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© WTO/OMC 2
Characteristics and economic importance of services
• Importance of services• Trade in services
GATS and modes of supply
Manual on Statistics of International Trade in Services
• BOP • FATS• Modes of supply and statistical domains
Overview
© WTO/OMC 3
Services• Intangible output of a production process
PRODUCTIONUSER’S NEED
PRODUCTS• GOODS
(tangible)• SERVICES
(intangible)
• Key role in the economy• transport, telecommunications…• long term effects - environmental, educational services…
• Services value added = 2/3 Global GDP
© WTO/OMC 4
0%
20%
40%
60%
80%
100%
WorldHigh i
ncome
Middle in
come
Low in
come
USAEU-27Ja
panBraz
ilRus
sian Fed
.India
Indones
iaChin
aNigeri
a
Services Agriculture Industry
Share of Services Value Added in GDP2005, Selected countries
© WTO/OMC 5
0102030405060708090
High inco
meUnite
d Stat
esEU-27Ja
panBraz
ilMau
ritius
Malays
iaEgyp
tIndo
nesia
Thailan
dPak
istan
China
1995 2005*
Share of Services in Total Employment1995-2005, Selected countries
* Except Brazil 2004, Egypt 2003 and China 2002.
© WTO/OMC 6
Measuring Services Production (1/2)
Statistics on domestic activity
• Value added broken down by industry (of which services) within the National Accounts framework
• Employment in the services sector within employment statistics (also part of the National Accounts)
• Information on specific services sectors from business statistics
© WTO/OMC 7
020406080
100120140160180200
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Bill
ion
dolla
rs
60
80
100
120
140
160
180
200
Bill
ion
min
utes
Measuring Services Production (2/2)
Complementary use of statistics: • on international payments for telecommunications (source BOP)• on international telecommunications traffic (source ITU)
Quantitative indicators on specific services
International telephone traffic
BOP imports and exports
© WTO/OMC 8
Exports of Goods and Commercial Services, 1980-2007
0100200300400500600700800900
1000
1980 83 86 89 92 95 98
2001
2004
2007
(198
0=10
0)
02000400060008000100001200014000160001800020000
Bill
ion
USD
Goods
Commercialservices
Commercial services
Goods
GDP
© WTO/OMC 9
Specific Features of Trade in Services
Services represent 20% of total world trade and account for the 2/3 of GDP
Intangible nature
Conventional trade statistics do not cover all international trade in services
• Services delivered by foreign affiliates > conventional international trade in services
• Many services require physical proximity of provider and consumer: ⇒ services perceived as less easily tradable than
goods
© WTO/OMC 10
The GATS
Set of rules covering international trade in services
GATSPillars
Set of general obligations and disciplines
Schedules of specific commitments
Annexes on specific issues
Commitmentsunder GATS
By services sectors
By mode of supply
© WTO/OMC 11
The GATS Modes of Supply (1/2)
COUNTRY A COUNTRY BMode 1: Cross-border
Mode 2: Consumption abroad
Mode 3: Commercial presence
CompanyCommercial
presenceDirect investment
Consumer Service supplierThe service crosses the border
The consumer is abroad
Servicesupply
Consumerin C
Consumer ConsumerService supplier
Consumer
$ $ $ $ $
Servicesupply
Servicesupply
FATS+ BOP construction Establish commercial presence
© WTO/OMC 12
Mode 4: Presence of natural persons
Juridicalperson
Naturalperson
An independent goes to country A
COUNTRY A COUNTRY B
An employee is sent by a company of country B
Commercialpresence
intra-corporate transferee
ConsumerC
Consumer
Consumer
The GATS Modes of Supply (2/2)
Servicesupply
Servicesupply
© WTO/OMC 13
The Manual on Statistics of International Trade in Services (2002)Guidelines and recommendations on the
measurement of trade in services
Balance of Payments statistics
Foreign Affiliates Trade in Services statistics
Movement of natural persons
© WTO/OMC 14
Of interest for GATS purposes
but...
BOP Statistics -Short Presentation (1/2)
BOP summarises transactions of an economy with therest of the world
BOP
Current account
Capital & financial account
GoodsServicesIncomeCurrent transfers
11 componentsTransportationTravelCommunicationsetc.
