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© WTO/OMC 1 WTO, GATS and Modes of Supply [email protected]

© WTO/OMC1 WTO, GATS and Modes of Supply [email protected]

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Page 1: © WTO/OMC1 WTO, GATS and Modes of Supply joscelyn.magdeleine@wto.org

© WTO/OMC 1

WTO, GATS and Modes of Supply

[email protected]

Page 2: © WTO/OMC1 WTO, GATS and Modes of Supply joscelyn.magdeleine@wto.org

© WTO/OMC 2

GATT and WTO in short• Havana Conference (ITO) – First Round (23) 1947• The GATT enters into force 1948• Annecy (33) 1949• Torquay (34) 1950• Geneva (42) 1956• “Dillon Round” (45) 1960-61• “Kennedy Round” (60) 1964-67• “Tokyo Round” (99) 1973-79• “Uruguay Round” (123) (Creation of GATS) 1986-93• Marrakesh Conference (signature of the Final Act) 1994• WTO enters into force 1.1.1995

WTO

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1986-93: Uruguay Round

• “Final Act”– Marrakesh Agreement (Establishing WTO) – Annex 1

• 1A: Agreements on Trade in Goods (GATT 1994 + …)• 1B: GATS (Trade in Services)• 1C: TRIPS (Intellectual Property Rights)

– Annex 2: Dispute Settlement Understanding– Annex 3: Trade Policy Review Mechanism– Annex 4: Plurilateral Agreements– Decisions and Declarations

WTO

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What is the WTO? (1/2)

• Independence from the United Nations system

• Member-driven (153 Members)– Decision-making by consensus

• Support from an independent Secretariat• Budget: 180 million Swiss francs (2007)• Headquarters in Geneva

(no permanent presence in the field)

WTO

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What is the WTO? (2/2)

• Deal with rules of trade• WTO agreements: contracts between Members• Agreements negotiated and signed by Members• Help producers of goods and services, exporters

and importers

Trade flow as freely as possible

WTO

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Objectives

• Raising standards of living

• Ensuring full employment

• Growth (income and demand)

• Growth in output and trade (goods and services) … optimal use of the world’s resources (sustainable development)

WTO

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Functions

• Administering WTO trade agreements• Forum for negotiations• Handling trade disputes• Monitoring national trade policies• Technical assistance and capacity building• Co-operation with other international

organizations (coherence)

WTO

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Basic principles of the multilateral trading system

• Most-Favoured Nation (MFN)

• National treatment

• Prohibited use of quantitative restrictions

• Respect of the bindings

WTO

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Current negotiations: DDA• Fourth Ministerial Conference in Doha

• Launch of new round of negotiations– “Doha Development Agenda”– Includes Services negotiations initiated in 2000

• Doha Ministerial Declaration – Work programme for negotiations– Original deadline: 1 January 2005

• “July package” (1 August 2004)

• Hong Kong Ministerial Conference

• “July 2008 package”

WTO

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Ministerial Conference

Secretariat

Appellate Body

Panels

Committees Committees

Goods Council Services Council

TRIPS Council

CTD (Development)CTE (Environment)CRTA (Regionalism)

BOPWG (Investment)WG (Competition)

WG (Transparency – Government Procurement)

AccessionsBudget

General CouncilTPRB DSB

Director-General

Trade Negotiations CommitteeTrade Negotiations Committee

WTO

Negotiating Group

Special Sessions

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Services:

• Most important activity in many countries of the world

• Single largest source of employment

• Most rapidly growing sector

• Universal inputs for many other sectors – services are everywhere

Services and TIS

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Services

• Intangible output of a production process

PRODUCTIONUSER’S NEED

PRODUCTS• GOODS (tangible)

• SERVICES (intangible)

• Key role in the economy• transport, telecommunications…• long term benefits - environmental, educational services…

• Services value added = 2/3 Global GDP

Services and TIS

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Agriculture/commodities

Telecommunications

Industrial goodsOther

Services

TransportBanking &

Insurance Computer &

SoftwareBusiness Services

Infrastructure services as a key to economic activity

Energy

Services and TIS

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Some Characteristics of Trade in Services

Services: 20% of world trade but 2/3 of world GDP

Intangible → non-tradable and non-storable

Conventional trade statistics do not cover all international trade in services

Services delivered by foreign affiliates > conventional international trade in services.

Simultaneity of production and consumptionRole of local establishment

Services and TIS

Strong government involvementPublic service obligations, infrastructural importance (transport, telecom, etc.)

