Manual on Statistics of International Trade in Services

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Description and Coding System 24 (HS) of the World Customs Organization. For services, CPC, Version 1.0 is the first international classification covering the whole spectrum of outputs of the various industries, and it can serve the different analytical needs of statistical and other users. For example, the Provisional CPC was used for the elaboration of the categories of services that were used during the negotiations leading to GATS that were conducted during the Uruguay Round, and was also used to describe the balance of payments services components recommended in BPM5. The general service product classification of CPC, Version 1.0 will serve as a guideline for the elaboration of such classifications for specific areas of the economy, including international trade in services. (d) International Standard Industrial Classification of All Economic Activities, Revision 3 2.36. The International Standard Industrial Classification of All Economic Activities, Revision 3 is a basic tool for fostering international comparability of data across a wide range of economic and social statistics, including production, value added, employment and other economic statistics. It is a standard classification of productive economic activities linked as far as possible with the way economic processes are organized in units. An industry is thus defined as the set of production units engaged primarily in the same or similar kinds of productive economic activity. Criteria relating to the economic transactors (e.g., financial institutions) and to types of transactions (intermediate and final consumption, capital formation etc.) reinforce the considerations for identifying stages of production. In line with the United Nations programme for the harmonization of international economic classifications, ISIC, Rev.3 categories are correlated with those of CPC, Version 1.0. A correlation table indicates the main kinds of activities that produce particular goods and services. (e) International Merchandise Trade Statistics 2.37. The United Nations publication International Merchandise Trade Statistics: Concepts and Definitions, Revision 2 25 (IMTS, Rev.2) contains the revised recommendations of the Statistical Commission regarding statistics of international merchandise trade. The implementation of these recommendations will result in data that better meet the needs of a variety of 24 Brussels, Customs Cooperation Council, 1984. 25 United Nations publication, Sales No. E.98.XVII.16. 14 national and international users and that are more comparable with other statistics compiled in the framework of the 1993 SNA and BPM5. IMTS, Rev.2 provides a brief description of flows of goods between residents and non-residents that are not covered by merchandise trade statistics and identifies those services, the value of which is included in the value of imported and exported goods. (f) International migration frameworks and the Recommendations on Statistics of International Migration 2.38. The Recommendations on Statistics of International Migration, Revision 1 26 set out a framework for reporting statistical information that measures international migration flows and stocks, including how population censuses can help gather information on foreign persons. The framework builds on the taxonomy of traveller inflows and outflows, and it gives priority to the identification of internationally mobile individuals who satisfy simple general definitions of short-term and long-term migrants. The recommended period of stay for inclusion among the former is three months, and for inclusion among the latter a year or more. Persons staying for periods shorter than three months are not included in these recommendations. Thus, this use of the term migrant is somewhat broader than that in BPM5, where an actual or intended stay of a year or more is required. A fuller taxonomy of migrants and other travellers, is provided in the Recommendations. 27 An ILO publication 28 provides an extensive discussion on sources of migration statistics. (g) Tourism Satellite Accounts: Recommended Methodological Framework 2.39. Eurostat, the World Tourism Organization, OECD and the United Nations have developed the Tourism Satellite Account: Recommended Methodological Framework, 29 (TSA), which sets out a framework to measure the contribution of tourism to an economy in an internationally comparable way. TSA respects the definitions and norms of the 1993 SNA, 26 United Nations publication, Sales No. E.98.XVII.14. 27 Ibid., box 4. 28 R.E. Bilsborrow, Graeme Hugo, A.S. Oberai and Hania Zlotnik, International Migration Statistics: Guidelines for Improving Data Collection Systems (Geneva, International Labour Organization, 1997). 29 United Nations publication, Sales No. E.01.XVII.9.
