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I. ORGANIZATION OF THE
SEMINAR
1. The Seminar on Statistics on Trade in Services,
organized by the secretariat of the Economic
and Social Commission for Asia and the Pacific
(ESCAP), was held in Bangkok from 6 to 10 November
1995 with financial support provided by the
Government of the Republic of Korea through
the Korea-ESCAP Cooperation Fund.
A. Attendance
2. The Seminar was attended by 39 participants
from 21 members and associate members of ESCAP:
Australia, Bangladesh, Brunei Darussalam, China,
Fiji, Hong Kong, India, Indonesia, Islamic Republic
of Iran, Macau, Malaysia, Myanmar, Nepal, Pakistan,
Papua New Guinea, the Philippines, Republic
of Korea, Singapore, Sri Lanka, Thailand and
Viet Nam.
3. Representatives of the International Monetary
Fund (IMF), the World Trade Organization (WTO),
and the Organisation for Economic Cooperation
and Development (OECD) participated. Five observers
attended the meeting.
B. Opening of the Seminar
4. The Executive Secretary of ESCAP inaugurated
the Seminar. In his opening address, he expressed
gratitude to the Government of the Republic
of Korea for providing financial support for
the Seminar. He expressed appreciation to the
Australian Bureau of Statistics, IMF, OECD and
WTO for sending resource persons to the meeting.
5. The Executive Secretary noted that owing
to dynamic economic development and the trend
towards globalization of economic activities,
trade in services was assuming such importance
that it had been included in multilateral trade
negotiations at the Uruguay Round. It was, therefore,
not surprising that data on international trade
in services were receiving heightened analytical
and policy interest among countries in the region.
The Executive Secretary further noted that an
improvement in the quality of statistics on
trade in services, and with it the balance-of-payments
data, was especially important for policy makers
in the economies of the ESCAP region where emphasis
had been placed on outward-oriented growth.
6. Rapid advances in information technology
had also caused trade in services to increase
tremendously. New technological possibilities
gave rise to new modes of economic activities,
which presented a challenge to statisticians
in terms of accounting for them adequately.
The Executive Secretary emphasized that a clear
understanding and consistent application of
statistical concepts and definitions would go
a long way towards promoting internationally
comparable data on trade in services. The resulting
consistent statistics would contribute greatly
to the implementation of the General Agreement
on Trade in Services (GATS) as well as to the
promotion of economic cooperation generally.
7. The Executive Secretary welcomed the close
cooperation between the Australian Bureau of
Statistics and ESCAP Statistics Division. He
was delighted also at the collaboration between
ESCAP and IMF, OECD and WTO in the efforts to
improve statistics on trade in services in the
economies of the ESCAP region.
C. Election of officers
8. The Seminar elected Mr Muhammad Younis
Jafri (Pakistan) Chairperson, and Mr A.A.K.
Perera (Sri Lanka) and Mr Seyed Nematollah Mir
Fallah Nassiri (Islamic Republic of Iran), Vice-Chairpersons.
Mr Mark Lound (Australia) was elected Rapporteur.
D. Adoption of the
agenda
9. The Seminar adopted the following agenda:
- Opening of the Seminar.
- Election of officers.
- Adoption of the agenda.
- Review of country practices
in the compilation of statistics on trade
in services.
- Conceptual framework
and classification of data on trade in services.
- Statistical requirements
of the General Agreement on Trade in Services
and of international agencies.
- Data collection in
specific services sectors:
- Administrative records;
- Surveys.
- Other business.
- Adoption of the report.
/ E. Documentation
10. A list of the documents submitted to the
Seminar is given in the annex.
II. REVIEW OF
COUNTRY PRACTICES IN THE COMPILATION OF STATISTICS
ON TRADE IN SERVICES
11. The Seminar reviewed the practices of
collection and compilation of trade in services
statistics in the region on the basis of country
papers presented by the participating countries,
along with document STAT/SSTS/1, "Collection
of trade in services statistics in New Zealand".
