Global Production and Integrated Global Accounts BoP Working Group 25-26 April 2018 Item 12 of the Agenda BP-18-11

1. Seminar on IPP A seminar on "Economic Globalisation: addressing measurement challenges related to IPPs" was organised on 16 March, 2018 Around 50 delegates from NSIs and NCBs participated in this seminar The seminar shed light on the methodological and conceptual elements and gave an overview of the national practices and existing data situation

Presentations The representative of the World Intellectual Property Organisation elaborated the existing IP procedures around the world and elaborated the availability of data. The speaker from the US Tax Sage Network explained how multinational tax planning distorts national IP statistics.

MSs Presentations Based on two real-life examples the NL delegate elaborated some concrete measurement challenges. The SI delegate focused on IPPs leaving the country and described a concrete case of relocation abroad. The presentation of the LU delegate concentrated on the treatment of IP holding companies (“IP-Boxes”). The IE presentation showed the different data sources used and explained the role of the LCU in getting detailed and consistent pictures of the MNEs as well as in establishing economic ownership of IPP assets.

Conclusions A panel discussion led by Silke Stapel-Weber drew the following conclusions: As MNEs operate globally, there is a need for sharing relevant data between concerned countries in order to obtain consistent and timely information Contact with tax administrations would be beneficial, as they have better picture of the economic activities of the MNEs Close cooperation with companies and regular contact with them is essential Although international manuals provide methodological basis, the real-life cases create considerable challenges for the statisticians. Careful investigations is necessary to improve this situation.

2. Meeting of the IGA Task Force The 5th meeting of the IGA TF took place on 9-10 April 2018 1) Actions under IGA grants (NL, PL, NO, DE) Identification of global producers improving measurement of manufacturing services Improvement of data quality in external statistics micro-data linking reducing bilateral asymmetries through reconciliation exercise

2. Meeting of the IGA Task Force 2) FATS and what they tell us (Eurostat) concepts and definitions, analysis of available data and the relationship of FATS to national accounts 3) Setting up a LCU (DK) Experience in establishing and functioning of the LCU 4) The FIGARO project (Eurostat) methodological aspects results of the necessary adjustments on trade data and their alignment with national accounts

2. Meeting of the IGA Task Force 5) TF on factoryless goods producers (Eurostat) operational definition of FGPs list of indicators for the identification of FGPs 6) Handbook on GVC accounting (IE) how economic statistics can be made more accurate and relevant in measuring the effects of globalisation in national accounts and business statistics 7) On-going activities on globalisation (Eurostat) Early warning system, GNI pilot exercise

Thank you for your attention!