Manual on Statistics of International Trade in Services

2. By activity and by product 
4.39.  Ideally, it would be possible to attribute all FATS 
variables on the basis of the industrial activities of 
producers and, in addition, particular variables, such as 
sales or output, exports and imports by the types of 
services products produced and sold.  Data on a product 
basis would identify the specific types of services 
                                                                                 
in one country of an affiliate located in another country to or 
from an individual or firm resident in a third country. 

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delivered through the commercial presence mode of 
supply and could most readily be compared with data on 
services delivered through trade between residents and 
non-residents.  However, some FATS variables, such as 
value added and employment (discussed below), do not 
lend themselves to a product classification.  Also, for 
some countries, FATS statistics may be developed as a 
subset of domestic enterprise or other statistics that are 
classified only on an activity basis.  On this basis, all of 
the data for a given enterprise are classified in the single 
activity––often termed the “primary” activity––that, 
based on some key variable (such as employment or 
sales), is the largest.  Finally, for some purposes, the 
data may need to be viewed in conjunction with data on 
stocks and flows of foreign direct investment, which 
normally would be classified by activity but not by 
product. 
4.40.  Taking these factors into account, an activity 
basis is recommended as the first priority for FATS 
statistics.  However, as a longer-term goal, countries are 
encouraged to work toward providing product detail for 
the items that can be classified on this basis.  Countries 
that are building on existing data systems that already 
include product detail will probably wish to use this 
detail from the outset in their tabulation and presentation 
of FATS statistics, because it could help them in 
monitoring commitments under GATS that are specified 
in terms of services products.  Similarly, countries that 
are building their FATS data systems from the ground 
up should consider the feasibility of providing for a 
product dimension. 
(a) By activity 
4.41. The present Manual recommends that, for 
reporting to international organizations, FATS variables 
be classified by activity according to ISIC, Rev.3 and 
grouped according to the ISIC Categories for Foreign 
Affiliates (ICFA), which have been derived from ISIC.  
These categories, shown in table 3, cover all activities, 
but with more detail provided for services than for 
goods.
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  This all-inclusive basis of presentation allows 
activities of services enterprises to be viewed in the 
context of the activities of all enterprises.  In addition, it 
provides a framework for displaying services produced 
                                                       
 
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  The OECD manual of economic globalisation indicators is 
also expected to recommend use of an ISIC-based 
classification of measures of foreign-affiliate operations and 
performance, but with categories representing goods and 
services in more even proportions. 
as a secondary activity by enterprises classified as goods 
producers.  Finally, this all-inclusive approach has been 
adopted by the countries and international organizations 
that are actively developing FATS statistics.
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4.42.  Primarily because the activities carried out by a 
given firm are usually not limited to its activity of 
classification, the data recorded against any given 
activity must be interpreted as an indication of total 
activity of firms for which the given activity is the most 
important, or primary, activity, rather than as a precise 
measure of the activity itself.
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  For the same reason, as 
well as because of differences in the classifications 
themselves, the extent to which data on resident/non-
resident trade classified according to EBOPS can be 
aligned with data on FATS variables classified 
according to ICFA is inherently limited.  Nonetheless, a 
correspondence between the two bases of classification 
may be useful for some purposes, mainly involving 
activities that tend to be carried out only by firms that 
are specialized in the activity and tend not to have 
significant secondary activities.
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  For such purposes, the 
EBOPS categories corresponding most closely to the 
ICFA categories for services activities have been 
indicated in annex IV, table A.IV.1. The reverse 
correspondence is shown in annex IV table A.IV.2. 
4.43. The present Manual recognizes that data for