Bilaterally, there are few points of friction with the U.S. in the trade and economic area. The Belgian authorities are, as a rule, anti-protectionist and try to maintain a hospitable and open trade and investment climate. As a result, the U.S. Government focuses its market-opening efforts on the EU Commission and larger member states. Moreover, the Commission negotiates on trade issues for all member states, which, in turn lessens bilateral trade disputes with Belgium.

Under these various rulers, and especially during the 500 years from the 12th to the 17th century, the great cities of Ghent, Bruges, Brussels, and Antwerp took turns at being major European centers for commerce, industry (especially textiles), and art. Flemish painting--from Van Eyck and Breugel to Rubens and Van Dyck--became the most prized in Europe. Flemish tapestries hung on castle walls throughout Europe.

Following the French Revolution, Belgium was invaded and annexed by Napoleonic France in 1795. Following the defeat of Napoleon's army at the Battle of Waterloo, fought just a few miles south of Brussels, Belgium was separated from France and made part of the Netherlands by the Congress of Vienna in 1815.

In 1830, Belgium won its independence from the Dutch as a result of an uprising of the Belgian people. A constitutional monarchy was established in 1831, with a monarch invited in from the House of Saxe-Coburg Gotha in Germany.

Belgium was invaded by Germany in 1914 and again in 1940. Those invasions, plus disillusionment over postwar Soviet behavior, made Belgium one of the foremost advocates of collective security within the framework of European integration and the Atlantic partnership.

Since 1944, when British, Canadian, and American armies liberated Belgium, the country has lived in security and at a level of increased well-being.

Language, economic, and political differences between Dutch-speaking Flanders and Francophone Wallonia have led to increased divisions in Belgian society. The Industrial Revolution of the late 18th and the 19th century accentuated the linguistic North-South division. Francophone Wallonia became an early industrial boom area, affluent and politically dominant. Dutch-speaking Flanders remained agricultural and was economically and politically outdistanced by Brussels and Wallonia. The last 50 years have marked the rapid economic development of Flanders, resulting in a corresponding shift of political and economic power to the Flemish, who now constitute an absolute majority (58%) of the population.

Demonstrations in the early 1960s led to the establishment of a formal linguistic border in 1962, and elaborate rules made to protect minorities in linguistically mixed border areas. In 1970, Flemish and Francophone cultural councils were established with authority in matters of language and culture for the two-language groups. Each of the three economic regions--Flanders, Wallonia, and Brussels--was granted a significant measure of political autonomy.

Since 1984, the German language community of Belgium (in the eastern part of Liège Province) has had its own legislative assembly and executive, which have authority in cultural, language, and subsequently educational affairs.

In 1988-89, the Constitution was again amended to give additional responsibilities to the regions and communities. The most sweeping change was the devolution of educational responsibilities to the community level. As a result, the regions and communities were provided additional revenue, and Brussels was given its own legislative assembly and executive.

Another important constitutional reform occurred in the summer of 1993, changing Belgium from a unitary to a federal state. It also reformed the bicameral parliamentary system and provided for the direct election of the members of community and regional legislative councils. The bilingual Brabant province, which contained the Brussels region, was split into separate Flemish and Walloon Brabant provinces. The revised Constitution came into force in 1994.

A parliamentary democracy, Belgium has been governed by successive coalitions of two or more political parties. The centrist Christian Democratic Party often provided the Prime Minister. In the 1999 general election, Belgian voters rejected Jean Luc Dehaene's longstanding coalition government of Christian Democrats and Socialists and voted into power a coalition led by Flemish Liberal Leader Guy Verhofstadt. The first Verhofstadt government (1999-2003) was a six-party coalition between the Flemish and Francophone Liberals, Socialists, and Greens. It was the first Liberal-led coalition in generations and the first six-party coalition in 20 years. It also was the first time the Greens had participated in Belgium's federal government. In the general election of 2003, the Greens suffered significant losses, while the Socialists posted strong gains and the Liberals also had modest growth in electoral support. Liberal Prime Minister Guy Verhofstadt reconstituted the coalition as a four-party government in July 2003, with only the Liberals and Socialists in power.

In the 2007 general elections, the Flemish Christian Democratic CD&V recouped the lost ground, becoming the country's largest party. The two Socialist parties and Prime Minister Guy Verhofstadt's Open VLD lost support. The Francophone Liberal MR became the largest party of Wallonia and Brussels. Following the election, the King tasked CD&V leader Yves Leterme with forming a new government. The ruling coalition is composed of Flemish Christian Democrats (CD&V), Francophone Christian Democrats (CDH), Flemish Liberals (Open VLD), Francophone Liberals (MR), and the Francophone Socialists (PS).

Belgium remains a strong proponent of both NATO and European defense efforts. Belgium also is a strong advocate of strengthening economic and political integration within the EU. Having federalized their own country, many Belgians view themselves as the ultimate "European federalists."

Both NATO (since 1966) and the EU have their headquarters in Brussels; SHAPE (Supreme Headquarters Allied Powers Europe, NATO's military headquarters) is in the south of the country, near Mons.

Belgium supported the expansion of NATO and EU membership to the new democracies of central and eastern Europe and is actively engaged in the Organization for Security and Cooperation (OSCE) in Europe. Belgium served as the Chair-in-Office of the OSCE in 2006. Belgium sits on the United Nations Security Council during 2007-2008.