RESTRICTED  WORLD TRADE  
ORGANIZATION  S/C/W/329 
22 December 2010 
 (10-6861) 
Council for Trade in Services  
 
 
 
 
A REVIEW OF STATISTICS ON TRADE FLOWS IN SERVICES – 
DATA COMPILATION AND AVAILABILITY  
 
Note by the Secretariat1 
 
 
1. This Note has been produced at the request of the Council for Trade in Services at its meeting 
held on 11 February 2010.  It updates and expa nds previous Notes issued in November 1997, 
October 2000 and July 2006 (contained in documen ts S/C/W/27 and Addenda 1 and 2), which provide 
an overview of recent conceptual achievements and progress made with respect to the measurement of 
international trade in services.  An addendum to this paper describes for each service sector major 
trends in trade and recent developments.  
2. Since 2006 data availability increased in particular  for the level of sectors and partner detail 
of balance of payments trade in services statisti cs as well as for the new statistical framework on 
foreign affiliates statistics2.  Since then, the Manual on Statistics of International Trade in Services 
(MSITS 2010)  has also been revised and approved by the United Nations Statistical Commission in 
February 2010.3  The main features of this revision include the alignment to new or revised statistical 
standards such as the Balance of Payments, 6th edition (BPM6) or the System of National Accounts 
(2008 SNA) as well as the development of a new ch apter on the international supply of services by 
mode with a particular focus on the statistical c onceptualization of mode 4, i.e., the presence of 
natural persons.  The development of compila tion guidance and implementation of MSITS 2010 
guidelines are now priorities for the inter-agency Task  Force on Statistics of International Trade in 
Services (TFSITS).  Another priority is the quality of available trade in services data. 
3. This Note is organised in five Sections.  A brief introduction (Section I) is followed by a 
presentation of the conceptual background surrounding the measurement of the international supply of 
services (Section II).  Section III provides a description of recent developments in the measurement of 
trade in services.  Section IV presents progress made  on the measurement of modes of supply, both 
conceptually and in practice.  Finally section V provides concluding remarks and discusses prospects 
for the measurement of international trade in services. 
                                                           
1 This document has been prepared under the Secretaria t's own responsibility and without prejudice to the 
positions of Members and to their rights and obligations under the WTO.  
2 The name of FATS has been changed from "Foreign Affili ates Trade in Services" to the more general "Foreign 
Affiliates Statistics" as a consequence of  the further development of underlying guid elines since the Manual on Statistics of 
International Trade in Services 2002 was published. FATS may al so have been used in the past to mean "Foreign Affiliates 
Statistics". These expressions all refer to the same statistical  framework and for historical consistency the abbreviation has 
been maintained.  
3 The Manual on Statistics of Inte rnational Trade in Services  was developed jointly by Eurostat, the International 
Monetary Fund (IMF), Organization for Economic Cooperation and Development (OECD), United Nations Conference on 
Trade and Development (UNCTAD), United Nations Sta tistics Division (UNSD), Unite d Nations World Tourism 
Organization (UNWTO) and the WTO Secretariat.  This Ma nual provides an internationally agreed framework for 
compiling statistics of international trade in services, responding to the growing information needs of trade negotiators, 
analysts and other users.  S/C/W/329 
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  I. INTRODUCTION 
4. The structure of GATS commitments by sector a nd mode does not coincide with the existing 
structure of trade statistics.  The scope of th e Agreement is far wider than what statistics 
conventionally measure as trade in services (i.e., exchanges between residents and non-residents in 
balance of payments (BOP) statistics.  The vast ma jority of activities of foreign-owned companies in 
their host economy markets – covered by commercial presence (mode 3) – are not reflected in these conventional statistics.  Moreover, the IMF Balan ce of Payments services classification, on which the 
majority of global trade statistics in services is b ased, is far less detailed than the UN Central Product 
Classification (CPC).  Nevertheless, many conceptu al improvements were achieved with the release 
in 2002 of the first ever Manual on Statistics of International Trade in Services (thereafter MSITS 
2002), and subsequently with the revision of th e Manual in 2010 (thereafter MSITS 2010).  The 
Manual was jointly produced by members of the Un ited Nations Inter-agency Task Force on Statistics 
of International Trade in Services, which is mandated by the United Nations Statistical Commission.
4  
5. Most statistics currently available and discussed  in this Note are compiled according to the 
first version of the Manual.  As highlighted in section II, the quantity of statistics has drastically 
improved over recent years, whether BOP-based data  (sector and partner data) or data describing the 
activities of foreign affiliates.  However, alt hough developing economies are gradually implementing 
the MSITS 2002 recommendations, at the time of writing most of the detailed statistics (in particular 
for BOP by partner and FATS) are available for developed and transition economies only.  In 
addition, as will be shown in this paper, quality of sta tistics is another issue that needs to be tackled in 
the near future. 
6. Increased needs for short-term data, in particul ar for trade statistics, have also emerged as a 
consequence of the recent financial and economic turm oil.  As for BOP trade in services statistics, a 
higher number of economies actually produce such information for major aggregates on a quarterly 
basis, and some economies publish monthly data.  Howe ver, short-term statistics are still lacking for a 
large number of economies, and are not availabl e at all for operations of foreign affiliates.5 
7. At the time of writing, only one Member (Aus tralia) had started implementing the recently 
adopted BPM6.  In the near future, however, th e number of economies implementing new statistical 
standards will increase rapidly.  The European Unio n decided to move to the new guidelines in 2014.  
The IMF is planning to produce a template that w ill allow to bridge presentations between the two 
BOP versions.  Starting in 2012, the IMF aims at collecting and publishing data based on the revised 
classification (i.e. either data provided by count ries according to new standards or "old" data 
converted).  As a consequence, a number of breaks in the time series are foreseen and this may render 
historical analysis difficult.  
8. Although the data situation is improving fast , implementation of new manuals and data 
quality remain a challenge that statisticians will have to tackle in the not too distant future. 
II. CONCEPTUAL BACKGROUND:  THE MANUALS 
9. MSITS 2002 was built upon internationally ag reed standards, notably the IMF's 5th edition of 
the Balance of Payments Manual (released in 1993 , BPM5) and the System of National Accounts 
                                                           
4 Seven agencies participate in this Task Force: Euro stat, International Monetary  Fund (IMF), Organization for 
Economic Cooperation and Development (OECD), United Nations Conference on Trade and Development (UNCTAD), 
United Nations Statistics Division (UNS D), World Tourism Organization (UNWTO) and the WTO Secretariat.  The Task 
Force also benefits from the expertise of  national consultants, currently from the following countries: Brazil, Germany, Italy,  
Japan and United States.  
5 Although not FATS indicators, short-te rm foreign direct investment data  are available for some economies.   S/C/W/329 
 Page 3 
 
 
  1993.  It provided guidelines and recommendations on how to use and develop sources to measure 
trade in services, in particular for responding to GATS information needs.6   
10. Two building blocks were identified in MSITS 2002: 
(a) Balance of payments trade in services statistics , which conform to the balance of 
payments manual.  The BOP's current account as defined in BPM5 covers trade in 
services  between residents and non-residents of an economy according to 10 major 
commercial services items7.  BPM5 also includes a limited further breakdown of 
these items, mainly to be provided on a s upplementary basis.  MSITS 2002 proposes 
a much more detailed breakdown of these ite ms to respond to needs of negotiators 
and analysts.  Table 1 shows the data availab ility for this more detailed classification.  
These statistics mainly cover the supply of services through modes 1, 2 and 4.  
Although BOP statistics do not allow a co mprehensive measurement of services 
delivered through mode 3, they suppor t the measurement of supplementary 
indicators.  For example, Foreign Direct Investment (FDI) statistics can be instructive concerning mode 3.  
(b) MSITS 2002 expanded the statistical definition of international trade in services to 
more closely follow the coverage introdu ced in the GATS.  It recommended the 
measurement of services supplied by foreign affiliates, within the new framework of 
Foreign Affiliates Statistics (FATS) .  This framework provides for the compilation 
of a number of indicators aimed at describ ing the operations of foreign affiliates 
(turnover and/or output, exports and im ports of goods and services, number of 
enterprises, etc.) with a particular – but not exclusive – focus on services. 
11. Based on these two building blocks, MSITS 2002 included a number of guidelines and 
recommendations to improve the coverage and intern ational comparability of information on trade in 
services.  For negotiations as well as for analytical pur poses, there is also a need for detailed statistics 
by trading partner and MSITS recommended the co mpilation of data by partner economy for both 
statistical frameworks used for assessing trade in ser vices (balance of payments statistics and FATS). 
12. MSITS 2002 also identified the need for further methodological work on measuring the 
international supply of services by mode and, more specifically, mode 4 (presence of natural persons).  
It proposed however a first simplified approach  for this measurement based on the overall good 
correspondence between (i) FATS and mode 3, and (ii) BOP services statistics and the three other 
modes of supply.   
                                                           