Many papers noted that the share of services
in their economies had increased considerably
in recent years, and concomitantly there had
been an increase in international trade in services
activities. That had resulted in greater pressure
on many national statistical agencies to provide
more detailed international trade in services
statistics. The Seminar also noted that most
of the countries were compiling their trade
in services statistics following the recommendations
contained in the fourth edition of the IMF Balance
of Payments Manual (BPM4) and some of them
were in the process of moving towards the compilation
of data according to the fifth edition (BPM5).
Typically the list of services traded included
transportation (by land, sea and air), travel,
financial services, insurance, telecommunications,
postal services and construction services.
12. The Seminar noted that with the liberalization
process set in motion by the countries of the
region, international trade in services had
been sharply on the increase. While the share
of such services in the economy had risen in
most of the countries, the Seminar observed
that there had been a phenomenal increase in
international trade in services in the fast
growing economies of the region, particularly
in Hong Kong and Singapore.
13. The Seminar noted that data on international
trade in services in most of the participating
countries were gathered from foreign exchange
collections from banks and foreign exchange
institutions, supplemented with special surveys
and administrative records, generally supplied
from government departments. However, Australia,
Hong Kong, New Zealand and Singapore did not
rely at all on a foreign exchange system. Many
countries noted their concern about the adequacy
of a foreign exchange reporting system under
liberalized foreign exchange régimes.
Consequently, a number of other countries in
the region were increasingly undertaking specific
surveys for the collection and compilation of
data that were not adequately covered in their
foreign exchange systems. Such surveys included
departing visitors' surveys, surveys of transportation
enterprises, and surveys of other services transactions.
14. The Seminar noted that all the participating
countries had encountered a number of problems
and issues in the collection and compilation
of international trade in services data, which
varied depending on the source of their services
data. Some of the problems included incomplete
coverage and misclassification of balance-of-payments
transactions in foreign exchange systems, and
non-response to survey questionnaires. The amount
of information on various services sectors provided
by the countries varied significantly depending
upon their level of statistical development,
with the residual 'other' category sometimes
being sizeable. That made intercountry comparisons
difficult, and the Seminar therefore urged the
participating countries to compile information
in line with the BPM5 classification, as resources
allowed.
15. The Seminar noted with satisfaction that
most of the participating countries were planning
to implement at least part of the fifth edition
of the BPM. It was mentioned, in that regard,
that a clear distinction between goods, services,
income, and current transfers was one of the
important features of BPM5. The Seminar realized
that because it might take some time for participating
countries to move fully to the new system, they
might meanwhile undertake studies to determine
the amount of detail that could be provided.
The Seminar noted with interest the importance
of the availability of country breakdowns for
trade in services statistics, which improved
the usefulness of the data.
16. The IMF representative pointed out that
the Statistics Department of the Fund had issued
the Balance of Payments Compilation Guide
and expected to issue a Balance of Payments
Textbook in early 1996 explaining various concepts
with numerical examples based on the notes prepared
for the IMF courses on balance-of-payments methodology.
Those two publications would supplement the
BPM5. The Seminar also learned that the Fund
planned to obtain information on country balance-of-payments
data sources and methodology which could be
accessed by member countries when available.
The Seminar also noted that the country papers
presented at the meeting contained useful information
and suggested that the ESCAP secretariat might
consolidate the information to provide a comparative
picture of trade in services statistics in the
region.
III. CONCEPTUAL FRAMEWORK
AND CLASSIFICATION OF DATA ON TRADE IN SERVICES
17. The representative of IMF made a presentation
on a conceptual and classification framework
for international trade in services statistics
on the basis of document STAT/SSTS/2. He remarked
that the papers reviewing country practices
on the compilation of statistics on trade in
services provided a convenient link to that
paper. He felt that the trend to conversion
to BPM5, particularly as applied to the expanded
classification of services components, was very
encouraging.
