, both by our government and by the people. But the recent development that has really helped create a wave of warm sympathy for the US in my country is the way the administration and Congress have carried out their overhaul of the country’s health insurance system –showing that America shares the same concerns as Europe when it comes to the rights and obligations of every citizen and the value of human life and health.

The uninterrupted flows of cabinet members, parliamentarians, civil servants and academics from both countries clearly show how much we care about each other. Quite tellingly, Resigning Premier Leterme was in Washington several weeks ago, Secretary Clinton and Foreign Minister Vanackere shared a long conversation last week, and Vice-President Biden was in Brussels just last week. But no flow is as symptomatic of the quality of our rapport as the continuous wave of business people traveling between US and Belgian airports on any given day. Bilateral trade exceeded $35 billion in 2009, making Belgium a larger trading partner for the US than India, Australia, Russia or Spain. The investment data is no less impressive, with the total stock of US investments in Belgium at $65 billion in 2008. These figures are the best barometer for measuring just how outstanding the relationship has become over the year.

Klenske: What are some of the main issues/challenges affecting this relationship and what is the Belgian Embassy doing about them?

Ambassador Matthysen: Despite a number of slightly disconcerting developments, like the ‘buy domestic’ bias in certain legislative acts or allocation procedures, the way the current administration is “holding on” to free-trade and to the goal of completing the Doha Round is a very good thing – and we have to remain focused on both sides of the Atlantic to make sure we remain committed to openness. I am convinced that with ex-Bruxellois Presidential Advisor Michael Froman on the one hand, and Commissioner De Gucht on the other (whose team counts more transatlantic experience than any Commissioner’s cabinet before), the Transatlantic Economic Council will soon become the powerful co-operative tool it was designed to be when launched exactly three years ago. But mutual confidence is also something that one builds everyday at a bilateral level. So, the Embassy and the rest of the Belgian federal and regional economic and trade networks in the US are working on a standing basis with the Commerce and State Departments, with the USTR’s office, and with other federal and state/city-level agencies to make sure that exchanges between the two countries return as quickly as possible to their pre-2008 figures.

On capital flows, we are occasionally concerned by some of the administration’s views on the benefits of trans-border investment. Belgium is the 15th ranked investor in the US and Belgian companies employ some 140,000 people States-wide, contributing to welfare, research and development and industrial dynamism in the country. But we are also utterly convinced that subsidiaries in Belgium of US parent companies are also a strong driver for employment creation and innovation in the US. American multinationals serve the country in many ways through their presence and dynamism abroad, and that contribution could probably be better acknowledged – especially as we all struggle with the aftershocks of the 2008 Wall Street meltdown.

This being said, I do not completely share AmCham Belgium’s rather pessimistic view of the trends in US investments in Belgium. 2009 has been a tough year, and this year won’t be too good either – but it is worth noting that the 2009 figures are close to the 2008, and above 2006 levels. Furthermore, the decline in US FDI is a global phenomenon, and when comparing the undisputable shrinking of US FDI in our country and other EU and even non-EU countries, I would be tempted to remain rather optimistic about the continued attractiveness of Belgium for US firms.

Nevertheless, the different competent levels in Belgium have got to keep their eyes on the ball, despite the distracting effect of other current political and economic developments. In an increasingly globalized economy, and an enlarged EU, Belgium is indeed operating in a very competitive landscape to attract US businesses and investors. My staff, and their Flemish, Walloon and Brussels colleagues, are working actively to keep Belgium on the map economically, scientifically and culturally in the US They also listen carefully to the concerns of US companies with operations in Belgium – then informing our leaders in Brussels the best we can to help them design the best policies, incentives and communication tools to make our country maintain its position as the European darling of American investors, a position it has held continuously since 1945.

Klenske: What are some of the advantages a Belgian or Belgian company has when doing business in the US?

Ambassador Matthysen: If you don’t mind excusing the colloquialism, I would say that we, Belgians, are… “a pretty adaptable bunch”! Historically accustomed to adjust to different cultures and influences quickly, my compatriots are also known for their top productivity and language skills. I can witness it firsthand in the US, where our humility (in the most positive sense!), our team-player attitude and being well positioned to work effectively with people from a wide variety of backgrounds all prove to be undeniable assets. Of course, Belgian companies also enjoy the general advantages the US market offers: market size, entrepreneurial spirit, business-friendly authorities both at national and local level, active business associations, easy networking, a large pool of productive and flexible employees, openness to new ideas and technologies and, last but not least, a culture that rewards excellence and achievement.

Klenske: Do you have a good example of the benefits that can happen when the two countries work together?

Ambassador Matthysen: Charlie Parker’s music… an American giant playing on a Belgian invention! More seriously, but staying in the geniuses and inventors repertory, there are countless success stories these days of first-class scientific breakthrough being born from collaborative efforts between national institutes, university laboratories or corporate research centers from the two countries. From Janssen’s research center on Alzheimer’s disease to Intel’s cooperation with five Flemish universities and Leuven University’s IMEC on the supercomputers of the future. Also, the countless groundbreaking discoveries and innovations happening every year in the numerous US R&D facilities established in Belgium. But, as I would not want to pinpoint one of these multinationals specifically, I will stick to a more Cinderella-like success story – namely the fact that the White House has chosen Mr. Dries Buytaert’s Drupal Project as the framework for its open source policy on their WhiteHouse.gov website.