6 It should be stressed that MSITS 2002 guidelines on the comp ilation of statistics on th e international supply of 
services are laid out for statis tical purposes and that they do not exactly corres pond to trade in services as defined in GATS.  
For instance, GATS Article XXVIII(b) defines the supply of serv ices as including "the productio n, distribution, marketing, 
sale and delivery of services" whereas international statistical guidelines mainly  focus on the production and delivery aspects  
for valuing services trade. BPM6 and MSIT S 2010 refer to trade in services in the context of economic transactions which 
are "defined as an interaction between tw o institutional units by mutual agreement that reflects the creation, transformation, 
exchange, transfer or extinction of economic value, and i nvolves changes in the volume, composition, or value of an 
institutional unit’s assets and liabilities. It involves purchas es of goods or services, […]". Although there are a number of 
such differences, the concepts and definitions in economic, t ourism and migration statistics respond relatively well to GATS 
information needs, however, they would necessi tate only minor adjustments in some cases.  
7 The 10 BPM5 standard commercial services items are the following: transportation; travel; communications 
services; construction services; insurance services; financial services; computer and information services; royalties and 
license fees; other business services; and personal, cultural and recreational services.  Note that there is no one-to-one correspondence between the items of this  classification (or its breakdown) with  the services sectors identified in 
classification lists such as W/120.  See Section III for further information.
 S/C/W/329 
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  13. A revision of  MSITS 2002 became necessar y in 2006  to take into account: 
(a) foreseen changes brought to other internati onal statistical standards, in particular 
those introduced in the balance of paymen ts and national accounts.  These changes 
became official in 2008 in the IMF's 6th edition of the Balance of Payments Manual 
(BPM6) and the System of National Accounts 2008 (2008 SNA).  A number of 
changes were also introduced in intern ational classifications (e.g. Central Product 
Classification Version  2); 
(b) clarifications for the compilation of FA TS brought by the releases of the OECD 
Handbook on Economic Globalisation Indicators, the 4th edition of the OECD 
Benchmark Definition of Foreign Direct I nvestment and Eurostat's Recommendations 
Manual on Foreign Affiliates Statistics; and  
(c) the necessity to have a more in-depth  discussion on modes of supply and more 
particularly mode 4, taking into consider ation the conclusions of the United Nations 
Subgroup of the Task Force, the Technical Sub-group on the Movement of Persons – Mode 4.
8  This new chapter and country exampl es will be further discussed in Section 
IV. 
14. BPM6 differs from its previous version on quite  a number of issues, including on the goods 
and services account.  First of all, following a stricter  application of the change of ownership rule as 
well as other considerations on the nature of tran sactions, certain important  items of these accounts 
were reviewed and reclassified: 
(a) Manufacturing services on physical inputs owned by others is shown under the 
services account in BPM6 and MSITS 2010 (p reviously the gross transactions for 
"goods for processing" were recorded under the goods account in BPM5).  The 
change concerns goods sent by a client to  a processor located in another economy and 
once the processing has taken place the goods are returned to the client.9 During the 
entire process the owner of th e goods remains the client.   
(b) Merchanting of goods is no longer shown under the services account: Merchanting is 
defined as the acquisition of a good by a merc hant and the subsequent sale of this 
good to a client, without the good entering the country of the merchant.  Previously the net value (i.e. difference between the value of sale of the good by the merchant 
minus the value of acquisition) was recorded under services.  As there is a change of 
ownership, in BPM6 and MSITS 2010 it is recommended to record the corresponding 
transactions in the goods account.
10  
(c) Repair on goods has moved from the goods to  the services account, and grouped with 
maintenance services. 
                                                           
8 The Technical Sub-group on the Movement  of Persons – Mode 4 was convene d by UNSD and was established in 
2003. It was created in order to devel op a full-fledged statistical framework fo r the measurement of mode 4 and more 
generally for the movement of persons. It brought together trade in servi ces, balance of payments, migration and labour 
statistical experts from various organiza tions and national institutions. The work  of the group was terminated in 2006.  
9 For other processing arrangements such as when the goods ar e subsequently sold in a third country or the country 
of the client, the payment for the service rendered already appeared in the services account.  
10 This implies that, as for the othe r goods transactions, the value of distribution services are included 
indistinguishably with the value of merchandise sold under the goods account. Only the commissions of merchants (with no 
change of ownership of goods), commodity  brokers, dealers, auctioneers and commi ssion agents are included under services 
under "trade-related services".   S/C/W/329 
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  15. The stricter application of the change of ownership may have an impact on the economic 
analysis of the trading position of individual economi es.  It also will lead to a greater divergence of 
trade flows coming from different statistical frameworks as for example customs-based merchandise trade statistics record goods for processing wher e no ownership change takes place as goods exports 
and imports.  The balance of payments would only record a manufacturing services fee. 
16. Besides the amendments brought following the stri cter application of the change of ownership 
principle, a number of other changes and measu rement improvements were introduced in the new 
manuals: 
(a) An alternative presentation of travel by t ype of product consumed by travellers is 
proposed in addition to the standard breakdow n by purpose of travel.  If implemented 
by compilers this would enable a major improvement for analysis of mode 2. 
(b) The item communications services no longer exists in BPM6 and MSITS 2010, and 
its sub-components are reclassified as follows: post and courier services is shown 
under transport services and telecommunications services is grouped with computer and information services. 
(c) The treatment for construction has been a ligned between the Balance of Payments 
Manual and MSITS: it calls for a separate treat ment of construction abroad (value of 
contracts under exports and costs in the c ountry where project is taking place under 
imports) and construction in the comp iling economy (value of contracts under 
imports and costs by contractor in the country where project is taking place under exports). 
(d) An improved measure of insurance, based on an adjustment for claims volatility, has 
been included in revised international guidelines. 
(e) Financial intermediation services indirectly measured (FISIM) are now recommended 
for inclusion under financial services.
11 Some economies have begun to compile these 
data.  
(f) The treatment of intellectual property produc ts and related payments and receipts has 
been clarified.  This should notably improve estimates of computer services, 
audiovisual services, research and development services and charges for the use of intellectual property. 
(g) There have been a number of rearrangeme nts and call for more details in the 
classification of other business services (e.g. research and development services, 
engineering services, support services to agriculture or mining) to better reflect the 
structure of services trade and the emergence of new services lines. 
(h) The Manuals, in particular MSITS 2010, in clude clarifications on the employer-
employee relationship and provide some guidance on how to distinguish between 
compensation of employees and payment for services.  Such a clarification is crucial for building appropriate measures for mode 4 (see Section IV). 
(i) The treatment of outsourcing is clarifie d: the corresponding transactions should be 
classified according to the type of service provided, e.g. call centers selling products 
                                                           
11 Given the difficulty to compile such  information, BPM5 and MSITS 2002 had recommended not to include it 
under the standard items, and simply co mpile it as supplementary information.  S/C/W/329 
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  are included in trade-related services, wh ile call centers providing computer support 
are included in computer services. 
(j) Finally MSITS 2010 now provides a suggested list of complementary groupings, such 
as audiovisual transactions, computer software transactions, cultural transactions, call 
centre services or environmental transactions.  Compilation of such groupings is 
recommended for their analytical usefulness.   
17. With respect to FATS, the main difference intr oduced refers to the concept of control which 
relates to the majority ownership of voting power, rather than majority ownership of ordinary shares 
or voting power.  In addition the concept of ultim ate controlling institutional unit (UCI) has replaced 
that of the ultimate beneficial owner (UBO).  Although they do not entirely comply with the GATS 
definition of mode 3, such changes should improve the international comparability and usefulness of 
the data, in particular when conducting interna tional analysis and comparing different countries 
situation in terms of the provision of services through commercial presence as well as the analysis of 
globalisation. 
III. AVAILABILITY OF STATISTICS ON THE INTERNATIONAL SUPPLY OF 
SERVICES 
18. This Section will first provide information with respect to the recent progress in the 
compilation and publication of detailed trade in ser vices statistics according to the Extended Balance 
of Payments Services classification (EBOPS).  Sub-section B describes the developments and 
availability of FATS.  Finally Sub-section C briefly d escribes the status as to partner country detail.  
As this section deals with statistics available at th e time of writing, it mainly refers to the data 
compiled according to previous guidelines and cl assifications (i.e., 2002 versions of MSITS and 
EBOPS, and BPM5). 
A. RESIDENT – NON-RESIDENT TRADE IN SERVICES STATISTICS  
19. Data on BOP trade in services12 are relatively widespread, in particular when looking at main 
services categories.  The concepts and definitions fo r these statistics were developed in BPM5 in 1993 
which explains why this information is available for many countries.  However the level of reporting 
provided differs widely amongst economies depending on the type of detailed service category, in 
particular when considering the more detailed EBO PS classification.  Table 1 shows the international 
organisations that publish such information. 
                                                           