18. The Seminar was briefed on the background
and development of BPM5, noting particularly
its harmonization with the 1993 System of National
Accounts (SNA), and its relationship with the
joint OECD-Eurostat Trade-in-Services Classification.
National balance-of-payments compilers had played
a central role in the formulation of BPM5 recommendations.
The Seminar noted the conclusions of document
STAT/SSTS/2 that: (i) the conceptual framework
for international trade in services statistics
had to be based primarily on the concept of
residence as articulated in BPM5 and in the
SNA, together with a complementary system based
on the GATS-designated modes of international
delivery of services, the latter to be closely
linked to the balance of payments and rest of
the world accounts; (ii) the two frameworks
should be clearly linked through bridges, with
clarifying delineations of differences, including
those of level of detail, between the two; (iii)
the two systems, although with close and identifiable
linkages, should not be fully integrated or
combined to derive such measures as "new" net
balances of goods and services that might include,
for example, components of income (such as direct
investment income); (iv) in order to obtain
needed disaggregated services data for foreign
affiliates trade, surveys (such as those conducted
by the United States of America) had to be implemented
and continued on a regular basis; and (v) the
inter-agency Task Force on Services Statistics
and the IMF Committee on Balance of Payments
Statistics should work in tandem to help formulate
a framework for international trade in services
statistics that was consistent with the international
conceptual and classification standards, as
reflected in the SNA and the BPM5.
19. The Seminar noted that the one-year rule
guiding the classification of residence should
be flexibly applied in construction, other conditions
being needed to determine whether there was
an export of a service or production attributable
to the host economy. It also noted that students
and patients seeking treatment abroad should
be classified as residents of their economies
of origin irrespective of the length of stay.
It was clarified that payment for the use of
patents in the form of royalties and licence
fees should be included in the current account,
whereas the purchase of the rights should be
included in the capital account. The Seminar
affirmed that processing of goods imported for
re-export to third countries should be treated
as a service by the processing country. In that
regard it noted that different treatment applied
to the international trade statistics of the
economies involved in triangular trade could
provide conflicting statistics for treaty negotiations.
The Seminar noted that the measurement of financial
services, such as financial intermediation services
indirectly measured (FISIM) and insurance services,
were of a complex nature. Experimentation and
studies were needed before some BPM5 concepts
could be successfully applied in those areas.
20. The representative of OECD made a presentation
of the joint OECD-Eurostat Trade-in-Services
Classification on the basis of documents STAT/SSTS/5
and STAT/SSTS/6. The Seminar noted that the
classification, which represented the result
of joint efforts by OECD and Eurostat in cooperation
with IMF and which was near finalization, had
been developed with a number of criteria in
mind. The first was the close linkage with BPM5.
The one-digit and many two- and three- digit
items in the OECD-Eurostat classification were
identical with, and the other sub-items were
compatible with, IMF items. The second criterion
was a high degree of continuity with previous
classifications, in particular travel, transportation
and government services. The third was a linkage
to the Central Product Classification (CPC)
of the United Nations at a high level of its
hierarchy; that linkage was flexible as some
services were untradable and other service categories
were defined, not in terms of products, but
in terms of specific consumers (travellers,
Governments). The fourth criterion was harmonization
with the 1993 SNA, which had been achieved except
for financial and insurance services. The fifth
was the incorporation of additional details
requested by WTO to ensure a minimum level of
comparability with the Group of Negotiations
on Services (GNS/W/120) classification.
21. The Seminar noted that "services between
affiliated enterprises, n.i.e." was a specific
item in the OECD-Eurostat classification created
to record flows between parent enterprises and
their affiliates that could not be broken down
into specific service categories. The Seminar
took note of the fact that while the item "Financial
services" was currently limited to explicit
service charges such as fees and commissions
in BPM4, the inclusion of implicit service charges
for financial intermediation services indirectly
measured constituted a longer-term objective.
