Report of the Interagency Task Force on Statistics of International Trade in Services meeting (27 th March) and Special Session (28 th -30 th March) 27-30th March 2012, New York, United Nations. Luxembourg BOP working group 2-3rd April 2012

Outline of presentation Summary of TF discussions. Outline of draft MSITS 2010 Compiler’s guide and next steps.

Task Force composition & meetings Eurostat, IMF, OECD, UNSD, UNCTAD, UNWTO, WTO and persons in their capacity of experts Meets twice a year: –In spring, this time combined with “Special Session” to agree on MSITS 2010 Compilers Guide draft outline –In Fall, back to back with OECD Working Party on Trade in Goods and Services (WPTGS)

Mandate of Task Force Strengthening cooperation between IO in the area of international trade in services Promoting the development of international standards Improving the availability, quality and comparability of TIS statistics; Facilitating the provision of technical assistance in the compilation of trade in services statistics to developing countries. The work of the Task Force focus on the statistical requirements of the General Agreement on Trade in Services Statistics (GATS).

Follow up on TF comparison exercise Report on TF visit to 26 th of March to IMF Visit to IMF to enhance cooperation in order to further harmonize TIS data presented across IO (unrevised historical data, different institutions reporting to different IO) Aim: reduce user confusion and reporting burden of countries. IMF contact person identified to set up mechanism to reduce (current) identified differences.

Follow up on TF comparison exercise IMF will collect BPM6 TIS items with partner world (not EBOPS 2010 further disaggregation) Usefulness of time stamp on IO data for (inevitable) differences due to vintage. In the context of IMF move to BPM6 in August, IO databases link to an overview table displaying the scope of IO TIS collection where it should be indicated if BPM6/EBOPS 2010 data are obtained via conversion or directly from countries.

Follow up on TF comparison exercise The OECD TF secretariat to prepare an inventory of exchange rates used by IO. TF to prepare for next meeting some recommendations on revision policy for historical data when implementing BPM6, noting the EU recommendation discussed at April BOP Working Group. Task Force members participate to BOP DSD group and help ensuring that the EBOPS items are included. Some of the identified issues will be solved in future by SDMX transmission (but not all).

Coordination of Technical Assistance TF had asked WTO to coordinate information on technical assistance. The inventory aims at avoiding duplication of IO efforts The need to link to IMF BOP courses and look at what UNCTAD is doing on FDI and AMNEs as well as country bilateral assistance was underlined.

Proposal for TIS e.learning courses The TF welcomed a Eurostat-UNCTAD- WTO proposal for setting up an the e- learning course. Attending these e.courses could be a preliminary step for persons new to TIS to attend technical assistance courses. The e.learning should cover concepts and definitions as well as more technical infos. TF noted the interest of having a forum for statistician having participated to these courses to share problems and issues.

Status of Service chapters of BPM6 CG IMF report on content of Service chapter & annexes of BPM6 CG allowed improved understanding of how to link work done by the IMF and the TF. Country examples of surveys should be made available with the MSITS compiler’s guide. The TF confirmed that maximum use of material prepared by IMF will be harmonized and referred to by the TF.

Report of the Eurostat workshop on "Practical issues in the implementation of BPM6 - Current and Capital ” TF underlines the interest of the seminar in order to identify priorities in particular R&D and Intellectual Property where OECD could provide some guidance. Generally prototype questionnaires should produced by the TF for some specific services not covered by IMF. TF noted the need for guidance and country practice example for difficult items discussed at seminar like Insurance, manufacturing services and FISIM.

Presentation from US BEA on new IT system and synchronizing TIS data collection BEA described current system (which is a patchwork approach driven by economists needs, mix of automated and manual systems that require many checks) and efforts to streamline it. TF expressed appreciation for useful presentation on US efforts to integrate and rationalize TIS processing system that will increase consistency and availability of TIS statistics. This could be used for the CG as a good example for managing and collecting TIS data.

