Reconciliation of the U.S.-Canadian current account, 2005 and 2006.

Sauers, Renee ; Dozier, Edward ; Caron, Denis 等

ON a reconciled basis, the U.S. deficit, or Canadian surplus, is $65.8 billion for 2005 and $60.1 billion for 2006 (chart 1, table 1). (1) The U.S. published current-account balance with Canada is a U.S. deficit of $47.9 billion for 2005 and a U.S. deficit of $40.7 billion for 2006; the corresponding Canadian published balance is a Canadian surplus of $63.4 billion for 2005 and a Canadian surplus of $59.3 billion for 2006. (2)

The results of the reconciliation of the bilateral current-account estimates of Canada and the United States for 2005 and 2006 are presented in this article. (3) The details of the current-account reconciliation for 2005 and 2006 are presented in the tables that follow this article. Tables 2.1 and 2.2 show the details of the major types of reconciliation adjustments--definitional, methodological, and statistical--that were made to the major current-account components. Tables 3.1 and 3.2 present the published estimates, the estimates on a common basis (after the estimates have been adjusted for definitional and methodological differences), the reconciled estimates, and the amounts of the adjustments for each major current-account component. Tables 4-7 present the reconciliation details for goods, services, and investment income. (4)

[GRAPHIC 1 OMITTED]

Reconciled Current-Account Balances

In the U.S. current account, the reconciliation adjustments result in an increase of $17.9 billion in the U.S. deficit for 2005 and an increase of $19.4 billion in the U.S. deficit for 2006. For 2005, the increase in the U.S. deficit reflects an upward adjustment to the U.S. southbound estimates, which was partly offset by an upward adjustment to the U.S. northbound estimates (tables 2.1 and 2.2). (5) In contrast, for 2006, the increase reflects an upward adjustment to the U.S. southbound estimates, which was augmented by a downward adjustment to the U.S. northbound estimates. For 2005 and 2006, the largest increases in the U.S. southbound estimates result from the addition of Canadian reexports to U.S. goods imports (a definitional adjustment), from statistical adjustments to southbound services, and from the valuation of U.S. natural gas imports to include inland freight (a definitional adjustment). For 2005, the largest increases in the U.S. northbound estimates result from statistical adjustments to "other" services and from an adjustment to bring U.S. transfers to a gross basis (a methodological adjustment). For 2006, the largest decreases in the U.S. northbound estimates result from statistical adjustments to investment income and from adjustments to bring "other" investment income to a net basis (a methodological adjustment).

In the Canadian current account, the reconciliation adjustments result in an increase of $2.4 billion in the Canadian surplus for 2005 and in an increase of $0.8 billion in the Canadian surplus for 2006. For both years, the increases in the Canadian surplus reflect downward adjustments to the Canadian northbound estimates, which were partly offset by downward adjustments to the Canadian southbound estimates. For both years, the largest downward adjustments to the Canadian southbound estimates are from definitional adjustments to goods, from the elimination of the withholding taxes in current unilateral transfers (definitional adjustment), from adjustments for statistical differences in affiliated services, and from adjustments to bring "other" investment income to a net basis (methodological adjustment). In the Canadian north bound estimates, the largest downward adjustments are from the elimination of withholding taxes from direct investment and "other" investment income (definitional adjustments), from the elimination of statistical differences in income on U.S. holdings of Canadian bonds, from definitional adjustments to "other" services, and from adjustments to bring "other" investment income to a net basis (methodological adjustment).

Summary of Reconciliation Methodology

In reconciling the U.S.- and Canadian-published bilateral current-account estimates, the estimates are first restated to a common basis--that is, they are adjusted for definitional and methodological differences; the remaining adjustments that are needed to reach the reconciled values are the statistical adjustments. The framework for reconciling the U.S. and Canadian estimates to a common basis mainly follows the international standards published in the International Monetary Fund's Balance of Payments Manual (fifth edition). The U.S.- and Canadian-published estimates now largely conform to the international standards, but some differences with the international standards--and between the U.S. and Canadian estimates--remain in the published estimates because of data limitations, difficulties in determining country attribution, and differences in classification and because in a few cases, international standards provide for more than one acceptable treatment.

The definitional adjustments mainly reflect data limitations and differences in country attribution. For example, as part of the reconciliation, U.S.-published estimates of imports of goods from Canada are adjusted to include Canadian reexports to the United States (goods imported by Canada from third countries and then reexported to the United States without substantial changes) because U.S. imports of goods are recorded on a country-of-origin basis. Another example of a definitional adjustment is that the Canadian estimates, mainly investment income, are adjusted to a basis that is net of withholding taxes because some U.S. withholding tax estimates are included on a global basis in the U.S.-published accounts and cannot be allocated by country for comparison with the Canadian estimates. This definitional adjustment causes the reconciled estimates to depart from the international statistical standards, but without this adjustment, the data could not be compared on a common basis.

