The Dutch are looking towards the Indo-Pacific: New Delhi should take advantage
The Dutch are looking towards the Indo-Pacific: New Delhi should take advantage
WRITTEN BY GOKUL SAHNI
5 March 2021
In November last year, the Netherlands became the third European country, after France and Germany, to publish a policy document outlining a strategy for the Indo-Pacific. The ten-page document notes the increasing importance of the region, and, therefore, merits greater attention from both the Netherlands and the European Union. Noting this growing importance, the strategic document casts a wide net, emphasising the importance of working with 'like-minded’ democracies and open market economies in the region. India, which is mentioned as a key partner, should whole-heartedly welcome this development.
The Netherlands — pocket dynamo
At first glance, this document may not appear to be a significant development given the Netherlands exists as a mid-size European country with a population of less than 18 million and is absent from influential gatherings such as the G7 and G20. Furthermore, it is not particularly renowned for its military power, having fewer submarines in its navy than Algeria (with six) and with a nominal GDP of $886 billion its economy is smaller than emerging markets like Indonesia and Mexico. It is therefore pertinent to ask, can the Netherlands be a credible strategic partner in a region so far away?
Greater buy-in among European countries will help broaden the Indo-Pacific concept and the Netherlands would therefore join those voices in Brussels already pushing the EU towards working more closely with 'like-minded' partners in the region in seeking to promote both peace and prosperity.
The answer is yes — despite its small size, the Netherlands is increasingly recognised as the best example of a country punching above its economic or demographic weight’. The latest EU Coalition Explorer survey conducted by the European Council of Foreign Relations in July 2020 provides some striking data. The Netherlands is viewed by Europe’s professional political class as the third most influential member within the EU, behind only France and Germany, and ahead of larger countries like Italy and Spain. In addition, Dutch diplomacy is notably well regarded across the EU.
The Netherlands may not be a member of the G20 but it is the world’s 17th largest economy and notably larger than some G20 members such as Saudi Arabia and Turkey. The country is also the world's seventh-largest exporter of merchandise goods, and in particular, the second largest agricultural goods exporter. Globally, it is ranked as the fourth most competitive economy, ninth in completing the UN’s Sustainable Development Goals and is assessed as having a global freedom score of 99/100 as per Freedom House. Nevertheless, it has not completely eschewed hard power, having recently released its Defence Vision 2035, which calls for the build-up of a “smart, technologically advanced” military to combat threats of the future. And, after Brexit, Amsterdam seems set to displace London as the EU’s new financial capital — what the Netherlands lacks in size, it makes up for in competitiveness.
An Indo-Pacific partnership
The country is, therefore, well suited to call for deep partnerships across the Indo-Pacific, as the document says, “to develop effective multilateralism and strengthen the international legal order”. The Netherlands envisions working together with partners in the Indo-Pacific to promote advancements around democracy and human rights, sustainable trade, security and stability, free passage and maritime safety, climate change, global health, and poverty reduction.
Such outreach should be music to India’s ears as the desire to pursue ‘strategic autonomy' is felt both in New Delhi as well as several European capitals. While the Netherlands appears keen to maintain a distance from the growing superpower rivalry in the Indo-Pacific, the recently released document highlights its recognition of the East and the South China Sea as areas of heightened risk. The document notes that China is using “the entire breadth of government instruments in a hybrid way” to achieve its strategic objectives. Amsterdam’s circumspection about China has been on clear display recently with the ongoing saga around Dutch chip-making equipment manufacturer ASML’s refusal to sell to China (reportedly under pressure from the US).
From both a geopolitical and geoeconomic perspective, India should welcome countries such as the Netherlands seeking to take a more active role in the Indo-Pacific region. For one, greater buy-in among European countries will help broaden the Indo-Pacific concept and the Netherlands would therefore join those voices in Brussels already pushing the EU towards working more closely with 'like-minded' partners in the region in seeking to promote both peace and prosperity. While the Franco-German axis rightfully gets precedence in capitals like New Delhi (as the EU engine), countries such as the Netherlands are important actors in their own right and it should be recognised that the Netherlands brings value (bilaterally and multilaterally), to India.
India-Netherlands ties
Ties between New Delhi and Amsterdam are, for the most part, reasonably solid, with bilateral trade of $11.76 billion in FY20 making the Netherlands India’s third-largest trading partner in the EU. The relationship is even stronger when looking at investments, since 2000 the Netherlands has been India’s fifth-largest source of FDI, with total inflows of $28.7 billion. People-to-people ties are also strong, with the Netherlands home to over 200,000 people of Indian origin, the highest in any EU member-state. There are regular high-level visits to India, including those by his Majesty King Willem-Alexander and Her Majesty Queen Máxima of the Netherlands, where, most recently in September 2019 there was a stated focus on issues such as water technology and maritime development, healthcare, sustainable agriculture, social initiatives and cultural heritage. These areas, along with ports and logistics, inland waterways, shipping, urban development and renewable energy have been recognised as ‘priority areas’ for bilateral cooperation as Dutch strengths now usefully match India’s requirements.
An increased focus on investment opportunities and the diversification of supply chains have already been identified as important new areas for cooperation. The Netherlands would also benefit from enhanced cooperation and collaboration with India on other key issues such as the preservation of the rules-based international order. In light of India’s emergence as an Asian superpower it is therefore not surprising to see Amsterdam identify India’s role in the region as ‘strategically important’ with the Dutch Indo-Pacific strategy document highlighting India as one of the key partners for promoting democracy, strengthening multilateralism, improving connectivity and boosting sustainable trade and investment.
And finally
New Delhi should continue to encourage Amsterdam’s engagement with the Indo-Pacific, and, while Indian diplomacy has often focused on the Global South it may realise that wealthy and democratic Western partners like the Netherlands have much to offer in support of India’s goal to become a major power. With the Dutch expressly looking towards crafting an Indo-Pacific strategy, both on a bilateral as well as an EU basis, India should wholeheartedly welcome these developments and invest in a stronger strategic partnership with its European friend.
DISCLAIMER: All views expressed are those of the writer and do not necessarily represent that of the 9DASHLINE.com platform.
Author biography
Gokul Sahni is based in Singapore and writes on geopolitics and geoeconomics, with a particular focus on Indian foreign policy. He holds an MSc in International Relations from the S. Rajaratnam School of International Studies (RSIS) and an MBA from the Saïd Business School, University of Oxford. All views and opinions expressed are personal. Image credit: Wikimedia.