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Certain services - international transport and communication - have been traded for centuries

Services are supplied in conjunction with goods (finance, insurance, marketing, etc.)

Services have become tradable as a result of:- technical progress (e-banking, tele-medicine,

distance learning)- government retrenchment- market liberalization and regulatory reform

Services and TIS

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GATS framework

• Legal text

• GATS defines:– Trade in services (4 modes of supply)– Service supplier / consumer– Commercial presence– Juridical persons / natural persons

• Commitments made from the imports perspective

GATS

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MEASURES AFFECTING TRADE IN SERVICES AT ALL GOVERNMENT LEVELS

ALL SERVICES(except air traffic rights and services supplied in the exercise of governmental authority)

FOUR MODES OF SUPPLY- Cross-border supply- Consumption abroad- Commercial presence- Presence of natural persons

APPLIES TO PRODUCT (SERVICE) AND PRODUCER/ DISTRIBUTOR (SERVICE SUPPLIER)

GATS: Scope, Coverage, Definition

GATS

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The GATSPillars and Commitments

GATSPillars

Set of general obligations and disciplines

Countries schedules of specific commitments

Annexes on specific issues

Commitmentsunder GATS

By modes of supply

By services sectors

GATS

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The Services Sectoral Classification List GNS/W/120

1. Business services2. Communication services3. Construction and related engineering services4. Distribution services5. Educational services6. Environmental services7. Financial services8. Health-related and social services9. Tourism and travel-related services10. Recreational, cultural and sporting activities11. Transport services12. Other services not included elsewhere

GATS

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• MTN. GNS/W/120 of July 1991 divides sectors into 12 groups

• Altogether ~ 160 sub-sectors identified

• Results from consultations with member countries

• Relevant sectors and sub sectors with respect to national services regulations

• Negotiating list Statistical classification

What is the GNS/W/120?

GATS Classification

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Description of Sectors

• Need for precise definition of sectors as defines scope of commitments

• GNS/W/120 may evolve and negotiators may use other classifications

• Corresponding code of the Central Product classification (CPC), Provisional version

• CPC is a tool, Members may describe sectors by using other definitions

GATS Classification

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GNS/W/120 – Provisional CPC (1/2)GATS

Classification

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Hierarchy •Section: 7 - Transport, storage and communications services •Division: 72 - Water transport services •Group: 721 - Transport services by sea-going vessels •Class: 7212 - Freight transportation

Breakdown: This Class is divided into the following Subclasses: •72121 - Transportation of frozen or refrigerated goods •72122 - Transportation of bulk liquids or gases •72123 - Transportation of containerized freight •72129 - Transportation of other freight

Description in CPC prov:

GNS/W/120 – Provisional CPC (2/2)GATS

Classification

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The 1st Mode of Supply

Supply of a service from the territory of one Member into the territory of any other Member

Service consumer

Service supplier

MODES

Member A Member B

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The 2nd Mode of Supply

Supply of a service in the territory of one Member to the service consumer of any other Member

Service consumer

Service supplier

Member A Member B

MODES

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The 3rd Mode of Supply

Supply of a service by a service supplier of one Member, through commercial presence in the territory of any other Member

Service consumer

Service supplier

Member A Member B

$

MODES

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The 4th Mode of Supply

Supply of a service by a service supplier of a Member, through presence of natural persons of a Member in the territory of any other Member

Service consumer

Service supplier

MODES

Member A Member B

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The 4 modes of supply: health services (example)

• Mode 1: Tele-diagnosis

• Mode 2: Hospital treatment abroad

• Mode 3: Foreign-owned clinic

• Mode 4: Short-term movement of foreign nurses or physicians

MODES

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The Movement of Natural Persons in GATS

Relevant framework

• GATS’ main text: mode 4 presence of natural persons• GATS’ Annex movement of natural persons

Description of Mode 4 in GATS’ Annex in terms of

Purpose of stay

Fulfilling a service contract, whether as a service supplier (self-employed) or as an employee

Duration of stay

Temporary: Measures regarding citizenship, migration, residence and permanent employment are not covered

MODE 4

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Which natural persons?• Self-employed of Member A • Employed by a service supplier of

Member A:– the employee is sent to Member B in respect of the

supply of a service– Member A has commercial presence in Member B

and sends its employee to its affiliate in Member B (intra-corporate transferees) or directly recruits a foreigner

