CARICOM TRADE IN SERVICES STATISTICS (CTIS)PROJECT June-December 2016

1. CARICOM TRADE IN SERVICES STATISTICS (CTIS)PROJECT June-December 2016 Regional Training Workshop November 21 to 25, 2016 by Lucilla Lewis, Lead Consultant

2. REVIEW OF SITUATIONAL ANALYSIS IN SIX PILOT COUNTRIES: COMPILATION OF STATISTICS ON INTERNATIONAL TRADE IN SERVICES Participating Member States • Dominica • Grenada • Antigua • St Lucia • Suriname • Jamaica

3. REVIEW OF SITUATIONAL ANALYSIS IN SIX PILOT COUNTRIES: COMPILATION OF STATISTICS ON INTERNATIONAL TRADE INSERVICES Dominica • Collaboration • ECCB • Discover Dominica Authority (DDA) • Income Tax Department • Immigration Division • Invest Dominica Authority • Financial Secretary’s Office

4. REVIEW Cont’d • Note on Collaboration with ECCBin compilation of the Balance of Payments (BOP) • ECCB leads compilation of the BOP • New survey questionnaires were introduced in 2015 • There are 24 survey forms • The new survey forms better cover the product details under the services components • The new BOP survey form 4 covers the details necessary for compiling the flows and stocks of FDIs • The new survey forms only capture information by two regions – the ECCU and the rest of CSME

5. REVIEW Cont’d • EBOPS • Compiled annually from direct excel links in BOP database • BOP compilation converted to basis of BPM6 • Compilation of BOP is led by the ECCB • BOP survey weighted response rate 75.8% in 2015 • EBOPS series available from 2002 • Components with most gaps are: • Charges for use of IP • ICTs • Other business services • Personal cultural and other recreational services • EBOPS is published annually in the Annual Trade in Services Statistics Publication. (started in 2012)

6. REVIEW Cont’d • Statistical Business Register (SBR) • The SBR does not capture data on percentage of foreign ownership • The SBR does not appear to be the source of generating the BOP survey register

7. REVIEW Cont’d • FDI Flows and stocks • Register of FDIs is currently maintained in the BOP database • Can be compiled from the current BOP survey questionnaire • Coverage of IIP • Not being compiled

8. REVIEW Cont’d • Foreign Affiliates Statistics • Register of Foreign Affiliates not currently being generated from the SBR • Decision taken on final day of mission to allocate staff to addressing this shortcoming in the SBR and commence compilation of FATS • GATS 4 Modes of Supply • Not yet being done

9. REVIEW Cont’d • Challenges • Inadequate information on the emerging services sectors especially for the creative industries • Success stories/best practice • Only Member State with a dedicated trade in services statistics publication

10. REVIEW Cont’d Grenada • Collaboration • ECCB • Revenue Department • GIDC • National Insurance Scheme • Ministry of Finance • Ministry of Tourism • Grenada Tourism Authority

11. REVIEW Cont’d • EBOPS • EBOBS series available from 2002 • Response rate has shown increasing trend from 36% in 2002 to 75% in 2015 • Components with major gaps are the same as for Dominica • EBOPS series is available at the CSO

12. REVIEW Cont’d • Statistical Business Register • SBR is not updated on an ongoing basis and is therefore not comprehensive • The SBR does not capture percentage of foreign ownership and is not used as the prime source for generating the BOP survey register

13. REVIEW Cont’d • FDI Flows and stocks • Flows and stocks to be compiled can be obtained from the BOP database, but are not now being compiled in the recommended framework

14. REVIEW Cont’d • Foreign Affiliates Statistics • Not being compiled • Register of Foreign Affiliates cannot be generated from the SBR • GATS 4 Modes of Supply • Not being compiled

15. REVIEW Cont’d • Challenges • Resources to better engage emerging services providers, • Inadequate staff allocated to the Economic Statistics Unit, which has responsibility for trade in services • Success stories/best practice • Business Register Update Form

16. REVIEW Cont’d Antigua • Collaboration • ECCB • Social Security • Tax Department • Antigua Tourism Authority • Statistics Canada (STATSCAN)

17. EBOPS • Response rate for 2015 was 50% • EBOPS not currently being published by the CSO but plans are afoot to published on the soon to be launched website of the CSO. • Major data gaps: • FISIM • Charges for use of intellectual property not being disaggregated • Computer services not being disaggregated and there is no data for information services • Technical, trade related and other business services not being disaggregated • No data reported for health services and education services respectively