12 This refers mainly to teceipts and payments fo r the supply of services through modes 1, 2 and 4.   S/C/W/329 
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  Table 1: Summary of BOP trade in services data  dissemination by international organizations 
Publication  Country coverage  By type of 
service  By partner 
country  
IMF Balance of Payments Statistics 
Database (book and CD-ROM) – also 
available from ITC's Trade Map  IMF members BPM5 and 
EBOPS (provided 
to IMF on 
voluntary basis) No 
Eurostat Database  
(on-line and CD-ROM) EU members, total 
EU, euro area,EU 
candidate countries EBOPS Yes, 
over 200 partners
OECD Statistics on International Trade in Services 
Volume 1 Detailed Tables by Service 
Category;  Volume 2 Detailed Tables by 
Partner Country  
(book, on-line and CD-ROM) OECD members; 
Hong Kong, China 
and Russian 
Federation  EBOPS 
(and additional 
detail)  Yes, 
over 200 partners
UN ServiceTrade database  
(on-line) Around 200 
economies EBOPS Yes, 
 over 200 
partners  
UNCTAD Handbook of Statistics 
(book, on-line and DVD-ROM) Around 200 
economies BPM5main items No 
WTO's International Trade Statistics  
(book, on-line and CD-ROM) All economies Summary data 
and 
analysis Summary data 
and analysis 
 
20. EBOPS is (primarily) a product-based classification.  The 2002 version of the classification, 
building upon the standard BPM5 classification,  disaggregates the 10 main commercial services 
components further into standard and supplementary , more detailed sub-items.  Table 2 reproduces 
the BPM5/EBOPS classification in full, with EBOPS supplementary items shaded.   
21. Overall, EBOPS 2002 includes approximately 60 categories of services transactions at the 
most detailed level of the classification.13 The level of detail varies depending on the categories of 
services, mainly in terms of the importance of the sector, the reliability and coherence of the detail, 
and data collection possibilities.  For example, for transportation , it is possible to distinguish between 
eight distinct modes of transportation – sea, air, space, rail, road, internal waterway, pipeline, and 
other supporting and auxiliary transportation service s, and several types of transportation service 
(passenger; freight, other).  Computer and information services  are subdivided into computer services  
(hardware and software related services and data processing services), news agency services  
(provision of news, photographs, and f eature articles to the media), and other information provision 
services (database services and web search portals).  A category that benefits highly from the 
expanded classification is other business services,  where the item miscellaneous business, 
professional, and technical services  has been disaggregated into detailed sub-items including legal 
services; accounting, auditing; business and managem ent consulting and public relations services;  
etc.  For other categories, given the little relevan ce of the detail for many economies or the difficulty 
to collect reliable detailed data, the service sector is covered by one single item (e.g. financial services  
or audiovisual and related services ).  However although not collected and reported by international 
organizations, some countries for which it seemed relevant provided more detailed data using a 
national classification (e.g. India for Software a nd business process outsourcing and other IT enabled 
services; United Kingdom for financial services and legal, accounting and management consulting). 
22. A detailed breakdown of services transactions can be particularly useful in the context of 
GATS negotiations, where Members negotiate and ma ke commitments at sector level.  MISTS 2002 
                                                           
13 EBOPS 2010 proposes almost 80 categories.  S/C/W/329 
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  contains a table of correspondence between the EBOPS classification and the Services Sectoral 
Classification List (in document MTN.GNS/W/120, hereinafter W/120).  
23. The availability of statistics on trade in ser vices according to BPM5 is relatively well 
established and has continued to increase since this Note  was last drafted.  In the previous Note, total 
commercial services exports statistics were availa ble for less than 176 economies, compared to 182 
today.  Transportation, travel and other commerc ial services exports were available for 160 countries 
compared to 170 in 2010. 
24. Table 2 shows the amount of BOP based trade in services data available in the WTO 
statistical database at the time the Secretariat Note  and its subsequent adde nda were prepared (1997, 
2000, 2006 and 2010).14 As of 2010, approximately 85-90 per cent of economies (i.e. 182 economies) 
reported 2010 data on trade in total commercial services , an increase of approximately 23-25 per cent 
compared to the situation in 1997.15 Concerning the major aggregates, transportation , travel  and other 
commercial services , the number of reporters increased at a lower rate (17-20 per cent) reaching 
approximately 170 in 2010.  However as a genera l rule the increase is more significant for more 
detailed items, where imports data are actually availa ble for more reporters than exports.  The number 
of countries reporting communications services , construction and financial services  tripled compared 
to October 1997.  For computer and information services  and personal, cultural and recreational 
services  the increases are much higher (increases of 600 per cent and 300-420 per cent respectively).  
25. Looking at the level of availability of these other commercial services items for exports in 
2010, communications services, insurance services,  and other business services  remain the sectors for 
which the coverage is highest (150 and above).  Other items such as construction , computer and 
information services,  financial services  and personal, cultural and recreational services  reached a 
lower level (in the range of 100-130 reporting economies) .  The disaggregation of services 
transactions into more detailed components requir es important resources by economies.  However the 
implementation of the EBOPS 2002 (shaded items in ta ble 2) and the request to report data at this 
level of detail by international agencies (Eurostat,  IMF, OECD, United Nations) has encouraged more 
detailed data collection and compilation.  In a relatively small number of years (EBOPS was first 
released in 2002) there were already a significan t number of reporters of this more detailed 
information, reaching more than 50 reporters for expor ts for many items.  This information also shows 
that reporting has increased significantly, especially for a significant number of developing and least-
developed economies.  In 2010, for inst ance, 105 countries reported 2007 exports of 
telecommunication  services , 73 for computer services  and over 60 for postal services  and audiovisual 
and related services .   
                                                           
14 Numbers shown here can be considered as a minimum of data available as there could be some additional 
data which are not made available to international organisati ons or that the Secretariat is unaware of their publication 
in national sources.  
15 The general increase in the number of reporte rs applies to both imports and exports.   S/C/W/329 
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  Table 2: Number of economies reporting EBOPS trade data, 1997 - 2010 
  Exports Imports 
Code Service description Oct. 
1997 Oct.
2000 June 
2006 July 
2010 Oct. 
1997 July
2010 
 Commercial services (Services excl. gov ernment serv.) 146 154 176 182 147 181
205 Transportation 141 146 158 169 147 170
206  Sea transport  42 68 107 114 48 127
207   Passenger transport on sea 13 25 42 45 18 44
208   Freight transport on sea 31 50 101 78 42 113
209   Supporting, auxiliary and other services 31 47 67 87 31 80
210  Air transport  49 77 111 128 48 131
211   Passenger transport by air 39 63 101 100 43 113
212   Freight transport by air 22 48 83 80 26 99
213   Supporting, auxiliary and other services 33 53 77 100 26 89
214  Other transportation  39 61 79 90 35 89
215   Passenger 22 35 45 63 19 52
216   Freight 28 46 68 72 27 80
217   Other transportation services 27 42 54 68 24 61
 Extended classification of other transport   
218   Space transport - - 2 2 - 2
219   Rail transport - - 33 42 - 40
220    Passenger on rail - - 25 32 - 31
221    Freight on rail - - 28 36 - 37
222    Supporting, auxiliary and ot her rail transport services - - 25 29 - 28
223   Road transport - - 48 60 - 64
224    Passenger on road - - 33 46 - 40
225    Freight on road - - 44 52 - 58
226    Supporting, auxiliary and other road transport services - - 27 36 - 37
227   Inland waterway transport - - 8 12 - 14
228    Passenger on inland waterway - - 1 12 - 12
229    Freight on inland waterway - - 5 9 - 10
230    Supp., auxiliary, other inland waterway transport 
services - - 5 32 - 31
231   Pipeline transport and electricity transmission - - 21 28 - 24
232   Other supporting and auxiliary transport services - - 17 2 - 2
236 Travel 141 147 162 171 145 170
237  Business travel  24 45 91 101 34 110
238   Expenditure by seasonal and border workers - - 12 20 - 23
239   Other business travel - - 61 69 - 78
240  Personal travel  39 67 111 127 47 132
241   Health-related expenditure 4 21 54 48 13 69
242   Education-related expenditure 10 31 64 62 25 79
243   Other personal travel 29 53 92 107 37 110
 Other commercial services 141 150 158 169 147 170
245 Communications services 57 97 129 156 57 157
246  Postal and courier services - - 51 66 - -
247  Telecommunication services - - 85 105 - -
249 Construction services 30 50 96 100 36 119
250  Construction abroad - - 18 40 - 30
251  Construction in the compiling economy - - 55 45 - 68
253 Insurance services 89 106 136 148 131 164
254  Life insurance and pension funding - - 26 34 - 42
255  Freight insurance - - 71 54 - 95
256  Other direct insurance - - 57 76 - 80
257  Reinsurance - - 54 54 - 77
258  Auxiliary services - - 23 34 - 27
260 Financial services 38 62 112 122 40 131S/C/W/329 
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    Exports Imports 
Code Service description Oct. 
1997 Oct.
2000 June 
2006 July 
2010 Oct. 
1997 July
2010 
262 Computer and information services 16 51 106 112 19 132
263  Computer services - - 61 73 - 81
264  Information services - - 39 44 - 49
889   News agency services - - 4 16 - 17
890   Other information provision services - - 12 22 - 25
266 Royalties and licence fees 46 57 112 112 63 137
891  Franchises and similar rights - - 23 21 - 23
892  Other royalties and license fees - - 31 51 - 61
268 Other business services 134 134 140 153 143 157
269  Merchanting and othe r trade-related services  36 50 71 89 31 89
270   Merchanting - - 25 60 - 35
271   Other trade related - - 33 51 - 55
272  Operational leasing  20 40 68 79 29 88
273  Miscellaneous business, prof essional and technical services  64 89 112 126 66 136
274 Legal, accounting, management , consulting , public relations 12 24 64 73 19 89
275  Legal services - - 23 43 - 45
276 Accounting, auditing, book-keep ing and tax consulting serv. - - 27 36 - 39
277 Business and manageme nt consultancy, publ ic relations serv. - - 31 45 - 60
278   Advertising, market res earch and public opinion polling 
serv. 14 24 62 69 16 77
279   Research and development services 10 17 39 47 11 49
280   Architectural, engineering and other technical services 11 18 45 56 12 59
281   Agricultural, mining and on-site processing services 6 10 33 37 5 43
282    Waste treatment and depollution - - 10 14 - 16
283    Other agricultural, mi ning and onsite processing  - - 19 30 - 31
284   Other miscellaneous busine ss, professional and technical 
serv. 41 52 90 101 42 108
285  Services between affi liated enterprises, n.i.e.  - - 23 25 - 28
287 Personal, cultural and recreational  services 20 46 97 104 27 108
288  Audio-visual and related services  11 29 62 62 16 63
289  Other personal, cultural and recreational services  13 32 64 76 15 76
895   Education services - - 5 14 - 17
896   Health services - - 5 13 - 15
897   Other - - 21 43 - 42
Source : Compiled based on data available to the WTO Secretariat.  
Note: Reported data for 1994 in October 1997, for 1996 in October 2000, for 2003 in June 2006 and for 2007 in July 2010.  For a  
description of the EBOPS categories, see S/C/W/ 27/Add.2, page 13.  EBOPS is based on BPM5. 
 
