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History of the Benelux Union

July 14, 2025

Author: Shanghai BenCham

Thumbnail attribution:
Benelux logo courtesy of the Benelux Union.

Short History of the Benelux Union

The low countries, The Netherlands, Belgium and Luxemburg, have long had interwoven histories wherein they were occasionally apart or together depending on rulership (Habsburg, French, Dutch). This was the case until the Belgian independence from the United Kingdom of the Netherlands. As its newfound independence left Belgium economically isolated, it sought to forge new ties with neighbouring countries; steps were made, the 1863 trade and maritime transport agreement with the Netherlands and a while later, the Belgian Luxemburgish Economic Union of 1921, which was created as Luxemburg sought to increase its economic partnerships.

The 20th century proved to demonstrate their capacity for close economic partnership; During WWII, the exiled governments of Belgium, the Netherlands and Luxemburg signed a monetary agreement with the goal of strengthening transactions and economic ties. A year later in 1944 they signed the London Customs Convention, which formed the foundation of the Dutch-Belgian-Luxembourgish customs union, realised in 1948. This move saw the Benelux countries remove all internal tariff barriers and determine a single uniform tariff of duties on import to the partner countries. A system later adopted by the European Economic Community (EEC, 1957). 

Soon after the creation of the Benelux customs union, the Benelux countries joined the European Coal and Steel Community (1953), together with France, Germany and Italy; the community sought to stimulate economic growth by creating a shared market for coal and steel. Here, the Benelux customs union had helped demonstrate the need for economies with minimal internal restrictions and a stable external equilibrium without excessive governmental intervention. 

In 1958, The Benelux agreement was signed, entering into power on November 1st 1960 and creating the Benelux Economic Union. With a few noteworthy steps leading up to its creation, such as a shared protocol regarding trade politics and the agreement on free movement of capital, it appeared a sensible move to cover movement of persons and services and coordination of economic, financial and social governance next. 

The Benelux Court of Justice, which has existed since 1974, demonstrates another of the union’s functions. Intended primarily to maintain a level of uniformity it operates mostly when there are problems being experienced regarding differences in law over two/more of the union countries. 

The sixty-year existence of the Benelux Union (as “Economic” had been scrapped from the title ten years prior) was celebrated in 2018, with much to reflect on. The Union had grown from holding a merely economic function, to being a multifaceted entity with aspirations regarding its economic, political and legal functioning. Since it’s beginnings as a customs union, the Benelux has provided a foundation and powerful catalyst for European cooperation, becoming an inspiration for entities such as the EEC, later the EU and posing as a testing ground for the Schengen Agreement. Currently, the Benelux continues to broaden its focus, and tackle new and relevant issues. 

Key figures

Camille Gutt

Camille Gutt was the Belgian minister of Finances during the Second World War and later the first Director-General of the International Monetary Fund. As the Benelux governments went in exile to London during WWII, he launched ‘Operation Gutt’ a Belgian monetary reform intended to combat the post-war inflation and return the Belgian purchasing power, which became a great success and helped contribute to Belgium’s preparedness to enter into a new economic partnership.

Paul-Henri Spaak

Paul-Henri Spaak was Belgium’s minister of foreign affairs at the time of the governments’ exile to London, and laid the groundwork for the formation of the Benelux Customs Union. He is considered an EU pioneer, having been president of the working committee formulating the Treaty of Rome (the foundation treaty for the European Economic Community).

Timeline of the Benelux Cooperation

Sources