Head of Division, Trade in Services Session III: Integrated policy approaches for more inclusive globalisation Creating environments where benefits can materialise   John Drummond Head of Division, Trade in Services   26 April, Paris www.oecd.org/trade

Complex firm strategies Networks of affiliates involving multiple third-party suppliers HQ A Final consumers Country 1 Final consumers Country 2 Final consumers Country 3 MNE (lead firm) HQ = Parent company; A = Affiliates Third-party suppliers (not part of the network of the MNE but part of the production network)

Share of intermediate and capital products in total trade

Average ad valorem tariffs along the value chain

OECD TFIs: potential trade costs reductions resulting from comprehensive TF reforms using a measure of comprehensive trade costs, which are estimates from World Bank – UN ESCAP, expressed in ad valorem terms a “full” implementation scenario where WTO Members would implement all the options contained in the Agreement, including those formulated on a “best endeavours” basis; a “limited” implementation scenario where WTO Members would implement only the mandatory provisions contained in the Agreement, leaving aside discretionary provisions, but where countries that already implement best practices would continue doing so.

Evolution of data transfer restrictions Growing in number and in complexity… Mainly horizontal and involving personal data, but also health, financial, public and telecom data

STRI by sector (2016)

Services value added Share of services in exports, 2011 Services VA in world gross exports, by manufacturing industry, 2011

Services interlinkages Digital Network Computer Telecomms Audiovisual Supply Chain Transport Logistics Distribution Trade and Finance Support Legal Accounting Financial Physical Infrastructure Architecture Engineering Construction

Services and manufacturing

Digital Network Services

Services and shipping times

Services and finance Net interest margin Domestic credit to private sector by banks (% of GDP) Net interest margin

Services and SME trade costs Additional trade cost of regulatory restrictions for SMEs Estimated additional tariff equivalent for SMEs compared to large firms of 400 million EUR or more

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