The methodological adjustments mainly reflect differences in classification. For example, parts of the U.S. estimates of film rentals and courier services are recorded in various services accounts; for reconciliation, they are reclassified to a single account. A few U.S. and Canadian accounts, mainly interest income, are adjusted to a net or gross basis for comparability. These adjustments do not affect the current-account balance, because the northbound and the southbound methodological adjustments are offsetting.

Statistical differences reflect the use of different source data in the United States and Canada, the difficulty in determining country attribution because of insufficient data, the preliminary nature of some of the data (particularly for the most recent year), and the use of sample data between benchmarks. For both the northbound and the southbound estimates, most of the statistical differences are in the U.S. and Canadian estimates of "other" services and investment income.

Acknowledgments

The reconciliations were carried out under the direction of Denis Caron, Chief, Current Account, at Statistics Canada and Edward Dozier and Renee Sauers, international economists at BEA. At Statistics Canada, Angela Yuan was responsible for the production and coordination of reconciliation tables and for reconciling Canadian goods; Denis Caron was responsible for reconciling Canadian services; Christian Lajule, for Canadian direct investment income; and David Filiplic, for Canadian portfolio investment income, with the collaboration and assistance of Mukesh Ralhan, Heather Collier, Francois Lavoie, Sterling Doucette, and Brian Andre. At BEA, Mai-Chi Hoang was responsible for reconciling goods; Edward Dozier, Vivian Wong, and Anne Flatness, for services, with the assistance of Matthew Argersinger for financial services; Gregory Fouch, for the accounts related to Canadian direct investment in the United States; Mark New, for the accounts related to U.S. direct investment in Canada; and Kristy Howell, for the portfolio income accounts.

Note on the U.S.-Canadian Current-Account Reconciliation

The U.S.-Canadian current-account reconciliation, which explains the differences between the estimates of the bilateral current account published by the U.S. Bureau of Economic Analysis (BEA) and those published by Statistics Canada, is undertaken because of the extensive economic links between Canada and the United States. The reconciled estimates are intended to assist analysts who use both countries' statistics and to show how the current-account estimates would appear if both countries used common definitions, methodologies, and data sources. (1)

In principle, the bilateral current account of one country should mirror the bilateral current account of the other country. Differences occur in the published estimates of the U.S. and Canadian current accounts because of variations in the definitions, methodologies, and statistical sources that are used by each country. Some of the differences for 2006 are in components of the current account for which data are still preliminary and subject to revision; these differences may be eliminated when final data for these components become available.

The longstanding Canadian-U.S. current-account reconciliation is among the leading examples of the benefits of inter national data exchanges. As a part of the reconciliation process, Canada and the United States have evaluated the accuracy of each other's estimates, and as a result, each country now includes in its published estimates some data that are provided by the other country. The exchange of data between Canada and the United States for transactions such as trade in goods, travel, passenger fares, Canadian and U.S. Government transactions, and some large transportation transactions covers a substantial portion of the value of the Canadian and U.S. current account and has eliminated some of the differences in the Canadian- and U.S.-published estimates. In addition, the reconciliation process has highlighted areas where errors and omissions may exist in each country's estimates, which has helped in targeting data improvement efforts.

Although the U.S.- and Canadian-published estimates are reconciled and there is extensive exchange of data between Canada and the United States, differences in the published estimates remain. Complete substitution of the reconciled estimates for published estimates and complete exchange of data are not feasible for several reasons. For trade in goods, imports in the U.S. accounts would be affected because the United States attributes Canadian reexports to the country of origin rather than to Canada, the last country of shipment. For some accounts, the protection of the confidentiality of the source data bars the exchange of data. Finally, a few differences are attributable to different requirements for integrating the international and national (domestic) accounts in each country.

(1.) A detailed article on the methodology was published by BEA in "Reconciliation of the U.S.-Canadian Current Account" in the November 1992 SURVEY and by Statistics Canada in Reconciliation of the Canadian-United States Current Account, 1990-1991. Statistics Canada also published a shortened version in the December 1992 Canadian Economic Observer and in Canada's Balance of International Payments, Third Quarter 1992.

(1.) The reconciled estimates are intended to show how the current-account estimates would appear if both countries used the same definitions, methodologies, and data sources. In this article, all values are expressed in U.S. dollars.

(2.) For this year's reconciliation, the U.S. deficit for 2005 is revised down from the previously published deficit of $51.5 billion used in last year's reconciliation, and the Canadian surplus for 2005 is revised down from the previously published surplus of $67.0 billion used in last year's reconciliation.

(3.) The reconciliation of the current account has been undertaken each year since 1970. Summary results of the reconciliations were published in the United States in the following issues of the SURVEY OF CURRENT BUSINESS: June 1975, September 1976 and 1977, December 1978 and 1979, June 1981, and each December of 1981-91. Complete details of the reconciliations were published in the following issues of the SURVEY: November 1992, each October of 1993-95, and each November of 1996-2006. In Canada, the results were published in the following issues of Canada's Balance of International Payments (catalogue 67-001), a publication of Statistics Canada: Fourth Quarter 1973, Second Quarter 1976 and 1977, Third Quarter 1978 and 1979, First Quarter 1981, and each Third Quarter of 1981-2006.

