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Table 1. Statistical coverage of modes of supply
Mode
Statistical coverage
Mode 1
Cross border supply
BPM5:
transportation
(most of),
communications services, insurance
services, financial services, royalties and license fees
Part of: c
omputer and information services, other business services,
and
personal, cultural, and recreational services
Mode 2
Consumption abroad
BPM5:
travel
(excluding goods bought by travellers); repairs to carriers in
foreign ports (goods); part of
transportation (
supporting and auxiliary
services to carriers in foreign ports)
Mode 3
Commercial presence
FATS: FATS statistics, each ICFA category
BPM5: part of
construction services
Mode 4
Presence of natural persons
BPM5: part of:
computer and information services; other business
services; personal, cultural and recreational services;
and
construction
services
FATS (supplementary information): foreign employment in foreign
affiliates
BPM5 (supplementary information): labour-related flows
Other sources: see Annex I
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(e) Conclusion
2.98. The allocation of modes of supply to service
transactions in the BPM5 and FATS statistics,
following the simplification criteria and rules, have
been discussed above. The following were discussed in
particular:
(a)
As a general rule, FATS statistics provide
information on mode 3 and balance of payments
statistics correspond to the other modes of supply. The
exception is that the balance of payments
construction
services
component may be allocated to mode 3 or
broken down between modes 3 and 4;
(b)
The balance of payments components
transportation
,
communication services
,
insurance
services
,
financial services
, and
royalties and license
fees
may be allocated to mode 1;
(c) The balance of payments components
computer
and information services
,
other business services
, and
personal, cultural, and recreational services
may be
broken down by mode 1 and mode 4;
(d) The travel component broadly corresponds to
mode 2, excluding travellers’ expenditure on goods;
(e)
Balance of payments labour-related flows
provide supplementary information on mode 4.
2.99. Table 1 summarizes the two statistical systems
underlying the
Manual
’s main frameworks, BPM5 and
FATS, and brings together information for each mode of
supply.
2.100.
A generalized framework for statistics on
affiliates’ operations would provide information on
domestic sales according to both an activity breakdown
(ICFA categories) and a product breakdown (EBOPS
components). When product breakdowns are not
available, the ICFA activity breakdown is used. This has
been aligned with EBOPS for the purpose of
approximating products produced by various industrial
activities. There is, however, no intention of establishing
one-to-one correspondence between ISIC, Rev.3 and
EBOPS for the estimation of services produced by foreign
affiliates. Such a correspondence might overlook
important areas of secondary production by industries (for
further explanation, see annex IV). Only when compilers
are able to classify the output of foreign affiliates on a
product basis will it be possible to directly compare the
values of specific types of services, delivered to foreign
markets through trade between residents and non-
residents, with sales by foreign affiliates.
2.101. To achieve its goals of clarity, feasibility and
minimum cost, this simplified statistical approach to
modes of supply does not strictly adhere to GATS
provisions. Rather, it has been designed to provide
relevant information for GATS, while ensuring
feasibility and minimizing the resources needed for its
implementation. However, the introduction of these
modes in the statistical context, albeit in a simplified
way, may still necessitate significant resources. Thus,
the breakdown of statistics by modes of supply is
accorded a relatively low priority, and countries may
choose to see the provision of statistics by these modes
as a longer-term objective.
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III.
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