26. Moreover, many economies have considerably increased the level of detail in reporting of 
other business services : the exports of professional services such as legal, accounting, management, 
consulting and public relations , or advertising, market research and public opinion polling  services 
were published in 2010 by 73 and 69 countries respectively, compared to only12 and 14 in 1997.  
27. Least-developed economies (LDCs) also have a relatively good level of  reporting in 2010, as 
shown in table 3.  Forty-two LDCs out of 49 reported total exports of commercial services.  The 
number of LDCs reporters is significant for main services categories, for some items reaching 50-
60 per cent of total LDCs (e.g. communications services  or insurance services ).  This is true to a 
lesser extent for construction , financial services  and computer and information services .  Although 
they have increased over recent years, the number of reporters for more detailed EBOPS items is 
much lower.  However according to the information available to the Secretariat, the number of 
reporters for which data are available has decreased in some cases, as for example transportation , 
travel  and other business  services .  A noticeable feature of these reported statistics is the number of 
LDCs reporting receipts for royalties and licence fees .  Although for some the figure is shown as 0, 
for others the amounts are higher.  However the Se cretariat does not have further information with 
respect to what these receipts cover.  S/C/W/329 
 Page 11 
 
 
  Table 3: Number of LDCs' reporting EBOPS trade data in July 2010 
Code Service description Exports  Imports 
 Commercial services (Services excl.  government serv.) 42 41 
205 Transportation 34 35 
236 Travel 35 35 
 Other commercial services 34 35 
245 Communications services 28 29 
247  Telecommunication services 20 20 
249 Construction services 14 21 
253 Insurance services 26 31 
260 Financial services 19 22 
262 Computer and information services 13 24 
263  Computer services 8 15 
266 Royalties and licence fees 17 20 
268 Other business services 28 29 
287 Personal, cultural and re creational services 15 16 
288  Audio-visual and related services 7 6 
Source : Compiled based on data available to the WTO Secretariat.  
Note: Reported data for 2007 in July 2010. 
 
28. There is also the need to be ab le to analyse short-term developments of trade in services.  To 
date, there are over 100 economies producing quarterl y trade in services exports and imports data 
(although the time lag compared to merchandise trade statistics can be more important, i.e. 1 or 2 
months), with some also producing some BPM5/EBO PS detail, as well as selected partner data.  All 
regions of the World are relatively well represented (in particular North America and Europe), except 
for the Middle East where only 3 countries report quarterly data (Israel, Jordan and Lebanon).  
Among these reporters of quarterly data, around 30 pe r cent also produce monthly statistics, such as 
several EU (27) member countries, Australia, Bangl adesh, Brazil, Jamaica, Jap an, Republic of Korea, 
Malaysia, Morocco, Pakistan, Philippines, Se rbia, Thailand, Turkey and United States. 
B. FOREIGN  AFFILIATES  STATISTICS  (FATS) 
29. FATS are useful for assessing the importance of mode 3 (commercial presence) and, more 
generally, the phenomenon of globalisation.  The c oncepts and definitions of this statistical 
framework were developed in MSITS 2002 (with a particular focus on services).  Principles for 
recording FATS in MSITS 2010 are in line with intern ational statistical standards, especially those 
governing the measurement of foreign direct investme nt (FDI) within the balance of payments manual 
(BPM6) and the OECD Benchmark Definition of FDI 4th edition.  Further guidance on FATS is also 
provided in the OECD Handbook on Economic Globalisation Indicators  which is also fully consistent 
with guidelines of MSITS 2010.16 
30. The relative importance of the international s upply of services under different modes varies 
widely between sectors.  This may be due either to  technology-related constraints, impinging in turn 
on transmission cost, or to policy-induced restrictions , or to commercial considerations.  A relatively 
high degree of affiliates that supply a particular service might for instance imply that cross-border 
supplies are not technically feasible. 
31. FATS compilation is still at an early stage of de velopment, especially if compared to the more 
conventional balance of payments framework presente d above.  Up to the late 90s the United States 
was the only economy which had been publishing FATS.17 EU member states then gradually began 
                                                           
16 FATS are in general compiled for majority-owned foreign af filiates (i.e. the investor owns more than 50 per cent 
of shares or voting power). In MSITS 2010, the concept of control was introduced, i.e. the investor controls more than 50 per 
cent of the voting power.  
17 Detailed information has been published for the last two decades in the U.S. Bureau of Economic Analysis' 
Survey of Current Business  (October issue, latest article released in 2010: U.S. International Services: Cross-Border Trade 
in 2009 and Sales Through Affiliates in 2008 ). S/C/W/329 
Page 12 
 
 
  compiling such statistics, and in  2007 FATS data collection became mandatory for all EU members.18 
Consequently data availability in the region is now ex pected to grow rapidly.  Eurostat also issued a 
recommendations manual on the compilation of FATS, which should help countries which are in the 
process of initiating such a data collection.  A number of EU non-members (EU accession countries 
and other economies such as Norway or Switzerland) are also working on the basis of the Eurostat 
program of work.  Besides these European experi ences, a number of other economies (mainly from 
OECD but also a small number of non-OECD countries)  have also started producing such statistics or 
have tested the possibility to do so by running pilot surveys. 
32. In terms of publication by inte rnational organisations, most of the data have been published in 
the OECD publication Measuring Globalisation: The Role of  Multinationals in OECD Economies and 
the accompanying database as well by Eurostat in its free-of-charge online database.  This information 
is also used in UNCTAD's World Investment Report and the OECD publication Measuring 
Globalisation: OECD Economic Globalisation Indicators , which was published for the second time in 
2010 and draws on various databases in order to analyse the phenomenon of globalisation.19 A 
number of national authorities have released  relevant information on their respective 
websites/publications, which have not necessarily been reported to international agencies (e.g. China, 
Hong Kong China, India, Trinidad and Tobago). 
33. Table 4 shows that in only a few years a rela tively good FATS dataset has been developed.  
Actually since this Note was last presented, FATS for 14 additional Members have been published 
and many economies have also begun providing data for outward FATS (in particular EU members as 
a result of the new EU regulation).  Thirty-nine Members compile FATS, of which 37 on the inward 
side (statistics on foreign affilia tes operating in the compiling economy) and 25 on the outward side 
(data collected on the affiliates operating abroad of  mother companies of the compiling economy).  It 
is indeed easier for national agencies to collect in formation on inward FATS than to collect statistics 
on operations performed outside an economy's territory or jurisdiction (outward FATS).  
Nevertheless, an increasing number of Members ha ve begun compiling such statistics, are envisaging 
doing so or are expanding their existing FATS data collection to improve their coverage.20 
34. The manuals recommend the compilation of a number of variables of interest for assessing 
the delivery of services through mode 3 and more gene rally globalisation, such as the value of sales 
(or output) of goods and services,21 value added, exports/imports , number of employees and number 
of enterprises.  Other variables may also be compiled depending on the needs of the compiling 
economy.  These variables are in general broken down by partner (origin or destination of investment) 
and by industry/product.22  Given the way statistical systems are generally built MSITS recommends 
as a first priority to break down variables according to the primar y activity of the producers.  If 
possible, economies are encouraged at a future st age to break down the variables sales, output and 
exports and imports by product (at least  differentiating goods and services).   
35. All countries compiling FATS do so according to the primary activity of the affiliates.  
Almost all economies publishing FATS compile data  for turnover/sales (or output) which is the 
variable that relates directly to the measurement of mode 3.  Other variables such as the number of 
                                                           
