Manual on Statistics of International Trade in Services

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ecommended by the relevant statistical systems (see paras. 2.20 and 2.21 above). (d) Special problems in statistical treatment of mode 4 2.94. Mode 4 services supplied through the presence of natural persons pose particular measurement problems that cannot be fully resolved within the BPM5 and FATS framework. In addition, no simple correspondence can be readily established between any existing statistical framework and the part of GATS mode 4 services that is not covered by the BPM5 concept of trade in services. The trade-related movement of natural persons has given rise to a need for information collected on a new conceptual basis. Although not a new phenomenon, the concept of mode 4 delivery of services in trade is new; it must first be defined, and then a new statistical framework must be elaborated for measuring it. In that respect, annex I begins the process of constructing such a system: it reviews relevant existing statistical frameworks in order to identify useful aspects that might provide relevant measures for mode 4 services in the future. 2.95. GATS is clear that its use of the term “presence” refers to a non-permanent presence. Although nowhere Mode Statistical coverage Mode 1 Cross border supply Mode 2 Consumption abroad Mode 3 Commercial presence Mode 4 Presence of natural persons Table 1. Statistical coverage of modes of supply 24 is the term “non-permanent” defined, countries have commonly defined it as referring to a period of between two and five years. Commitments are also made with regard to specific sectors or occupations and are not general. The statistical interpretation of resident is an individual who has a centre of economic interest in an economy. This is usually defined as an individual who stays, or intends to stay, for one year or longer in an economy. 2.96. The mode 4 service may be directly supplied - by self-employed individuals abroad or by employees abroad sent by non-resident firms to the host country - or may be indirectly supplied with the individual abroad working for a service supplier resident in the host country. Only services directly supplied by a nonresident supplier to a resident customer would be counted as international trade in services in the BPM5 framework. 2.97. The issues concerning definition and measurement of mode 4 are addressed in more detail in annex I, yet there remains a need for further research and development of a framework for statistics that can be used to measure the value of services provided through mode 4. BPM5: transportation (most of), communications services, insurance services, financial services, royalties and license fees Part of: computer and information services, other business services, and personal, cultural, and recreational services BPM5: travel (excluding goods bought by travellers); repairs to carriers in foreign ports (goods); part of transportation (supporting and auxiliary services to carriers in foreign ports) FATS: FATS statistics, each ICFA category BPM5: part of construction services BPM5: part of: computer and information services; other business services; personal, cultural and recreational services; and construction services FATS (supplementary information): foreign employment in foreign affiliates BPM5 (supplementary information): labour-related flows Other sources: see Annex I
(e) Conclusion 2.98. The allocation of modes of supply to service transactions in the BPM5 and FATS statistics, following the simplification criteria and rules, have been discussed above. The following were discussed in particular: (a) As a general rule, FATS statistics provide information on mode 3 and balance of payments statistics correspond to the other modes of supply. The exception is that the balance of payments construction services component may be allocated to mode 3 or broken down between modes 3 and 4; (b) The balance of payments components transportation, communication services, insurance services, financial services, and royalties and license fees may be allocated to mode 1; (c) The balance of payments components computer and information services, other business services, and personal, cultural, and recreational services may be broken down by mode 1 and mode 4; (d) The travel component broadly corresponds to mode 2, excluding travellers’ expenditure on goods; (e) Balance of payments labour-related flows provide supplementary information on mode 4. 2.99. Table 1 summarizes the two statistical systems underlying the <strong>Manual</strong>’s main frameworks, BPM5 and FATS, and brings together information for each mode of supply. 25 2.100. A generalized framework for statistics on affiliates’ operations would provide information on domestic sales according to both an activity breakdown (ICFA categories) and a product breakdown (EBOPS components). When product breakdowns are not available, the ICFA activity breakdown is used. This has been aligned with EBOPS for the purpose of approximating products produced by various industrial activities. There is, however, no intention of establishing one-to-one correspondence between ISIC, Rev.3 and EBOPS for the estimation of services produced by foreign affiliates. Such a correspondence might overlook important areas of secondary production by industries (for further explanation, see annex IV). Only when compilers are able to classify the output of foreign affiliates on a product basis will it be possible to directly compare the values of specific types of services, delivered to foreign markets through trade between residents and nonresidents, with sales by foreign affiliates. 2.101. To achieve its goals of clarity, feasibility and minimum cost, this simplified statistical approach to modes of supply does not strictly adhere to GATS provisions. Rather, it has been designed to provide relevant information for GATS, while ensuring feasibility and minimizing the resources needed for its implementation. However, the introduction of these modes in the statistical context, albeit in a simplified way, may still necessitate significant resources. Thus, the breakdown of statistics by modes of supply is accorded a relatively low priority, and countries may choose to see the provision of statistics by these modes as a longer-term objective.
Page 1: Manual on Statisti
Page 4 and 5: NOTE Symbols of United Nations docu
Page 6 and 7: Contents Foreword .................
Page 8 and 9: Boxes 1. Services definition ......
Page 10 and 11: out of the draft Manual</st
Page 13 and 14: Summary The Manual
Page 15 and 16: A. Introduction I. Foundations of t
Page 17 and 18: statistical frameworks, represents
Page 19 and 20: Persons working abroad 1.26. Collec
Page 21 and 22: II. Conceptual framework for the de
Page 23 and 24: them to assume commitments in any p
Page 25 and 26: an “external account of goods and
Page 27 and 28: where relevant. The present <strong
Page 29 and 30: (a) Main BPM5 standard services com
Page 31 and 32: markets, and are therefore closely
Page 33 and 34: esidents are cross border. Accordin
Page 35: Mode 1. Service transactions Consum
Page 39 and 40: country, if the enterprise meets th
Page 41 and 42: when payment is made or received, w
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
Page 47 and 48: and hence excluded from mode 2. Thu
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
Page 55 and 56: transportation as described in para
Page 57 and 58: of maintaining consistency with BPM
Page 59 and 60: 3.115. Financial services may be pr
Page 61 and 62: 3.124. Other trade-related services
Page 63 and 64: military units and agencies and all
Page 65 and 66: 3.154. There are few household surv
Page 67 and 68: the compiling country, and data for
Page 69 and 70: world economy. For a variety of mot
Page 71 and 72: its implementation does not require
Page 73 and 74: 4.34. The Eurostat FATS Task Force
Page 75 and 76: delivered through the commercial pr
Page 77 and 78: 8.1.2. Water transport 61 8.1.2.1.
Page 79 and 80: generally be considerably lower tha
Page 81 and 82: of primary incomes generated in pro
Page 83 and 84: 4.72. The FDI framework, whether im
Page 85 and 86: 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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Manual on Statistics of International Trade in Services

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