OECD Statistics Directorate Andreas.Lindner@oecd

1. Report of the Joint Session of the Task Forces on International Merchandise Trade Statistics and Statistics on International Trade in Services (TFSITS)Bangkok 12 March 2009 Agenda Item : 3.3 OECD Statistics Directorate Andreas.Lindner@oecd.org …, STD/SES/TAGS; 2nd WPTGS Meeting 16.-18.11.2009, Paris

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. Thank you for your attention!Andreas.lindner@oecd.org