(4.) For the reconciliation, some of the details presented in the tables in this article differ from those presented in the balance-of-payments tables regularly published by the U.S. Bureau of Economic Analysis and by Statistics Canada.

(5.) In this article, the term "northbound" refers to U.S. exports of goods and services, U.S. income receipts, and current unilateral transfers to the United States, and it refers to Canadian imports of goods and services, Canadian income payments, and current unilateral transfers from Canada. The term "southbound" refers to U.S. imports of goods and services, U.S. income payments, and current unilateral transfers from the United States, and it refers to Canadian exports of goods and services, Canadian income receipts, and current unilateral transfers to Canada.

Table 1. Major U.S. Canadian Balances [Billions of U.S. dollars]

 Published Reconciled
 estimates estimates

 United Canada United Canada
 States States
2005
Goods and services -70.7 81.7 -86.3 86.3
 Goods -81.9 89.5 -94.7 94.7
 Services 11.2 -7.8 8.4 -8.4
Income 23.1 -21.2 20.6 -20.6
Current unilateral transfers -0.3 2.9 -0.1 0.1

Current account -47.9 63.4 -65.8 65.8

2006

Goods and services -59.6 76.1 -77.8 77.8
 Goods -75.1 84.7 -88.9 88.9
 Services 15.5 -8.6 11.1 -11.1
Income 18.5 -19.5 16.8 -16.8
Current unilateral transfers 0.4 2.8 0.9 -0.9
Current account -40.7 59.3 -60.1 60.1

NOTES. A U.S. surplus (+) is a Canadian deficit (-),
and a Canadian surplus (+) is a U.S. deficit (-).
Details may not add to totals because of rounding.

Table 2.1. Summary of Reconciliation Adjustments, Northbound, 2005
[Millions of U.S. dollars]

 Definitional Methodological

 United Canada United Canada
 States States

Goods, balance-of-
 payments basis -79 -853 197 ...
 Definitional adjustments -79 -853 ... ...
 Reclassification
 of equipment
 repairs from
 unaffiliated services ... ... 197 ...
 Statistical adjustments ... ... ... ...

Services 41 -1,495 -197 57
 Travel ... ... 1,011 ...
 Reclassification of
 education from
 unaffiliated
 services ... ... 747 ...
 Reclassification of
 medical services
 from unaffiliated
 services ... ... 264 ...
 Statistical adjustments ... ... ... ...

Passenger fares ... ... ... ...

Other transportation ... -143 ... 298
 Definitional adjustments ... -143 ... ...
 Reclassification of
 transportation services
 from unaffiliated services ... ... ... 298
 Statistical adjustments ... ... ... ...

Other services 41 -1,352 -1,208 -241

 Affiliated ... -724 -408 -387
 Definitional adjustments ... -724 ... ...
 Reclassification of film
 rentals and courier
 services to
 unaffiliated services ... ... 408 ...
 Reclassification of
 selected services
 from unaffiliated
 services ... ... ... -387
 Statistical adjustments ... ... ... ...
 Unaffiliated 153 -628 -800 146
 Definitional adjustments 153 -628 ... ...
 Reclassification of
 transactions to or
 from other accounts ... ... -800 146
 Statistical adjustments ... ... ... ...
 U.S. military sales -112 ... ... ...
 Definitional adjustments -112 ... ... ...
 Statistical adjustments ... ... ... ...

Income 825 -1,992 -1,048 -1,123

 Direct investment -287 -946 ... -122
 Definitional adjustments -287 -946 ... ...
 Adjustment of interest
 income to a net basis ... ... ... -122
 Statistical adjustments ... ... ... ...

 Other investment 1,112 -1,046 -1,048 -1,126
 Definitional adjustments 1,112 -1,046 ... ...
 Adjustment of interest
 income to a net basis ... ... -1,048 -1,126
 Statistical adjustments ... ... ... ...

 Compensation of employees ... ... ... 125
 Reclassification from
 unaffiliated services ... ... ... 125

Current unilateral transfers ... -649 1,229 -182
 Definitional adjustments ... -649 ... ...
 Reclassification from
 unaffiliated services ... ... ... -182
 Adjustment of U.S. transfers
 to a gross basis. ... ... 1,229 ...
 Statistical adjustments ... ... ... ...

Total adjustments. 787 -4,989 181 -1,248

 Statistical Total

 United Canada United Canada
 States States

Goods, balance-of-
 payments basis 429 -831 547 -1,684
 Definitional adjustments ... ... -79 -853
 Reclassification
 of equipment
 repairs from
 unaffiliated services ... ... 197 ...
 Statistical adjustments 429 -831 429 -831

Services 1,774 -334 1,618 -1,772
 Travel ... 34 1,011 34
 Reclassification of
 education from
 unaffiliated
 services ... ... 747 ...
 Reclassification of
 medical services
 from unaffiliated
 services ... ... 264 ...
 Statistical adjustments ... 34 ... 34

Passenger fares ... -145 -145 ...

