Transcript Slide 1

CHARACTERISTICS OF THE
SERVICES SECTOR
- OVERVIEW-
Workshop on Statistics on
International Trade in Services
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I. CHARACTERISTICS OF THE
SERVICES SECTOR – OVERVIEW
1.
2.
3.
4.
Importance of services, and trade in services,
in the economy
Key distinctions: Trade in Services vs. Trade in
Goods
Production characteristics - Modes of Supply
BOP, WTO, GATT & GATS (see slide 8)
Discussion
Workshop on Statistics on
International Trade in Services
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Share of Services Value Added in GDP
Country groups and selected countries, 2000 (percentage)
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100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Services
Agriculture
Industry
Workshop on Statistics on
International Trade in Services
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SERVICES vs. GOODS (1/2)
• Trade in goods
– tangible
– can be stored
– trade associated with cross-border shipment
– data normally based on Customs documents
• Trade in Services
– intangible goods
– cannot be stored - output delivered as used
– no associated Customs documents
– different modes of supply ( cross-border,
consumption abroad, FATS, movement of
natural persons)
BUT
– data reported on ITRS in some countries
Workshop on Statistics on
International Trade in Services
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SERVICES vs. GOODS (2/2)
• Services - Intangible output of a production process
PRODUCTION
PRODUCTS:
• GOODS
(tangible)
• SERVICES
(intangible)
USERS’
NEEDS
Workshop on Statistics on
International Trade in Services
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SERVICES vs. TRANSFERS
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Important difference between Services and
Transfers
Services: Payment for services provided
(“quid pro quo”)
Transfers: Payment without any goods or
services provided (no “quid pro quo”)
Workshop on Statistics on
International Trade in Services
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SERVICES vs. INCOME
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Services (to be reported): provision of an
intangible product such as:
 transportation
 travel
 communications
 business services
Income (not to be reported):
 Earnings from investment
 Salaries and wages
 Corporation profits
Workshop on Statistics on
International Trade in Services
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BOP, WTO, GATT and GATS
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Balance of Payments
- records international transactions
- part of System of National Accounts
World Trade Organization
- established in 1995 with broad mandate
General Agreement on Tariffs and Trade
- predecessor to WTO
- mandate restricted to trade in goods
General Agreement on Trade in Services
- international agreement governing trade in services
Workshop on Statistics on
International Trade in Services
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GENERAL AGREEMENT ON
TRADE IN SERVICES (GATS)
Set of rules covering international trade in services
Set of general obligations and disciplines
GATS
Pillars
Countries’ schedules of specific commitments
Annexes on specific issues
Commitments
under GATS
By services sectors
By mode of supply
Workshop on Statistics on
International Trade in Services
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