© WTO/OMC 15
BOP Statistics -Short Presentation (2/2)
• More detail needed than 11 BPM5 services components
MSITS introduces EBOPS (breakdown of BPM5 services)
• Most services delivered under Mode 3 and Mode 4 are not well covered or identified
However, some BOP indicators helpful:
• Foreign Direct Investment
• Compensation of employees• Workers’ remittances
Mode 3
Mode 4
© WTO/OMC 16
FATS Statistics - Short Presentation
Coverage• Operations of foreign affiliates, • Particular focus on services
Indicators• Turnover• Employment• Value added• …
Concepts & definitions• Manual on Statistics of International Trade in Services
© WTO/OMC 17
Correspondence between modes of supply measurement and statistical domains
•No distinction between Modes 1(3 for construction) and 4
•No relationship with Mode 4 but of interest for labour mobility
•BOP: Commercial services(excl. travel)
•Compensation of employees, workers' remittances (suppl. info.)
Mode 4:Presence of natural persons
•Very few countries produce FATS •No distinction between Modes 3-4•FDI cover not only (majority) controlled companies
•FATS•BOP: Construction•FDI (suppl. information)
Mode 3: Commercialpresence
•Contains goods and not divided into different types of services consumed by travellers
•Some Mode 2 transactions also in other BOP categories
•BOP: Travel Mode 2:Consumption abroad
•No distinction between Modes 1and 4
•BOP: Commercial services(excl. travel, construction)
Mode 1: Cross-border supply
InadequaciesStatistical domainsModes of supply
© WTO/OMC 18
Principles of recording• Transactions and residence• Other principles
The Extended Balance of Payments classification
Statistics by trading partner
Allocation of BOP/EBOPS items to modes of supply
Statistics on Resident-NonResident Trade in Services (BOP)
© WTO/OMC 19
• What is a transaction?
• What is a resident of a country?
• involves a real or financial resource,• resource changes ownership.
• institutional units (individual, enterprise, association,government unit…)
• centre of economic interest,• economic territory of the country.
BOP Key Concepts
Transactions between a country’s residents and rest of the World
© WTO/OMC 20
• Change in ownership of goods
• Provision of services
• Provision of labour
• Provision of capital
• Change in ownership of financial assets
What is an International Transaction?
INTERNATIONAL
Residents / non-residents
© WTO/OMC 21
What is a Services Transaction?
International transactions in services
International trade in services
Country’s BOPCredit Debit
Country’s residents
Exports
Imports
© WTO/OMC 22
Centre of economic interestflexible one-year rule
Concept of Residence
Transactors
• Households / individuals
• Enterprises
• Others
Country’s economic territory
Principal residence
Significant and lastingeconomic activity
• Geographicterritory
• Territorial enclaves (e.g. embassies…)
© WTO/OMC 23
Valuation and Other Principles of Recording
Valuation
Time ofrecording
Unit ofaccount
Market prices (price agreed betweenseller and buyer)
Time at which services are rendered(accrual accounting)
Transactions converted to a commonunit of account (national currency, USD)
© WTO/OMC 24
• What is it?• product-based classification,• consistent with 11 BPM5 services components,• more detailed than BPM5 services components,• includes additional memorandum items.
• How can it be used in GATS negotiations?• Manual provides a table of correspondence between
EBOPS/CPC Rev.1/ GATS list of services GNS/W/120.
EBOPSExtended Balance of Payments Services Classification
© WTO/OMC 25
EBOPS Main Components
3. Communications services
4. Construction services
5. Insurance services
6. Financial services
7. Computer and informationservices
8. Royalties and licence fees
9. Other business services
10. Personal, cultural andrecreational services
Commercial services:
1. Transportation
2. Travel
3. -10. Other commercial services
11. Government services(not in GATS)
© WTO/OMC 26
EBOPS Detailed Components
2. Travel
1. Transport
3. Communications services
…etc
• Sea transport (passenger, freight, other)• Air transport (passenger, freight, other)• Other transport (passenger, freight, other)
• Space, Rail, Road, ...