Other transportation 21 -123 21 32
 Definitional adjustments ... ... ... -143
 Reclassification of
 transportation services
 from unaffiliated services ... ... ... 298
 Statistical adjustments 21 -123 21 -123

Other services 1,898 -245 731 -1,838

 Affiliated 980 -1,451 572 -2,562
 Definitional adjustments ... ... ... -724
 Reclassification of film
 rentals and courier
 services to
 unaffiliated services ... ... -408 ...
 Reclassification of
 selected services
 from unaffiliated
 services ... ... ... -387
 Statistical adjustments 980 -1,451 980 -1,451
 Unaffiliated 918 1,161 271 679
 Definitional adjustments ... ... 153 -628
 Reclassification of
 transactions to or
 from other accounts ... ... -800 146
 Statistical adjustments 918 1,161 918 1,161
 U.S. military sales ... 45 -112 45
 Definitional adjustments ... ... -112 ...
 Statistical adjustments ... 45 ... 45

Income -1,727 990 -1,950 -2,125

 Direct investment -2,022 2,610 -2,309 1,542
 Definitional adjustments ... ... -287 -946
 Adjustment of interest
 income to a net basis ... ... ... -122
 Statistical adjustments -2,022 2,610 -2,022 2,610

 Other investment 295 -1,618 359 -3,790
 Definitional adjustments ... ... 1,112 -1,046
 Adjustment of interest
 income to a net basis ... ... -1,048 -1,126
 Statistical adjustments 295 -1,618 295 -1,618

 Compensation of employees ... -2 ... 123
 Reclassification from
 unaffiliated services ... -2 ... 123

Current unilateral transfers 10 959 1,239 128
 Definitional adjustments ... ... ... -649
 Reclassification from
 unaffiliated services ... ... ... -182
 Adjustment of U.S. transfers
 to a gross basis. ... ... 1,229 ...
 Statistical adjustments 10 959 10 959

Total adjustments. 486 784 1,454 -5,453

Table 2.1. Summary of Reconciliation Adjustments, Northbound, 2006
[Millions of U.S. dollars]

 Definitional Methodological

 United Canada United Canada
 States States

Goods, balance-of-payments basis 71 -1,012 225 ...
 Definitional adjustments 71 -1,012 ... ...
 Reclassification of
 equipment repairs from
 unaffiliated services ... ... 225 ...
 Statistical adjustments ... ... ... ...

Services 10 -1,416 -225 262
 Travel ... ... 1,055 ...
 Reclassification of education
 from unaffiliated services ... ... 772 ...
 Reclassification of medical
 services from
 unaffiliated services ... ... 283 ...
 Statistical adjustments ... ... ... ...

Passenger fares ... ... ... ...

Other transportation ... -160 ... 221
 Definitional adjustments ... -160 ... ...
 Reclassification of
 transportation services
 from unaffiliated services ... ... ... 221
 Statistical adjustments ... ... ... ...

Other services 10 -1,256 -1,280 41

 Affiliated ... -806 -529 -414
 Definitional adjustments ... -806 ... ...
 Reclassification of film
 rentals and courier
 services to unaffiliated
 services ... ... -529 ...
 Reclassification of selected
 services from
 unaffiliated services ... ... ... -414
 Statistical adjustments ... ... ... ...
 Unaffiliated 163 -450 -751 455
 Definitional adjustments 163 -450 ... ...
 Reclassification of
 transactions to or
 from other accounts ... ... -751 455
 Statistical adjustments ... ... ... ...
 U.S. military sales -153 ... ... ...
 Definitional adjustments -153 ... ... ...
 Statistical adjustments ... ... ... ...

Income 1,054 -2,666 -2,029 -2,588

 Direct investment -135 -752 ... -205
 Definitional adjustments -135 -752 ... ...
 Adjustment of interest
 income to a net basis ... ... ... -205
 Statistical adjustments ... ... ... ...

 Other investment 1,189 -1,914 -2,029 -2,522
 Definitional adjustments 1,189 -1,914 ... ...
 Adjustment of interest
 income to a net basis ... ... -2,029 -2,522
 Statistical adjustments ... ... ... ...

 Compensation of employees ... ... ... 139
 Reclassification from
 unaffiliated services ... ... ... 139

Current unilateral transfers ... -881 1,645 -401
 Definitional adjustments ... -881 ... ...
 Reclassification from
 unaffiliated services ... ... ... -401
 Adjustment of U.S.
 transfers to a gross basis ... ... 1,645 ...
 Statistical adjustments ... ... ... ...

