Measuring Trade in Services
Training Module
© WTO/OMC
1
Overview

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
© WTO/OMC
2
Services
• Intangible output of a production process
PRODUCTION
PRODUCTS
• GOODS
(tangible)
• SERVICES
Susanne Auer
(intangible)
USER’S
NEED
• Key role in the economy
• transport, telecommunications…
• long term effects - environmental, educational services…
• Services value added = 2/3 Global GDP
© WTO/OMC
3
Services and TIS
Share of Services Value Added in GDP
Country groups and selected countries, 2001 (percentage)
er
ia
Ni
g
di
a
In
il
Br
az
n
Lo
w
Ja
pa
EU
in
co
US
e
m
e
co
m
le
id
d
M
Hi
g
h
in
in
W
co
or
ld
m
e
100
90
80
70
60
50
40
30
20
10
0
Services
Agriculture
© WTO/OMC
Industry
4
Services and TIS
Share of Services Employment, 1990 and 2001
(percentage of total employment)
se
a
Ta
ip
e
i,
C
hi
ne
ar
ag
u
N
ic
H
ig
In
do
n
es
ia
il
B
ra
z
an
d
h
in
Po
l
EU
U
S
co
m
e
80
70
60
50
40
30
20
10
0
1990
2001
© WTO/OMC
5
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
6
Measuring Services Production (2/2)
Quantitative indicators on specific services
Complementary use of statistics:
• on international payments for telecommunications (source BOP)
• on international telecommunications traffic (source ITU)
© WTO/OMC
20
03
60
20
02
10
20
01
80
20
00
30
19
99
100
19
98
50
19
97
120
19
96
70
19
95
Billion dollars
BOP imports and exports
Billion minutes
140
90
7
Services and TIS
Exports of Goods and Services, 1980-2004
Goods
Services
600
12000
10500
500
Goods
Services
Billion $
7500
300
6000
4500
GDP
200
3000
100
1500
© WTO/OMC
20
00
20
02
20
04
98
96
94
92
90
88
86
84
0
82
0
19
80
(1980=100)
400
9000
8
Specific Features
of Trade in Services
Services represent 20% of total world trade and account for
the 2/3 of GDP
Intangible nature
• Many services require physical proximity of provider and
consumer:
 services perceived as less easily tradable than goods.
Conventional trade statistics do not cover all international
trade in services
• Services delivered by foreign affiliates > conventional
international trade in services.
© WTO/OMC
9
The GATS
Set of rules covering international trade in services
Set of general obligations and disciplines
GATS
Pillars
Countries schedules of specific commitments
Annexes on specific issues
Commitments
under GATS
By services sectors
By mode of supply
© WTO/OMC
10
GATS
The 4 Modes of Supply
Under GATS (1/2)
MEMBER A
MEMBER B
Mode 1: Cross border supply
Consumer
from A
Service
supplier
The service crosses the border
Mode 2: Consumption abroad
Consumer
from A
The consumer is abroad
Service
supply
Service
supplier
Establishes a commercial presence in A
Juridical
person
Consumer
from A
Mode 3: Commercial presence
Consumer
from A
Service Commercial
supply presence
© WTO/OMC
11
GATS
The 4 Modes of Supply
Under GATS (2/2)
MEMBER A
MEMBER B
Mode 4: Presence of natural persons
Consumer
from A
Self-employed goes to Member A
Service
supply
Natural
person
Natural
person
Employee sent by firm from B
Consumer
from A
Service Commercial
supply presence
Juridical
person
© WTO/OMC
12
The Manual on Statistics of
International Trade in Services
Guidelines and recommendations on the
measurement of trade in services
Balance of Payments
statistics
Foreign Affiliates Trade
in Services statistics
© WTO/OMC
13
BOP Statistics Short Presentation (1/2)
BOP summarises transactions of an economy with the rest of
the world
BOP
Current
account
Goods
Services
Income
Current transfers
Capital &
financial account
11 components
Transportation
Travel
Communications
etc.
© WTO/OMC
Of interest
for GATS
purposes
but...
14
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 covered
However, some BOP indicators helpful:
• Foreign Direct Investment
Mode 4
Mode 3
• Compensation of employees
• Workers’ remittances
• Migrant transfers
© WTO/OMC
15
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
16
Manual
Modes of Supply
and Statistical Domains
Mode of Supply
Mode 1: Cross
border supply
Relevant Statistical Domains
BOP: commercial services (excluding travel
and construction services)
BOP: travel
Mode 2:
Consumption abroad
Mode 3: Commercial FATS statistics
BOP: FDI data, construction services
presence
Mode 4:Presence of
natural persons
Insufficiently covered
BOP: commercial services (excluding travel)
additional information:
BOP: compensation of employees and
workers' remittances
© WTO/OMC
17
Statistics on Resident-Non Resident
Trade in Services (BOP)

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
© WTO/OMC
18
BOP Key Concepts
Transactions between a country’s residents and rest of the
World
• What is a transaction?