• Business travel• Expenditure by seasonal and border workers• Other
• Personal travel•Health-related expenditure•Education-related expenditure•Other
• Postal & courier• Telecommunication
…
Breakdown of main components
© WTO/OMC 27
EBOPS Memorandum Items and Alternative Aggregations
• Memorandum items: useful additional information:
Example
Audiovisual transactions
Services: audiovisual services; audio-visual-related royalties and license fees
Non-services: acquisition/disposal of audiovisual-related patents, copyrights…
• Aggregations of services and non-services transactions
Example • Expenditure on goods
• Expenditure on accommodation and food and beverages
• All other travel expenditure
Travel
© WTO/OMC 28
• At least for...• Services as a whole
• 11 main services components of BPM5/EBOPS
• Main trading partners
• If possible....• More detailed EBOPS level
• Common geographical basis for all trade in services data
Balance of Payments Statistics by Trading Partner
© WTO/OMC 29
Allocation of BOP/EBOPS Items to Modes of Supply
As a first step, Manual proposes a simplified approach:• Items deemed to be predominantly delivered through one mode
Mode 1
• Transportation (except supporting and auxiliary services to carriers in foreign ports),
• Communications services• Insurance services• Financial services• Royalties and license fees
Mode 2• Travel (excluding purchases of goods)• Supporting and auxiliary services to carriers in
foreign ports
© WTO/OMC 30
Allocation of BOP/EBOPS Items to Modes of Supply
Simplified approach (continued):• Items for which significant elements of 2 modes of supply
are involved
• Construction
• Computer and information services
• Other business services
• Personal, cultural and recreational services
Mode 1
?Mode 4
Mode 3
?
© WTO/OMC 31
Principles for recording FATS statistics• The FDI universe• Firms covered• Statistical units• Time of recording
Economic variables
Attribution (classification) of FATS variables• By country• By activity and by services products
Foreign Affiliates Trade in Services Statistics
© WTO/OMC 32
Foreign Affiliate Trade in Services Statistics (FATS)
• Focus on services measuring Mode 3 (commercial pres.)• Help understand the phenomenon of globalisation.
• Indicators that describe the activity of foreign affiliates• Inward and outward FATS• With a particular focus on services
Guidelines for measuring the activityof foreign affiliates
• What are FATS statistics useful for?
• What do FATS statistics measure?
© WTO/OMC 33
Principles Underpinning FATS Statistics
• SNA 1993 (National Accounts)• BPM5 (BOP)• OECD Benchmark Definition of FDI
In line with international standards
FDI statistics may be used as an interimindicator where FATS are not compiled
© WTO/OMC 34
The FDI Universe
FDI: the direct investor makes an international investmentto obtain a lasting interest in an enterprise abroad
Owns >10% shares, voting power or the equivalentDirect investment
enterprise
• Associate• Subsidiary• Branch
between 10 and 50%
more than 50%
wholly or jointly unincorporated enterprise
individualsenterprisesassociated groups of individuals/enterprisesgovernments...
Country A Country B
Directinvestor
© WTO/OMC 35
Firms Covered in FATS
• Ownership criteria
Majority-owned foreign affiliates (a single foreign investor owns more than 50% of their ordinary shares or voting power):
• Types of producers
Affiliates producing goods, services
Includes subsidiaries and branchesExcludes associates
© WTO/OMC 36
Statistical Units
Units considered in FATS statistics may be
Establishments of enterprises
Enterprises
• Enterprise 1
• Enterprise 2
• Enterprise 3
• Establishment 1a• Establishment 1b• Establishment 2a• Establishment 2b
• Establishment 3a• Establishment 2c
= Enterprise 3
© WTO/OMC 37
Time of Recording FATS Variables
Accrual basis
Period ofrecording
Reference year
Recording when the transaction occurs rather than when the related payment is made
Flow variables reference yearStock variables end of reference year
Calendar year in principle
Explanatory note
If only fiscal or accounting year is available
© WTO/OMC 38
Economic Variables for FATS
• Sales (turnover) and/or output• Employment• Value added• Exports and imports of goods and services
• Number of enterprises
Basic FATS variables(minimum recommended by MSITS)
Additional FATS variables
•Compensation of employees•Taxes on income• Research and development expenditures•etc...