18. REVIEW Cont’d • Statistical Business Register (SBR) • There has not been a comprehensive update of the SBR in recent times • Technical assistance currently provided by STATIN under PRASC towards best practice maintenance of the SBR

19. REVIEW Cont’d • FDI Flows and Stocks • Data can be captured from the new BOP Survey Form • Flows and stocks are not currently compiled in the recommended framework

20. REVIEW Cont’d • Foreign Affiliates Statistics • The sub register of foreign Afflilates cannot be generated from the SBR hence the FATS cannot be compiled • GATS 4 Modes of Supply • Not being compiled

21. REVIEW Cont’d • Challenges • Poor response rates • Gaps in data from surveys and from administrative sources • Inadequate knowledge of cross border transactions in the emerging services sectors • Success Stories • A trend of cross training among the professional staff of the Statistics Department

22. REVIEW Cont’d St Lucia • Collaboration • ECCB • Ministry of Finance • Inland Revenue Department • National Insurance • Ministry of Tourism • St Lucia Tourism Board

23. REVIEW Cont’d • EBOPS • Declining trend in BOP survey response rate from 75% in 2010 to 51% in 2015 • Sharp decline in response rate occurred in 2014 and continued into 2015. Reported to be associated with introduction of request for info on IIP. It was also reported that lowest response rates were for the services components • Main data gaps relate to the following components: charges for use of IP services; computer and information services; other business services, personal, cultural and regulation services

24. REVIEW Cont’d • Statistical Business Register • SBR is being addressed through TA from STATSCAN • Business register survey includes request for percentage of foreign ownership but due to response rate issues the data cannot be compiled for generating the register of FATS • A business register survey has not been undertaken over the past 5 years and updates have been based on admin data from NIS and Inland Revenue

25. REVIEW Cont’d • FDI Flows and Stocks • Required data can be collected in the BOP Survey Form • Data is not being compiled in the required framework

26. REVIEW Cont’d • Foreign Affiliates Statistics • Response rate to question on percentage of foreign ownership on Business Survey Form is low • The business register is not being maintained according to best practice • FATS not being compiled • GATS 4 Modes of Supply • Not being compiled

27. REVIEW Cont’d • Challenges • Low response rates • Inadequate information on cross border trade in the emerging services sectors • Success stories -Rolling out of a plan to institutionalise collaborative approaches among data users/statistical compilers to streamline the survey burden on statistical compilers and data providers

28. REVIEW Cont’d Suriname • Collaboration • Central Bank of Suriname • National Planning Office • Business Forum • ICT Association • Tourism Office

29. REVIEW Cont’d • EBOPS • Central Bank of Suriname detailed services account based on BPM5 • Plan to convert to BPM6 in 2017 and to introduce a comprehensive BOP survey with TA from CARTAC • BOP data sources include: • ITRS • Administrative data • Survey data including survey of mining, construction, transportation sectors respectively and FDIs.

30. REVIEW Cont’d • EBOPS cont’d • 100% response rate attributable to resources allocated to relationship building • A detailed BOP services account series is available internally however only very summarised services data is published • The following components require disaggregation: • Travel • Charges for use of intellectual property • Computer and information services • Personal, cultural and recreational services

31. REVIEW Cont’d • Statistical Business Register • Efforts by the Enterprise Statistics Unit of the ABS have had only limited success. • Collaboration with the Business Forum to improve maintenance of the business register have not delivered the desired results • An establishment survey was just conducted and revision of the register from ISIC Rev.3 to Rev.4 is ongoing • The SBR does not currently cover data on percentage of foreign ownership of establishments

32. REVIEW Cont’d • FDI Flows and Stocks • Limited statistics on FDI flows and stocks can be extracted from the BOP and the IIP compiled by the Central Bank of Suriname • Central Bank of Suriname plans to commence compilation of outward FDI flows and stocks

33. REVIEW Cont’d • Foreign Affiliates Statistics • While variables are available in the National Accounts worksheets, in the BOP and in the merchandise trade data base, the register of Foreign Affiliates cannot be generated from the SBR hence compilation of FATS has not commenced • GATS 4 Modes of Supply • Not being compiled