where relevant. The present <strong>Manual</strong> and TSA have different coverage and the relationship between them is described further in annex VII. However, balance of payments data on travel, excluding business travel, as defined in paragraphs 3.77-3.86 below, are one source of data on a part of tourism as defined in TSA. The TSA framework allows for a breakdown of visitors’ expenditure in a way that may be useful for GATS, for example, disaggregating visitors’ expenditure on goods, hotels, and food and beverage serving services, or disaggregating visitors’ expenditure by resident and nonresident visitors. TSA also provides lists of tourismspecific products with CPC links. 2. Other statistical systems and classifications (a) Joint OECD-Eurostat Trade in Services Classification 2.40. The Joint OECD-Eurostat Trade in Services Classification 30 is closely linked to BPM5. It can be characterized as a disaggregation of the BPM5 classification for balance of payments transactions in trade in services. It covers all service transactions between residents and non-residents. The main categories of this classification are identical to the 11 main service categories of the BPM5 standard components, and the two-, three- and four-digit items are compatible with these standard components and BPM5 services subcomponents, with one minor exception, the treatment of construction services, which also affects other business services. The Joint Classification asks for data on construction abroad and construction in the compiling economy. Both of these items include goods and services purchased by construction services operations, while BPM5 recommends that these expenditures for goods and services purchased in the host economy be included in other business services, other. With this one exception, compiling and reporting on the basis of the Joint Classification simultaneously satisfies IMF requirements. The Joint Classification is also partially linked to the Central Product Classification through its relationship with BPM5. 2.41. The Joint Classification represents a first attempt to take account of GATS, particularly as regards financial services and telecommunications, and it also 30 Organisation for Economic Co-operation and Development and Eurostat, OECD Statistics on International Trade in Services (Brussels/Luxembourg and Paris, 2000), appendix 1; may also be accessed at http://www.oecd.org/std/TISclass.pdf. 15 reflects the statistical implications of the completion of the European Communities’ Single Market in Services, which entailed a great number of directives relating to financial, telecommunications, transport, tourism and audiovisual services. 2.42. EBOPS, as recommended in the present <strong>Manual</strong>, is a disaggregation of the Joint Classification. (b) OECD Benchmark Definition of Foreign Direct Investment 2.43. Foreign direct investment has assumed a crucial role in the internationalization of economic activities. The third edition of the OECD Benchmark Definition of Foreign Direct Investment 31 (BD3) provides operational guidance, within the conceptual framework of BPM5 and as an elaboration of it, on how foreign direct investment data should be compiled to meet internationally agreed standards. (c) OECD <strong>Manual</strong> on Economic Globalisation Indicators 32 2.44. The proposed OECD manual on economic globalization indicators will provide a framework of methodological and statistical guidelines for constructing indicators, on an internationally harmonized basis for use by policy makers and for the systematic monitoring over time of the progressive degree of worldwide economic integration. GATS obligations relate to many aspects of the presence of enterprises established abroad, which supply services through mode 3, commercial presence. As explained in paragraphs 4.1-4.15 below, FATS statistics provide information on the activities of majority-owned foreign affiliates. Although the OECD manual will cover a wider canvas than FATS statistics, the FATS framework has been conceived in a way that is consistent with the framework that is expected to be defined in the OECD manual. D. Approach and framework of the <strong>Manual</strong> 2.45. To address the needs identified in paragraphs 2.3.-2.24 above, two basic principles underlie the <strong>Manual</strong>’s approach: 31 Paris, 1996. 32. This is the provisional title.
Page 1: Manual on Statisti
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Page 6 and 7: Contents Foreword .................
Page 8 and 9: Boxes 1. Services definition ......
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Page 13 and 14: Summary The Manual
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Page 25: an “external account of goods and
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Page 31 and 32: markets, and are therefore closely
Page 33 and 34: esidents are cross border. Accordin
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Page 37 and 38: (e) Conclusion 2.98. The allocation
Page 39 and 40: country, if the enterprise meets th
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Page 43 and 44: 1.7.3 Other 1.8 Pipeline transport
Page 45 and 46: 3.28. The GATS GNS/W/120 list expli
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Page 49 and 50: products, water and other goods sup
Page 51 and 52: services are purchased by, or on be
Page 53 and 54: applied flexibly, as described in p
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Page 57 and 58: of maintaining consistency with BPM
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Page 63 and 64: military units and agencies and all
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Page 69 and 70: world economy. For a variety of mot
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8.1.2. Water transport 61 8.1.2.1.
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generally be considerably lower tha
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of primary incomes generated in pro
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4.72. The FDI framework, whether im
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Annex I. Movement of natural person
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8. When a natural person provides a
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according to ISCO categories would
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(b) Entrepreneurs and investors: fo
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Annex II. Extended Balance of Payme
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BPM5 standard components 83 BPM5 su
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Annex III. EBOPS - CPC, Version 1.0
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EBOPS Table A.III.1. EBOPS - CPC, V
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GNS/W/120 1. Business Services A. P
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GNS/W/120 Table A.III.2. GNS/W/120
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GNS/W/120 D. Franchising E. Other 5
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Table A.IV.1. Correspondence betwee
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Table A.V.2. Correspondence between
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Division 75: Public administration
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Annex VI. Services Sectoral Classif
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f. Other E. Other 3. Construction a
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C. Tourist guides services 7472 D.
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Annex VII. The Manual</stro
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from within the place visited”. V
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Resident Institutional units or ind
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____________. Standard Country or A
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General Agreement on Trade in Servi
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