© WTO/OMC 1

Measuring Trade in Services

Training Module

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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

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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

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0%

20%

40%

60%

80%

100%

World

High

inco

me

Mid

dle

inco

me

Low in

com

eUSA

EU-27

Japan

Brazil

Russi

an F

ed.

India

Indon

esia

China

Niger

ia

Services Agriculture Industry

Share of Services Value Added in GDP2005, Selected countries

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0102030405060708090

High in

com

e

United

State

s

EU-27

Japan

Brazil

Mau

ritiu

s

Mal

aysi

a

Egypt

Indo

nesia

Thaila

nd

Pakis

tan

China

1995 2005*

Share of Services in Total Employment1995-2005, Selected countries

* Except Brazil 2004, Egypt 2003 and China 2002.

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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

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0

20

40

60

80

100

120

140

160

180

200

Bill

ion

do

llars

60

80

100

120

140

160

180

200

Bill

ion

min

ute

s

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

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Exports of Goods and Commercial Services, 1980-2007

0

100

200

300

400

500

600

700

800

900

1000

(19

80

=1

00

)

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Bill

ion

US

D

Goods

Commercialservices

Commercial services

Goods

GDP

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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

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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

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The GATS Modes of Supply (1/2)

COUNTRY A COUNTRY B

Mode 1: Cross-border

Mode 2: Consumption abroad

Mode 3: Commercial presence

CompanyCommercial

presence

Direct investment

ConsumerService supplier

The service crosses the border

The consumer is abroad

Servicesupply

Consumerin C

Consumer ConsumerService supplier

Consumer

$ $ $ $ $

Servicesupply

Servicesupply

FATS+ BOP construction Establish commercial presence

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Mode 4: Presence of natural persons

Juridical person

Natural person

An independent goes to country A

COUNTRY A COUNTRY B

An employee is sent by a company of country B

Commercialpresence

intra-corporate transferee

Consumer C

Consumer

Consumer

The GATS Modes of Supply (2/2)

Servicesupply

Servicesupply

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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

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Of interest for GATS purposes

but...

BOP Statistics - Short Presentation (1/2)

BOP summarises transactions of an economy with the rest of the world

BOP

Current account

Capital & financial account

GoodsServicesIncomeCurrent transfers

11 componentsTransportationTravelCommunicationsetc.

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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

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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

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Correspondence between modes of supply measurement and statistical domains

Modes of supply

Statistical domains Inadequacies

Mode 1: Cross-border supply

•BOP: Commercial services (excl. travel, construction)

•No distinction between Modes 1 and 4

Mode 2:Consumption abroad

•BOP: Travel •Contains goods and not divided into different types of services consumed by travellers

•Some Mode 2 transactions also in other BOP categories

Mode 3: Commercial presence

•FATS•BOP: Construction•FDI (suppl. information)

•Very few countries produce FATS •No distinction between Modes 3-4•FDI cover not only (majority) controlled companies

Mode 4:Presence of natural persons

•BOP: Commercial services (excl. travel)

•Compensation of employees, workers' remittances (suppl. info.)

•No distinction between Modes 1 (3 for construction) and 4

•No relationship with Mode 4 but of interest for labour mobility

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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-Non Resident Trade in Services (BOP)

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• 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

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• 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

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What is a Services Transaction?

International transactions in services

International trade in services

Country’s BOPCredit Debit

Country’s residents

Exports

Imports

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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

• Geographic

territory

• Territorial enclaves

(e.g. embassies…)

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Valuation and Other Principles of Recording

Valuation

Time of recording

Unit of account

Market prices (price agreed between seller and buyer)

Time at which services are rendered (accrual accounting)

Transactions converted to a common unit of account (national currency, USD)

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• 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.

EBOPS Extended Balance of Payments Services Classification

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EBOPS Main Components

3. Communications services

4. Construction services

5. Insurance services

6. Financial services

7. Computer and information services

8. Royalties and licence fees

9. Other business services

10. Personal, cultural and recreational services

Commercial services:

1. Transportation

2. Travel

3. -10. Other commercial services

11. Government services (not in GATS)

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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

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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

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• 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

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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

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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

?

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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

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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 activity of foreign affiliates

• What are FATS statistics useful for?

• What do FATS statistics measure?

