23
Chart 2. Synthetic view of modes of supply
(c) FATS statistics and modes of supply
FATS statistics and commercial presence
2.91. By including commercial presence as a mode
of supply, GATS has created a need for information
on foreign affiliates in host economies. Service
suppliers may choose to set
up foreign affiliates as
a means to sell their services in foreign markets as
an alternative or a complement to exports through
mode 1. On the grounds that such sales may, to a
certain extent, substitute
for cross-border exports,
the
Manual views domestic sales of foreign
affiliates as the primary statistical indicator of
mode 3.
2.92. FATS statistics, as recommended in the
Manual,
differ from the coverage of the GATS in the following
ways:
(a)
GATS refers to
control as well as majority
ownership, whereas FATS statistics mainly use the latter
as the criterion for inclusion;
(b) GATS covers services products, whereas FATS
is primarily based on activities.
FATS statistics and presence of natural persons
2.93. Non-permanent employment of foreign staff in
foreign affiliates is particularly relevant to mode 4, as a
subcategory of natural persons often referred to in
countries’ schedules of commitments. Quantitative
information on foreign employment in foreign affiliates
would
be an indicator of the income dimension of mode
4. The
Manual does not propose a further breakdown
between permanent and short-term employment because
the GATS notion of “non-permanent employment”
differs
among countries, and it is generally for a
substantially longer period than the one-year rule
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