22. The Seminar noted that owing to technological
advances, the scope of services included in
international trade had increased in variety
as well as in value. Consequently the number
of detailed categories in services had increased,
and the Seminar observed that respondents might
not have the detailed records required to provide
data according to the BPM5 classification. Although
the classification could be too detailed for
some countries and inadequate for others, the
Seminar appreciated that it provided the necessary
reference framework and that the countries concerned
were obliged to collect and compile data based
on their own needs and ability. It noted that
while no system of data collection could meet
the needs of every user, the BPM5 could satisfy
the requirements of those interested in the
external transactions accounts of the 1993 SNA.
Information for trade negotiations, when needed
in terms of mode of delivery, would demand a
different approach to data collection, although
trade in services data collected through the
residency approach would be useful.
23. The importance of confidentiality of data
was noted by the Seminar. Data from banks on
financial services, for example, were considered
sensitive in some countries and respondents
sometimes were reluctant to provide information.
In that connection, the Seminar noted elaborate
procedures in one country whereby the identity
of respondents was not indicated in the questionnaire
and where necessary arrangements were made for
respondents to subdivide their data into a number
of returns so that the size of the enterprise
was not revealed. The Seminar emphasized the
need to respect confidentiality requirements
as a prime means of building up the trust of
respondents.
24. The Seminar noted that the processing
of imported goods subsequently re-exported back
to the country of origin, classified on a net
basis under services in BPM4, was classified
on a gross basis under goods in BPM5. Consequently,
commodity trade would show a higher gross value
when countries converted to the fifth edition
of the Manual. The Seminar noted that the installation
of equipment should in concept be treated as
services but sometimes it might be included
under goods in practice, although such treatment
would not affect the current balance. On the
different treatment between labour income and
individual consultancy fees as services, the
Seminar concluded that individual consultants
were considered to have provided services of
an entrepreneurial nature (to be recorded under
services, rather than under compensation of
employees).
IV. STATISTICAL
REQUIREMENTS OF THE GENERAL AGREEMENT ON TRADE
IN SERVICES, AND OF INTERNATIONAL AGENCIES
25. The Seminar considered two papers: "Usefulness
of statistical data for the evaluation and future
negotiation of GATS for the developing countries
in Asia and the Pacific" (STAT/SSTS/4), prepared
by the secretariat, and "Trade in services as
defined in GATS: basis for a statistical framework"
(STAT/SSTS/3) prepared by the World Trade Organization.
The observer from the Australian National University
also made a presentation on using an econometric
model to estimate bilateral service trade flows.
26. Based on the presentation made by the
representative of WTO, the Seminar noted that
the GATS definition of trade in services went
beyond the notion of transactions between residents
and non-residents and encompassed four modes
of supply: cross-border supply, consumption
abroad, commercial presence, and presence of
natural persons. Countries' commitments in GATS
were made according to each mode of supply for
each component of a detailed classification
of services products. Thus, statistical needs
arising from the GATS would encompass, for each
mode of supply, the availability of detailed
statistics by origin and destination.
27. However, given the fact that modes of
supply did not match existing statistical domains
such as balance-of-payments, national accounts,
and foreign direct investment (FDI) statistics,
a pragmatic approach was recommended to the
Seminar for the time being, whereby current
statistical domains would be used, taking into
account GATS needs in statistical developments.
28. The Seminar also took note of the recommendation
to create a new statistical domain on foreign
affiliates trade (FAT) to provide information
for the commercial presence mode of supply.
It was noted that the United States was already
collecting FAT statistics, and that the establishment
trade task force of Eurostat was considering
guidelines and definitions with a view to collecting
FAT statistics at the European Union level in
the near future. The definitions of the concepts
of 'foreign-controlled companies' and the country
of origin of a foreign company were required
before those statistics could be collected.
The Seminar noted that the priority variables
to be collected were gross output (turnover)
and value added. The need for consistency between
FAT, FDI and production statistics was also
stressed.
29. With regard to a breakdown of balance-of-payments
statistics according to the other modes of supply,
the Seminar noted the need for pilot studies
on some countries and sectors. However, no country
had yet volunteered to explore such studies.
