OECD Statistics Directorate Bettina.Wistrom@oecd

1. Report of the Task Force on Statistics on International Trade in Services (TFSITS)Bangkok 10-11 March 2009 Agenda Item : 3.2 OECD Statistics Directorate Bettina.Wistrom@oecd.org …, STD/SES/TAGS; 2nd WPTGS Meeting 16.-18.11.2009, Paris

2. Outline • Promoting trade in services statistics also in emerging and developing countries 2) Future compilation Guidance 3) Problems of data quality and historical consistency across International Organisations (IO) 4) Comparison of data collection 5) Main Objective: Review country comments collected during second worldwide (WWC2) consultation (29 Aug - 24 Nov 2008)

3. 1)Promoting trade in services statistics. • General: UNSD Task Force Website and Newsletter • UNECLAC: Statistics in LAC according to BPM5, partner country and FATS very limited or not available. SEMINARS • UNSD seminar for Commonwealth of Independent States (CIS) countries providing training to both NSOs and CBs. • Eurostat: workshops on implementation BPM6 and BD4 for EU-27 • World Tourism Organization: Laos mid-2009, CIS third quarter 2009 • WTO and WB: capacity building South Africa mid June 2009, Zambia Nov 2009. • UNSD seminar on TIS in Rio de Janeiro December 2009 • Possibility of yearly TFSITS seminar.

4. 2) Future Compilation Guide on Trade in Services Statistics • Agreement to develop Guide focusing on Statistical issues (data collection, enterprise surveys, administrative data sources). • Should not duplicate BPM6 compilation guide (to be started in 2010). • Task Force (19-20 Nov) will discuss possible experts. • Modular approach – available on internet. • Question on separate User Guide remains open.

5. 3) Problems of data quality and historical consistency • TF concerned about consistency of trade in services data across IO databases. • Include issues of breaks treated differently, misallocations, countries using former version of BPM, different sources serving different IO. • Need to check consistency both between national source and across IO . • Further discussed TFSITS meeting in November 2009.

6. 4) Comparison of international data collection • OECD proposal to design and agree on common framework for IO’s was welcomed by TF. • OECD would nominate expert to elaborate a stocktaking document, including the issues of “vintages”, exchange rates used, data providers. • Explore the new technical possibilities offered by SDMX.

7. Review of country comments • Following the WWC2 (29 Aug-24 November 2008), 100 replies collected (77 elaborated). • Covered 5 chapters and 2 annexes. • In general countries were supporting the Manual • Majority of questions (34) were related to the revision of the Extended Balance of Payments Services (EBOPS) classification

8. Structure of MSITS 2010 1/2 • Summary (new draft) => All • Chapter 1 => Introduction (UNSD) • Chapter 2 => Conceptual framework (WTO) • Chapter 3 => Services Transactions between Residents and Non-residents (IMF) • Chapter 4 => Foreign affiliates statistics and the international supply of services (OECD) • Chapter 5 => Trade in services statistics by modes of supply (WTO)

9. Structure of MSITS 2010 2/2 • Annex I (EBOPS 2010) => IMF/OECD • Annex II (EBOPS 2010-CPC Rev.2) UNSD/IMF and (EBOPS 2010-GNS/W/120) => WTO • Annex III (ICFA-EBOPS 2010) => Eurostat/UNSD • Annex IV (GATS extract) => unchanged • Annex V (GNS/W/120 list) => unchanged • Annex VI (TSA and IRTS) => UNWTO • Annex VII (analytical Annex) => OECD, BEA, WTO and WHO • Glossary => UNCTAD • Bibliography =>UNSD • Acronym list => UNCTAD

10. Review of WWC2 Chapter 1(UNSD) • Availability of chapters in english had restricted the number of country replies. • Differences between MSITS 2002 and MSITS 2010 should be elaborated and complemented by a correspondence table between EBOPS 2002 and 2010 highlighting main changes. • Importance of new Chapter 5 and online analytical annex should be underlined.

11. Review of WWC2 Chapter 2 & 5 (WTO) Chapter 2 • More on concordance tables and the importance of linking trade and business registers. • More information to be provided on merchanting and goods for processing. • Elaborate terminology on labour mobility and labour-related flows. • Reference to EU FATS manual to be added. Chapter 5 • Explain that overlap may exist between BOP and FATS frameworks in the Manual.

12. Review of WWC2 Chapter 3 (IMF) • Chapter 3 further aligned with BPM6 including on terminology (“Standard” and “Supplementary” items used analogous way). • Need to better explain time-shares and call centers. • Add table linking EBOPS and complementary groupings. • Add table linking EBOPS 2002 and EBOPS 2010 (for needs of Chapter 1).

13. Revised EBOPS 1/3 • New Breakdown of Direct Insurance (item 6.1) and of Architectural services (item 10.3.1) will be standard. • Pensions separated from Standardized Guarantee services in Insurance and pension services (item 6) • Breakdown of Government goods and services n.i.e. reintroduced.

14. Revised EBOPS 2/3 • Supplementary breakdown “heritage and recreational services” (11.2.3) of other personal, cultural, and recreational services [UNESCO] . • IMF to check OECD proposal on definition of originals.

15. Revised EBOPS 3/3 • Charges for the use of intellectual property breakdown has been further discussed after the Bangkok meeting. • Breakdown of R&D services agreed. (see p. 7) • The TF decided not to give priority to any breakdown in travel nor in transportation

16. EBOPS complementary groupings • Detail on licence to use added to Audiovisual transactions and to Computer software transactions (see p. 8) • Distribution services to be presented together with Merchanting and trade-related services in Trade related transactions. • Name “Environmental transactions” agreed upon. Correspondence to CPC Rev. 2 noted. • Cultural Transactions was added following the provision of a definition of these by UNESCO.

17. Review of WWC2: Chapter 4 (OECD) • Remaining references to majority ownership (ownership % of shares) should be changed to the notion of control which relates to more than 50% ownership of voting power (at each stage of chain of ownership). • The table on ISIC categories for FATS should (and has) be clarified. • Text on Special Purpose Entities to be removed since covered in BD4 and BPM6

18. Review of WWC2: annexes • Better edit references to EBOPS in annex 6 on Tourism statistics. • On analytical annex, need to review an example on software and to establish a correspondence table to ISIC in table on trade in services by industry (Statistics Canada) • No separate annex on cross-cutting issues because of lack of time and the fact that both BPM6 and IMTS Rev 3 are in their final form

19. Review of WWC2 : annexes • Correspondence tables to be updated and provided on line (not in the paper publication) • Annex II (EBOPS 2010-CPC Rev.2) UNSD/IMF and (EBOPS 2010-GNS/W/120) => /WTO • Annex III (ICFA-EBOPS 2010) => Eurostat/UNSD

20. Next steps • Consistency across chapters with respect to changes was analysed by OECD/WTO Expert consultant. • TF (19-20 November) will review remaining questions following the third WWC. • Five chapters of the Manual should be submitted to UNSC end February 2009.

21. Thanks for your attention! TFSITS website: http://unstats.un.org/unsd/tradeserv/default.htm