Does not exclude any level of skill

MODE 4

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The Annex on Movement of Natural Persons

• GATS does NOT apply to measures – affecting natural persons seeking access

to the employment market– regarding citizenship, residence or

employment on a permanent basis

GATS does not define “temporary”

MODE 4

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The Annex on Movement of Natural Persons

• Commitments can be scheduled by categories of natural persons

• Governments are free to regulate entry and temporary stay, provided these measures do not nullify or impair the commitment

footnote 1: differential visa requirements, not to be regarded as nullifying or impairing benefits under a specific commitment

MODE 4

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Who is in and Who is out?Falling under Mode 4 Not falling under Mode 4

• Supply of services(Definition of particular services?)

• All skill levels

• Intra-corporate transferees or foreigners directly recruited by foreign affiliate

Contractual service suppliers –Self-employed–Employees of foreign service

supplier

Also: Services sellers, etc.• Temporary movement

• Employees in the “goods” sector

• Employees of host country firms

• Permanent migration

MODE 4

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Mode 4 and Current Commitments

Mode 4 Commitments• Supply of services

• All skill levels

• Intra-corporate transferees

Contractual serv. suppliers

Services sellers/ setting up commercial presence

• Temporary movement

• Mainly horizontal commitments

• Mostly high-level

• Intra-corporate transferees (~70%)

Contractual serv. suppliers (~10%)

Services sellers/ setting up commercial presence (~20%)

• 3-5 years: Intra-corp. transferees < 1 year: Contractual serv. suppliers< 3 months: Service sellers etc.

MODE 4

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UN CPCBasis for classifying services as product of economic activity, including services delivered through Mode 4

Industrial classification: relevant if statistics by occupation are not available

Mode 4 and Existing Classifications

ISCO-88Distinguishes categories of employment: can facilitate linkages statistics/negotiations

UN ISIC

Status in employment: identifies « independent service providers »

ICSE-93

MODE 4

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Mode 4 Information needs

Value of trade: Balance of Payments services trade

Contractual service suppliers as employees of service suppliersent abroad to fulfill a contract between his employer and consumer

Self-employed going abroad to fulfill service contract (independent professionals)

• Contractual service suppliers as employees• Self-employed• Intra-corporate transferees, employees of foreign affiliates• Service sellers / persons responsible for setting up commercial

presence

Number of persons (flows and stocks): Tourism and Migration statistics

MODE 4

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Main Issues for Measuring Mode 4

Mode 4 in MSITS

• The Manual on Statistics of International Trade in Services (MSITS) recognises that a statistical framework needs to be developed for measuring Mode 4

• Annex in MSITS as a first step

Main statistical issues

• Determining the coverage of Mode 4

• Only fragmentary indicators available

• Determining the indicators to measure Mode 4

MODE 4

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In what modes are the following services supplied?

Temporary presence of independent professional accountant to provide accounting services in country B

Establishment of a branch in B of an insurance company from country A

Services consumed by a business traveller of A while travelling abroad

Provision of medical advice by an expert team in country A to physicians carrying out by-pass surgery in country B

A dentist from B offers treatment in a practice he owns in A

Examples

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In what modes are the following services supplied?

Architect from A designs a construction project and delivers it to its client in B through the Internet, but makes occasional visits to B at the implementation phase

A computer specialist from C employed by a computer services company of B and sent to work in a branch located in B

An airline company from A has its plane repaired while stationed in country B. The crew stays in a hotel in B while the plane is being repaired.

A cook from A opening his own restaurant in country B

Examples

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• By service sectors

• By modes of supply

• Mode 1: Cross-border trade

• Mode 2: Consumption abroad

• Mode 3: Commercial presence

• Mode 4: Presence of natural persons

• By partner

GATS: Statistical information needed

Statistics

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GATS: statistical considerations

Territorial presence vs. residency

Cross-classifications (mode 4)

Services sectors vs. CPC/EBOPS/ICFA

Modes of supply vs. transactions

Temporary vs. 1 year guideline

Statistics

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• Measured in the balance of payments, within the current account

• Does not cover the whole of trade in services or showseparately (for example, mode 3 or mode 4?)

• Need for more detail in terms of service sectors (EBOPS)

• Not allocated by modes of supply

• Need for statistics broken down by partner

Trade in services between residents/nonresidents

Statistics

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Statistics

• Usefulness for measuring Mode 3 (commercial presence) and to understand globalisation

• Focus on the operations of majority-owned foreign affiliates

• Five basic variables, and additional variables

• Attributed by partner country

• Classified as a priority on the basis of the primary activity of the foreign affiliate (ICFA – focus on services)

FATS statistics

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.... But other indicators of interest for analysis

• Mode 3 and Foreign Direct Investment statistics (stocks and flows, important complement to FATS)

• Other FATS variables (number of service suppliers, employees, value of assets)

• Sectoral statistical frameworks: tourism , health

• Supplementary information from BPM6 linked to the movement of mode 4 persons

• Production, quantitative, employment indicators

Statistics

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The four modes of supply: statistical simplified criteria

Consumer or property located

Supplier Supply through:

Outside territory of residence

has no presence in consumer’s territory

Mode 2 (BOP, tourism statistics)

Mode 1 (BOP)

Mode 3 (FATS, FDI)

Mode 4 (BOP, migration, tourism statistics)

Commercial presence

has presence within consumer’s territory

Within territory of residence

Presence of natural persons

Statistics

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What’s the problem with measuring the value of GATS Modes of Supply?

?

?

?

Intermodal linkages

Services may be delivered through

several modes of supply

Mode 1

Mode 4

Mode 3Mode 2

A single service transaction through different modes

Statistics

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The GATS Modes of Supply (1/2)

COUNTRY A COUNTRY B

Mode 1: Cross-border

Mode 2: Consumption abroad

Mode 3: Commercial presence

CompanyCommercial

presence

Direct investment

ConsumerService supplier

The service crosses the border

The consumer is abroad

Servicesupply

Consumerin C

Consumer ConsumerService supplier

Consumer

$ $ $ $ $

BOP travel + part of transportation

Servicesupply

Servicesupply

BOP commercial services (excl. travel and construction)

FATS+ BOP construction Establish commercial presence

Statistics

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Mode 4: Presence of natural persons

Juridical person

Natural person

An independent goes to country A

COUNTRY A COUNTRY B

An employee is sent by a company of country B

Commercialpresence

intra-corporate transferee or directly recruited

Consumer C

Consumer

Consumer

The GATS Modes of Supply (2/2)

Servicesupply

Servicesupply

BOP commercial services (excl. travel)

Mode 3 trade

Statistics

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Allocation of BOP/EBOPS Services Items to Modes of Supply (1/2)

As a first step, MSITS proposes a simplified approach:

• Items deemed to be predominantly delivered through one mode

Mode 1

• Transportation (except supporting and auxiliary services to carriers in foreign ports),

• Communications services

• Insurance services

• Financial services

• Royalties and license fees

Mode 2• Travel (excluding purchases of goods)

• Supporting and auxiliary services to carriers in

foreign ports

Statistics

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Allocation of BOP/EBOPS Services Items to Modes of Supply (2/2)

Simplified approach (continued):

• Items for which significant elements of 2 modes of supply are involved

• Construction

• Computer and information services

• Other business services

• Personal, cultural and recreational services

Mode 1

?

Mode 4

Mode 3

?

Statistics

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4%

67%

29%

Mode 1

Mode 4Mode 2

Singapore

Commercial services exports by mode of supply, 2002

Statistics

Source: WTO Secretariat estimates derived from Singstats, Singapore's International Trade in Services: New Statistical Estimates and Analysis, March 2000 and Singapore's Balance of Payments: Methodological Improvements and New Reporting Format for the Services Account, December 2003.

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Economic Variables for FATS

• Sales (turnover) and/or output

• Employment

• Value added

• Exports and imports of goods and services

• Number of enterprises

Basic FATS variables(minimum recommended by MSITS)

Additional FATS variables

• Assets

• Compensation of employees

• Net worth

• Net operating surplus

• Gross fixed capital formation

• Taxes on income

• Research and development expenditures

Statistics

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Australia

Commercial services exports by mode of supply, 2002-03

Statistics

Mode 362.7%

Mode 219.4%

Mode 1+417.8%

Source: WTO calculations based on Trade in Services, Australia 2003-2004, Australian Department of Foreign Affairs and Trade (2005) and ABS (2007), International Trade in Services by Country, by State and by Detailed Services Category, Financial Year, 2006-07.

