US-Thailand Cooperation on the Collection of Thailand’s Services Sector Statistics

The TESS project provided critical support to the Government of Thailand (GoT) to establish an efficient system to collect statistics on Thailand’s service sector, using international best practices. While the services sector is one of the most important sectors in the Thai economy and is estimated to account for approximately 45 percent of GDP, past collection of services statistics did not accurately quantify either domestics transactions or services trade, due in part to collecting data and methodological challenges attributed to collecting services data. Trade in services statistics, however, play an important role in measuring economic performance and facilitating the formulation and implementation of public policy related to services. The availability and accuracy of trade statistics are also critical for Thailand to carry out effective and informed trade negotiations in the domain of services. Thailand is currently engaged in WTO, ASEAN and Thailand-US FTA negotiations, all of which have major services components.

Responding to a request from the GoT, the TESS project implemented a three phase project to refine its capacity to capture, classify and analyze services data by improving presently employed systems, enhancing the international compatibility of its services data and establishing more effective methods. Although TESS tailored its assistance to the Thai context, all activities were carried out in accordance with internationally agreed standards as outlined in the Manual on Statistics of International Trade in Services (MSITS), which was developed by the international community.

During the first phase, TESS consultants visited Thailand to conduct a diagnostic/inventory of Thailand’s current statistical programs and capabilities, identifying gaps and objectives that a new services statistics system would address. For the second phase, six Thai officials with statistics responsibilities took a study tour to Washington D.C. to meet with USG officials to develop a deeper understanding of US statistical systems in the area of services trade. The Thai officials met with representatives from the Census Bureau, Bureau of Economic Analysis, Bureau of Labor Statistics, the International Trade Administration, the International Trade Commission, IMF, World Bank, U.S. Coalition of Service Industries, the Center for Trade Policy and Law, and the Brookings Institution.

During Phase Three, TESS worked with GoT officials and used the knowledge gained from the diagnostic and study tour to design survey instruments and statistical methods that both work for Thailand and reflect international standards. Since a number of government agencies are involved in collecting various services statistics, TESS consultants met extensively with 15 agencies and private sector representatives to develop a rationalized approach for the collection of data. Once the GoT, with guidance from TESS consultants, agreed upon an approach for implementing the data collection system, a newly designed survey instrument was tested in the ICT sector. Using the lessons learned from this pilot activity, the TESS-supported statistics system will be rolled out across multiple services sectors.

Assuming that the statistics collection system is effectively implemented, a number of positive impacts can be expected from this activity in the coming years. With more accurate data, the GoT will be able to develop services policies that better reflect sector realities. Improved policies will strengthen domestic service sectors while facilitating cross-border trade in services. If the government uses its enhanced services statistics capabilities to guide trade negotiations, the negotiated outcomes are more likely to enable Thailand’s private service providers to take advantage of bilateral, regional and multi-lateral trade agreements. Finally, an increase in accurate, timely and internationally compatible sector data will help provide critical market data that is necessary for both domestic and foreign service providers and investors to make informed decisions and respond to opportunities in services markets.

Project Documents
Analysis of Thailand’s International Trade in Services Statistical Systems and Recommendations for Implementation of the International Standards Established by the United Nations Manual on Statistics of International Trade in Services. Click here to download paper.