34. REVIEW Cont’d • Challenges • Little capacity in EBOPS compilation at the ABS • Successes • Allocation of resources by the Central Bank of Suriname to relationship building with existing and potential survey respondents

35. REVIEW Cont’d Jamaica • Collaboration • Bank of Jamaica (BOJ) • Jamaica Promotions (JAMPRO) • Companies Registry • National Housing Trust (NHT) • Jamaica Tourism Board • Jamaica Tax Department • Jamaica Financial Services Commission (JFSC)

36. REVIEW Cont’d • EBOPS • The detailed services account from the BOP compiled by the BOJ is extracted as EBOPS and is made available to regional and international agencies • The BOP compilation will be converted to BPM6 in 2017 when the 2016 BOP is being compiled • A BOP series going back to 2002 is available • The BOP is compiled on a quarterly basis, but the survey is conducted bi-annually

37. REVIEW Cont’d • The BOP compilation is based on the following: • Data from STATIN • Estimates of tourism receipts from the Jamaica Tourism Board • Surveys of the Port and Airport departments and other surveys • Relationship building with big players in respective sectors • Media communications • Estimation and imputation

38. REVIEW Cont’d • Gaps observed in the services account of the BOP are as follows: • Travel: education tourism, health tourism, expenditure by seasonal and border workers not covered • Construction: Approach of entering 15% of total construction of FDIs not consistent with gross recording recommended • Financial services: FISIM is not being calculated • Other business services: low response rate for most of the subcategories under this component • Personal cultural and recreational services: health and education services not covered

39. REVIEW Cont’d • Statistical Business Register • The SBR is being updated on an ongoing basis • The sub register of FDIs and Foreign Affiliates is generated from the SBR • A new General Register of Establishments questionnaire has been designed and with technical assistance from STATSCAN a Business Survey will be conducted in 2017 • Regularity of register updates in recent times has been constrained by human resource challenges

40. REVIEW Cont’d • FDI Flows and Stocks • Both the BOJ and STATIN generate register of FDIs. Both agencies however agree that the STATIN register is more comprehensive • Data available in BOP and international investment position, but not bing compiled as recommended

41. REVIEW Cont’d • Foreign Affiliates Statistics • FATS is compiled for all industrial classifications, however gaps remain for construction and for wholesale and retail • GATS 4 Modes of Supply • Plan to commence compilation after publication of the FATS

42. REVIEW Cont’d • Challenges • Human resource and response rate issues • Little capacity in EBOPS compilation at STATIN • Success stories • Comprehensive business register • Compilation of FATS • Initiatives to collaborate with BOJ to compile FDI flows and stocks • No. of MOUs in place

43. CONCLUSIONS • All MS participating in the sample would have completed conversion to BPM6 by 2017. • Conversion to BPM6 provides additional details for compiling EBOPS and FDI flows and stocks, however some of the required details are not covered by BPM6

44. CONCLUSIONS • None of the BOP survey instruments currently being used, capture trade flows by trading partners, except for the limited regional information captured in Antigua, Dominica, Grenada and St Lucia • Among the MS participating in the pilot only Jamaica has made significant progress with compilation of FATS and already has a series which is not yet being published

45. CONCLUSIONS Cont’d • Jamaica is the only participating MS with a fairly comprehensive business register which generates a comprehensive register of FDIs and Foreign Affiliates • Key challenges faced regarding compilation of FATS variables relate: • Gaps in the business register • Low response rates to the, National accounts and BOP

46. CONCLUSIONS Cont’d • All of the participating MS, except Dominica, are currently receiving technical assistance from STATIN towards maintaining a comprehensive business register • Only Dominica issues a dedicated Trade in Services Statistics Publication

47. CONCLUSIONS Cont’d • Key causes of unavailability at the national compilation offices of statistical series of FDI flows and stocks are: • Despite complete coverage of required data in BOP surveys, no agency has assumed responsibility for compiling the statistics in the recommended framework • Poor response rates

48. CONCLUSION Cont’d • Challenges • Human resource capacity- numbers and training will become more acute as the statistics departments take on responsibility for compilation of EBOPS • Success stories • Institutionalising of collaborative approaches • Maintenance of the business register • Issue of a dedicated TIS publication

49. Conclusions Cont’d • Strengthened collaboration between the Statistics Departments and the Central Bank is critical going forward

50. END OF SECTION