Unclassified STD/TBS/WPTGS(2012)32 Organisation de Coopération et de Développement Économiques Organisation for Economic Co-operation and Development 03-Oct-2012 English - Or. English STATISTICS DIRECTORATE STD/TBS/WPTGS(2012)32 Unclassified Working Party on International Trade in Goods and Trade in Services Statistics PROGRESS REPORT ON MODES OF SUPPLY To be held on 22-24 October 2012 OECD Headquarters This paper is for information and discussion and has been jointly prepared by Eurostat, OECD and WTO for item 15.1 progress report on Modes of supply. Contact persons: Joscelyn MAGDELEINE, E-mail: joscelyn.magdeleine@wto.org; Hionia VLACHOU, E-mail: Hionia.Vlachou@ec.europa.eu; Bettina WISTROM, E-mail: bettina.wistrom@oecd.org English - Or. English JT03327594 Complete document available on OLIS in its original format This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
PROGRESS REPORT ON MODES OF SUPPLY OECD Working Party on Trade in Goods and Services 22-24 October 2012 Joscelyn Magdeleine (WTO), Hionia Vlachou (Eurostat), Bettina Wistrom (OECD). 1. At the 2011 vember meeting of the OECD Working Party on Trade in Goods and Services, Eurostat, OECD and WTO presented a joint paper on the measurement of the international supply of services by mode. 1 The paper presented five possible ways forward in order to inspire and provide guidance to compilers to begin compiling modes of supply data. 2. As underlined during the presentation to the delegates, GATS negotiations which are generally led by the national Ministries of Economy, of Industry or Foreign Trade are currently conducted in the absence of data, in particular on the way services are supplied internationally. The availability of statistical data presented according to the 4 modes of supply would greatly help negotiators evaluate and compare liberalisation and commitments in specific service sectors as well as assess market access opportunities. Such information would also help improve the understanding and analytical usefulness of trade in services data, in particular for economic research and trade policy analysis. 3. The importance of these statistics arises from the economic and political need to evaluate the specific importance and nature of each type of service traded. In addition, there is also a need to understand how services are provided in the respective economies and to ensure competitive advantages for enterprises in a globalized world. The authors noted that in a period of revision of surveys in order to accommodate BPM6 and MSITS2010 requirements, for some countries it would be the appropriate moment, and relatively cost efficient, to also envisage to begin the collection and/or compilation of trade in services data by modes of supply (in value terms). 4. The aim of this paper is to inform delegates on what has happened since the first presentation of the OECD-Eurostat-WTO proposals at the last Working Party meeting in 2011. Estimating the value of the international supply of services by mode (BOP services and FATS) 5. The note that was presented by the three authors at the 2011 vember meeting of the OECD Working Party on Trade in Goods and Services was revised and presented at the Eurostat BOP Working 1 Modes of supply: recent analysis and a way forward, By Joscelyn Magdeleine (WTO), Hionia Vlachou (Eurostat), Bettina Wistrom (OECD) (2012). 2
Group in April 2012. The note was in particular updated with information regarding a new trade in services survey 2, designed by Statistics New Zealand in cooperation with the New Zealand Ministry of Foreign Affairs and Trade (MFAT) aiming to collect, in supplement to resident-non resident BOP trade in services statistics, information on Modes 1, 2 and 4 for groups of services of strategic importance to this country 3. 6. In both the OECD and Eurostat meetings the authors proposed to collaborate with volunteering countries willing to engage in one of the five case studies presented in the papers. 7. A number of countries showed their interest in estimating trade in services by modes of supply and are now envisaging to study the possibility to conduct some research work on the case studies or possibly to engage in data collection, some eventually in cooperation with their authorities in charge of trade negotiations Since this paper was last presented a number of experts also indicated that they could envisage the possibility of cooperating with the authors on a small project on this subject 8. An additional example of the growing interest was the workshops organised by the French Ministère de l Economie, des Finances et de l Industrie and more precisely the Direction Générale de la Compétitivité, de l'industrie et des Services (DGCIS) in cooperation with Ernst & Young which invited OECD, Eurostat and WTO to present the note on the possible way forward for collecting trade in Services by Mode. 4 These workshops were an opportunity for international organisations to emphasize the importance of inter-institutional cooperation in the collection of services data, in particular when it comes to modes of supply (as in the example of New Zealand) and the possible need to focus on some services sectors that are strategic for the country under consideration. More generally, the need for more detailed trade in services (beyond the scope of the balance of payments) was emphasized. How can travel/tourism data sources help compiling statistics on modes of supply? 9. A presentation of some of these needs as well as on other variables identified of interest in MSITS 2010 (such as on the number of persons crossing borders) was also made during the 3rd Eurostat Travel Workshop which was held on 27-28 June 2012 in Dublin (focusing on modes of supply aspects of most relevance to the group, that is modes 2 and 4). The comments stemming from this group were a fruitful input to help clarify more precisely the needs on modes of supply which could be relevant from the travel 2 3 4 Survey of International Trade in Services and Royalties, Statistics New Zealand, (2011). Respondents were asked relevant questions on respective contribution of modes (in percentage terms) for 7 aggregate groupings of services (e.g. Information & communication technology services, Business services etc.) and for five main partners. The cover page of New Zealands survey explains the needs for such statistics: " As well as being used in the compilation of New Zealand's balance of payments statistics, the data is used to inform New Zealand's international trade negotiations. The information helps businesses and policymakers to understand New Zealand's international trade in commercial services market, and the significance of New Zealand's commercial services revenue or expenditure as part of New Zealand's total international services revenue and expenditure." See http://www.stats.govt.nz/surveys_and_methods/completing-a-survey/faqs-about-our-surveys/census-intl-trade-inservices.aspx 9th May: Atelier sur l'importance du Commerce de Services dans la Balance des Paiements; 12th of June: Comité de pilotage de l'étude sur l'internationalisation des services (at the Ministère de l Economie, des Finances et de l Industrie.) 3