A number of participants expressed the view
that given the state of their statistical systems,
the collection of FAT statistics was still a
distant goal. It was, however, acknowledged
that implementation of the services part of
BPM5, including its trade in services classification,
would already be a big step towards meeting
GATS needs. Further steps would encompass the
provision of more detailed balance-of-payments
data along the lines of the OECD-Eurostat or
the GNS/W/120 classifications, as well as FDI
statistics by kind of activity and by geographical
breakdown. In the medium term, developing countries
could take advantage of the conceptual and methodological
work undertaken by developed countries on FAT
statistics.
30. In considering paper STAT/SSTS/4, the
Seminar noted that modern information technology
was removing some of the traditional physical
barriers to trade and providing new opportunities
and choices to producers, traders and consumers
in developed and developing countries alike.
However, as the nature of service transactions
became more complex and multi-dimensional, an
ever-larger share of economic transactions would
also become effectively invisible to the Governments.
That rapidly changing business environment had
important implications for charging custom duties,
collecting taxes and compiling accurate and
comprehensive trade statistics.
31. The Seminar was informed that negotiations
under GATS were still continuing at the sectoral
level, while an accord had recently been reached
on financial services, which was subject to
review after a two-year period. The current
focus of negotiations was on basic telecommunication
services, maritime transportation and movement
of natural persons. To prepare for future negotiations
and to review the implementation of agreements,
the Seminar noted that the developing countries
would have to gain more understanding about
their own services sectors vis-à-vis
the rest of the world. In fact, during the past
negotiations, the lack of ability to measure
the magnitude of the service sectors was one
of the obstacles to the completion of the Uruguay
Round. Lacking appropriate disaggregated data,
only a very general and qualitative analysis
of specific commitments had been undertaken
by countries and international organizations.
V. DATA COLLECTION
IN SPECIFIC SERVICES SECTORS
32. The resource person from the Australian
Bureau of Statistics introduced the agenda item
and outlined the four sectors to be covered
in separate sessions: travel; transportation;
insurance and financial services; and other
services. Each session involved presentations
by the Australian and Thai representatives on
their measurement systems, with the Hong Kong
representative opening discussion.
A. Travel
33. The resource person and the Australian
representative provided an overview of the Australian
system for measuring travel. The coverage of
those services in the Australian system was
based on BPM4. Additional dissections and reclassifications
were planned to conform with BPM5 and the OECD-Eurostat
Trade-in-Services Classification. The historical
development of the Australian system was outlined,
particularly the reliance in the past on a system
for capturing foreign currency receipts and
payments made through banks. The main data sources
in the current methodology were, for both credits
and debits, monthly administrative data on numbers
of overseas arrivals and departures; for credits,
the International Visitor Survey conducted by
the Bureau of Tourism Research; and, for debits,
the four-yearly Survey of Returned Australian
Travellers. The debits estimates between benchmark
years were moved forward using the results of
a survey of travel enterprises. Estimates were
generally derived by applying per capita expenditure
estimated from those surveys to traveller numbers.
A number of measurement issues encountered by
Australia were noted; those included the need
for better estimates by country, and the difficulties
of measuring students' expenditure.
34. The representatives from Thailand described
their exchange record system for measuring trade
in services and noted their plans to implement
BPM5, including the provision of disaggregated
data on trade in services. They then outlined
their experience in respect of travel services.
Owing to the limitations of the exchange record
system for measuring travel services credits,
they had adopted an estimation methodology based
on an annual survey of travellers conducted
by the Tourism Authority of Thailand. That involved
calculating an average expenditure per day,
adjusting it for length of stay, and applying
the result to the number of foreign visitors
obtained from Thai immigration authorities.
There were plans to improve the coverage of
the survey in the near future and to address
the undercoverage of students' expenditure in
the existing methodology. It was noted that
Thailand considered it a priority to improve
both travel services credits and debits statistics.
