REGIONAL COOPERATION AND ECONOMIC INTEGRATION

e on a basis compatible with EBOPS for services and according to the Harmonized System
for trade in goods, to facilitate comparisons with resident/non-resident trade classified on
this basis.
In developing FATS, there are two basic approaches. The first is to conduct surveys that
directly request information on the operations of resident affiliates of foreign firms and
foreign affiliates of domestic firms. The second, which can be used only for inward FATS,
is to identify the subset of existing data on resident enterprises that is accounted for by
foreign-owned firms. Links to existing domestic statistics should also be used as a source
of information on FATS.
Foreign Affiliates Trade Statistics are in the early stage of development. However, their
collection and dissemination are taking an increasing importance at Eurostat, the OECD
and the UNCTAD. An initial step towards international harmonization of basic concepts
and definitions was taken via MSITS. This and other mentioned concepts have been
accepted internationally, but they need to be supplemented and extended. A major difficulty
involves data comparability, where numerous problems consists. There are many factors
which most frequently affect the international comparability of data and also comparability
between data from different national sources. The latest important step is the adoption of
EU Regulation No 716/2007 on Community statistics on the structure and activity of foreign
affiliates (European Communities, 2007) that is the legal framework according to which
member states are required to provide inward and outward FATS to Eurostat starting from
2008 onwards, which was until then carried out on voluntary basis.
CONCLUSIONS
SOME ASPECTS OF TRADE STATISTICS AND REPORTING
Contemporary concept of foreign trade statistics observe only the flow of goods and services
across national borders. The activities of transnational companies are largely statisticaly
unobserved except in the mode 3 of international trade of services. The second half of
the 20th century, especially the period after 1990, is characterized by the rising role of
transnational companies and their affiliates in international trade. The analysis in the paper
shows that nowadays firms deliver goods and services to foreign markets more through
their foreign direct investment operations (international production in foreign affiliates)
than through traditional forms of international cross-border trade – export and import. The
activities of TNCs have changed the structure and the way of performing of international
trade. Traditional foreign trade statistics are not adequate any more as a tool for facilitating
trade policy decision making.
New concept of analysis of international trade, and the new statistical framework for foreign
trade derived from it, define export of countries more broadly so it does not include only
direct export but also includes the foreign sales of the affiliates of parent companies of that
country in the host country and all other countries. But this export, under new concept, does
not include export that foreign controlled affiliates made from the observed country. In the
paper we proposed approaches and guidance on how to minimize the effects of distortions
in the compiling of statistical data on international trade transactions caused by the activities
of transnational companies. The main tool is the new concept of the international trade
statistics known as Foreign Affiliate Trade Statistics (FATS). FATS is in the early stage
but its adoption and implementation in national foreign trade statistics and its international
harmonization will lead to a more comprehensive picture of the world economy and world
trade which captures the flows between parent companies and their affiliates.
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