Joint UNECE/EUROSTAT/OECD Meeting on National Accounts Business Register and Globalization Statistics Canada

The Business Register as a Basis for Dealing with Measurement Issues Related to Globalization Increasing complexity of production processes Free trade zones – agreements FDI: shift from horizontal to vertical integration Partitioning of production International contractual arrangements of production – to capture gains from trade

Challenge Keeping track of increasingly complex economic processes While Keeping coherence between production accounts (establishment-based) and income/capital/financial accounts (enterprise-based)

Current BR in Canada 4 structures LE, Operating, CE, Statistical LE only relate to domestic legal context Updates not synchronized Other databases on ownership/control are not linked to BR

New BR in Canada Inserting other databases - BOP registry Full legal structure External children of parent companies Ultimate country of control Ownership links with parents or other companies abroad Include ownership/control relationship >10% Build around LE and operating structure

New BR in Canada Continue to use business accounting to define enterprises, establishments and ancillary units Investment Center: Enterprise Profit centre: Establishment Cost centre: Establishment - Ancillary units

Expected Benefits Better classification of units (location) Will help regional accounts Facilitate enterprise-establishments allocation Better coverage of ancillary units BOP/Enterprise surveys: Better coverage because more information on ownership/control for all legal entities Help monitor foreign direct investment Inward and outward Will help strengthen trade in services data

Worth mentioning EPM – Enterprise Portfolio Program Operating surplus statistics BR & Administrative data: Powerful tool Geography Labour income Coherence