OECD-Eurostat Expert Meeting on Trade in Services Statistics Draft Regulation of the European Parliament and of the Council on Community statistics on the structure and activity of foreign affiliates Item 13a September 14-15, 2005 OECD-Eurostat Expert Meeting

OECD-Eurostat Expert Meeting State of the art (1) On 15th March 2005 the Commission presented to the Council and the Parliament a formal proposal. The proposal provides for collection of inward FATS statistics on a mandatory basis and, for outward FATS statistics, pilot studies on a voluntary basis. This was the compromise reached after the Commission original proposal, in which both inward and outward FATS were mandatory. The Council Working Group on Statistics drafted on 14th June 2005 a compromise text. The main point under discussion concerns the procedures for evaluating the results of the pilot studies on outward FATS. September 14-15, 2005 OECD-Eurostat Expert Meeting

OECD-Eurostat Expert Meeting State of the art (2) The draft FATS Regulation is foreseen to be discussed in the Committee on Economic and Monetary Affairs of the European Parliament 14th September 2005. Further discussion will take place once the opinion of the European Parliament is known. September 14-15, 2005 OECD-Eurostat Expert Meeting

OECD-Eurostat Expert Meeting Pilot studies The Commission shall draw up a programme for pilot studies to be carried out by national authorities ( … ) on a voluntary basis to investigate the feasibility and costs of collecting data on additional variables and breakdowns for inward statistics on foreign affiliates, and of collecting data on outward statistics of foreign affiliates. On the basis of the conclusions of the pilot studies, the Commission shall adopt the necessary implementation measures ( … ). September 14-15, 2005 OECD-Eurostat Expert Meeting

Variables for inward FATS Code Title 11 11 0 Number of enterprises 12 11 0 Turnover 12 12 0 Production value 12 15 0 Value added at factor cost 13 11 0 Total purchases of goods and services 13 12 0 Purchases of goods and services purchased for resale in the same condition as received 13 31 0 Personnel costs 15 11 0 Gross investment in tangible goods 16 11 0 Number of persons employed 22 11 0 Total intra-mural R&D expenditure 22 12 0 Total number of R&D personnel September 14-15, 2005 OECD-Eurostat Expert Meeting

Pilot study for outward FATS Code Title 12 11 0 Turnover 16 13 0 Number of employees 11 11 0 Number of enterprises 13 31 0 Personnel costs Export of goods and services Import of goods and services Intra-group export of goods and services Intra-group import of goods and services 12 15 0 Value added at factor costs 15 11 0 Gross investment in tangible goods September 14-15, 2005 OECD-Eurostat Expert Meeting

Recommendations manual Article 7: The Commission shall, in close co-operation with the Member States, publish a recommendations manual which contains supplementary guidance concerning the Community statistics produced pursuant to this Regulation. September 14-15, 2005 OECD-Eurostat Expert Meeting

Draft recommendations manual - content Definitions Statistical unit Target population of statistical units Target population of reporting units Special cases General aspects 50-50 Joint ventures Multiple minority ownership Natural persons as owners Requested characteristics General remarks Specific characteristics enterprises, turnover, Persons employed, personnel costs Gross investment in tangible goods, value added, Exports and imports September 14-15, 2005 OECD-Eurostat Expert Meeting

Draft recommendations manual - content Coverage Cut-off thresholds Geographical breakdown Activity breakdown Metadata Data sources Surveys Statistical registers Other sources Data transmission Data transmission guidelines Integrity rules for data transmission September 14-15, 2005 OECD-Eurostat Expert Meeting

Eurostat/OECD co-operation In order to reduce the burden of responses for Member States, and avoid Member States sending different data sets to Eurostat and OECD the FATS questionnaires concerning data requests and the deadlines for data transmission of both institutions are identical. September 14-15, 2005 OECD-Eurostat Expert Meeting

Thank you for your attention September 14-15, 2005 OECD-Eurostat Expert Meeting