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UNECE Task Force on Measurement of Global Production Summary of TF work in 2013/2014

UNECE Task Force on Measurement of Global Production Summary of TF work in 2013/2014. Michael Connolly Chair May 2014. Objectives of TF Work Programme . Conceptual Guidance. Typology Economic Ownership Treatment of Ownership of IPPs. Guide on Measurement of Global Production. FGPs

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UNECE Task Force on Measurement of Global Production Summary of TF work in 2013/2014

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  1. UNECE Task Force on Measurement of Global ProductionSummary of TF work in 2013/2014 Michael Connolly Chair May 2014

  2. Objectives of TF Work Programme

  3. Conceptual Guidance • Typology • Economic Ownership • Treatment of Ownership of IPPs Guide on Measurement of Global Production • FGPs • Merchanting/Goods for Processing • Quasi Transit Trade • Multi Territory Organisations • Practical Guidance • Research Agenda /other issues • Trade in value added • Merchanting of services • Topics for further work – research agenda

  4. Developments 2013 - 2014

  5. Consultation 1 AEG - Factoryless Goods Producers

  6. Aspects of FGP Production • FGP retains • Technical know-how • Product design • FGP controls • Outcome of production process • Access and delivery of final outputs to customers • CME supplies • Prespecified goods at predetermined prices

  7. AEG Presentation and Decision • “The Advisory Expert Group on National Accounts:…Agreed that factoryless producers — supplying intellectual property capital and marketing services, and controlling the production process while using contract manufacturers to produce goods — are to be considered goods producers and should not be classified in distributive services

  8. Consultation 2 – ISWGNA and UN Expert Group on International Statistical Classifications • the following guideline should be used to determine the industry classification of FGPs: • A principal that owns, or obtains a license to use, and supplies IPP inputs but no material inputs to a contractor but still manages (controls) the overall outcome of the production process should be classified to the manufacturing industry in a separate subset of existing classifications that highlights the factoryless characteristics of the firm. • No response as yet

  9. Consultation 3Internal TF Consultation • Agree Typology incl. aspects of FGP activities • Nature of transactions between FGP and Contract manufacturer: Good or Service • Treatment of branding • Programme for future work

  10. Consultation 4Global Consultation on Interim Guide • 35 replies • General comments • All responding respondents considered • the Guide is useful and comprehensive • the main recommendations clear and coherent • valuable for elaborating a programme for further work • Three new case studies • Czech Republic, Philippines and Sweden

  11. Outcome of the CES Plenary, April 2014 • The Conference welcomed the Guide to measuring global production • The Conference agreed with the proposal of the Task Force to revise the Guide including the comments from the global consultation and the discussion at the CES 2014 plenary session. • The Conference also agreed with the timetable for finalization of the Guide, as outlined in ECE/CES/2014/6/Add.1 Section IV. • Clarity in the guidance on the treatment of factoryless goods producers. • Importance of advancing the consultation on the industrial classification of factoryless goods producers. This could have a significant impact on the implementation of the 2008 SNA.

  12. Outcome of the CES Plenary, April 2014 • The Conference supported the creation of a forum in the form of an expert meeting for exchanging practical experience on data collection and compilation methods in respect to global production arrangements. The Conference asked UNECE and the Group of Experts on National Accounts, jointly with Eurostat and OECD, to provide such a forum. • An update of the Guide in 5 to 7 years from now should be envisaged to reflect new examples of good country practices. • The Conference emphasized the importance that the Global Working Group on Internationalization created by the UN Statistical Commission should closely collaborate with the CES Task Force

  13. Priorities for further work • Conceptual issues: global production arrangements related to services, open issues with factoryless goods producers, branding, goods-services split, transfer pricing • Data issues: framework for collecting and sharing of data, including confidentiality issues • Practical guidance: supplementary country case studies; a forum to exchange practical experience; review of the Guide in 5 to 7 years

  14. Programme for Further Work

  15. Finalization of the Guide • The Task Force will • Review all comments and reflect them in the Guide (face-to-face meeting on 9 May) • Receive feedback from UNECE/Eurostat/OECD Expert Group on NA and from the September 2014 AEG meeting • Expects feedback from the Expert Group on International Statistical Classifications on the classification of factoryless goods producers • Final consultation and submission to the CES in 2015

  16. Questions michael.connolly@cso.ie

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