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									                                                                        STD/SES/TAGS – Trade and Globalisation Statistics
                                                                        STD/PASS/TAGS – Trade and Globalisation Statistics




                                             Report of the Joint Session of the
   Agenda                                       Task Forces on International
   Item : 3.3
                                             Merchandise Trade Statistics and
                                             Statistics on International Trade in
                                                      Services (TFSITS)
                                                   Bangkok 12 March 2009


                                                           OECD Statistics Directorate
                                                             Andreas.Lindner@oecd.org




…, STD/SES/TAGS; 2nd WPTGS Meeting 16.-18.11.2009, Paris
                                  STD/SES/TAGS – Trade and Globalisation Statistics
                                  STD/PASS/TAGS – Trade and Globalisation Statistics




                       Outline
1. Report from UNSC and WGGNA
2. UNSC and international consultation on trade
   statistics
3. Coverage of trade statistics-goods for processing
   and intra-firm trade of multinationals
4. Alternative presentation of trade by product
5. Software
6. Governance issues on managing the two Task
   Force
7. Recommendations of the Joint session and
   future work


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                                             STD/SES/TAGS – Trade and Globalisation Statistics
                                             STD/PASS/TAGS – Trade and Globalisation Statistics



           1) Report from UNSC and
                   WGGNA
• OECD and more recently also WTO submitted a letter to the
  Working Group on the Impact of Globalization on National
  Accounts (WGGNA), expressing concern with the NA decision
  on the more strict application of the ownership principle.
  WGGNA took note of these concerns.
• The Joint Session pointed out that substantive work by
  compilers will be needed to ensure the
• Proper recording of goods for processing (without change
  of ownership), namely the
   – identification of data sources for trade in goods shipped for
     processing,
   – identification of intra-firm trade
   – valuation of respective transactions
• IO’s are called upon to provide operational guidance on
  compilation issues


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                                            STD/SES/TAGS – Trade and Globalisation Statistics
                                            STD/PASS/TAGS – Trade and Globalisation Statistics



          2) UNSC and international
        consultation on trade statistics
•    UNSC 2010 with focus on trade statistics (IMTS 2010 and
    MSITS 2010)
•   Need to involve more the WCO (Customs 21st Century
    initiative), focus on data quality improvements (partner data,
    export processing zones, use of non-customs sources)
•   Growing importance of new data sources for more
    integrated economic statistics, namely the linking of trade and
    business registers
•   Timeliness of analytical results
•   Secondary data dissemination in relation to private sector
•   In conclusion, the group recommended to highlight the
    transparent process of the manual revisions, the good co-
    operation between the two Task Forces, and to voice the
    importance of these statistics in a global world



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                              STD/SES/TAGS – Trade and Globalisation Statistics
                              STD/PASS/TAGS – Trade and Globalisation Statistics

      3) Coverage of trade statistics-
    goods for processing and intra-firm
          trade of multinationals
• Concerning IMTS, there would be no change
  in reporting trade with processing zones
  (gross reporting)
• However, increasing differences for trade
  aggregates, reported by SNA and BOP
  frameworks, to be expected
• This could confuse users and need for bridge
  tables
• This issue to be discussed at WPTGS,
  including value added chain analysis

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                                                  STD/SES/TAGS – Trade and Globalisation Statistics
                                                  STD/PASS/TAGS – Trade and Globalisation Statistics



       4) Alternative presentation of trade
                    by product
• OECD presented an alternative presentation of G&S
• Rationale behind is to relate trade to supply-utilisation tables and I-O
  tables =>integrated trade statistics by product and by activity
• Such an approach could improve analytical linkage to production,
  employment, enterprise statistics, FDI and multinationals
• Correspondence tables developed for
    – Services: CPC1.1<=>ISIC Rev3,CPC1.1EBOPS
    – Goods: HS02, SITC Rev3, CPC1.1. ISIC Rev3
    – Merge results to obtain trade by product (CPC1.1) and by industry (ISIC
      Rev.3)
• Extended test with actual data to be reported to WPTGS and next
  Joint TF meeting, as well as to UN Classification Subgroup and
  CSSA
• Important number of estimates needed and good metadata




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                                                   STD/SES/TAGS – Trade and Globalisation Statistics
                                                   STD/PASS/TAGS – Trade and Globalisation Statistics




                             5) Software
• This issue stems from the NA need to distinguish licences for
  consumption from those considered GFCF and the difficulties in
  allocating software to goods or services
• OECD presented grouping with
   – Goods=computer software licences, non-customized, on physical media
     with right for perpetual use
   – Services=the rest, including licences to reproduce and/or distribute
     software
   – HS is “silent” as to electronically transmitted software and data, licences
     for duplication, distinction between single-copy contract and mass-
     produced shipments
   – HS does no longer distinguish between recorded and unrecorded
     media, but emphasizes type of media
   – Problem of double-counting
• => please see WPTGS 2009 presentation on software licensing




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                                   STD/SES/TAGS – Trade and Globalisation Statistics
                                   STD/PASS/TAGS – Trade and Globalisation Statistics



       6) Governance issues on
     managing the two Task Forces
• Issue brought up not by necessity, but as part of
  periodic review of governance
• All participants agreed to maintain the status quo:
   – TFIMTS chaired by WTO
   – TFSITS chaired by OECD
   – Joint session chaired by WTO/OECD
• Next priority: from manual conception and drafting
  to compilation guidance for implementing the new
  versions of IMTS and MSITS
• Present format of 2 day parallel sessions, plus one
  day Joint Session maintained

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                                              STD/SES/TAGS – Trade and Globalisation Statistics
                                              STD/PASS/TAGS – Trade and Globalisation Statistics



      7) Recommendation of the Joint
          Session and future work:
• Priority on cross-cutting issues and compilers guidance
• Identification of data sources to collect trade in goods shipped for
  processing, intra-firm trade, and related transactions
• Develop more integrated statistical for both G&S, including joint
  dissemination
• Trade by enterprise characteristics
• Trade and the need for enterprise surveys for specific aspects
• Increased consultations WCO NSOs needed to advocate
  importance of customs statistics, their use and importance to
  customs offices, too
• Document on goods for processing and intra-firm trade is “living”
  document and to be presented to OECDs WPTGS meetings
• Long-term roadmap: Globalisation and trade statistics are the “glue”
  for better aligning in a non-contradictory way the work of both Task
  Forces



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                   STD/SES/TAGS – Trade and Globalisation Statistics
                   STD/PASS/TAGS – Trade and Globalisation Statistics




Thank you for your attention!

Andreas.lindner@oecd.org




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