Total adjustments 1,135 -5,975 -384 -2,727

 Statistical Total

 United Canada United Canada
 States States

Goods, balance-of-payments basis 448 -830 744 -1,842
 Definitional adjustments ... ... 71 -1,012
 Reclassification of
 equipment repairs from
 unaffiliated services ... ... 225 ...
 Statistical adjustments 448 -830 448 -830

Services 855 1,310 640 156
 Travel ... -16 1,055 -16
 Reclassification of education
 from unaffiliated services ... ... 772 ...
 Reclassification of medical
 services from
 unaffiliated services ... ... 283 ...
 Statistical adjustments ... ... -16 -16

Passenger fares -266 ... -266 ...

Other transportation 21 -295 21 -234
 Definitional adjustments ... ... ... -160
 Reclassification of
 transportation services
 from unaffiliated services ... ... ... 221
 Statistical adjustments 21 -295 21 -295

Other services 1,100 1,621 -170 406

 Affiliated 299 -855 -230 -2,075
 Definitional adjustments ... ... ... -806
 Reclassification of film
 rentals and courier
 services to unaffiliated
 services ... ... -529 ...
 Reclassification of selected
 services from
 unaffiliated services ... ... ... -414
 Statistical adjustments 299 -855 299 -855
 Unaffiliated 801 2,416 213 2,421
 Definitional adjustments ... ... 163 -450
 Reclassification of
 transactions to or
 from other accounts ... ... -751 455
 Statistical adjustments 801 2,416 801 2,416
 U.S. military sales ... 60 -153 60
 Definitional adjustments ... ... -153 ...
 Statistical adjustments ... 60 ... 60

Income -5,134 3,216 -6,109 -2,038

 Direct investment -3,959 4,297 -4,094 3,340
 Definitional adjustments ... ... -135 -752
 Adjustment of interest
 income to a net basis ... ... ... -205
 Statistical adjustments -3,959 4,297 -3,959 4,297

 Other investment -1,175 -1,080 -2,015 -5,516
 Definitional adjustments ... ... 1,189 -1,914
 Adjustment of interest
 income to a net basis ... ... -2,029 -2,522
 Statistical adjustments -1,175 -1,080 -1,175 -1,080

 Compensation of employees ... -1 ... 138
 Reclassification from
 unaffiliated services ... -1 ... 138

Current unilateral transfers 291 647 1,936 -635
 Definitional adjustments ... ... ... -881
 Reclassification from
 unaffiliated services ... ... ... -401
 Adjustment of U.S.
 transfers to a gross basis ... ... 1,645 ...
 Statistical adjustments 291 647 291 647

Total adjustments -3,540 4,343 -2,789 -4,359

Table 2.2 Summary of Reconciliation Adjustments, Southbound, 2005

[Millions of U.S. dollars]

 Definitional

 Canada United
 States

Goods, balance-of-payments basis -1,982 13,238
 Canadian reexports to the United States ... 8,776
 Inland freight adjustment 3,572 3,917
 Other definitional adjustments -5,554 545
 Reclassification of equipment repairs from
 unaffiliated services ... ...
 Reclassification of vessel repairs from other
 transportation services ... ...
 Statistical adjustments ... ...

Services -907 -20

 Travel ... ...
 Reclassification of education from
 unaffiliated services ... ...
 Reclassification of medical services from
 unaffiliated services ... ...
 Statistical adjustments ... ...

Passenger fares ... ...

Other transportation -107 ...
 Definitional adjustments -107 ...
 Reclassification of courier services to
 unaffiliated services ... ...
 Reclassification of transportation services
 from unaffiliated services ... ...
 Statistical adjustments ... ...

Other services -800 -20

 Affiliated -76 ...
 Definitional adjustments -76 ...
 Reclassification of selected services to or
 from unaffiliated services ... ...
 Statistical adjustments ... ...

 Unaffiliated -724 ...
 Definitional adjustments -724 ...
 Reclassification of transactions to or
 from other accounts ... ...
 Statistical adjustments ... ...

 US defense expenditures ... -20
 Definitional adjustments ... -20
 Statistical adjustments ...

Income -896 -13

 Direct investment -424 -13
 Definitional adjustments -424 -13
 Adjustment of interest income to a net
 basis ... ...
 Statistical adjustments ... ...

 Other investment -472 ...
 Definitional adjustments -472 ...
 Adjustment of interest income to a net
 basis ... ...
 Statistical adjustments ... ...

 Compensation of employees ... ...
 Reclassification from unaffiliated services ... ...
 Statistical adjustments ... ...

 Current unilateral transfers -2,761 ...
 Definitional adjustments -2,761 ...
 Reclassification from unaffiliated services ... ...
 Adjustment of US transfers to a gross basis ... ...
 Statistical adjustments ... ...

 Total adjustments -6,546 13,205

 Methodological

 Canada United
 States

Goods, balance-of-payments basis ... 20
 Canadian reexports to the United States ... ...
 Inland freight adjustment ... ...
 Other definitional adjustments ... ...
 Reclassification of equipment repairs from
 unaffiliated services ... 16
 Reclassification of vessel repairs from other
 transportation services ... 4
 Statistical adjustments ... ...

