The Luxembourg tech sector faces a number of challenges, from the high cost of doing business and language barriers to the lack of visibility in the scope of global markets.
Additionally, the country is plagued by trade limitations experienced as a result of major shifts in the European Union. Geopolitical tensions, trade wars, Brexit, and the rise of protectionism are a few of the major trials that hinder trade in the region.
Trade compliance requirements for cross-border trade outside of the EU are complex, particularly with the movement of dual-use goods. Import licenses require highly detailed information, and the customs requirements are also intensive – these processes are notoriously time-consuming and can hold up shipments if they are not accurate.
However, Luxembourg is a member of the European Union (EU), and it is also a signatory to a number of other trade agreements, such as the Central European Free Trade Agreement (CEFTA) and the Generalized System of Preferences (GSP). These agreements provide preferential treatment for imports from certain countries. While trade between member states with agreements is relatively straightforward, trade from outside of these borders can be tricky.