Concepts in the MSITS
© WTO/OMC 39
Geographical allocation
Foreign-owned affiliates in the compiling country
Compiling country
Operations offoreign-owned
affiliates
Majority ownership
Foreigninvestor
Majority ownership
Statistics on
Inward FATS
Immediate
owner
ForeignInvestor
UltimateBeneficial
Owner(UBO)
Supplementary information
Described
Inward FATS
Operations allocated to
© WTO/OMC 40
Compilingcountry
Statistics on outward
FATS
Operationsof the foreign
Affiliate
Majority
ownership
Resident
Investor
Described
Outward FATSGeographical allocation
Foreign-owned affiliates of investors of the compilingcountry
Foreign affiliate(holding company)
Majorityownership
Operations allocated to
© WTO/OMC 41
Classification by Activityand by Product
• FATS are classified by activity
• According to their primary activity• According to ISIC categories for foreign affiliates (ICFA)• ICFA can be linked to EBOPS
• Long-term priority…• Disaggregation of FATS variables by product
© WTO/OMC 42
The movement of natural persons in GATS• Mode 4 service suppliers• Temporary movement• Relations to existing classifications
Statistics for measuring Mode 4• BOP statistics• FATS statistics• Migration statistics• Other possible sources• Improving Mode 4-related statistics
The Movement of NaturalPersons
© WTO/OMC 43
Main Issues for Measuring Mode 4
Mode 4 in MSITS
• The Manual on Statistics of International Trade in Services (MSITS) recognises that a statistical framework needs to bedeveloped for measuring Mode 4
• Annex in MSITS as a first step
Main statistical issues
• Determining the coverage of Mode 4
• Only fragmentary indicators available
• Determining the indicators to measure Mode 4
© WTO/OMC 44
The Movement of NaturalPersons in GATS
Relevant framework• GATS’ main text: mode 4 presence of natural persons• GATS’ Annex movement of natural persons
Description of Mode 4 in main text and annex
Purpose of stay
Fulfilling directly a service contract, whether as a service supplier (self-employed) or as an employee
Duration of stay
Temporary: Measures regarding citizenship, migration, residence and permanent employment are not covered
Indirectly: Presence instrumental to supply of service: through commercial presence or supply at a later stage
© WTO/OMC 45
Contractual service suppliers – Self-employed (independent) service suppliers– Employees of foreign service suppliers
Who is covered by Mode 4?
Intra-corporate transferees and persons directly recruited by the foreign affiliate
Services sellers / Persons responsible for setting up commercial presence
Areas ofuncertainty
• difference between employment and service contract• what does constitute a service?• many commitments currently focus on highly-skilled
workers
© WTO/OMC 46
For which categories should we measure the value of services trade?
Services sellers -Persons responsible for setting up commercial presence
Intra-corporate transferees and directly recruited by foreign affiliate
Contractual services suppliers-Self-employed- Employees of foreign service suppliers
Value of service trade flowsNatural persons
Yes
No
No
© WTO/OMC 47
Options to assess Mode 4 delivery in surveys
1.Did the service delivery involve physical presence of service provider?
Yes? Then, how was most of the service value provided (time/resources)?
Mostly by fax, email, etc.
Natural person at the end (e.g. to supervise)
The person’s knowledge was essential
to deliver the service
Mode 4
2. Require in services surveys allocation by each GATS mode of supply
3. Require estimated share of services inputs for Mode 4 services trade
Mode 1
© WTO/OMC 48
For which categories should we measure the number of mode 4 persons?
Services sellers -Persons responsible for setting up commercial presence
Intra-corporate transferees and directly recruited by foreign affiliate
Contractual services suppliers-Self-employed- Employees of foreign service suppliers
Number of personsNatural persons
Yes
Yes
Yes
© WTO/OMC 49
Mode 4, migration and tourism statistics
Non-Migrant categories
Migrant categories
Categories of the UN Recommendations
on Statistics of International
Migration, revision 1:
Length of stay of individuals
Purpose of trip or migration Less than 3 months
3 to 12 months
more than 12 months
Visitors Personal International
Holiday, leisure and recreation Recommendations on Visiting friends and relatives Tourism Statistics 2008 Education and training Shopping Etc.
Business and professional (no employer-employee relationship with entity established in compiling economy)
X x
Contractual service supply X x - self-employed a X x - employed X x Intra-corporate transfer X x Serv. salespersons/ commercial pres. X x Other
Employment (migrant workers, employment-based settlement)
Intra corporate transfer x X Directly recruited by a foreign
established company x X
International civil servants Other
Trainees Family reunification/formation Etc.