35. The Hong Kong representative indicated
that their measurement system was similar to
that of Australia. It involved deriving per
capita expenditure estimates from a General
Household Survey for debits and from a Visitors'
Survey for credits. Coverage limitations of
those sources were noted as well as plans by
Hong Kong to obtain more accurate data on students'
expenditure.
36. The Seminar discussion encompassed several
coverage and classification issues. The boundary
between goods and services was considered. It
was noted that the travel component included
expenditure on goods as well as services. Where
cross-border shopping was significant, it could
be useful to record that expenditure separately
in a memorandum item, as recommended in the
OECD-Eurostat Trade-in-Services Classification.
The Seminar also discussed the breaks in series
that would occur in implementing BPM5 and the
impact those would have on analysis. Several
countries noted their plans to recast current
series on to the new basis whenever possible.
The issue of sampling techniques was raised.
It was noted that specialist expertise was needed
in designing sample surveys.
37. There was some discussion of different
types of measurement systems for trade in services.
It was noted that most countries that had exchange
record systems supplemented the data by surveys
and administrative sources. That was particularly
so for travel. Similarly, those countries that
had survey systems generally also used administrative
data sources. The IMF representative noted that
the Balance of Payments Compilation Guide
did not favour one system over another, but
he suggested that surveys had particular advantages
in measuring trade in services and direct investment.
The issues in allocating expenditure by country
were discussed, including the difficulties in
compiling comparable partner country data. The
comparisons of bilateral travel data undertaken
by the IMF Committee on Balance of Payments
Statistics were outlined.
B. Transportation
38. The resource person and the Australian
representative presented the Australian system
for measuring transportation services, which
was currently based on BPM4. Plans to implement
BPM5 and the OECD-Eurostat Trade-in-Services
Classification, involving additional dissections
and reclassifications, were noted. The main
data sources used were quarterly surveys of
airline and shipping operators and monthly data
collected by the Australian Customs Service.
Some major changes in Australia over the last
few years in collection methods for obtaining
data on transportation services were outlined.
Those had resulted in significant improvements
to the quality of the statistics and had reduced
provider load. The main issues affecting the
existing estimates included the lack of source
data for insurance on freight, deficiencies
in the measures of freight on imports and passenger
services, and coverage of non-resident airlines.
39. In describing the system in Thailand for
measuring transportation services, the Thai
representative noted that it was based on the
exchange record supplemented by some data obtained
from one resident airline operator. Freight
and insurance on imports were derived by applying
fixed percentages to imports c.i.f. (cost, insurance,
freight). In the longer term, the intention
was to undertake some surveys in the area and
explore secondary data sources.
40. The representative from Hong Kong emphasized
the importance of the definition of resident
in measuring transportation services and indicated
that their system followed the definition in
BPM5. Their data sources included a Survey of
Imports and Exports of Services and administrative
data. Plans to compile merchandise trade on
an f.o.b. (free on board) as well as c.i.f.
basis in future, and the implications for the
measurement of freight on imports, were noted.
41. There was considerable discussion of the
limitations of estimating freight on imports
using fixed ratios when countries had c.i.f.
but no f.o.b. data. The OECD representative
outlined the additional dissections of the BPM5
components implied by the OECD-Eurostat Trade-in-Services
Classification. A number of measurement issues
associated with land and space transport were
discussed. The usefulness of pre-survey enquiries
or coverage surveys a technique employed by
several countries was also noted. The issues
involved in deciding whether to conduct censuses
or surveys in that field were noted. Difficulties
were recognized in making some of the distinctions
required by BPM5, particularly splitting goods
and services procured in ports and splitting
time charters between those with and without
crew.
C. Insurance and financial
services
42. In introducing the item the resource person
noted that, unlike BPM4, BPM5 required that
certain implicit insurance and financial services
be measured. She outlined the changed treatment
of insurance in BPM5 and referred participants
to an IMF Working Paper (WP/95/72) that discussed
the new treatment of insurance services in more
detail and reviewed the practical implications.