• involves a real or financial resource,
• resource changes ownership.
• What is a resident of a country?
• institutional units (individual, enterprise, association,
government unit…)
• centre of economic interest,
• economic territory of the country.
© WTO/OMC
19
What is an International
Transaction?
Residents / non-residents
• Change in ownership of goods
• Provision of services
INTERNATIONAL
• Provision of labour
• Provision of capital
• Change in ownership of financial assets
© WTO/OMC
20
What is a Services Transaction
International
transactions in services
International
trade in services
Country’s BOP
Credit
Debit
Imports
Exports
Country’s
residents
© WTO/OMC
21
Concept of Residence
Transactors
Country’s economic
territory
• Households /
individuals
Principal residence
• Enterprises
Significant and lasting
• Others
•Geographic territory
economic activity
•Territorial enclaves
(e.g. embassies…)
Centre of economic interest
flexible one-year rule
© WTO/OMC
22
Valuation and Other Principles
of Recording
Valuation
Market prices (price agreed between seller
and buyer)
Time of
recording
Time at which services are rendered
(accrual accounting)
Unit of
account
Transactions converted to a common unit
of account (national currency, USD)
© WTO/OMC
23
EBOPS
Extended Balance of Payments Services Classification
• What is it?
• product-based classification,
• consistent with 11 BPM5 services components,
• more detailed than BPM5 services components,
• including additional memorandum items.
• How can it be used in the framework of GATS negotiations?
• MSITS provides a table of correspondence between
EBOPS / CPC Rev.1 / GATS list of services GNS/W/120.
© WTO/OMC
24
EBOPS Main Components
Commercial services:
3. Communications services
4. Construction services
1. Transportation
5. Insurance services
2. Travel
6. Financial services
3. -10. Other commercial services
7. Computer and information
services
8. Royalties and licence fees
9. Other business services
11. Government services
(not in GATS)
10. Personal, cultural and
recreational services
© WTO/OMC
25
EBOPS Detailed Components
Breakdown of main components
1. Transport
2. Travel
• 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
3. Communications
services
…etc
• Postal & courier
• Telecommunication
…
© WTO/OMC
26
EBOPS Memorandum Items and
Alternative Aggregations
• Memorandum items: useful additional information:
Example
• Expenditure on goods
• Expenditure on accomodation and food and beverages
Travel
• All other travel expenditure
• Aggregations of services and non-services transactions
Example
Audiovisual
transactions
Services: audiovisual services; audiovisualrelated royalties and license fees
Non-services: acquisition/disposal of
audiovisual-related patents, copyrights…
© WTO/OMC
27
Statistics by Trading Partner
MSITS recommendations
• Compile international trade in services statistics on an
individual trading partner basis
• 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
© WTO/OMC
28
Allocation of BOP/EBOPS Items to
Modes of Supply (1/2)
As a first step, MSITS 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
29
Allocation of BOP/EBOPS Items to
Modes of Supply (2/2)
Simplified approach (continued):
• Items for which significant elements of 2 modes of supply are
involved
Mode 1
?
Mode 4
• Construction
services
• Computer and
information services
• Other business
services
• Personal, cultural and
recreational services
?
Mode 3
© WTO/OMC
30
Foreign Affiliates Trade in Services
Statistics

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
© WTO/OMC
31
Usefulness of FATS Statistics
Guidelines for measuring the activity of foreign affiliates
• What are FATS statistics useful for?
• Focus on services measuring Mode 3 (commercial presence),
• Help understand the phenomenon of globalisation.
• What do FATS statistics measure?
• A range of indicators on the activity of foreign affiliates
• Inward and outward FATS
• With a particular focus on services
© WTO/OMC
32
Principles Underpinning
FATS Statistics
In line with international standards
• SNA 1993 (National Accounts)
• BPM5 (BOP)
• OECD Benchmark Definition of FDI
FDI statistics may be used as an interim indicator
where FATS are not compiled
© WTO/OMC
33
The FDI Universe
FDI: the direct investor makes an international investment to
obtain a lasting interest in an enterprise abroad
Country A
Direct
investor
Country B
Owns >10% shares, voting power or the equivalent
Direct investment
enterprise
between 10 and 50%
more than 50%
wholly or jointly unincorporated enterprise
• Associate
• Subsidiary
• Branch
individuals
enterprises
associated groups of individuals/enterprises
governments...
