1 MSITS Chapter V – Trade in Services Statistics by Mode of Supply Contact:

2 GATS Trade in Services Statistics by Mode of Supply BOP/trade negotiators -- tourism example GATS MoS/Understanding mode 4 value of trade/additional analytical needs (number of persons) Simplified allocation to modes of supply Tourism and migration statistics

3 Trade in services statistics By service sectors By partner By modes of supply GATS Compilers of Statistics BOP/FATS Trade Negotiators

4 Affiliates of hotel chains (mode 3) GATS An example: Tourism sector Mode 2 ↓ BOP Travel but Foreign tourist guides (mode 4) Foreign managers/ intra-corporate transferees (mode 4) Sales of tourism operators (mode 1) Negotiating list GNS/W/120: Hotels and restaurants Travel agencies and tour operator services Tourist guide services Other services 4 modes of supplying services

5 Understanding Mode 4 Falling under Mode 4Not falling under Mode 4 Supply of services Temporary presence All skill levels Contractual service suppliers –Self-employed –Employees of foreign service supplier Intra-corporate transferees and foreign employees recruited by foreign established companies Service sellers Employees in the “goods” sector Employees of host country firms Permanent migration MODE 4

6 GATS Information needs for assessing trade in services by modes of supply - Value of services exports or imports - More specific variables (market access), e.g FDI or number of persons moving (flow) or present (stock) Simplified approach: - either dominant mode → e.g. telecommunications (mode 1) - or no dominant mode → e.g. computer consultant (mode 1 and 4) waste-treatment (mode 2 and 4) construction (mode 3 and 4) → Most significant mode of supply Develop practices to separately identify modes in EBOPS

7 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 delivered (time/resources)? Mostly by fax, , etc. Natural person at the end (e.g. to supervise) Mode 1 The person’s knowledge was essential to deliver the service Mode 4 2. Require in specific surveys allocation by each GATS mode of supply 3. Require estimated share of inputs for the service trade related to mode 4

8 GATS

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10 Mode 4, migration and tourism statistics Migrant categories Non-migrant categories Categories of the UN Recommendations on Statistics of International Migration, revision 1: