1、 WTO/OMC,1,Measuring Trade in ServicesTraining Module, WTO/OMC,2,Characteristics and economic importance of services Importance of servicesTrade in servicesGATS and modes of supplyManual on Statistics of International Trade in ServicesBOP FATSModes of supply and statistical domains,Overview, WTO/OMC
2、,3,Services,Intangible output of a production process,PRODUCTION,USERS NEED,Key role in the economy transport, telecommunications long term effects - environmental, educational servicesServices value added = 2/3 Global GDP, WTO/OMC,4,Share of Services Value Added in GDP 2005, Selected countries, WTO
3、/OMC,5,Share of Services in Total Employment 1995-2005, Selected countries, 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 frameworkEmployment in the services sector within employment
4、statistics (also part of the National Accounts)Information on specific services sectors from business statistics, WTO/OMC,7,Measuring Services Production (2/2),Complementary use of statistics: on international payments for telecommunications (source BOP) on international telecommunications traffic (
5、source ITU),Quantitative indicators on specific services,International telephone traffic,BOP imports and exports, WTO/OMC,8,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,Con
6、ventional 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 G
7、ATS,Set of rules covering international trade in services,GATS Pillars,Set of general obligations and disciplines Schedules of specific commitments Annexes on specific issues,Commitments under GATS,By services sectors By mode of supply, WTO/OMC,11,The GATS Modes of Supply (1/2),COUNTRY A,COUNTRY B,M
8、ode 1: Cross-border,Mode 2: Consumption abroad,Mode 3: Commercial presence,Company,Commercial presence,Direct investment,Consumer,Service supplier,The service crosses the border,The consumer is abroad,Service supply,Consumer,Consumer,Service supplier,Consumer,$ $ $ $ $,Service supply,Service supply,
9、FATS + BOP construction,Establish commercial presence, WTO/OMC,12,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,Commercial presence,intra-corporate transferee,Consumer,Consumer,Th
10、e GATS Modes of Supply (2/2),Service supply,Service supply, 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
11、natural persons, WTO/OMC,14,BOP Statistics - Short Presentation (1/2),BOP summarises transactions of an economy with the rest of the world,BOP,Current account,Capital & financial account,Goods,Services,Income,Current transfers,11 components,Transportation,Travel,Communications,etc., WTO/OMC,15,BOP S
12、tatistics - 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
13、 of employeesWorkers remittances, WTO/OMC,16,FATS Statistics - Short Presentation,CoverageOperations of foreign affiliates, Particular focus on servicesIndicatorsTurnoverEmploymentValue addedConcepts & definitionsManual on Statistics of International Trade in Services, WTO/OMC,17,Correspondence betw
14、een modes of supply measurement and statistical domains, WTO/OMC,18,Principles of recordingTransactions and residenceOther principlesThe Extended Balance of Payments classificationStatistics by trading partnerAllocation of BOP/EBOPS items to modes of supply,Statistics on Resident-Non Resident Trade
15、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 Co
16、ncepts,Transactions between a countrys 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?,Residents / non-residents, WTO/OMC,21,What is a
17、 Services Transaction?,International transactions in services,Countrys residents, WTO/OMC,22,Concept of Residence,TransactorsHouseholds / individualsEnterprisesOthers,Countrys economic territory,Principal residence,Geographic territory Territorial enclaves (e.g. embassies), WTO/OMC,23,Valuation and
18、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), WTO/OMC,24,What is it? product-based c
19、lassification, 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 Ba
20、lance 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 andrecreatio
21、nal services,Commercial services: 1. Transportation 2. Travel 3. -10. Other commercial services,Government services (not in GATS), WTO/OMC,26,EBOPS Detailed Components,2. Travel,1. Transport,3. Communications services etc,Breakdown of main components, WTO/OMC,27,EBOPS Memorandum Items and Alternativ
22、e Aggregations,Memorandum items: useful additional information:,Aggregations of services and non-services transactions,Example,Expenditure on goodsExpenditure on accommodation and food and beveragesAll other travel expenditure,Travel, WTO/OMC,28,At least for. Services as a whole11 main services comp
23、onents of BPM5/EBOPSMain trading partnersIf possible More detailed EBOPS levelCommon 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
24、:,Items deemed to be predominantly delivered through one mode,Transportation (except supporting and auxiliary services to carriers in foreign ports), Communications services Insurance services Financial services Royalties and license fees,Travel (excluding purchases of goods) Supporting and auxiliar
25、y 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 r
26、ecreational services, WTO/OMC,31,Principles for recording FATS statistics The FDI universe Firms covered Statistical units Time of recordingEconomic variablesAttribution (classification) of FATS variables By country By activity and by services products,Foreign Affiliates Trade in Services Statistics
