STD/PASS/TAGS – Trade and Globalisation Statistics STD/SES/TAGS – Trade and Globalisation Statistics Do we need a new trade classification and presentation for goods and services? OECD Statistics Directorate

STD/PASS/TAGS – Trade and Globalisation Statistics STD/SES/TAGS – Trade and Globalisation Statistics Overview A.Why a new classification/presentation? B.Trade in goods C.Trade in services (and goods) D.Goods and services or trade in products E.Problem areas F.Possible structure of a new trade classification or presentation G.Benefits H.Conclusions/suggestions 2

STD/PASS/TAGS – Trade and Globalisation Statistics STD/SES/TAGS – Trade and Globalisation Statistics Trade in goods and trade in services? but never the two really meet… A.Trade in goods described by HS 2007 and SITC rev 4 – physical movement of goods cross frontiers B.Trade in services – BOP/EBOPS 2010 – resident non-resident transactions – goods is “general merchandise” C.The detail is in one (IMTS for goods) or the other (BOP for services) but not both 3

STD/PASS/TAGS – Trade and Globalisation Statistics STD/SES/TAGS – Trade and Globalisation Statistics Goods and services together A.Central Product Classification version 2 B.CPC classifies all transactable products C.Movable goods CPC 0-4 mainly related to HS D.Other products CPC 5-9 E.Structure not helpful for trade or production F.Goods and service products are difficult to separate 4

STD/PASS/TAGS – Trade and Globalisation Statistics STD/SES/TAGS – Trade and Globalisation Statistics Problem areas Trade and BOP relate to transactions not production –E.g. distribution services Charges for the use of intellectual property Manufacturing services – need to keep commodity flow information Information products Travel Potential big differences between conceptual and actual product industry links especially for some services Exports relate better to production, imports to consumption 5

STD/PASS/TAGS – Trade and Globalisation Statistics STD/SES/TAGS – Trade and Globalisation Statistics What would a product presentation look like? Maybe something like this… 6

STD/PASS/TAGS – Trade and Globalisation Statistics STD/SES/TAGS – Trade and Globalisation Statistics Contd.. 7

STD/PASS/TAGS – Trade and Globalisation Statistics STD/SES/TAGS – Trade and Globalisation Statistics Contd… 8

STD/PASS/TAGS – Trade and Globalisation Statistics STD/SES/TAGS – Trade and Globalisation Statistics Contd…. etc 9

STD/PASS/TAGS – Trade and Globalisation Statistics STD/SES/TAGS – Trade and Globalisation Statistics Would give us a common language and with production statisticians but it would need refining If a useful idea, another version could be developed using ISIC 3, HS2002, and EBOPS2002 for immediate use Use building blocks that fit into trade data sources and relate closely to input-output perspectives Bring integration of trade data and estimation that is done at the I-O stage in SNA into trade area in transparent way Over time would help give a more complete view of trade Benefits 10

STD/PASS/TAGS – Trade and Globalisation Statistics STD/SES/TAGS – Trade and Globalisation Statistics Conclusions and suggestions split into goods and services has become progressively more problematic While data are needed separately, need to find a way of considering trade in products altogether - for trade, production, and I_O analysis. Propose new classification/presentation of trade in goods and services Pilot exercise to produce estimated data from existing data sources, with any necessary adjustments made explicit. Review measurement of trade in goods and services through enterprise surveys - consider business register links to activity codes– facilitate estimation of alternative views of trade. 11

STD/PASS/TAGS – Trade and Globalisation Statistics STD/SES/TAGS – Trade and Globalisation Statistics Questions for discussion Is this alternative presentation or classification of trade in goods and services worth researching further? Given that implementation of BPM6 may take some years, should presentation be researched also in terms of current classifications ISIC Rev.3, CPC Ver. 1.1 and BPM5? Should it be aligned with supply-use and input-output work in 2008 SNA? In what way? Any other comments or suggestions? 12