18 At the time of writing there are some derogatio ns in place for some countries for 2-3years.  
19 The objective of these indicators is to  gauge the intensity and magnitude of  the globalisation process (including 
the trade dimension).  
20 At the time of writing, the Secretariat was informed that some Members were e nvisaging the compilation of 
FATS, in particular for inward.  
21 Output is a preferred measure. Although in practice for services sales and output ar e identical, as FATS are 
primarily compiled by activity it may cause particular probl ems for wholesale and retail trade, finance and insurance 
activities where the value of total sales/tu rnover is much larger than the actual value of the service being supplied. For 
example, for wholesale and retail trade, the value of sale s also includes the value of goods sold, whereas output will only 
cover the value of services provided by wholesalers (i.e. the margin realized on goods purchased for resale).  
22 More information on partner breakdown of FATS  is provided in the following sub-section.   S/C/W/329 
 Page 13 
 
 
  employees or value added (at least on the inward side) are also widely compiled.  Not many countries 
compile the exports and imports variables (at least on the outward side), given the difficulties met by 
reporters to provide appropriate da ta.  However EU members are curre ntly conducting pilot surveys to 
analyse the possibility of collecting information for these variables.  Although not shown in table 4, 
many other variables are compiled by countries following international recommendations, and 
published by international agencies, in particular for inward data and at various degrees of detail.  All 
these variables may prove useful for a broader analys is of globalisation (including the international 
supply of services). 
Table 4: Availability of inward and outwar d FATS for services activities in 2010 
 Inward Outward 
 Number of 
employees Sales/ 
turnover or 
output Value 
added Exports 
Imports Number of 
employees Sales/ 
turnover 
or output Value 
added Exports 
Imports 
Australia x  x  x x   
Austria x x  x x x  x 
Belgium x x   x x   
Bulgaria x x x  x x   
Canada     x x   
China (total services) x x       
Cyprus  x x  x x   
Czech Rep. x x x  x x   
Denmark x x x      
Estonia x x x      
Finland x x x  x x   
France x x x x x x   
Germany x x   x x   
Greece x x   x x   
Hong Kong,  China x x x      
Hungary x x x  x x   
India: Banking  x x  x x x  x 
 Software      x  x 
Ireland x x x      
Israel x x x x  x   
Italy x x x x x x   
Japan x x x x x x  x 
Latvia x x x  x x   
Lithuania x x x  x    
Luxembourg x x       
Malta     x x   
Netherlands x x x  x    
New Zealand x x       
Norway x x x      
Poland x x  x     
Portugal x x x  x x x x 
Romania x x x      
Slovak Rep. x x x  x x   
Slovenia x x x      
Spain x x x x     
Sweden x x x x x x   
Switzerland x    x    
Trinidad & Tobago  x       
United Kingdom x x x      
United States x x x x x x x x 
Source : Measuring Globalisation: The Role of Multinationals in OECD countries , Eurostat online database and national authorities 
(2010). 
 
36. The level of activity breakdown available diffe rs between inward and outward FATS.  In 
general data are available for all major ISIC activ ities (e.g. Wholesale and retail trade and repairs; S/C/W/329 
Page 14 
 
 
  Transport; Insuranc;, Real estate, renting and busi ness activities).  However for social-type activities, 
such as Education or Health, or activities of banks (because of difficulty of estimating turnover/output 
of these firms), although the situation has been improvi ng in recent years, the information is still often 
lacking.   
37. As can be noted from the Eurostat database, for inward FATS, as they are in principle easier 
to collect (e.g. by extracting relevant informati on from existing structural business statistics), the 
breakdown is more detailed, whereas it is generally less detailed for outward.23  For some countries, in 
general those where the number of affiliates is important (or probably have a longer experience in 
compiling FATS) the tendency is to have more de tailed breakdowns (e.g. Ge rmany, United States).  
For others, in particular smalle r economies (where confidentiality may become an issue) or those 
which have recently begun compiling such information,  the level of detail (at least for services) is 
relatively limited, e.g. China, Cyprus, Hong Kong Ch ina, Israel, Malta.  Finally some economies have 
for the time being only being compiling FATS for ser vices sectors of particular interest to their 
economy, such as India for computer and IT enabled services (outward) and banking services (inward and outward). 
38. With respect to the product breakdown, only Canada and United States further break down 
these data by activity into total sales/supply of good s and total sales/supply of services.  In its pilot 
study for outward FATS the Australian Bureau of St atistics had collected sales data broken by more 
detailed services categories (at the level of all indus tries and at the world level), however it seemed 
that such an exercise was burd ensome for survey respondents. 
39. It is important to bear in mind that bala nce of payments and FATS are not strictly 
comparable, the former being classified by services product
 sold or produced, whereas the latter are 
broken down according to the primary activity  of the affiliate.24 There is generally no direct 
concordance between these two classifications.  Ho wever in the case of the data published by the 
United States Bureau of Economic Analysis, the figu res for the U.S.  are more comparable than for 
other countries as they refer to each (relatively deta iled) activities' total output of services.  However a 
one to one comparison without issues of interp retation will only be possible once FATS are broken 
down by detailed product, which is not foreseen in th e near future given the difficulties met to report 
and compile such detail. 
40. FATS still being relatively new, the way statisticia ns compile these statistics may vary widely 
between economies and not necessarily entirely comply  with international guidelines.  Given the 
possibilities they have, compilers may choose different target populations (in pa rticular in terms of 
inclusion of certain affiliates or not), the identifi cation of foreign ownership or control may differ as 
well as the choice of the statistical unit.  The way th e parent company and/or the investor or unit of 
ultimate control is defined or the choice of  the industrial or pr oduct breakdown (and which 
classification) etc. may also be different.  Over  time comparability of data seems relatively good, 
nevertheless a number of break in series appear in  the data in particular due to the general 
improvement of data sources and concepts surround ing these statistics.  FATS should therefore be 
interpreted with caution.  Alth ough not limited to FATS, given the above considerations it is 
important that data be clearly documented a nd that reference is made to the methodological 
information that accompanies the data when analysing them.  
                                                           
23 The Eurostat database for inward FATS does not incl ude a total for services (i.e. Community, social and 
personal services are not covered).  
24 Except to a certain extent for services industries where the activities are relatively homogeneous, i.e. referring to 
the production of a single service or to services bel onging to the same sector, e. g. activities of law firms.   S/C/W/329 
 Page 15 
 
 
  C. STATISTICS BY DETAILED PARTNER  
41. One of the recommendations of MSITS is that economies compile statistics on international 
trade in services on an individual trading partner basis, for both BOP trade in services and FATS.  
Such statistics may prove useful for negotiating an d analytical purposes.  However, not all economies 
have the necessary financial and/or human resources to  develop bilateral statistics on the international 
supply of services.  Thus, as a starting point, the MSITS suggests that economies start compiling these statistics at least for their main partners  and most important services sectors/activities.
25  I t  i s  a l s o  
recommended that, to the extent possible, compilers use an identical geographical basis for all related 
sets of services statistics (i.e. BOP trade in services and FATS). 
42. At present about 50 economies, mainly developed, are known as reporting BOP trade in 
services data by partner to international organisati ons.  As shown in table 1, organisations publishing 
such detail are Eurostat (where detailed reportin g by member states is mandatory), OECD, UNSD 
(data collection since 2006) and WTO (selected data).  The level of partner de tail differs depending on 
the reporting economy and the services items considered .  For example, for EU members the level of 
detail available for total services (i.e. including  government services n.i.e.) covers almost all 
economies of the World.  However in general the number of partner economies is inversely 
proportional to the detail of services categories.  Th us, at a very disaggregated level of BOP/EBOPS 
service items bilateral statistics are availabl e only for a very limited number of partners. 
43. As indicated above the countries for which such  information is reported are mainly from the 
EU-OECD area, as well as transition economies (e.g. Belarus, Kyrgyz Republic, Russian Federation).  
Since this Note was last updated, the number of  developing economies for which data are made 
available is gradually increasing (e.g. Argentina, Hong Kong, China, Netherlands Antilles, Pakistan, 
Singapore or Tunisia).  Given the difficulty to compile such information, some economies have decided to begin with their main partner(s) (e.g. B hutan, Swaziland), or simply to focus as a first stage 
on the travel item for which it seems that countries ar e more at ease at compiling (Mexico, Turkey or 
Chile).  Although not yet reporting data to intern ational organisations, some Members have begun 
publishing some partner data in their national publications (e.g. China where MOFCOM provides 
some information on China's trade in services with it s main partners) or are envisaging to do so (e.g. 
Brazil).  Finally it seems that there are also a number of economies which actually have some data broken down by partner, but which are not currently  made publicly available, in particular for the 
travel item.  It is therefore expected that BOP tr ade in services data for a larger number of economies 
will become available in a not too distant future.  Tha nks to a larger availability of bilateral trade flow 
statistics and to the use of "mirror statistics", est imates on the composition of world services flows by 
region can be built, and the Secretariat is planning to develop with the OECD such a matrix for major 
services categories (total, transport, travel and other).    
44. Given the more recent development of FATS, pa rtner detail is less well established than for 
BOP trade in services statistics.  Although in genera l these are included in the FATS data collection, 
their availability depends much on the level of de velopment of the respective data collection systems 
and the types of activities considered.  As a general rule the more aggregated the activity considered 
the less partner detail is available.  Due to conf identiality constraints, it is often not possible for 
economies to publish very detailed FATS data broken down by both partners and industry, in 
particular in smaller economies or economies wh ere affiliate activity is relatively limited. 
                                                           
