1. GENERAL INTRODUCTION TO THE COURSE
François RENARD
MESDTAT III STE
Prague 4-6 December 2012

2. Why a course?
This course is based on the IMF BPM6 Manual and on the new Manual on Statistics of International Trade in Services (MSITS 2010).
It is also based on the long practice of the author as a BOP compiler who had to face the practical implementation of the international recommendations.
The target of this course is to provide a tool in order to acquire the knowledge of basic concepts and definitions relating to statistics on international trade in services (SITS). Significant changes occurred in the recent years and new recommendations have been elaborated which have to be explained.

3. Why a course?
It is also to let you be aware of good practices to be used for the collection and compilation of SITS applying the international framework.
The structure of the course is the following:
Module 1: overview of international trade in services
Module 2: classifications
Module 3: services transactions between residents and non-residents
Module 4: SITS data collection
Module 5: trade in services special cases
Module 6: foreign affiliates statistics
Each module is accompanied by exercises and practical cases.

4. Module 1: Characteristics of the services sector, an overview
The overview gives a general presentation of the Manual and the recommendations included,
It analyses the characteristics of services compared to goods,
It discusses of the modalities through which services may be delivered and what makes the distinction between the four modes of supply.

5. Module 2:Classifications
This module presents the international classifications relating to services products, services activities and international trade in services.
It explains the usefulness of these classifications for comparing data globally and across economies and for markets analysis.

6. Module 3:Services transactions between residents and non-residents
Services transactions as recorded in the balance of payments
Main principles to record these transactions
BPM6 and SNA 2008 principles.
Concept of residence and practical application.
Valuation and timing for the recording of transactions.
Definitions of the components of the extended balance of payments services classification
Foundations of the EBOPS classification
Discussion on the 12 components

7. Module 4: SITS data collection
An accurate data collection system as a prerequisite of SITS quality.
Different collection systems corresponding to different economic environments.
Trends towards common principles for SITS (or BOP) data recording.
From ITRS to surveys
Need of guidance: preparation of a compilation manual

8. Module 5: Trade in services special cases
Module 5 provides a view on special cases needing a specific approach going further than a pure collection syste, with the use of modelling or what is called « imputed values ».
Among these special cases are: (1) transportation services, (2) construction services, (3) manufacturing services, (4) merchanting, (5) financial services and (6) insurance services.

9. Module 6: Foreign affiliates statistics
Foreign affiliates statistics are not covered by the balance of payments as they do not relate directly to the relationship between residents and non-residents.
They are however very important as it is often necessary for services to establish a commercial presence abroad as a way to ensure a close contact between the producer and the consumer of the services.
FATS statistics represent GATS mode 3, commercial presence.