Update on the harmonisation and integration of FDI and AMNE statistics (OECD) TF took note of revised report (20-21 st March OECD WGIIS) on exercise to improve the analysis of multinational enterprises in the global economy. Reduce recognised methodological differences and inconsistencies which may exist between the financial and economic measures of multinationals enterprises and to propose a comprehensive analytical framework in the form of building blocks

Update on process to code EBOPS Items in the context of the BOP SDMX technical group IMF described how the 15 dimension DSD matrix should be used in the context of the provision of trade in services statistics. The compiler’s guide should clarify how countries should deal with not allocated services they do not know where to classify.

Trade in Value added and other new developments in trade statistics Need for a complementary metrics to analyze trade patterns and design adequate policies. Several initiatives are going in this direction. Collaboration is started between OECD and WTO on this subject. Objectives: define methodology (linking I-O tables with bilateral trade), produce a publicly available and regularly updated database, build up a network of institutions active in this field. Preliminary results in May/June UNSD will prepare report to UNSC in 2014 about the future of trade stats (covers all new initiatives, linking trade and other frameworks.)

MSIT Compiler’s Guide The UN Expert Group on the Compilation of Statistics of International Trade in Services(UN EG CTIS) held its first virtual meeting from the March In all, more than 100 posts were added to the forum from about 30 participants. The Guide will be prepared by this UN Expert Group which include all TF members, country experts and consultants (in particular for drafting the FATS compilation part). TF agreed on how to organise the discussion during the following Special Session on outline of MSITS 2010 compiler’s guide which would complement the IMF Compilation Guide and cover FATS and Modes of Supply..

Outline of compiler’s guide. Part IGeneral Frameworks Part II Data collection Part III Data compilation Part IV Data Dissemination Part V Cross cutting issues

Outline of MSITS Compiler’s guide Preface Introduction Part IGeneral Framework Chapter 1Conceptual framework Chapter 2Legal framework Chapter 3Institutional framework

Part II Data collection Chapter 4Introduction and overview of data sources within the Modes of Supply framework Chapter 5Registers and Survey frames Chapter 6Enterprise and establishment surveys Chapter 7Surveys of persons and households Chapter 8International Transactions Reporting Systems Chapter 9Administrative records Chapter 10Other data sources Chapter 11Comparing data sources

Part IIIData compilation Chapter 12Introduction and overview of data compilation within the Modes of Supply framework Chapter 13Integration of data from different sources Chapter 14Compilation of resident/non- resident trade in services statistics Chapter 15Compilation of FATS and the international supply of services Chapter 16Compilation of non-monetary aspects of Modes of supply Chapter 17Estimation and modeling of missing data, forecasting or back- casting

Part IVData Dissemination Chapter 18Introduction and overview of data dissemination within the Modes of Supply framework Chapter 19Data Dissemination Part VCross-cutting issues Chapter 20 Quality management Chapter 21Metadata Chapter 22Use of Information and Communication Technology

Annexes A.Classification issues B.Trade indices and indicators C.Seasonally adjusted data D.Relationship between statistics on international trade in services and international merchandise trade statistics and an integrated presentation trade statistics

Next steps 1/3 The draft annotated outline will be finalized and be circulated to national experts for their review after follow-up discussions among the expert group participants by s. Taking accounts of comments received, draft texts for each chapter will be prepared by consultants hired by the UNSD as well as TFSIS members and national experts.

Next steps 2/3 Issues that crop up in drafting texts will be discussed at the next TFSITS to be held at the OECD in October 25 and 26 after the OECD Working Party on Trade in Goods and Services (22 nd to 24 th October 2012) The 2 nd UN Expert Group meeting, which will convene both TFSITS members and national experts for a final discussion, will be hosted by the UNCTAD in June 2013.

Next steps 3/3 The UNSD plans to prepare the entire documents of the Compilers Guide for the approval of UNSC meeting in early 2014.

Thank you for your attention! Task force website: deserv/