25 For BOP data, at least for total services trade and fo r the 10 main components of the BPM5 classification of 
commercial services and where possible, th is should be done at the more detailed EBOPS level. For FATS this should be 
done at least for total servi ces activities and for major industry categories.  In both cases it is recommended to first 
concentrate on the most  important partners.  S/C/W/329 
Page 16 
 
 
  D. OTHER INDICATORS  
45. Two groups of variables are identified in MSITS in order to assess the international supply of 
services by mode: first, the value of services supplied (e.g. exports and imports, or inward and outward sales/output of services) which have been described above; and second, a number of more 
specific variables necessary for a more complete  assessment.  Additional information related to 
individual service sectors by modes of supply,  such as quantitative information or financial 
transactions that are linked to the supply of services as defined by the GATS, would provide valuable 
additional information. 
46. Although it may prove difficult to obtain informa tion relating to specific arrangements, it may 
be useful to obtain aggregated economic statistics to estimate, for instance, the level of foreign direct 
investment in individual services sectors of a country, or the number of foreign affiliates established 
in a country’s service industry.
26 The number of persons crossing a border (flows) or present (stocks) 
in the context of mode 4 is one of those add itional needs (see section IV for a more detailed 
description).  Other indicators include informa tion on prices, production and employment, for 
example, national accounts, business and employment  statistics, or performance indicators which 
trace the quantitative development of a service sector.  Further quantitative information, that can be 
used to supplement information on international services trade flows, is also obtainable from sectoral performance indicators.  Examples include interna tional tourist arrivals, international freight or 
passengers carried, internati onal telephone traffic, etc.
27 Much of this useful information may be 
drawn from various sources and is often available for a wide range of Members.  The sources are 
described in document JOB(06)/227 Overview of sectoral services statistics produced in July 2006.28 
The Secretariat also recently developed Services profiles  that provide in a one-page format standard 
information on key "infrastructure services" ( transportation, telecommunications, finance and 
insurance ).29  
47. Finally, other tools are also important sources of information for trade negotiators, analysts 
and economists, such as the WTO Services Database,  which presents information on WTO Members' 
schedules of commitments and exemptions, the World Bank Regulatory Barriers in Services Trade 
database, providing a comprehensive repository of re gulatory barriers to international trade in selected 
services sectors, or the Quantitative Air Services Ag reements Review database.  The OECD also 
developed a Services Trade Restrictiveness Index for three sectors: business services, construction 
and telecommunications services.  These tools are described in the document Trade and market 
access data for policy makers which was first prepared for the Data Day held at the WTO on 18-19 
May 2009.30 
 
                                                           
26 There are important relations between FATS and foreign direct investment (FDI) statisti cs. FDI is the category 
of international investment that reflects the objective of an i nvestor to obtain a lasting interest in a foreign enterprise. Th e 
universe of the FATS enterprises is theref ore a subset of the FDI universe. Altho ugh not all FDI result in the establishment 
of a commercial presence as defined in GATS, it is neverthele ss a precondition for it. FDI transactions and positions are not, 
strictly speaking, FATS variables, but th ey should be considered an important adj unct. Countries that cannot implement the 
compilation of FATS immediately may find that FDI statistics (a nd more specifically FDI positio ns) can provide an indicator 
showing the interest of a country in using commercial presence to supply services inte rnationally.  In addition, FDI statistics  
can be used in conjunction with FATS to indicate the extent to which the operations of affiliates were financed with funds 
from direct investors, as well as the extent to which the income generated by affiliates accrues to direct investors. FDI data 
can be found in Eurostat’s online database, the OECD’s International Direct Investment Statistics , the IMF’s Balance of 
Payments Statistics and UNCTAD’s Foreign Direct Investment Database . 
27 While these indicators allow analysis of the sector's developments over time, they are not suitable for cross-
sector comparisons.  
28 An update of this document is planned for early 2011.  
29 At the time of writing Services profiles covered around 100 indicators for these sectors relating to investment, 
market performance, producti on, employment, trade, as well as pe rformance rankings, for over 90 economies.  
30 The January 2010 update is available at http://www.wto.org/english/res_e/statis_e/broch_dataday_feb10_e.pdf.   S/C/W/329 
 Page 17 
 
 
  IV. ASSESSING TRADE IN SERVICES BY MODE OF SUPPLY 
48. The introduction of the EBOPS and the new statistical framework on FATS in MSITS 2002 
have allowed to improve the cove rage and refine measures for trad e in services, in particular for 
approximating modes 1, 2 and 3.  However, up to date, no reliable estimate exists on the value of 
mode 4 trade which renders any quantitative assessment difficult.31 When revising MISTS it was 
acknowledged that a separate chapter on the measur ement of the international supply of services by 
mode needed to be drafted, with a special focu s on mode 4 following the outcome of the discussions 
that took place within the Technical Subgroup on th e Movement of Natural Persons – Mode 4.  This 
Section will briefly present the contents of this new chapter of MSITS 2010 and some of the rare 
modes of supply compilation experiences will be s hown.  Finally the section will present more 
specifically additional recent achievements with resp ect to the development of the new statistical 
framework for assessing mode 4 (presence of natural persons).    
A. ALL MODES OF SUPPLY  
49. Table 5 presents an approximation of the re lative sizes of modes of supply.  This 
approximation is built on the basis of the new recommendations included in MSITS 2010 and the 
anecdotal information available for mode 4.  Base d on 2007 data, it seems that mode 3 represents the 
dominant mode for supplying services internationa lly (between 55 and 60 per cent of the total), 
followed by mode 1 (25-30 per cent) and mode 2 ( 10-15 per cent).  Mode 4 represents less than 5 per 
cent of total international supply of  services (approximately US$200 billion). 
Table 5 Statistical approximation of modes of supply, 2007 (percentage) 
 
Mode 1   Cross-border supply  25–30 
Mode 2   Consumption abroad  10–15 
Mode 3   Commercial presence  55–60 
Mode 4   Presence of natural persons        less than 
5 
        Source : Magdeleine and Maurer, Measuring Trad e in Services in Mode 4, 2010. 
50. To enable an appropriate measurement of the supply of services by mode, as a starting point, 
MSITS 2010 proposes criteria derived from the GATS definitions, based on the following considerations:
32 
(a) FATS sales or output provide most information on the supply of services through 
mode 3; and 
(b) Service transactions as recorded in the ba lance of payments broadly cover mode 1, 
mode 2 and mode 4. 
51. Ideally each balance of payments component at  the detailed EBOPS level should be allocated 
to a mode.  However this may be difficult as in many cases a single service payment or receipt 
reported to the BOP compiler, may involve more than one mode.  MSITS 2010 therefore proposes 
some simplifying assumptions, i.e. each EBOPS type  of service should be allocated either to one 
                                                           
31 As will be shown later in the section,  although mode 4 information is often in cluded in these statistics, given the 
smaller size of this mode it is difficult to identify or estimate it separately from other modes of supply.  
32 These are simplification rules set out for statistical purposes.  S/C/W/329 
Page 18 
 
 
  dominant mode or where there is no dominant mode, to the most significant.  Examples of balance of 
payments services transactions which largely co rrespond to one mode are communications services 
(mode 1), travel which is allocated to mode 2 or services incidental to agriculture and mining which 
are deemed to be provided predominantly through mode 4.   
Chart 1. Simplified allocation of FATS and balance of payments data to modes of supply33 
Mode 1 Mode 2 
 
 
  
 
  
 
 
 
Mode 4   
 
  
 
Mode 3 
 
52. There are however some types of service where no single mode is dominant, and in general 
this involves mode 4 together with another mode of  supply (mainly mode 1, but can also be mode 3 
for the BOP service item construction or mode 2 for waste treatment and de-pollution).  Chart 1 
summarizes the MSITS 2010 recommended allocation of statistics which can serve as a first guidance 
to estimate the value of the international supply of  services broken down by modes.  It identifies the 
dominant mode(s) of supply used for balance of payments services transactions, the shaded ovals 
showing the balance of payments items where there is no dominance and actually where mode 4 may 
represent an important proportion of transactions.34 Items in italics correspond to items not separately 
                                                           
