REGIONAL COOPERATION AND ECONOMIC INTEGRATION

PART III:
modes of supply, FATS correspondents to mode 3 and partially mode 4 (Table 3). Partial,
supplementary information on presence of natural persons (mode 4) may also be available
from FATS, if employment by foreign affiliates is among the variables collected and if their
foreign employees, who have moved temporarily to the country of location of the foreign
affiliates, can be separately identified. However, accordingly MSITS, FATS is primarily
related to mode 3 (commercial presence). The international delivery of a great number of
services requires close contact between producers and consumers, which can be achieved
often only through affiliates established abroad (GATS mode 3, commercial presence) and
FATS should enable the measurement of this particularly important channel of delivery.
Table 3: Correspondence between modes of supply and statistical coverage
Mode
Statistical coverage
Mode 1
BPM5: part of commercial services (excluding travel
Cross-border supply and construction services)
Mode 2
BPM5: travel
Consumption abroad
Mode 3
FATS: FATS statistics
Commercial presence BPM5: part of construction services
BPM5: part of commercial services (excluding travel,
including construction services)
Mode 4
FATS (supplementary information): foreign
Presence of natural persons employment in foreign affiliates
BPM5 (supplementary information): labour-related
flows
Source: United Nations, European Commission, IMF, OECD, UNCTAD and WTO (2002), Manual on Statistics
of International Trade in Services, Geneva, Luxembourg, New York, Paris, Washington, D.C., p. 24,
Table 1.
Besides Manual (Chapter IV, Foreign Affiliates Trade in Services Statistics), detailed
discussion and recommendations for FATS and for statistics on AMNE (activities of
multinational enterprises – AMNE) have been given in the OECD Handbook on Economic
Globalisation Indicators (Chapter 3, The Economic Activity of Multinational Enterprises)
and in the fourth edition of the OECD Benchmark Definition of Foreign Direct Investment
(Chapter 8, FDI and Globalization).
In this context, we have to make a difference between Foreign Affiliates Trade in Services
Statistics (FATS Statistics), Foreign Affiliate Trade Statistics (FATS) and Foreign AffiliaTes
Statistics (FATS), because they are all known as FATS. The point is that it was first
developed FATS Statistics (Foreign Affiliates Trade in Services Statistics), i.e. FATS for
services. In the development of FATS, this was the first purpose of FATS contained in
MSITS. Currently it is in faze of expanding it above the services in FATS (Foreign Affiliate
Trade Statistics or only Foreign AffiliaTes Statistics), including both services and goods.
MSITS (2002) focuses on foreign affiliates producing services (foreign affiliates trade
in services statistics - FATS statistics), but notes that most of its recommendations for
compiling these statistics are equally applicable to goods and services. OECD Handbook on
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