Services trade by modes of supply

Currently, MoS statistics are estimated using a simplified approach (based on the approach proposed by  MSITS 2010 and the GATS concepts).

For the time being the MoS statistics have not yet reached full maturity in terms of harmonisation, coverage and methodology. Using this pilot model, Eurostat has estimated service trade flows delivered through the 4 MoS starting with an assumed distribution or proportions of assigning the services categories to the 4 modes of supply.

The results obtained so far are of an experimental and exploratory nature. The model is described in detail in the MoS compiler’s guide.

Thus, services trade statistics by MoS shall be considered experimental until:

• the coverage and completeness of the data are improved – overcoming the double counting issues between FATS and ITSS, excluding the value of goods from some service items, better estimation of the Distribution services and Financial and insurance activities
• the methods are widely agreed among the countries
• regular data production is achieved.

Currently, MoS data are produced using ITSS, assigning the services exports and imports values to modes 1, 2, and 4 according to some countries’ evidence and experts’ opinion.

Mode 3 (trade through commercial presence) is estimated using FATS. Finally, international trade in goods statistics are used for estimating distribution services and singling out the goods part from some EBOPS items (such as maintenance and repair, travel, construction, government goods and services).

This approach is based on the so-called simplified approach presented in the  MSITS 2010 manual, whereby each service item (classified by the extended balance of payments services classification, EBOPS) is assigned to either one or several modes.

Eurostat in cooperation with the WTO and several countries has further elaborated on the specific proportions. These proportions are based on (i) some evidence and data from EU countries, and (ii) expert opinion.

For integrating the statistics on foreign affiliates as mode 3, Eurostat has used a conversion table applying equal proportionality assumptions to allocate the respective NACE items to the EBOPS categories. Therefore, the current results can be considered as an approximation of the modes of supply of the services.