1. Measuring Trade in Services

2. The Manual on Statistics of International Trade in Services (2002,2010)
Guidelines and recommendations on the measurement of trade in services
Balance of Payments statistics
Foreign Affiliates Trade in Services statistics
Movement of natural persons
© WTO/OMC

3. Short Presentation (1/2)
BOP Statistics -
Short Presentation (1/2)
BOP summarises transactions of an economy with the rest of the world
BOP
Current
account
Capital & financial account
Goods
Services
Of interest for GATS purposes
but...
11 components
Income
Transportation
Current transfers
Travel
Communications
etc.
© WTO/OMC

4. What is an International Transaction?
Change in ownership of goods
Provision of services
Provision of labour
Provision of capital
Change in ownership of financial assets
Residents / non-residents
INTERNATIONAL
© WTO/OMC

5. Concept of Residence Transactors Households /
individuals
Enterprises
Others
Country’s economic territory
Centre of economic interest
flexible one-year rule
Principal residence
Geographic territory
Territorial enclaves (e.g. embassies…)
Significant and lasting
economic activity
© WTO/OMC

6. EBOPS Main Components Commercial services: 1. Transportation 2. Travel
Other commercial services
3. Communications services
4. Construction services
5. Insurance services
6. Financial services
7. Computer and information
services
8. Royalties and licence fees
9. Other business services
10. Personal, cultural and
recreational services
Government services
(not in GATS)
© WTO/OMC

7. EBOPS Extended Balance of Payments Services Classification What is it?
product-based classification,
consistent with 11 BPM5 services components,
more detailed than BPM5 services components,
includes additional memorandum items.
© WTO/OMC

8. EBOPS Detailed Components
Breakdown of main components
Sea transport (passenger, freight, other)
Air transport (passenger, freight, other)
Other transport (passenger, freight, other)
Space, Rail, Road, ...
Business travel
Expenditure by seasonal and border workers
Other
Personal travel
Health-related expenditure
Education-related expenditure
Postal & courier
Telecommunication …
1. Transport
2. Travel
3. Communications
services
…etc
© WTO/OMC

9. EBOPS Memorandum Items and Alternative Aggregations
Memorandum items: useful additional information:
Example
Expenditure on goods
Expenditure on accommodation and food and beverages
All other travel expenditure
Travel
Aggregations of services and non-services transactions
Example
Audiovisual transactions
Services: audiovisual services; audio-visual-related royalties and license fees
Non-services: acquisition/disposal of audiovisual-related patents, copyrights…
© WTO/OMC

10. Short Presentation (2/2)
BOP Statistics -
Short Presentation (2/2)
More detail needed than 11 BPM5 services components
MSITS introduces EBOPS (breakdown of BPM5 services)
Most services delivered under Mode 3 and Mode 4 are not well covered or identified
However, some BOP indicators helpful:
Mode 3
Foreign Direct Investment
Mode 4
Compensation of employees
Workers’ remittances
© WTO/OMC

11. Correspondence between modes of supply measurement and statistical domains
Inadequacies
Mode 1: Cross-border supply
BOP: Commercial services (excl. travel, construction)
No distinction between Modes 1 and 4
Mode 2:
Consumption abroad
BOP: Travel
Contains goods and not divided into different types of services consumed by travellers
Some Mode 2 transactions also in other BOP categories
Mode 3:
Commercial presence
FATS
BOP: Construction
FDI (suppl. information)
Very few countries produce FATS
No distinction between Modes 3-4
FDI cover not only (majority) controlled companies
Mode 4:
Presence of natural persons
BOP: Commercial services (excl. travel)
Compensation of employees, workers' remittances (suppl. info.)
No distinction between Modes 1 (3 for construction) and 4
No relationship with Mode 4 but of interest for labour mobility
© WTO/OMC

12. Balance of Payments Statistics by Trading Partner
At least for...
Services as a whole
11 main services components of BPM5/EBOPS
Main trading partners
If possible....
More detailed EBOPS level
Common geographical basis for all trade in services data
© WTO/OMC

13. FATS Statistics - Short Presentation
Coverage
Operations of foreign affiliates,
Particular focus on services
Indicators
Turnover
Employment
Value added …
Concepts & definitions
Manual on Statistics of International Trade in Services
© WTO/OMC

14. FDI and FATS statistics

15. The FDI Universe
FDI: the direct investor makes an international investment to obtain a lasting interest in an enterprise abroad.

16. Firms covered in FATS Ownership criteria Types of producers
Majority-owned foreign affiliates( a single foreign investor own more than 50% of their ordinary shares or voting power)
Includes subsidiaries and branches
Excludes associates
Types of producers
Affiliates producing goods, services

17. Economic Variables for FATS
Concepts in the MSITS
Sales (turnover) and/or output
Employment
Value added
Exports and imports of goods
and services
Number of enterprises
Basic FATS variables
(minimum recommended by MSITS)
Compensation of employees
Taxes on income
Research and development expenditures
etc...
Additional FATS variables
© WTO/OMC

18. Geographical allocation
Foreign-owned affiliates in the compiling country

21. Geographical allocation

24. Statistics - Temporary movement of natural persons – mode 4
Mode 4 – important for developing countries

26. China’s experience
The Department of Trade in Services of the Ministry of Commerce is in Charge of the National Statistics of TIS
2007: The Statistics System of International Trade in Services of China( the symbol of the foundation of the Chinese statistics on trade in services )
2010: Revision of the Statistics System of International Trade in Services

27. Basic Framework of the Statistics of Trade in Services
Statistics Standards
1.The Manual on Statistics of International Trade in Services (MSITS)
2.The Manual of Balance of Payment (BPM 5) (IMF)
3.General Agreement on Trade in Service (WTO)
4.System of National Accounts (SNA 1993)
5.The Classification of National Economy Industry (CHINA)

28. Framework of Statistics System
Two Main Lines
the Conventinal BOP + Enterprises Direct Survey
Statistics on Resident/Non-Resident Trade in Services
A Subordinate
Line
Foreign Affiliates Statistics(FATS）
Presence of Natural Persons Statistics

29. The Method of Data Collection
Administrative Records
Enterprises Survey
Scientific Estimation
Data Sources include: records of the Banks, Administration of Foreign Exchange, Ministry of Transport and other organizations
Set up the database of statistics on Trade in Services

30. Data Publishment
Publish the data yearly on the import and export in services and on FATS, presence of natural persons statistics

31. Channel of Information Release
Release statistical information and analysis articles on internet through the statistical column in the website of China Trade in Services