Services -166 -20

 Travel ... 161
 Reclassification of education from
 unaffiliated services ... 90
 Reclassification of medical services from
 unaffiliated services ... 71
 Statistical adjustments ... ...

Passenger fares ... ...

Other transportation 91 -264
 Definitional adjustments ... ...
 Reclassification of courier services to
 unaffiliated services ... -264
 Reclassification of transportation services
 from unaffiliated services 91 ...
 Statistical adjustments ... ...

Other services -257 83

 Affiliated -41 -77
 Definitional adjustments ... ...
 Reclassification of selected services to or
 from unaffiliated services -41 -77
 Statistical adjustments ... ...

 Unaffiliated -216 160
 Definitional adjustments ... ...
 Reclassification of transactions to or
 from other accounts -216 160
 Statistical adjustments ... ...

 US defense expenditures ... ...
 Definitional adjustments ... ...
 Statistical adjustments ... ...

Income -917 -1,048

 Direct investment -122 ...
 Definitional adjustments ... ...
 Adjustment of interest income to a net
 basis -122 ...
 Statistical adjustments ... ...

 Other investment -1,126 -1,048
 Definitional adjustments ... ...
 Adjustment of interest income to a net
 basis -1,126 -1,048
 Statistical adjustments ... ...

 Compensation of employees 331 ...
 Reclassification from unaffiliated services 331 ...
 Statistical adjustments ... ...

 Current unilateral transfers -165 1,229
 Definitional adjustments ... ...
 Reclassification from unaffiliated services -165 ...
 Adjustment of US transfers to a gross basis ... 1,229
 Statistical adjustments ... ...

 Total adjustments -1,248 181

 Statistical

 Canada United
 States

Goods, balance-of-payments basis 5,461 77
 Canadian reexports to the United States ... ...
 Inland freight adjustment ... ...
 Other definitional adjustments ... ...
 Reclassification of equipment repairs from
 unaffiliated services ... ...
 Reclassification of vessel repairs from other
 transportation services ... ...
 Statistical adjustments 5,461 77

Services -1,304 4,473

 Travel ... 89
 Reclassification of education from
 unaffiliated services ... ...
 Reclassification of medical services from
 unaffiliated services ... ...
 Statistical adjustments ... 89

Passenger fares ... ...

Other transportation 176 94
 Definitional adjustments ... ...
 Reclassification of courier services to
 unaffiliated services ...
 Reclassification of transportation services
 from unaffiliated services ... ...
 Statistical adjustments 176 94

Other services -1,480 4,290

 Affiliated -1,478 944
 Definitional adjustments ... ...
 Reclassification of selected services to or
 from unaffiliated services ... ...
 Statistical adjustments -1,478 944

 Unaffiliated -2 3,346
 Definitional adjustments ... ...
 Reclassification of transactions to or
 from other accounts ... ...
 Statistical adjustments -2 3,346

 US defense expenditures ... ...
 Definitional adjustments ... ...
 Statistical adjustments ... ...

Income 307 1,553

 Direct investment -139 1,862
 Definitional adjustments ... ...
 Adjustment of interest income to a net
 basis ... ...
 Statistical adjustments -139 1,862

 Other investment 342 -309
 Definitional adjustments ... ...
 Adjustment of interest income to a net
 basis ... ...
 Statistical adjustments 342 -309

 Compensation of employees 104 ...
 Reclassification from unaffiliated services ... ...
 Statistical adjustments 104 ...

 Current unilateral transfers 242 -189
 Definitional adjustments ... ...
 Reclassification from unaffiliated services ... ...
 Adjustment of US transfers to a gross basis ... ...
 Statistical adjustments 242 -189

 Total adjustments 4,706 5,914

 Total

 Canada United
 States

Goods, balance-of-payments basis 3,479 13,335
 Canadian reexports to the United States ... 8,776
 Inland freight adjustment 3,572 3,917
 Other definitional adjustments -5,554 545
 Reclassification of equipment repairs from
 unaffiliated services ... 16
 Reclassification of vessel repairs from other
 transportation services ... 4
 Statistical adjustments 5,461 77

Services -2,377 4,433

 Travel ... 250
 Reclassification of education from
 unaffiliated services ... 90
 Reclassification of medical services from
 unaffiliated services ... 71
 Statistical adjustments ... 89

Passenger fares ... ...

Other transportation 160 -170
 Definitional adjustments -107 ...
 Reclassification of courier services to
 unaffiliated services ... -264
 Reclassification of transportation services
 from unaffiliated services 91 ...
 Statistical adjustments 176 94

Other services -2,537 4,353

 Affiliated -1,595 867
 Definitional adjustments -76 ...
 Reclassification of selected services to or
 from unaffiliated services -41 -77
 Statistical adjustments -1,478 944

 Unaffiliated -942 3,506
 Definitional adjustments -724 ...
 Reclassification of transactions to or
 from other accounts -216 160
 Statistical adjustments -2 3,346

 US defense expenditures ... -20
 Definitional adjustments ... -20
 Statistical adjustments ... ...

