REPORT OF THE INTERAGENCY TASK FORCE ON STATISTICS OF INTERNATIONAL TRADE IN SERVICES MEETING OCTOBER 2012, OECD, PARIS BOPWG th November 2012 Document BP/12/46 Item 17 of the Agenda

Overview 1.Background 2.Task Force mandate 3.Summary of TFSITS meeting a)25 th October: Compiler’s Guide b)26 th October: Issues for IOs 4.Next meeting

1.Background Two meetings per year: Last Spring, combined special session to agree on MSITS 2010 Compilers Guide draft outline In fall, with OECD Working Party on Trade in Goods and Services (WPTGS) United Nations Conference on Trade and Development United Nations Statistical Division Task Force composition:

2. Task Force mandate Focus on statistical requirements of General Agreement on Trade in Services (GATS), i.e. covering 4 modes of supply: –BOP trade in services statistics (modes 1, 2 and 4) –FATS (mode 3: commercial presence) Strengthening cooperation between International Organizations (BOP trade in services + FATS) Promoting development of international standards Improving availability, quality and comparability of statistics Facilitate provision of technical assistance in compilation of relevant statistics (including FATS)

Discussions split in two days : first day 25 th October “Extended Task Force day", dedicated to reviewing comments by the UN Expert Group on Compilation of Trade in Services on Worldwide consultation results and review draft chapters of the compiler's guide.

3.a) MSITS Compilers Guide (CG) Requested by UN Statistical Commission Important objective of guide: help compilers meet data requirements of GATS and other needs Improve availability, quality and comparability of statistics on the international supply of services Within modes of supply framework, i.e. complement the IMF BPM6 Compilation Guide for resident/non-resident services trade and cover FATS and modes of supply Draft annotated outline available: prepared by UN expert group and TF on SITS in March-April

3.a) Compiler’s Guide – past steps March 2011TF decides to develop a Compiler’s Guide for MSITS 2010 December 2011 UN Expert Group for compilation of SITS established (TF part of group) March st virtual meeting to agree on the annotated outline July 2012Worldwide consultation on draft outline October nd virtual meeting on worldwide consultation and first draft texts followed by TF meeting

3.a)Compiler’s Guide – Worldwide consultation Outcomes of the worldwide consultation and 2 nd virtual meeting presented 50 contributors to the worldwide consultation, showing lots of support from countries Unresolved issues from 2 nd virtual meeting discussed in depth, following the outline of the Compiler’s Guide.

3.a)Compiler’s Guide – First draft texts discussed Drafts provided: FATS (UNSD/BEA) Modes on supply (Eurostat/OECD/WTO) ITRS (OECD) TF was invited to provide more comments by end of December FATS to be circulated to OECD WGIIS for comments by end December

3.a)Compiler’s Guide – Next steps End December 2012 Comments by TF on available draft texts End February 2013 Virtual meeting to discuss available drafts (3 weeks) March/April 2013 Discussion of revised drafts at next TF meeting June 2013 (UNCTAD headquarters): Face-to-face meeting of UN expert group for discussion on full draft Early 2014 Compilers Guide for approval at UNSC meeting.

Discussions split in two days : second day 26 th October Dedicated to issues of usual interest for IOs (technical assistance, revision policy, coordinated move to BPM6)

3.b) Issues for IOs – Technical assistance (1/2) WTO acting as a focal point provided an updated list The TF noted overlapping projects but it was flagged that WTO and UNSD workshops were built to complement each other as much as possible e-learning projects should be linked with the TF’s longer term activities (Eurostat could possibly provide material related to Medstat 3)

Growing demand for technical assistance and electronic forums noted but the question of maintenance remained WTO report on technical assistance should be sent to the head of Paris 21 List of technical activities to be posted on the TF website: ult.htm ult.htm 3.b) Issues for IOs – Technical assistance (2/2)

Issues for IOs – Report on harmonisation of data (1/2) Efforts to harmonise Trade in services data presented across Ios as differences identified via a taxonomy exercise. Exchange rate sources should be added to the TF Matrix of existing databases covering statistics of international trade in service at different international organizations tm IOs to align the exchange rates used A difference in ECB and IMF quarterly/annual exchange rates was noted whereas the monthly values are equal

IOs should add a disclaimer to the time stamps in their databases indicating that national data may have been updated by the national source and that users could refer to it Countries should be encouraged to also use time stamps indicating the extent of the revisions Confirmed that text in the Compiler's Guide should indicate how to treat non allocated services Issues for IOs – Report on harmonisation of data (2/2)

Issues for IOs – Move from BPM5 to BPM6 and revision policy (1/2) Eurostat move to the presentation of detailed annual TIS statistics BPM6 end of 2014 OECD and UNSD use two sets of data and switch gradually to EBOPS 2010/BPM6 as countries themselves move to the new standards On the users of TIS statistics side, the WTO, UNCTAD and ITC will switch to the new presentation in 2015 The Task Force encourages compilers to compile and provide detailed TIS statistics by EBOPS 2010 and partner as far back as possible but at least starting from 2010

Noted that countries would be encouraged to make a note informing users that IMF has moved to BPM6 IOs could adopt the same algorithm for conversion from BPM5 to BPM6 or from BPM6 to BPM5 taking into consideration the conversion methodology adopted by the IMF Issues for IOs – Move from BPM5 to BPM6 (2/2)

3.b) Issues for IOs – Travel workshop progress report Progress report presented by Eurostat TF noted that Sweden could provide some interesting material on how to define valuables and durable goods through customs data for chapter 14 of the Compiler's Guide

3.b) Issues for IOs – Revision of concordance annexes to MSITS EBOPS 2010 and CPC version 2 (UNSD) EBOPS 2010 and GNS/W/120 (WTO) EBOPS 2010 and ICFA (Eurostat) EBOPS 2010 and BPM6 (IMF) EBOPS 2002 and EBOPS 2010 & EBOPS 2010 and EBOPS 2002 (OECD)

3.b) Issues for IOs – Status of data collection IMF presented the status of its TIS statistics following the conversion to BPM6 The automatic conversion of goods for processing represented the biggest challenge given that countries are only starting to try estimate the manufacturing fees Importance of providing metadata which explains in what respect data reported do not comply with BPM6 rules Interest expressed for the algorithm used to convert the data TF also discussed the status of Eurostat, OECD and UNSD international trade in services databases

3.b) Issues for IOs - Other Business Report to the statistical commission which focus on the measurement framework for international Trade and economic Globalization UNCTAD project on developing indicators on trade in IT services and trade in ICT services.

3.b) Issues for IOs – Promoting the MSITS 2010 TF website: and newsletter :

4. Next meeting March/April 2013 back to back with Interagency Task Force on merchandise trade Statistics meeting