© WTO/OMC 50
UN CPCBasis for classifying services as product ofeconomic activity, including services delivered through Mode 4
Industrial classification: relevant if statisticsby occupation are not available
Mode 4 and ExistingClassifications
ISCO-88Distinguishes categories of employment: can facilitate linkages statistics/negotiations
UN ISIC
Status in employment: identifies « independent service provides »ICSE-93
© WTO/OMC 51
.... But other indicators of interest for analysis
• Mode 3 and Foreign Direct Investment statistics(stocks and flows, important complement to FATS)
• Other FATS variables(number of service suppliers, employees, value of assets)
• Sectoral statistical frameworks: tourism , health
• Supplementary information from BPM6 linked to the movement of mode 4 persons
• Production, quantitative, employment indicators
© WTO/OMC 52
Data sources for BOP statistics• International Transactions Reporting System (ITRS)• Enterprise surveys• Combining ITRS and enterprise surveys• Other sources
Data collection systems for FATS statistics• Key features for the collection of FATS statistics• Examples of country practices
Data comparability and reliability• BOP asymmetries• IMF initiatives related to data quality
Data Sources
© WTO/OMC 53
Collection Systems for BOP Statistics
Main alternatives for the collection of BOP statistics
• International Transaction reporting System (ITRS)
• Enterprise surveys
• A combination of both systems
Possible supplementary sources
• Surveys of travellers and household expenditure surveys
• Official sources and government transactions
• Partner countries and International Organizations
© WTO/OMC 54
ITRS• Coverage
• All services transactions
• Responsibility• (generally) the national central bank
• Respondents• domestic banks (indirect reporting)• residents holding accounts abroad or involved in
clearing/netting schemes (direct reporting)
• Advantages• timely, comprehensive, few respondents
• Limitations• transactions proxied by payments, possible
misclassifications
© WTO/OMC 55
• Coverage• all service transactions
• Responsibility• (generally) the national statistical office
• Respondents• sampled enterprises who are international transactors
• Requisites• high quality business register• appropriate techniques for sample design, preparation ofquestionnaires, and processing of survey results
Enterprise Surveys
© WTO/OMC 56
ITRS and Enterprise Surveys -Examples
• System mainly based on enterprise surveys, with no use of ITRS
e.g. United States, United Kingdom
e.g. France
• Systems mainly based on ITRS, using a limited form ofenterprise surveys
e.g. Netherlands
• Systems mainly based on enterprise surveys, using a limited form of ITRS
Great benefits to be drawn from co-operationbetween different institutions
© WTO/OMC 57
Other Sources for BOP
Interest of BOP compiler to co-operate with otherinstitutions
• Surveys of travellers• Surveys conducted at borders (e.g. migration surveys)• Household expenditure surveys
• Official sources• Government transactions• Statistics as a by-product of official institutions’ activities
• Other sources• Data from partner countries• Data from International Organizations
© WTO/OMC 58
Collection Systems for FATS Statistics
Two different populations, requiring different approaches• Inward: enterprises surveyed directly on their activity (easier
to collect)• Outward: resident parent companies surveyed on the activity of their affiliates abroad
Different systems for collecting FATS statistics• Surveys collecting FATS data• Identify FATS in statistics on resident enterprises
Only for Inward FATS
Links with FDI in both cases (identification ofthe FATS population)
© WTO/OMC 59
Surveys Collecting FATS
Two possibilities
Add FATS variables to FDI surveys
Specific surveys for FATS
Commonly consideredpreferable because
but...• Burden on FDI-non-FATSenterprises
• FDI surveys: conductedfrequently and require quickturnaround
Information to be collected: key FATS variables at thegreatest detailed level of ICFA
© WTO/OMC 60
Existing Statistics on Resident Enterprises
Which sources?