33 Based on MSITS 2010 recommendations. The allocation may vary from economy to economy (general needs of 
economy, as well as taking into considerat ion more specific needs of sectors, data  collection systems in  place, resources, 
etc.). Items in italics are not separate ly available in BPM6/EBOPS 2010 version.  
34 If for a compiling economy allocation doe s not necessitate the separate iden tification of modes or if it has 
difficulties in implementing the allocation according to this ch art (too burdensome or costly for compilers or reporters), the BOP: 
Services incidental to agriculture etc. and 
services incidental to mining etc. 
BOP: Construction Balance of payments (BOP): 
• Transport (except except services to domestic carriers 
foreign ports and vice-versa),  
including post and courier 
• Insurance and pension services 
• Financial services 
• Charges for use of intellectual property rights 
• Telecommunication services 
• Information services 
• Operational leasing services 
• Trade-related services 
• Estimated distribution services in goods trade 
 
BOP: 
• Computer services 
• Research and development services 
• Professional and management consulting 
services 
• Architectural, engineering, scientific and 
other technical services 
• Other business services n.i.e. 
• Personal, cultural and recreational service
• Government services n.i.e., debits 
(commercial services, except by personel 
from home economy)  BOP: 
• Manufacturing services on physical inputs 
owned by others 
• Maintenance and repairs n.i.e. 
• Supporting and auxilliary services provided to 
domestic carriers in foreign ports or vice-
versa 
• Travel (except goods) 
• Government services n.i.e., debits  (personel fr o
home economy) 
 
FATS sales/output of services: 
• Manufacturing services 
• Maintenance and repair 
• Transport 
• Construction 
• Insurance and pension services 
• Financial services 
• Charges for the use of intellectual property 
rights n.i.e. 
• Telecommunciations, computer and 
information services 
• Etc.  S/C/W/329 
 Page 19 
 
 
  available in EBOPS but if they were available w ould improve the measurement of the international 
supply of services by mode. 
53. To then allocate transactions to modes, a number of compiling guidelines need to be 
elaborated on the basis of rules of national legisla tion and/or accounting conventions.  As can be seen 
above, the possibility of estimating mode 4 flows within the balance of payments services account 
would help improve the estimations of the intern ational supply of services by modes.  To collect 
further information with respect to mode 4, a clear list of questions needs be developed to help survey 
respondents and/or compilers to identify whether the payment for a service contract or a single 
payment could be classified as the supply through m odes 1, 2, 3 or 4.  A number of examples of 
questions are provided in MSITS 2010.  The rules a pplied to compile these estimates by mode of 
supply, and the list of items where estimates of mode 4 are necessary, can be established using the 
chart above and considering each country’s interest.  This list should not necessarily strictly be limited 
to the services items identified in the chart. 
54. At the time of writing most estimates that have been made are based on the basic FATS-mode 
3 versus BOP services-other modes assumption (see for instance the examples provided in the 
previous version of this Note, document S/C/ W/27/Add.2).  However to the knowledge of the 
Secretariat some economies (e.g. Hong Kong, Chin a) have started including a question on mode 4 
within their main trade in services survey but no r esult has yet been published.  Some other countries 
have attempted to do so by concentrating on a service sector of particular interest to their economy.   
55. Given its interest in the international supply of  computer and IT enabled services, the Reserve 
Bank of India (RBI) has been collecting since 2005 data on the international supply of computer 
software and information technology enabled services35 according to the four modes.  As shown in 
table 6 in fiscal year 2008-09 it is estimated that modes 1 and 4 exports represent 83 per cent (approximately US$36.3 billion) of India's total in ternational supply of computer and information 
technology enabled services (see table below), followed by mode 3 at 16.8 per cent.  Indian's supply 
through modes 1 and 4  can be further broken dow n showing that although not dominant, mode 4 
represents a significant share (26.8 per cent) of the international supply of these services.  For the 
companies which have international transactions of  a value of at least US$22 million, the share is 
around 28.4 per cent.  
Table 6. Indian international supply of computer so ftware and Information Technology enabled services 
by mode, 2008-09 
Amount (million US$) Per cent Share in Total Size of 
Transactions 
(million US$)  Mode 1 Mode 2 Mode 
3Mode 4 Total Mode 1 Mode 
2 Mode 3 Mode 4 
< 0.2 37 0 6 1 44 83.2 0.0 13.9 3.0 
0.2-2.2 447 5 43 18 513 87.1 0.9 8.4 3.6 
2-22 1930 0 225 111 2266 85.2 0.0 9.9 4.9 
> 22 22194 28 7051 11592 40865 54.3 0.1 17.3 28.4 
Total 24607 32 7326 11723 43688 56.3 0.1 16.8 26.8 
Source : Reserve Bank of India (2010), Survey on Computer Soft ware & IT Services Exports : 2008-09. (converted to US 
dollars by the Secretariat). 
                                                                                                                                                                                     
rules can be simplified by concentrating on the 12 most releva nt BPM6 service transaction aggregates, FATS and if possible 
the estimated value for distri bution services associated with cross-border goods trade.  
35 This is not a specific service categor y in EBOPS. In the balance of paym ents services should be classified 
according to the type of service rendered, not the way it is delivered. In other words these transactions would be identified i n 
EBOPS under computer services, and other types of busine ss services (e.g. legal serv ices, engineer ing services).  S/C/W/329 
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  56. The simplifying assumptions for the allocation by mode of supply set out above should be 
regarded as a guide to first steps in the estimati on process and be subjected to periodic review and 
empirical testing of their validity and appropriateness.  This allocation may vary from economy to economy and should be adapted to each compiling economy's specific situation and information 
needs.  For particular important services sectors of an economy, compilers may invest further to 
improve the estimation of these items by mode of supply, and this is particularly true for mode 4.  The 
estimation by mode could also be initiated or improved over time according to the information 
obtained by compilers, notably on the way service sect ors operate.  For instance the use of partial or 
anecdotal information on a number of specific sectors could be used as a starting point.   
57. Although not entirely consistent with statis tical guidelines and the GATS definitions of 
modes of supply, the Australian International Lega l Services Advisory Council (ILSAC) developed a 
survey on the Australian Export Market for Lega l Services for financial years 2004-05 and 2006-07.  
The latest results showed that a fifth of its in ternational supply of servi ces was supplied through 
commercial presence and that a bit less than a fi fth (approximately US$93 million) was "Fly in-fly 
out",
36 which could for instance be used to develop an  approximation for mode 4 trade.  Such survey 
results could actually be compared to the official  BOP and FATS data and eventually be used to 
derive modes of supply indicators for exports of legal services.  According to reports, ILSAC is 
planning to collaborate further with the Australia n Bureau of Statistics in order to better align 
definitions used and improve the quality of  the data published for legal services. 
58. We are able today to present some studies on the international supply of services by modes at 
a specific sector level, however we are still lacki ng information on the overall structure of Members' 
trade in services by mode.  This probably results fr om other priorities identified by compilers (e.g. 
implement BPM5/BPM6 guidelines, implement data co llection at the EBOPS level) as well as the 
difficulty to identify modes of supply within BO P services transactions.  However now that the 
revised statistical guidelines surrounding trade in servi ces statistics have been approved, it is expected 
that in the not too distant future compilers  start implementing the MSITS 2010 recommendations 
according to a phased approach, in particular the identification of balance of payments services 
transactions where mode 4 is believed to be an im portant component.  The following step would then 
be to work on a separate estimati on of modes for these transactions. 
B. MODE 437 
59. As for other modes, MSISTS 2010 identifies the in formation needs for a complete analysis of 
modes of supply.  For mode 4 it identifies two: first,  the value of the service provided for categories of 
people that fall under the mode 4 regime, and sec ond, the number of natural persons moving (flows) 
and temporarily present (stocks) in the context of the supply of a service.38 
60. In terms of value, only the trade carried out through the presence of contractual service 
suppliers (CSS) and independent professionals (IP) w ould prove relevant (i.e. those directly involved 
in the rendering of services through a service contract).39  For the other categories of natural persons 
(i.e. those generally indirectly involved in the prov ision of services), this would not be relevant: for 
intra-corporate transferees and other foreign em ployees of foreign service suppliers, the service is 
                                                           