Income -1,506 492

 Direct investment -685 1,849
 Definitional adjustments -424 -13
 Adjustment of interest income to a net
 basis -122 ...
 Statistical adjustments -139 1,862

 Other investment -1,256 -1,357
 Definitional adjustments -472 ...
 Adjustment of interest income to a net
 basis -1,126 -1,048
 Statistical adjustments 342 -309

 Compensation of employees 435 ...
 Reclassification from unaffiliated services 331 ...
 Statistical adjustments 104 ...

 Current unilateral transfers -2,684 1,040
 Definitional adjustments -2,761 ...
 Reclassification from unaffiliated services -165 ...
 Adjustment of US transfers to a gross basis ... 1,229
 Statistical adjustments 242 -189

 Total adjustments -3,088 19,300

Table 2.2 Summary of Reconciliation Adjustments, Southbound, 2006

[Millions of U.S. dollars]

 Definitional

 Canada United
 States

Goods, balance-of-payments basis -1,481 14,421
 Canadian reexports to the United States ... 10,547
 Inland freight adjustment 2,862 3,192
 Other definitional adjustments -4,343 682
 Reclassification of equipment repairs from
 unaffiliated services ... ...
 Reclassification of vessel repairs from other
 transportation services ... ...
 Statistical adjustments ... ...

Services -910 -22

 Travel ... ...
 Reclassification of education from
 unaffiliated services ... ...
 Reclassification of medical services from
 unaffiliated services ... ...
 Statistical adjustments ... ...

 Passenger fares ... ...

 Other transportation -115 ...
 Definitional adjustments -115 ...
 Reclassification of courier services to
 unaffiliated services ... ...
 Reclassification of transportation services
 from unaffiliated services ... ...
 Statistical adjustments ... ...

Other services -795 -22

 Affiliated -92 ...
 Definitional adjustments -92 ...
 Reclassification of selected services to or
 from unaffiliated services ... ...
 Statistical adjustments ... ...

 Unaffiliated -703 ...
 Definitional adjustments -703 ...
 Reclassification of transactions to or
 from other accounts ... ...
 Statistical adjustments ... ...

 US defense expenditures ... -22
 Definitional adjustments ... -22
 Statistical adjustments ... ...

Income -1,452 -21

 Direct investment -727 -21
 Definitional adjustments -727 -21
 Adjustment of interest income to a net
 basis ... ...
 Statistical adjustments ... ...

 Other investment -725 ...
 Definitional adjustments -725 ...
 Adjustment of interest income to a net
 basis ... ...
 Statistical adjustments ... ...

 Compensation of employees ... ...
 Reclassification from unaffiliated services ... ...
 Statistical adjustments ... ...

 Current unilateral transfers -3,975 ...
 Definitional adjustments -3,975 ...
 Reclassification from unaffiliated services ... ...
 Adjustment of US transfers to a gross basis ... ...
 Statistical adjustments ... ...

 Total adjustments -7,818 14,378

 Methodological

 Canada United
 States

Goods, balance-of-payments basis ... 46
 Canadian reexports to the United States ... ...
 Inland freight adjustment ... ...
 Other definitional adjustments ... ...
 Reclassification of equipment repairs from
 unaffiliated services ... 7
 Reclassification of vessel repairs from other
 transportation services ... 39
 Statistical adjustments ... ...

Services -276 -46

 Travel ... 178
 Reclassification of education from
 unaffiliated services ... 100
 Reclassification of medical services from
 unaffiliated services ... 78
 Statistical adjustments ... ...

 Passenger fares ... ...

 Other transportation 122 -426
 Definitional adjustments ... ...
 Reclassification of courier services to
 unaffiliated services ... -426
 Reclassification of transportation services
 from unaffiliated services 122 ...
 Statistical adjustments ... ...

Other services -398 202

 Affiliated -43 -91
 Definitional adjustments ... ...
 Reclassification of selected services to or
 from unaffiliated services -43 -91
 Statistical adjustments ... ...

 Unaffiliated -355 293
 Definitional adjustments ... ...
 Reclassification of transactions to or
 from other accounts -355 293
 Statistical adjustments ... ...

 US defense expenditures ... ...
 Definitional adjustments ... ...
 Statistical adjustments ... ...

Income -2,363 -2,029

 Direct investment ... -205
 Definitional adjustments ... ...
 Adjustment of interest income to a net
 basis -205 ...
 Statistical adjustments ...

 Other investment -2,522 -2,029
 Definitional adjustments ... ...
 Adjustment of interest income to a net
 basis -2,522 -2,029
 Statistical adjustments ...

 Compensation of employees 364 ...
 Reclassification from unaffiliated services 364 ...
 Statistical adjustments ... ...