© WTO/OMC
34
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):
Includes subsidiaries and branches
Excludes associates
• Types of producers
Affiliates producing goods, services
© WTO/OMC
35
Statistical Units
Units considered in FATS
statistics may be
Establishments of
enterprises
Enterprises
• Establishment 1a
• Establishment 1b
• Establishment 2a
• Establishment 2b
• Establishment 2c
• Establishment 3a
= Enterprise 3
• Enterprise 1
• Enterprise 2
• Enterprise 3
© WTO/OMC
36
Time of Recording FATS Variables
Accrual
basis
Recording when the transaction occurs rather
than when the related payment is made
Period of
recording
Flow variables
Stock variables
Reference
year
Calendar year in principle
If only fiscal or accounting year is available
reference year
end of reference year
Explanatory note
© WTO/OMC
37
Economic Variables for FATS
Most are drawn from SNA 93
Basic FATS variables
(minimum recommended by MSITS)
• Sales (turnover) and/or output
• Employment
• Value added
• Exports and imports of goods
and services
• Number of enterprises
• Assets
• Compensation of employees
• Net worth
• Net operating surplus
• Gross fixed capital formation
• Taxes on income
Additional
FATS variables
• Research and development expenditures
© WTO/OMC
38
Geographical Attribution (1/2)
Foreign-owned affiliates in the compiling country (inward FATS)
COMPILING
COUNTRY
Foreign
investor
Operations of
foreign-owned
affiliate
Immediate
owner
Foreign
investor
Described
Statistics on
inward FATS
UBO
Operations allocated to the country of
© WTO/OMC
39
Geographical Attribution (2/2)
Foreign affiliates of investors of the compiling country
(outward FATS)
COMPILING
COUNTRY
Foreign affiliate
(holding company)
Resident
investor
Statistics on
outward FATS
Described
Operations
of foreign
affiliate
Operations allocated to the country of
© WTO/OMC
40
Classification by Activity
and by Product
• FATS variables classified as a first priority on an activity
basis
• Foreign affiliates classified by their primary activity
• According to ISIC Categories for Foreign Affiliates (ICFA)
• ICFA can be linked with EBOPS (to a limited extent)
• Long-term priority…
• FATS variables such as sales, imports and exports should also
be broken-down by product
© WTO/OMC
41
The Movement of Natural Persons

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
© WTO/OMC
42
Main Issues for Measuring Mode 4
Mode 4 in MSITS
• 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
© WTO/OMC
43
Mode 4
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 GATS’ Annex in terms of
Purpose
of stay
Fulfilling 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
© WTO/OMC
44
MODE 4
Mode 4 Service Suppliers
From the point of view of the recipient/importing country…
Mode 4 comprises services delivered in the framework of:
service contracts with foreign service suppliers
(the individuals themselves or their employer)
employment contracts between foreign enterprises
established in the host country and foreign individuals
• what does the supply of a service refer to?
Areas of
uncertainty • many commitments currently focus on
highly-skilled workers
• for independent service suppliers, difficult to
establish borderline between service and
WTO/OMC
45
employment© contract
Mode 4
Mode 4 and “Temporary”
GATS does not define “temporary”
• In WTO Members’ schedules of commitments
Varies between about 3 months (businesss visitors) and
2 to 5 years (intra-corporate transferees)
• In international statistical standards (BPM5, SNA, migrations)
One-year rule
distinction between residents/non-residents
Statistics on residents also include Mode 4 service
suppliers
© WTO/OMC
46
Mode 4 and Existing Classifications
UN CPC
Basis for classifying services as product of
economic activity, including services
delivered through Mode 4
ISCO-88
Distinguishes categories of employment:
can facilitate linkages statistics/negotiations
UN ISIC
Industrial classification: relevant if statistics
by occupation are not available
ICSE-93
Status in employment: identifies
« independent service provides »
© WTO/OMC
47
Mode 4
Statistics for Measuring Mode 4
Categories
I. Service contracts,
delivered in the host country
by independent foreign
supplier, or its employee(s)
II. Employment contracts
(non-permanent), for
foreigners, in all domestic
firms (not of interest for
assessing mode 4)
(a) of which: foreignowned or controlled
resident services
companies
Statistical coverage
BOP: Service transactions between
resident and non-residents, major
BPM5 services components
BOP: Compensation of employees,
with adjustments (e.g. sectoral
breakdown and duration)
Employment/migration statistics:
short-term migrants working in
services. Would need adjustments for
short-term but more than one year
A subset of the above; could be derived
using the FATS register
© WTO/OMC
48
BOP and Mode 4 (1/2)
BOP Items
Relevance
Limitations
Services (especially
computer & information,
other business, personal
cultural & recreational, and
construction services)
Service
contracts with
the importer
Include other
modes of supply
© WTO/OMC
49
Migration Statistics and Mode 4
Relevant framework
UN Recommendations on Statistics of International Migration
Why relevant?
