The Netherlands generally pursues its foreign policy interests within the framework of multilateral organizations. The Netherlands is an active and responsible participant in the United Nations as well as other multilateral organizations such as NATO, the EU, the Organization for Security and Cooperation in Europe (OSCE), the Council of Europe (CoE), the OECD, the WTO, and the International Monetary Fund. A centuries-old tradition of legal scholarship has made the Netherlands the home of the International Court of Justice; the Yugoslavia and Rwanda War Crimes Tribunals; the European judicial and police organizations Eurojust and Europol; the Organization for the Prohibition of Chemical Weapons; and International Criminal Court. Dutch security policy is based primarily on membership in NATO, which the Netherlands joined as a charter member in 1949.

The Dutch are strong advocates of European integration, and most aspects of their foreign, economic, and trade policies are coordinated through the European Union. The Netherlandsí post-war Customs Union with Belgium and Luxembourg (the Benelux group) paved the way for the formation of the European Community (precursor to the EU). Likewise, the Benelux abolition of internal border controls was a model for the wider Schengen accord, which today has 15 European signatories, including the Netherlands, pledged to common visa policies and free movement of people and goods across common borders.

The Dutch were key proponents of the 1992 Maastricht Treaty and were the architects of the 1998 Treaty of Amsterdam. They have embraced the introduction of new member states and the common currency (euro). The Netherlands last held the revolving presidency of the EU in the second half of 2004.

Dutch development strategy is anchored in the Millennium Development Goals and as such focuses on poverty reduction. The priority programmatic areas for Dutch assistance are education, the environment and water, AIDS, and reproductive health care.

In 2004, the Netherlands introduced a new, more focused development aid strategy, under which a number of smaller aid programs in wealthier developing countries were phased out. The number of countries in which the Dutch operate bilateral assistance programs was thus cut from 49 to 36, and the number of sectors in which the Dutch will be active in each country was limited to two to three. Roughly half of Dutch aid is earmarked for Africa. In addition, the Dutch introduced a new policy instrument, the Stability Fund, which pushes the bounds of traditional development assistance by funding programs and activities, such as police training, that aim to create a security environment in which development can proceed. The Stability Fund, to be managed jointly by the Minister for Development Cooperation and the Minister for Foreign Affairs, is budgeted at approximately EUR 110 million in 2005.

The Dutch are the top donor of unearmarked assistance to UN humanitarian programs. For Afghanistan, the Netherlands in 2004 pledged EUR 44 million to the Afghan Reconstruction Trust Fund (ARTF) and an additional EUR 10 million for humanitarian relief and the conduct of elections. For 2004-06, the Dutch have pledged EUR 75 million for the ARTF and additional EUR 25 million in humanitarian aid. For Iraq, the Dutch pledged EUR 16 million in humanitarian and reconstruction assistance in 2004. In response to the Asian Tsunami, the Dutch contributed EUR 40 million in humanitarian relief and have promised EUR 200 million over the next five years for reconstruction efforts in Indonesia and Sri Lanka. The Netherlands has traditionally been a strong supporter of programs to help Palestinians in the Occupied Territories. The Balkans are another major recipient of Dutch assistance. The Dutch fund programs in Bosnia and Macedonia in the areas of education, good governance, and economic reform.

Despite their commitment to ODA, the Dutch also champion the role of trade and private enterprise for their contributions to development. In recent years, the government has devised new programs to support private sector development in developing countries.

In May 2004, Foreign Policy Magazine , in conjunction with the Carnegie Endowment for International Peace and the Center for Global Development ranked the Netherlands number one for the quality of its aid program.