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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 interim indicator where FATS are not compiled

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The FDI Universe

FDI: the direct investor makes an international investment to 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

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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

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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

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Time of Recording FATS Variables

Accrual basis

Period of recording

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

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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

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Geographical allocation

Foreign-owned affiliates in the compiling country

Compiling country

Operations of foreign-owned

affiliates

Majority ownership

Foreign investor

Majority ownership

Statistics on

Inward FATS

Immediate

owner

Foreign Investor

UltimateBeneficial

Owner (UBO)

Supplementary inform

ation

Described

Inward FATS

Operations allocated to

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Compiling country

Statistics on outward FATS

Operations of the foreign

Affiliate

Majority ow

nership

Resident

Investor

Described

Outward FATSGeographical allocation

Foreign-owned affiliates of investors of the compiling country

Foreign affiliate (holding company)

Majority ownership

Operations allocated to

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Classification by Activity and 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

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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 Natural Persons

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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 be

developed 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

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The Movement of Natural Persons 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

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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 of uncertainty

• difference between employment and service contract• what does constitute a service?• many commitments currently focus on highly-skilled

workers

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For which categories should we measure the value of services trade?

Natural personsValue of service

trade flows

Contractual services suppliers-Self-employed

- Employees of foreign service suppliers

Intra-corporate transferees and directly recruited by foreign affiliate

Services sellers -

Persons responsible for setting up commercial presence

Yes

No

No

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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

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For which categories should we measure the number of mode 4 persons?

Natural personsNumber of

persons

Contractual services suppliers-Self-employed

- Employees of foreign service suppliers

Intra-corporate transferees and directly recruited by foreign affiliate

Services sellers -

Persons responsible for setting up commercial presence

Yes

Yes

Yes

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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.

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UN CPCBasis for classifying services as product of economic activity, including services delivered through Mode 4

Industrial classification: relevant if statistics by occupation are not available

Mode 4 and Existing Classifications

ISCO-88Distinguishes categories of employment: can facilitate linkages statistics/negotiations

UN ISIC

Status in employment: identifies « independent service provides »

ICSE-93

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.... 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

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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

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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

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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

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• 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

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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 of enterprise surveys

e.g. Netherlands

• Systems mainly based on enterprise surveys, using a limited form of ITRS

Great benefits to be drawn from co-operation between different institutions

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Other Sources for BOP

Interest of BOP compiler to co-operate with other institutions

• 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 of the FATS population)

© WTO/OMC 59

Surveys Collecting FATS

Two possibilities

Add FATS variables to FDI surveys

Specific surveys for FATS

Commonly considered preferable because

but...

• Burden on FDI-non-FATS enterprises

• FDI surveys: conducted frequently and require quick turnaround

Information to be collected: key FATS variables at the greatest detailed level of ICFA

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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 surveys

e.g. United States

e.g. Belgium

• Outward based on FDI surveys, inward on resident enterprise 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, difficult geographical 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 more

than 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)

Publication CoverageBy type of

serviceBy partner country

IMF Balance of Payments Statistics (+ITC Trade Map)(book, on-line and CD-ROM)

IMF membersBPM5 and EBOPS (provided to IMF

on voluntary basis)No

Eurostat Database (book, on-line and CD-ROM)

EU members, total EU, euro area, EU

candidate countriesEBOPS

Up to 115 partner economies and regions(270 for total services)

OECD Statistics on Inter-national Trade in ServicesVolume 1 by Service Category Volume 2 by Partner Country(book, on-line and CD-ROM)

OECD members;Hong Kong and

Russian Federation for partner detail

EBOPS(and additional

detail)

Up to 115 partner economies and regions(270 for total services)

UN ServiceTrade(on-line)

190 economies (around 40 with partner detail)

EBOPSUp to 115 partner

economies and regions(270 for total services)

WTO's International Trade Statistics(book, on-line and CD-ROM)

All economiesSummary data and

analysisSummary data and

analysis

© 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 Multinationals in 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 X

Austria, Finland, Hungary X X X X X

Baltics, Bulgaria, Cyprus, Denmark, Hong Kong-China, Ireland, Netherlands, Norway, Romania, Slovenia, Spain, United Kingdom

X X X

Belgium, Germany, Greece X X X X

Canada X X

Czech 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 X

Sweden X X X X

Switzerland X X

Trinidad 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 andactivity 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

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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

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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