U.S. investments in Belgium have shifted towards high-tech industries and knowledge-intensive services in recent years, the American Chamber of Commerce (AmCham) in Belgium and Vlerick Leuven Gent Management School conclude in their 2006 Status Report on U.S. Direct Investment in Belgium.
U.S. investments play a major role in the Belgian economy, with U.S. affiliates accounting for 145,900 jobs, or 2.8 percent of total employment, the report said. U.S. investments are particularly strong in chemicals and pharmaceuticals products.
U.S. affiliates are the second most important foreign employer in Belgium, after the Netherlands. In chemicals, Belgium-based U.S. affiliates represent one-third of value added and 27 percent of total employment. In pharmaceuticals, U.S. affiliates represent 61 percent of value added and 48 percent of employment.
Between 1996 and 2004, employment in less knowledge intensive services increased by 19 percent, while employment in knowledge intensive services increased by 84 percent.
A survey on the attractiveness of Belgium for regional headquarters activities shows that Belgium-based U.S. regional headquarters are generally favorable to remaining in or to expanding their presence in Belgium, when they have strategic decision-making power. They find Belgium attractive because of its central location in Europe. But this could change as the center of Europe moves eastward with the expansion of the European Union, according to the report.
AmCham urged the Belgian government and labor organizations to reduce employment costs, increase labor flexibility and lower corporate taxes.
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