In the following presentation of the Australian
system, it was noted that only explicit charges
for insurance and financial services were measured.
The main data sources were quarterly surveys
and administrative data. The methodology was
based on BPM4 and for insurance involved differencing
premiums and claims, with one exception. The
exception referred to extraordinary insurance
claims (associated with major natural disasters)
that could result in claims exceeding premiums
in some years, both at the aggregate and partner
country levels. The current Australian methodology
took that into account by calculating a normal
service charge and recording the extraordinary
insurance claims in unrequited transfers. While
that methodology was similar in some respects
to that in BPM5, full conformity with the new
standard and with the 1993 SNA would require
some significant changes. Investigations were
under way to determine the new methodology and
to determine whether it was feasible to measure
income on technical reserves (an optional feature
in BPM5). The issues associated with estimating
financial intermediation services indirectly
measured were also being investigated with a
view to ensuring continued consistency between
the Australian balance of payments and national
accounts. Other conceptual and practical issues
being considered in Australia included the estimation
of the implicit service charge on foreign exchange
trading, the estimation of outward general insurance
claims, and the treatment of Lloyds names.
43. The representative from Thailand commented
that they might need to supplement their foreign
exchange record in the future with a survey
on financial services. The representative from
Hong Kong noted that their data source for measuring
those services was a bank survey but that only
explicit services were included. Coverage of
those services was good. For insurance services,
the main data source was again surveys and services
were estimated by taking the difference between
premiums and claims.
44. There was some discussion of the new methodology
for insurance services and a number of participants
expressed support for the changed treatment.
Several also indicated their support for attempting
to measure income on technical reserves. Questions
were raised about the practical aspects of superannuation
and measuring services transactions involving
pension funds, and about brokerage and commissions
on securities transactions. There was considerable
discussion of the conceptual and practical complexities
associated with measuring financial intermediation
services indirectly measured.
45. A number of participants questioned how
reference rates could be determined and measured
and how imports of financial intermediation
services indirectly measured could be estimated,
particularly as there were no prospects in the
foreseeable future for using bilateral partner
country data. It was noted that, despite the
practical problems, financial intermediation
services indirectly measured was an important
area of measurement for the national accounts
and that in the balance-of-payments context
it essentially involved a reallocation of a
part of income transactions to financial services.
D. Other services
46. In introducing the topic, the resource
person drew attention to the clear distinction
in BPM5 between services and income and its
guidance on separating goods and services. She
noted that BPM5 involved a reclassification
of royalties and licence fees from income to
services and the provision of much more detail
on services components. The Australian presentation
on the topic noted that in balance-of-payments
statistics, services were already clearly distinguished
from income and goods and that the component
breakdowns sought by BPM5 and the OECD-Eurostat
classification had already been largely implemented.
Some reclassifications from services to merchandise
and from income to services would be necessary
for full implementation. There were a number
of data sources for estimating those services
items, the main ones being quarterly and annual
surveys of international trade in services,
surveys of embassies and consulates, and various
administrative records. In the experience of
Australia the main measurement issues were bundling
of goods and services; collection of information
on a regional basis; high sampling errors at
the detailed level; treatment of new services;
and adequate coverage of the survey population.
It was noted that considerable resources in
Australia had been devoted to improving international
trade in services in recent years and that extra
resources had also been allocated for further
initiatives in the future.
47. Hong Kong noted that they had faced similar
problems to Australia, except that as their
Survey of Imports and Exports of Services was
a census, they did not have any sampling issues.
However, they did have other problems in the
sector which included the measurement of trade-related
services in a more comprehensive way and the
collection of regional data.
48. Discussion on the other services sector
centred around classification and collection
issues. Problems in regard to the treatment
of customs-free zones, royalties and licence
fees, construction services and the subcontracting
of professional services were discussed. Collection
issues were also raised in relation to imputation
for non-response, time-lags in results from
quarterly and annual surveys, and the maintenance
of up-to-date population frames.