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Australian provision of services by mode of supply, 2002-03

Statistics

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Australia, exports of services by mode of supply, 2002-03

Mode 219.4%

Mode 362.7%

Mode 111.9%

Other5.9%

Mode 1+45.6%

Mode 2+40.1%

Mode 3+40.1%

$3.2 billion

Source: WTO calculations based on ABS (2007), International Trade in Services by Country, by State and by Detailed Services Category, Financial Year, 2006-07

Statistics

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Sales of services by Australia Breakdown by main partner, all modes, 2002-03

United Kingdom

16%

Other18%

United States39%

Indonesia3%

China3%

Hong Kong, China

3%

Japan4%

Singapore5%

New Zealand14%

Statistics

Source: Trade in Services, Australia 2003-2004, Australian Department of Foreign Affairs and Trade (2005).

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The size of mode 4 trade?

• Small compared to total trade, and to other modes of trade in services

• Importance varies across countries and sectors

• Mobility for skilled workers increasing and facilitated by special programs

• Both developed and developing countries are traders where mode 4 can be involved

Mode 4measurement

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One-year rule distinction between residents/non-residents

Mode 4 and “Temporary”

GATS does not define “temporary”

• In WTO Members’ schedules of commitments

Varies between about 3 months (service sellers) and 2 to 5 years (intra-corporate transferees)

• In international statistical standards (BPM5, SNA, migration, tourism)

Statistics on residents also include Mode 4 service suppliers

+ in GATS: nationality

Mode 4measurement

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BOP and Mode 4

BOP Items Relevance Limitations

Services (especially computer & information, other business, personal cultural & recreational, and construction services)

Service contracts with the importer

Include other modes of supply

Mode 4measurement

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Commercial presence, $64m, 16%

Fly in-fly out, $106m, 26%

Australian projects,

$238m, 58%

Australia's legal services export income by mode of supply, 2004-05(million USD and percentage)

Source: ILSAC Survey of Australian Exporet Market for Legal Services 2004-05

Mode 4measurement

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Amount (million USD) Per cent Share in Total Size of Transactions (million USD) Mode 1 Mode 2 Mode 3 Mode 4 Total Mode 1 Mode 2 Mode 3 Mode 4

< 0.2 82 1 15 7 105 77.96 1.18 14.17 6.69

0.2-2 205 5 56 31 297 69.12 1.60 18.92 10.36

2-20 358 1 288 52 699 51.18 0.12 41.27 7.43

> 20 1850 0 2706 775 5332 34.71 0.00 50.75 14.54

Total 2495 7 3065 865 6432 38.79 0.11 47.65 13.45

Top ten companies

1553 0 1750 573 3876 40.08 0.00 45.14 14.78

Source: Reserve Bank of India (2005), Computer services exports from India. (converted to US dollars by the WTO Secretariat).

Indian International Trade in Computer Services by Mode of Supply, 2002-03

Mode 4measurement

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Sales of Services by GATS Modes of Supply: 2005 Statistical Approximation

Mode of Supply Estim ated share

1 - cross-border supply 25 - 30 %

2 - consum ption abroad 10 – 15 %

3 - com m ercia l presence 55 - 60 %

4 – presence of natural persons less than 5%

Mode 4measurement

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Migration Statistics and Mode 4

Why relevant?

Which categories could be relevant?

Include temporary migrations for the purpose of work

But...Mode 4 very small within these categories

Mode 4measurement

Relevant framework

UN Recommendations on Statistics of International Migration

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Why relevant?

How could it help?

FATS and Mode 4

Relevant variables

• Employment• Compensation of employees

• Many commitments relate to intra-corporate transferees

• Separate identification of foreign non-permanent employment, of which intra-corporate transferees

Mode 4measurement

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2003 2004 2005 Austria 0.2 0.2 ... Canada 3.8 4.2 4.5 Germany 2.1 2.3 ... Japan 3.4 3.6 4.2 Korea 7.8 8.5 8.4 Switzerland 14.4 7.5 1.8 United States 57.2 62.7 65.5

Source: OECD (2007), International migration outlook: SOPEMI 2007 Edition.

Intra-corporate transfers in selected OECD countries (thousands)

Mode 4measurement

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Tourism Statistics and Mode 4

Relevant frameworksInternational recommendations on Tourism Statistics

Tourism Satellite Accounts: Recommended Methodological Framework

Why relevant?

Which categories could be relevant?

Include short-term visits for business and professional purposes

But...How detailed are these statistics?

Mode 4measurement

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Source: UNWTO(2008); * Excluding Mexico ** Excluding Hong Kong, China, Chinese Taipei and Macao and overseas Chinese.