How can FATS statistics be obtained?• identify inward FATS population within resident enterprises, and• aggregate data collected across the foreign-owned population of resident enterprises
• Existing statistics on resident enterprises (employment,turnover…)
Only for inward FATS
© WTO/OMC 61
• Only inward collected, based on resident enterprisestatistics
Examples of Country Practices for Collecting FATS
• Inward and outward collected on the basis of FDI surveyse.g. United States
e.g. Belgium
• Outward based on FDI surveys, inward on residententerprise statistics
e.g. Denmark, Spain
e.g. Sweden• Inward and outward collected through a separate survey
© WTO/OMC 62
BOP Bilateral Asymmetries
Country A
Credit DebitBOP
Country B
Credit DebitBOP
BOP transaction
import export
Recorded import
Recorded export
Difference=
Bilateral asymmetry
=
© WTO/OMC 63
Asymmetries: Types, Causes, Corrections
Different types of asymmetries• Bilateral (two countries)• Mutilateral (e.g. intra-EU)• Global (World): for services, imports > exports
Why?
How can they be corrected?
• misallocations, different recording thresholds, difficultgeographical identification...
• « bottom-up » approach: study of causes and reconciliation• « top-down » approach: mathematical model allocates
asymmetries
© WTO/OMC 64
Data Quality: IMF Initiatives
Two initiatives to assess data quality
• SDDS• Identifies best practices in the dissemination of data• 4 dimensions: the data, public access to the data, integrity of the
data, and data quality• Concerns specific countries, which must observe specific
standards• GDDS• Approach similar to SDDS with respect to data quality• Open to all IMF Members• Less prescriptive than SDDS• Emphasis: long-term
© WTO/OMC 65
BOP trade in services data• BOP/EBOPS• International dissemination
Information available on commercial presence• Availability and dissemination of FATS statistics• Alternative: FDI data
Data Availability and Dissemination by International Organizations
© WTO/OMC 66
Availability of BOP/EBOPS Data on Trade in Services
Compilation of trade in services is relatively well established and widespread
• BPM5 standard components widely compiled:the number of countries reporting these data has morethan doubled since 1997 (breakdown of exports)
• Significant progress was made in compiling more detailed items, and in compiling a breakdown by partner country
© WTO/OMC 67
… broken-down by type of service?
… broken-down geographically?
International Dissemination of BOP/EBOPS Statistics (1/2)
Where can I find statistics on trade in services...
• Eurostat, OECD, IMF, UNSD• these organisations are collecting data on an EBOPS basis
• Eurostat• OECD• UNSD
© WTO/OMC 68
International Dissemination of BOP/EBOPS Statistics (2/2)
Summary data andanalysis
Summary data and
analysisAll economies
WTO's International Trade Statistics(book, on-line and CD-ROM)
Up to 115 partner economies and regions(270 for total services)
EBOPS190 economies (around 40 with partner detail)
UN ServiceTrade(on-line)
Up to 115 partner economies and regions(270 for total services)
EBOPS(and additional
detail)
OECD members;Hong Kong and
Russian Federation for partner detail
OECD Statistics on Inter-national Trade in ServicesVolume 1 by Service Category Volume 2 by Partner Country(book, on-line and CD-ROM)
Up to 115 partner economies and regions(270 for total services)
EBOPSEU members, total EU, euro area, EU
candidate countries
Eurostat Database (book, on-line and CD-ROM)
No
BPM5 and EBOPS (provided
to IMF on voluntary basis)
IMF membersIMF Balance of Payments Statistics (+ITC Trade Map)(book, on-line and CD-ROM)
By partner countryBy type of serviceCoveragePublication
© WTO/OMC 69
Collection of FATS Statistics
Collected by Eurostat and OECD
• Inward and outward FATS:by activity (37 categories of ISIC)by country of origin/destination of investment
• Common questionnaire to member countries:
• OECD: Measuring globalisation: the role of Multinationalsin OECD economies
• Eurostat: publication in the Statistics in focus series, and in the New Cronos reference database
• UNCTAD: World Investment Report
• Dissemination:
Availability of FATS Statistics
Australia X X X XAustria, Finland, Hungary X X X X XBaltics, Bulgaria, Cyprus, Denmark, Hong Kong-China, Ireland, Netherlands, Norway, Romania, Slovenia, Spain, United Kingdom
X X X
Belgium, Germany, Greece X X X XCanada X XCzech Republic, France, Israel, Italy X X X X
Japan, Portugal, United States X X X X X X
Luxembourg, New Zealand, Poland X X
Slovak Republic X X X XSweden X X X XSwitzerland X XTrinidad and Tobago X
Value added
Turnover/output
Number of employees
Turnover/output
Number of employees
Value added