Include temporary migrations for the purpose of work
Which categories could be relevant?
• Foreign border-workers
• Visitors and foreign business travellers
• Some sub-categories of other migrant workers (within limits of
occupation/activity): seasonal migrant workers, project-tied
workers and temporary migrant workers
© WTO/OMC
50
FATS and Mode 4
Relevant variables
• Employment
• Compensation of employees
Why relevant?
• A number of commitments relate to intra-corporate
transferees
How could it help?
• Separate identification of foreign non-permanent employment
© WTO/OMC
51
Other Possible Sources
• Statistics on the number and type of work permits granted
(e.g. by duration / occupation)
• Information from social security systems / health insurance
schemes
in which foreigners may be distinguished
• Statistics on arrivals and departures from migration or
tourism authorities
(origin/destination, length of stay, purpose of stay...)
• Household surveys / population censuses
© WTO/OMC
52
MODE 4
Improving Mode 4 Related Statistics
Main difficulty in measuring Mode 4
Identify in available statistics the relevant subset of
services and workers
Indicators on the value of Mode 4 services
• Identify Mode 4 in services sub-items
but little seems feasible at present
Migration/labour statistics
Sounder ground for improvement
However not in short-term, and GATS Mode 4 not translated
in precise statistical requirements
© WTO/OMC
53
Data Sources

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© WTO/OMC
to data quality
54
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
55
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
56
Enterprise Surveys
• 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 of
questionnaires, and processing of survey results
© WTO/OMC
57
ITRS and Enterprise Surveys - Examples
• System mainly based on enterprise surveys, with no use of
ITRS
e.g. United States, United Kingdom
• Systems mainly based on ITRS, using a limited form of
enterprise surveys
e.g. France
• Systems mainly based on enterprise surveys, using a limited
form of ITRS
e.g. Netherlands
Great benefits to be drawn from co-operation between
different institutions
© WTO/OMC
58
Other Sources for BOP
• 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
Interest of BOP compiler to co-operate with other
institutions
© WTO/OMC
59
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
60
Surveys Collecting FATS
Two possibilities
Add FATS variables to
FDI surveys
Specific surveys for
FATS
but...
• Burden on FDI-non-FATS
enterprises
Commonly considered
preferable because
• FDI surveys: conducted
frequently and require quick
turnaround
Information to be collected: key FATS variables at the greatest
detailed level of ICFA
© WTO/OMC
61
Existing Statistics on
Resident Enterprises
Only for inward FATS
Which sources?
• Existing statistics on resident enterprises (employment,
turnover…)
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
© WTO/OMC
62
Examples of Country Practices for
Collecting FATS
• Inward and outward collected on the basis of FDI surveys
e.g. United States
• Outward based on FDI surveys, inward on resident enterprise
statistics
e.g. Belgium
• Only inward collected, based on resident enterprise statistics
e.g. Denmark, Spain
• Inward and outward collected through a separate survey
e.g. Sweden
© WTO/OMC
63
BOP Bilateral Asymmetries
BOP transaction
Country A
Country B
BOP
Credit
BOP
Debit
Recorded
import
Credit
import = export
Debit
Recorded
export
Difference
=
Bilateral asymmetry
© WTO/OMC
64
Asymmetries: Types,
Causes, Corrections
Different types of asymmetries
• Bilateral (two countries)
• Mutilateral (e.g. intra-EU)
• Global (World): for services, imports > exports
Why?
• misallocations, different recording thresholds, difficult
geographical identification...
How can they be corrected?
• « bottom-up » approach: study of causes and reconciliation
• « top-down » approach: mathematical model allocates
asymmetries
© WTO/OMC
65
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
66
Data Availability and Dissemination
by International Organizations

BOP trade in services data
• BOP/EBOPS
• International dissemination

Information available on commercial presence
• Availability and dissemination of FATS statistics
• Alternative: FDI data
© WTO/OMC
67
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
68
International Dissemination of
BOP/EBOPS Statistics (1/2)
Where can I find statistics on trade in services...