item's compilers point of view. The authors were asked to prepare a draft module of questions which could be incorporated in border surveys 10. In relation to the presentation made to the travel workshop, a new paper (inspired by the ones presented to BOP/trade experts in Eurostat and OECD) was prepared by the three authors for the Eurostat Tourism statistics working group of September 2012. The aim of this first version of the paper was to address specifically tourism statisticians 5 in order to inform them on the type of information that they currently collect that could be of interest from a trade in services perspective. It also put forward a number of proposals on the possible compilation of additional information of interest with a minimum additional burden. The paper in particular encouraged to seek or extract information in available border surveys on mode 2 number of persons and values and on mode 4 number of persons. 6 There are a number of questions that need to be tackled (in particular relevance and quality of this more specific set of information that is sought from tourism/travel data sources), however the aim of the paper is to initiate some discussion in this field as well as to further emphasize the positive outcomes that inter-institutional co-operation may bring (i.e. between tourism, BOP and trade in services statisticians). 11. A set of additional questions that could be added or amended in existing tourism /travel surveys was proposed to the group. The authors stressed the importance of making use to the maximum extent possible of already existing data to compile statistics on the international supply of services by mode. It was underlined that in some countries information on mode 2 was either rudimentary available or few amendments were needed to obtain more details. As for mode 4 the authors emphasized that some amendments or filter-variables in the border surveys would give a first indication on mode 4 number of persons. 12. The paper was presented on the 18th of September 2012 to the Eurostat tourism Working Group which led to interesting discussions and comments in particular from UNWTO. A number of countries showed their interest for a discussion, however they asked for further clarifications. The comments received will be incorporated in a revised version of this paper to be presented at the 11th Global Forum on Tourism Statistics on 14-16 vember 2012 7. Results of the coordinated questionnaire in relation to modes of supply 13. In order to prepare the 2012 Working Party on International Trade in Services, OECD sent out a questionnaire coordinated with WTO and Eurostat which included two questions on countries' intention to engage in some activities related to the collection of data by mode and on their intention to engage in some discussions with their ministries. 5 6 7 Modes of supply and tourism statistics: How tourism statisticians could help to obtain data on trade in services by mode of supply? (2012) As noted in the first note this type of exercise and collection should be performed on services sectors that are the most important for countries. http://www.11thtourismstatisticsforum.is/preliminary_program.aspx 4
14. Results were encouraging as to the question 7 on part two " Do you plan to classify the transactions between residents and non-residents according to the GATS modes of supply classifications, possibly following one of the case studies as jointly suggested by Eurostat/OECD/WTO at the 2011 WPTGS and 2012 Eurostat BOP Working Group or do you plan to study possibilities? ", four countries gave a positive response, six countries stated that they would study possibilities or partially undertake such studies (see annex 1). 15. On question 1 of part 3 also relating to determining priorities regarding modes of supply:" If you have not started compiling services transactions by modes of supply, are you planning discussions with the relevant governmental bodies for international trade to determine priorities (e.g which service sectors)?", four countries replied positively and five partially or that this was under consideration (see annex2). 16. Also, in their response to the coordinated questionnaire, a number of countries (Australia, Italy, United States and Portugal) expressed interest in the organisation of a seminar on the compilation of trade in services by modes. The Task Force will discuss this point on 25-26th of October. This could be done next year in the context of the work of the Expert group on the compilation of trade in service statistics for producing the MSITS 2010 Compiler's Guide. Foreseen work 17. Initial discussions with some countries that expressed interest have taken place, but it would be important to move forward on this subject as any research done in this field may prove useful in the drafting of the MSITS 2010's Compiler's Guide (submission to UN Statistical Commission planned early 2014. 18. As previously suggested the authors of the present progress report are seeking country compilers that would be ready to volunteer to do some work in the area by choosing one of the approaches described in the case studies or by choosing any method which would be relevant for their policy need and would fit with their data collection/compilation system. This work could be done in collaboration with the authors. Involvement of national compilers would be of great importance to assess the different options proposed in order to build first estimates on the value of the international supply of services by modes. 5
ANNEX 1. Question 7 of the coordinated questionnaire; "Do you plan to classify the transactions between residents and non-residents according to the GATS modes of supply classifications, possibly following one of the case studies as jointly suggested by Eurostat/OECD/WTO at the 2011 WPTGS and 2012 Eurostat BOP Working Group 8 or do you plan to study possibilities?" Australia Austria Belgium Canada Chile Czech Republic (Studying possibilities) Denmark Estonia Finland France - The classification is unavailable in the short run but the case is being studied. - Germany Greece Hungary Iceland 6
Ireland Israel Italy Japan Korea Luxembourg Mexico Netherlands New Zealand rway Poland Portugal Slovak Republic Slovenia Spain Sweden Switzerland Turkey United Kingdom United States Y (plan to study possibilities) 7
ANNEX 2: Question 1 (Part 3) of the coordinated questionnaire : If you have not started compiling services transactions by modes of supply, are you planning discussions with the relevant governmental bodies for international trade to determine priorities (e.g which service sectors)? Australia Austria Belgium Canada Chile Czech Republic Denmark Estonia Finland France, over the medium run Germany Greece Hungary Iceland Ireland Israel Italy Japan Korea 8
Luxembour g Mexico Netherlands New Zealand rway Poland Portugal Slovak Republic Slovenia Spain Sweden Switzerland Turkey United Kingdom United States Possibly (under consideration) 9