36 This category includes work undertaken by lawyers normally resident in Australia, either on a 'fly in-fly out' 
basis or from their 'desk' in Australia if it is not necessary to fly in to actually undertake the work.   
37 The Secretariat Background Note S/C/W/301 Presence of natural persons  provided information on the 
measurement of mode 4, which is why this section only summarizes the major MSITS 2010 outcomes with respect to its 
measurement.  
38 Ideally the information has to be further broken down in te rms of the type of service supplied, the countries of 
origin/destination of the trade, the relation between the partie s as well as by skill and occupa tion of the persons and by leng th 
of stay. However it is important to note that it may be diffi cult to obtain information at such a high level of detail.  
39 In international statistical standards, CSS and IP are re spectively referred to as 'CSS as employees of a juridical 
person' and as 'CSS as self-employed'.   S/C/W/329 
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  being supplied through the affilia te (and captured under mode 3, in FATS), while the activities of 
business visitors do not, at least initially, involve fina ncial transactions.  As a consequence the value 
of mode 4 trade is mainly recorded in the balan ce of payments services transactions, as explained in 
the above section.  It is not recorded under the ba lance of payments items compensation of employees 
and workers remittances/personal transfers that are often used in economic literature as statistical 
indicators to estimate the size of mode 4 trade.   Those are both labour income measures and in a 
majority of cases do not cover the mode 4 population.  Consequently they cannot be used to measure 
mode 4.  Only BOP trade in services transacti ons measure trade flows that are specified and 
originating from service contracts between resident  service suppliers and non-resident consumers, or 
between non-resident service suppliers  and resident consumers.    
61. As explained above, for a more global an alysis of services industries or market 
opportunities there exist a number of additional useful statistics that can be drawn from various 
statistical frameworks.  With respect to mode 4, information on the number of persons moving and 
present abroad are naturally important indicators to consider.  Relevant information will be found in tourism or migration statistics, but rarely at the ap propriate level of detail or separately available.  
Information on flows and stocks of natural persons could be derived from the definitions used in the 
corresponding statistical frameworks, that is the International Recommendati ons on Tourism Statistics 
– IRTS 2008; Tourism Satellite Accounts: Re commended Methodological Framework – TSA-RMF 
2008; and the Recommendations on Statistics on Inte rnational Migration, Revision 1 – RSIM, Rev.1 
(in particular looking at non-migrant categories) .  While rough aggregated mode 4 information may 
be drawn from these statistical systems, a more co mplete picture will require additional breakdowns 
in relevant categories.  Such statistics will not pe rfectly mirror the definitions of the GATS, but could 
provide a reasonable indication of the number of mo de 4 persons crossing borders and present abroad 
in the context of trade in services.  In addition they would probably only ne ed minor adjustments in 
order to better respond to information needs related to the GATS. 
V. CONCLUSIONS AND FUTURE PROSPECTS 
62. This paper describes progress achieved in data availability since 2006.  Due to higher data 
availability, services trade flows can be analyzed in  more detail compared to a few years ago (the 
Addendum describes trends in trade and recent developments for services sectors). 
63. Some 180 economies now report aggregated service s trade data.  At the same time, these 
economies have extended their reporting of detail for their individual service sectors.  According to 
the recommendations of MSITS 2002, economies have also enhanced their reporting of the trading 
partner.  At the time of writing this Note, some  50 economies report their international trade in 
services transactions by origin and destination (m ainly developed and tran sition economies).  In 
parallel to improvements for balance-of-payments de rived trade in services statistics, with FATS data 
collection being mandatory in EU since 2007, data for this statistical framework are also more widely 
available.  However, FA TS data sets are still mainly disseminate d by OECD or EU member countries, 
although a number of non-OECD countries have either  started or are expe rimenting with pilot 
surveys.  For the analysis of these data sets, neve rtheless, analysts often face only a time series period 
and cross-country comparability is often hampered by methodological differences.  In spite of these 
positive developments of data availability, many developing countries still do not publish either a full 
breakdown by service category or partner detail, no r are there visible developments of a FATS 
framework.  
64. The Hong Kong Ministerial Declaration, A nnex C refers in paragraph 10 to WTO, inter alia , 
providing targeted technical assistance.  It spells out that "... such assistance should be provided on, 
inter alia , compiling and analysing statistical data on trad e in services, [and] assessing interests in and 
gains from services trade, ...".  Since then,  the Secr etariat's statisticians have organized a number of 
national seminars on measuring international trad e in services upon the request of Members.  The S/C/W/329 
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  Secretariat has also pursued seminars that are ca rried out in co-operation with other international 
organizations such as the United Nations Statisti cal Division (UNSD), the OECD, IMF, World Bank, 
Eurostat and a number of regional organizations (see Annex 1).  While these activities helped to 
spread the awareness and capacity for compiling trad e in services statistics according to MSITS 2002, 
further improvements are still needed as to the re porting of sector and partner detail in the countries' 
balance of payments.  Furthermore, documentati on of available statistics often does not include s 
description of differences with international st andards (metadata), which makes interpretation 
difficult.  As for FATS, countries outside the OECD region need to be encouraged further to develop 
pilot surveys and develop FATS data sets.  Sta tistical reporting on modes of supply is still non-
existent, but the revised MSITS 2010 has helped clarif ying the "statistical" interpretation of mode 4.  
The new chapter in MSITS 2010 on measuring th e international supply of services by modes of 
supply should help to guide the development of these statistics. 
65. However, it should also be noted that although the revised MSITS 2010 and the respective 
EBOPS 2010 will bring about furthe r detail and clarification as to the definition of service sectors, 
gaps will continue to exist as to what statistical  systems such as the BOP or FATS can deliver and 
what trade negotiators may require.  A priority is therefore not only the rapid implementation of 
MSITS 2010, but also the search for alternative data  sources that may complement existing data sets 
on trade in services.  Many economies started to pr ovide or experiment the compilation of trade data 
by enterprise characteristics.  These data sets, ba sed on the linkage of trade and business registers, 
allow to judge trade developments from a microe conomic perspective and are thus an interesting 
policy element in analysing trade developments from another angle. 
66. As for the implementation of MSITS 2010, there are a number of key factors that play an 
important role.  First, MSITS 2010 needs to be complemented with compilation guidance and the 
inter-agency Task Force on Statistics of International Trade in Services is developing such material.  
Second, technical assistance by international and national agencies, and bilateral activities between 
economies need to be coordinated to enhance thei r efficiency.  Third, international and regional 
agencies need to support national initiatives, for ex ample, the development of pilot studies.  Most 
important, especially for developing FATS, is th e close co-operation between national agencies to 
identify potential uses and data sour ces that could help to develop this statistical framework.  Ideally, 
these statistics should be gauged against applied regi mes in the services sectors to allow for a sound 
analysis and monitoring of trade liberalization.      
 
 
 
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  S/C/W/329 
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ANNEX 
 
 
Selected Seminars, Conferences, Tech nical Assistance on Statistics on International Trade in Services, 
2006-2011 
2006 
Geneva  Regular participation in WTO Trade Policy Courses, Trade in Services Statistics 
February 2006 
Dakar, Senegal WTO Regional Trade Policy Course, Trade in Services Statistics 
May 2006 
Taipei, Chinese Taipei National Seminar on Statistics of International Trade in Services 
September 2006 International Seminar on Trade in Services 
Beijing, China  
2007 
Geneva Regular participation in WTO Trade Po licy Courses, Trade in Services Statistics 
April 2007 Regional Seminar on Statistic s of International Trade in Services 
Tunis, Tunisia   
May 2007  WTO National Seminar on Statistics of International Trade in Services 
Islamabad, Pakistan   
Geneva Regular participation in WTO Trade Po licy Courses, Trade in Services Statistics 
November 2007  China Trad e in Services Conference 
Shanghai, China 2nd International Seminar on Trade in Services 
2008 
Geneva 
 Regular participation in WTO Trade Policy Courses, Trade in Services Statistics 
October 2008  
Manila, Philippines APEC Capacity Building Seminar Worksh op on Measurement of International 
Trade in Services 
October 2008 3rd International Seminar on Trade in Services  
Beijing, China   
30-31 October 2008 Measuring and Promoting Services Trade -- International Seminar 
Mexico City, Mexico   
2009 
Geneva Regular participation in WTO Trade Po licy Courses, Trade in Services Statistics 
March 2009 International Trade in Services Course 
Washington, D.C., United 
States World Bank Training in Services 
June 2009  
Durban, South Africa World Bank Workshop on Statistics of International Trade in Services Statistics 
for the BRIC and other countries 
November 2009 National Seminar on Statistics of  International Trade in Services Statistics 
Lusaka, Zambia   
December 2009  
Rio de Janeiro, Brazil UNSD/ECLAC/IBGE/BCB Workshop on Sta tistics of International Trade in 
Services Statistics for Latin American countries S/C/W/329 
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  Selected Seminars, Conferences, Tech nical Assistance on Statistics on International Trade in Services, 
2006-2011 
2010 
Geneva Regular participation in WTO Trade Po licy Courses, Trade in Services Statistics 
January 2010  
Cairo, Egypt Services Trade Reform and Negotiations in the MENA region (World Bank 
Institute) 
 February 2010,Vienna, 
Austria Services Trade Reform and Negotiations in the MENA region (World Bank 
Institute) 
March 2010 National Seminar on International Trade in Services Statistics 
Kuala Lumpur, Malaysia   
November/December 
2010, Kunming, 
China 5th International Seminar on Trade in Services  
December 
Hanoi, Viet Nam Statistics of International Trade in Se rvices: Challenges and Good Practices 
Workshop for the South-East Asian countries 
2011 
Geneva Regular participation in WTO Trade Po licy Courses, Trade in Services Statistics 
January 2011,  
Muscat, Oman Regional workshop on International Trad e in Services Statistics (Arab countries) 
January 2011 
 Mauritius COMESA/Commonwealth Secret ariat  Workshop on Statistics of International 
Trade in Services 
 
 
 
 
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