… broken-down by type of service?
• Eurostat, OECD, IMF
• these organisations are adapting a co-ordinated collection
on an EBOPS basis
… broken-down geographically?
• Eurostat and OECD
• UNSD conducting feasibility studies for worldwide
collection
© WTO/OMC
69
Major
tools
International Dissemination of
BOP/EBOPS Statistics (2/2)
Publication
IMF Balance of Payments Statistics Database
(book and CD-ROM)
Eurostat New Cronos Database
(on-line and CD-ROM)
OECD Statistics on International Trade in Services
(a joint publication of OECD and Eurostat)
(book, on-line and CD-ROM)
OECD Statistics on International Trade in Services
Detailed Tables by Partner Country
(book, on-line and CD-ROM)
WTO's International Trade Statistics
(book, on-line and CD-ROM)
Country coverage
By type of service
By partner country
IMF members
Yes
BPM5 and EBOPS*
(provided to IMF on
voluntary basis)
No
EU members, total
EU, euro area,
EU candidate
countries
Yes
EBOPS*
Yes
65 partner countries
and partner regions
OECD members
Yes
EBOPS*
No
27 OECD members
and Hong Kong
Total services
Transportation
Travel
Other commercial
serv.
Government serv. n.i.e.
Yes
65 partner countries
and partner regions
All countries
Yes
Summary data and
analysis
No
* From 2003. Joint OECD-Eurostat Trade in Services Classification up to 2002.
© WTO/OMC
70
Collection of FATS Statistics
Collected by Eurostat and OECD
• Common questionnaire to member countries:
• Inward and outward FATS:
by activity (37 categories of ISIC)
by country of origin/destination of investment
• Dissemination:
• 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
© WTO/OMC
71
Availability of FATS Statistics
Inward
Austria
Belgium
Czech Republic
Denmark
Finland
France
Germany
Hungary
Ireland
Italy
Japan
Luxembourg
Netherlands
Norway
Poland
Portugal
Sweden
Turkey
United Kingdom
United States
Number of Turnover
employees
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Outward
Value
added
© WTO/OMC
Number of Turnover
employees
x
x
x
x
x
x
x
x
Value
added
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
72
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
73
Current State and Prospects

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
© WTO/OMC
74
MSITS’ Phased Approach
to Implementation (1/3)
Consists of a set of 10 recommended elements
• Core elements
would provide a basis for internationally
comparable statistics
• Other elements (long-term)
considerable increase in detail of available
information on trade in services
© WTO/OMC
75
MSITS’ Phased Approach
to Implementation (2/3)
5 core elements
Implement BPM5 recommendations for trade in services
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
76
MSITS’ Phased Approach
to Implementation (3/3)
5 other elements
Full implementation of EBOPS
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
77
Recent Progress
• Dramatic improvement of quality and quantity of statistics
on resident/non-resident trade in services
• for BPM5 main items, but also for more detailed items
a multi-country set of statistics available for major
services categories
• FATS statistics are increasingly compiled
© WTO/OMC
78
Short Term Plans (1/2)
• Eurostat: 2 regulations
• on the compilation of FATS statistics
• on BOP statistics, embodying EBOPS
FATS and EBOPS will become binding in EU
member states
• IMF collect data according to EBOPS from 2003
on a voluntary basis
© WTO/OMC
79
Short Term Plans (2/2)
• OECD:
• expand the collection of BOP trade in services by partner
country
• request BOP trade in services broken down by EBOPS, and
BOP indicators on Mode 4
• UNSD: assess feasibility of collecting BOP trade in services by
partner country from non-OECD countries
• UNCTAD: expand data collection on FATS
© WTO/OMC
80
Areas Where Improvements
are Needed
• BOP trade in services
• Few countries report the full BPM5 detail
• Lack of reliability
• Documentation on coverage and deviations from
international standards not available
• FATS
• Lack of reliability and comparability
• No FATS collected outside OECD
• Confidentiality severely limits data availability
• No framework for statistics by mode of supply, in
particular for Mode 4
© WTO/OMC
81
Future Work
Interagency Task Force on Statistics of International Trade in
Services
• need for technical assistance in the area of services statistics
• prepare Compilation Guide
• concentrate on further methodological work (Mode 4, but
also e-commerce and trade in software)
© 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
© WTO/OMC
83