Inward Outward
© WTO/OMC 71
FDI Statistics as an Alternative
State of implementation• Many countries collect FDI flows, with geographical and
activity breakdown (more data for inward than outward)• Fewer countries collect FDI income flows
Collection and dissemination• Eurostat and OECD: FDI inward and outward stock, flows
and income (by industry and country)
• IMF: FDI positions, flows and income, no industry and partner breakdown
• UNCTAD
© WTO/OMC 72
Implementation: phased approach of MSITS• 5 core recommendations• 5 other recommended elements
Recent progress and short-term plans
Prospects for trade in services statistics• Areas for improvement • Future work
Current State and Prospects
© WTO/OMC 73
Implement BPM5 recommendations for trade in services
MSITS’ Phased Approach to Implementation
5 core elements
Compile BOP services according to EBOPS, starting with items of major economic importance to the country
Compile FDI by ISIC categories of activity
Compile basic FATS variables broken down by ICFA categories of activity
Compile statistics by partner country
© WTO/OMC 74
Full implementation of EBOPS
MSITS’ Phased Approach to Implementation
5 other elements (long-term)
Compile FATS additional detail
Compile statistics on the presence of natural persons
Split BOP trade in services among trade between related parties / trade with unrelated parties
Allocate BOP trade in services by mode of supply
© WTO/OMC 75
Recent Progress (1/3)
• for BPM5 main items, but also for more detailed items
• Dramatic improvement of quality and quantity of statistics on resident/non-resident trade in services
• FATS statistics are increasingly compiled
a multi-country set of statistics available for major services categories
© WTO/OMC 76
Recent progress (2/3)
• on the compilation of FATS statistics • Eurostat: 2 regulations
• IMF collect data according to EBOPS from 2003 on a voluntary basis
FATS and EBOPS have become binding in EU member states
• on BOP statistics, embodying EBOPS
© WTO/OMC 77
Recent progress (3/3)
• expand the collection of BOP trade in services by partner country
• request BOP trade in services broken down by EBOPS
• OECD:
• UNSD: dissemination of EBOPS trade in services by partner country from for OECD and non-OECD countries
• UNCTAD: expand data collection on FATS
© WTO/OMC 78
Areas Where Improvements are Needed
• Many countries still do not report the full BPM5 detail • Lack of reliability• Documentation on coverage and deviations from
international standards rarely available
• BOP trade in services
• Lack of reliability and comparability• Almost no FATS collected outside OECD• Confidentiality severely limits data availability
• FATS
• No framework for statistics by mode of supply, in particular for Mode 4
© WTO/OMC 79
Need for a revised Manual• Incorporate BPM6 and SNA revisions
+ ISIC, CPC, Tourism statistics....• New recommendations relating to activities of
foreign affiliates: – OECD Handbook on Economic Globalisation
Indicators– OECD Benchmark Definition of FDI– Eurostat recommendations Manual
• Need for guidance for mode 4 and modes of supply generally
... 1st worlwide consultation in 2006
© WTO/OMC 80
Next steps for the Revision of MSITS
May 2006 – April 2009Worldwide consultation on scope of update and issuesTFSITS reviewed worldwide consultation responsesStarted drafting of Chapter on modes of supply and updating/drafting of other chaptersConsultation with 2007 OECD-Eurostat Expert meeting and 2008 Working Party on International Trade in Goods and Services. Progress report to IMF BOPCOM and UN Statistical CommissionDraft chapters agreed by TFSITS2nd Worldwide consultation on complete draft of revised MSITSTFSITS to review comments and re-draft MSITS chaptersTFSITS meeting: review comments and revised draft; cross-cutting issues
Summer 2009: Finalize draft and chapters and post for final reviewNovember 2009: Prepare submission to UNSCMarch 2010: Draft submitted to UN Statistical Commission
Revised Manual in 2010!
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• need for technical assistance in the area of services statistics
• prepare Compilation Guide
• concentrate on further methodological work
Interagency Task Force on Statistics of International Trade in Services
Future Work
© WTO/OMC 82
Keys for Improvement of Statistics
• Efforts by national agencies in charge of statistics
• Governments’ willingness to allocate resources to statistics
• Co-operation between national institutions • Co-operation between international and regional
institutions, and support to national initiatives• Effective technical assistance• Compilation guidance
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