VI. OTHER MATTERS
49. The Seminar heard of the activities and
plans of various organizations working in the
field of trade in services statistics. It noted
that the Asia-Pacific Economic Cooperation (APEC)
forum had established a working group on trade
and investment data with the objective of improving
the availability and comparability of statistical
data series on merchandise trade and trade in
services, and on investment and flows and comparability
by partner countries. The working group was
in the process of setting up a "near-comparable"
database containing member economies' statistics
in those fields. The Seminar noted that the
limited information that had so far been made
available to the coordinator of trade in services,
New Zealand, revealed the existence of large
discrepancies between countries. That situation
arose not only because of weaknesses of national
data series, but also because countries provided
data based on different classification practices.
The Seminar noted that with time and resources,
Canada and the United States had been able to
reconcile their trade in services data to the
extent of each country's substituting counterpart
data where appropriate.
50. The Seminar also noted that APEC Governments
were urging the speeding up of work on trade
in services statistics. A further meeting of
the working group on trade and investment data
would be organized in Beijing in May 1996 and
would be preceded by a technical workshop on
trade in services and direct investment statistics.
51. The Seminar was informed that statistics
played a central and growing role in the work
of the IMF, and that technical assistance to
member countries from the Fund's Statistics
Department was similarly on the increase. The
IMF had conducted or planned to conduct country
courses on balance of payments in a number of
countries. The regular six-week balance-of-payments
training course in Washington would begin in
April 1996. The BPM5 was available in Arabic,
Chinese, French, Japanese, Russian and Spanish
as well as in English. The Seminar also noted
that the IMF Standing Committee on Balance of
Payments Statistics was currently working inter
alia on issues relating to financial derivatives,
and that the Committee was organizing a coordinated
portfolio investment survey in respect of end-1997
in which many countries had already agreed to
participate. The representative of the IMF subsequently
briefed the Seminar on the main changes introduced
in the fifth edition of the BPM.
52. The Seminar noted that WTO, while not
itself collecting data, was very concerned with
statistics on trade in services, and contributed
actively to the inter-agency Task Force on Services
Statistics which had been established by the
United Nations Statistical Commission and had
been convened by OECD. The Task Force, which
had the promotion of technical assistance within
its terms of reference, was next scheduled to
meet in January 1996. The Seminar also heard
that the Task Force was investigating the publication
of a worldwide trade in services yearbook, and
the production of a manual or handbook in the
longer term. Apart from working with Eurostat
on the joint Trade-in-Services Classification,
OECD was providing technical assistance on trade
in services statistics to countries in central
and eastern Europe.
VII. ADOPTION OF THE
REPORT
53. The Seminar adopted its report on 10 November
1995.
Annex
LIST OF DOCUMENTS
| Title |
Symbol |
|
Provisional agenda
|
STAT/SSTS/L.1 |
| Collection of trade in
services statistics in New Zealand |
STAT/SSTS/1
|
| A conceptual and classification
framework for international trade in services
statistics |
STAT/SSTS/2 |
|
Trade in services as defined in GATS:
basis for a statistical framework
|
STAT/SSTS/3 |
| Usefulness of statistical
data for the evaluation and future negotiation
of GATS for the developing countries in
Asia and the Pacific |
STAT/SSTS/4 |
| Classification of trade
in services data for international trade
in services statistics |
STAT/SSTS/5 |
| Joint OECD-EUROSTAT trade-in-services
classification |
STAT/SSTS/6 |
|
Methods of estimating bilateral service
trade flows
|
STAT/SSTS/CRP.1 |
Country and area papers
- Australia
- Myanmar
- Brunei Darussalam
- Nepal
- China
- Pakistan
- Fiji
- Papua New Guinea
- Hong Kong
- Philippines
- India
- Republic of Korea
- Indonesia
- Singapore
- Iran (Islamic Republic
of)
- Thailand
- Macau
- Viet Nam
- Malaysia
|