United Kingdom 9 717 Canada 2 651

Spain 6 084 Saudi Arabia 1 603

United States * 5 569 Japan 1 523

China ** 5 548 Brazil 1 410

Poland 4 240 Australia 1 218

Hong Kong, China 3 862 Argentina 599

Russian Federation 3 233 Chile 442

Ukraine 3 040 South Africa 324

Singapore 2 925 Morocco 164

Arrivals for business and professional purposes, selected economies, 2006 (thousands)

Mode 4measurement

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Statistics for Measuring Mode 4

Categories Statistical coverage I. Service contracts, delivered in the host country by independent foreign supplier, or its employee(s)

BOP: Service transactions between resident and non-residents, major BPM5 services components Employment/migration/tourism statistics: business travellers

II. Employment contracts (non-permanent), for foreigners, in all domestic firms (not of interest for assessing mode 4)

BOP: Compensation of employees, with adjustments (e.g. sectoral breakdown and duration) Employment/migration statistics: migrants working in services.

(a) of which: foreign-owned or controlled resident services companies

A subset of the above; could be derived using the FATS register

Mode 4measurement

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Data Sources

• Statistics on the number and type of work permits granted (e.g. by duration / occupation)

• Information from social security systems / health insurance schemes in which foreigners may be distinguished

• Statistics on arrivals and departures from migration or tourism authorities (origin/destination, length of stay, purpose of stay...)

• Household, enterprise, labour-force surveys

• Border/passenger surveys

• Population censuses

Mode 4measurement

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Improving Mode 4 Related Statistics

Main difficulty in measuring Mode 4

Identify in available statistics the relevant subset of services and workers/visitors

Indicators on the value of Mode 4 services

• Identify Mode 4 in services sub-items

Migration/labour statistics

but little seems feasible at present

Sounder ground for improvement for detailed informationHowever not in short-term, and GATS Mode 4 not translated in precise statistical requirements

Mode 4measurement

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Mode 4measurement

• Supply of services, all skill levels, temporary movement• Categories of persons:

• Contractual service suppliers (self-employed or employee of the foreign contractual service supplier)

• Intra-corporate transferees and directly recruited by affiliate• Service sellers/persons responsible for setting up commercial

presence• Manual provides a first step • Framework currently developed in revised Manual

• Value of services trade for contractual service suppliers• Number of “ mode 4” persons moving and staying abroad

REMEMBER

Mode 4 measurement

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Distribution of imports by modes of supply?Examples

Table 1: Hong Kong, China - Imports of services, 2003-2006Balance of Payments transactions- million $

2003 2004 2005 2006

Transport 6719 8687 10462 11616

Travel 11448 13269 13305 14043

Other commercial services 7828 9027 10071 11247

Communication 941 1124 1141 1072

Construction 399 346 273 241

Insurance 622 611 606 613

Financial services 878 1165 1406 2017

Computer and information services 282 395 427 371

Royalties and licence fees 864 1111 1289 1357

Other business services 3772 4223 4878 5519Personal, cultural and recreational serv. 68 52 52 56

Commercial services 25994 30983 33838 36905FATS inward sales of services 83077 91612FDI inward stock in services 256333 311852 353579 483996FDI inflows in services 11931 23331 24661 32133

Source: WTO calculations based on IMF BOP database (2008) and Hong Kong Census and Statistics Department .

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Assessment of imports by modes of supplyBOP basis

0%

20%

40%

60%

80%

100%

2005 2006

Hong Kong, China

Mode 1

Mode 2

Mode 3

Mode 4

Examples

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US Sales of Services to APEC economies 2006, million USD

0

10,000

20,000

30,000

40,000

50,000

60,000

Canad

a

C

hile

M

exico

A

ustra

lia

C

hina

H

ong

Kong

In

done

sia

J

apan

K

orea

, Rep

ublic

of

M

alay

sia

N

ew Z

ealan

d

P

hilip

pines

S

inga

pore

Taipei

, Chin

ese

T

haila

nd

Modes 1 and 4 Mode 2 Mode 3

Source: US Bureau of economic analysis (2007)..

Examples

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New Chapter in revised 2010 Manual

• More on services delivery compared to BOP services transactions

• Chapter on modes of supply/mode 4:• Scope of chapter

• Defining modes of supply

• Mode 4 and relevant information for measuring

• Allocation by mode of supply for measuring value

• Additional indicators for analysis: number of persons

Revis

ion 2

010

New chapter