27、, 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
28、for measuring the activity of 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, WTO/OMC,34,The FDI U
29、niverse,FDI: the direct investor makes an international investment to obtain a lasting interest in an enterprise abroad,Owns 10% shares, voting power or the equivalent,Direct investment enterprise,AssociateSubsidiaryBranch,between 10 and 50%,more than 50%,wholly or jointly unincorporated enterprise,
30、individuals,enterprises,associated groups of individuals/enterprises,governments.,Country A,Country B,Direct investor, 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 o
31、f producers Affiliates producing goods, services,Includes subsidiaries and branches,Excludes associates, WTO/OMC,36,Statistical Units,Units considered in FATS statistics may be,Establishments of enterprises,Enterprises,Establishment 1a,Establishment 1b,Establishment 2a,Establishment 2b,Establishment
32、 3a,Establishment 2c,= Enterprise 3, WTO/OMC,37,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 year Stock variables end of reference year,Calendar year in pr
33、inciple,Explanatory note,If only fiscal or accounting year is available, WTO/OMC,38,Economic Variables for FATS,Sales (turnover) and/or outputEmploymentValue addedExports and imports of goods and servicesNumber of enterprises,Basic FATS variables (minimum recommended by MSITS),Additional FATS variab
34、les,Compensation of employees Taxes on incomeResearch and development expenditures etc.,Concepts in the MSITS, WTO/OMC,39,Geographical allocation,Foreign-owned affiliates in the compiling country,Compiling country,Operations of foreign-owned affiliates,Majority ownership,Foreign investor,Majority ow
35、nership,Statistics on Inward FATS,Immediate owner,Foreign Investor,Ultimate Beneficial Owner (UBO),Supplementary information,Described,Inward FATS,Operations allocated to, WTO/OMC,40,Compiling country,Statistics on outward FATS,Operations of the foreign Affiliate,Majority ownership,Described,Outward
36、 FATS,Geographical allocation,Foreign-owned affiliates of investors of the compiling country,Foreign affiliate (holding company),Majority ownership,Operations allocated to, WTO/OMC,41,Classification by Activity and by Product,FATS are classified by activityAccording to their primary activity Accordi
37、ng to ISIC categories for foreign affiliates (ICFA)ICFA can be linked to EBOPSLong-term priorityDisaggregation of FATS variables by product, WTO/OMC,42,The movement of natural persons in GATSMode 4 service suppliersTemporary movementRelations to existing classificationsStatistics for measuring Mode
38、4BOP statisticsFATS statisticsMigration statisticsOther possible sourcesImproving Mode 4-related statistics,The Movement of Natural Persons, 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 f
39、ramework needs to bedeveloped for measuring Mode 4 Annex in MSITS as a first stepMain 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 Natural Persons in GATS,Relevant frameworkGATS ma
40、in text: mode 4 presence of natural personsGATS 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 citize
41、nship, 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 suppliersEmployees of foreign service supp
42、liers,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 contractwhat does constitute a service?many com
43、mitments currently focus on highly-skilled workers, WTO/OMC,46,For which categories should we measure the value of services trade?,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 t
44、he service value provided (time/resources)?,Mostly by fax, email, etc.Natural person at the end (e.g. to supervise),The persons knowledge was essential to deliver the service,2. Require in services surveys allocation by each GATS mode of supply,3. Require estimated share of services inputs for Mode
45、4 services trade, WTO/OMC,48,For which categories should we measure the number of mode 4 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:, WTO
46、/OMC,50,UN CPC,Basis 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-88,Distinguishes categories of employment: can facilit
47、ate 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 o
48、f service suppliers, employees, value of assets)Sectoral statistical frameworks: tourism , healthSupplementary information from BPM6 linked to the movement of mode 4 personsProduction, quantitative, employment indicators, WTO/OMC,52,Data sources for BOP statisticsInternational Transactions Reporting
49、 System (ITRS)Enterprise surveysCombining ITRS and enterprise surveysOther sourcesData collection systems for FATS statisticsKey features for the collection of FATS statisticsExamples of country practicesData comparability and reliabilityBOP asymmetriesIMF initiatives related to data quality,Data So
50、urces, WTO/OMC,53,Collection Systems for BOP Statistics,Main alternatives for the collection of BOP statisticsInternational Transaction reporting System (ITRS)Enterprise surveysA combination of both systemsPossible supplementary sourcesSurveys of travellers and household expenditure surveysOfficial sources and government transactionsPartner countries and International Organizations,