 Current unilateral transfers -88 1,645
 Definitional adjustments ... ...
 Reclassification from unaffiliated services -88 ...
 Adjustment of US transfers to a gross basis ... 1,645
 Statistical adjustments ... ...

 Total adjustments -2,727 -384

 Statistical

 Canada United
 States

Goods, balance-of-payments basis 3,823 90
 Canadian reexports to the United States ... ...
 Inland freight adjustment ... ...
 Other definitional adjustments ... ...
 Reclassification of equipment repairs from
 unaffiliated services ... ...
 Reclassification of vessel repairs from other
 transportation services ... ...
 Statistical adjustments 3,823 90

Services -1,124 5,137

 Travel ... 161
 Reclassification of education from
 unaffiliated services ... ...
 Reclassification of medical services from
 unaffiliated services ... ...
 Statistical adjustments ... 161

 Passenger fares ... -1

 Other transportation 98 88
 Definitional adjustments ... ...
 Reclassification of courier services to
 unaffiliated services ... ...
 Reclassification of transportation services
 from unaffiliated services ... ...
 Statistical adjustments 98 88

Other services -1,222 4,889

 Affiliated -1,211 886
 Definitional adjustments ... ...
 Reclassification of selected services to or
 from unaffiliated services ... ...
 Statistical adjustments -1,211 886

 Unaffiliated -9 4,003
 Definitional adjustments ... ...
 Reclassification of transactions to or
 from other accounts ... ...
 Statistical adjustments -9 4,003

 US defense expenditures -2 ...
 Definitional adjustments ... ...
 Statistical adjustments -2 ...

Income 4,427 -2,427

 Direct investment 4,118 -1,844
 Definitional adjustments ... ...
 Adjustment of interest income to a net
 basis ... ...
 Statistical adjustments 4,118 -1,844

 Other investment 203 -583
 Definitional adjustments ... ...
 Adjustment of interest income to a net
 basis ... ...
 Statistical adjustments 203 -583

 Compensation of employees 106 ...
 Reclassification from unaffiliated services ... ...
 Statistical adjustments 106 ...

 Current unilateral transfers -183 -183
 Definitional adjustments ... ...
 Reclassification from unaffiliated services ... ...
 Adjustment of US transfers to a gross basis ... ...
 Statistical adjustments -183 -183

 Total adjustments 6,943 2,617

 Total

 Canada United
 States

Goods, balance-of-payments basis 2,342 14,557
 Canadian reexports to the United States 10,547
 Inland freight adjustment 2,862 3,192
 Other definitional adjustments -4,343 682
 Reclassification of equipment repairs from
 unaffiliated services ... 7
 Reclassification of vessel repairs from other
 transportation services ... 39
 Statistical adjustments 3,823 90

Services -2,310 5,069

 Travel ... 339
 Reclassification of education from
 unaffiliated services ... 100
 Reclassification of medical services from
 unaffiliated services ... 78
 Statistical adjustments ... 161

 Passenger fares ... -1

 Other transportation 105 -338
 Definitional adjustments -115 ...
 Reclassification of courier services to
 unaffiliated services ... -426
 Reclassification of transportation services
 from unaffiliated services 122 ...
 Statistical adjustments 98 88

Other services -2,415 5,069

 Affiliated -1,346 795
 Definitional adjustments -92 ...
 Reclassification of selected services to or
 from unaffiliated services -43 -91
 Statistical adjustments -1,211 886

 Unaffiliated -1,067 4,296
 Definitional adjustments -703 ...
 Reclassification of transactions to or
 from other accounts -355 293
 Statistical adjustments -9 4,003

 US defense expenditures -2 -22
 Definitional adjustments ... -22
 Statistical adjustments -2 ...

Income 612 -4,477

 Direct investment 3,186 -1,865
 Definitional adjustments -727 -21
 Adjustment of interest income to a net
 basis -205 ...
 Statistical adjustments 4,118 -1,844

 Other investment -3,044 -2,612
 Definitional adjustments -725 ...
 Adjustment of interest income to a net
 basis -2,522 -2,029
 Statistical adjustments 203 -583

 Compensation of employees 470 ...
 Reclassification from unaffiliated services 364 ...
 Statistical adjustments 106 ...

 Current unilateral transfers -4,246 1,462
 Definitional adjustments -3,975 ...
 Reclassification from unaffiliated services -88 ...
 Adjustment of US transfers to a gross basis ... 1,645
 Statistical adjustments -183 -183

 Total adjustments -3,602 16,611

Table 3.1 U.S.-Canadian Current-Account Reconciliation, Northbound

[Millions of U.S. dollars]

 Published estimates

 US Canadian Difference
 receipts payments

 2005

Goods and services 246,278 251,899 -5,621

 Goods, balance-of-payments
 basis 212,192 214,423 -2,231

 Services 34,086 37,476 -3,390
 Travel 9,088 10,065 -977
 Passenger fares 2,631 2,486 145
 Other transportation 3,093 3,082 11
 Other services 19,274 21,843 -2,569

Income 38,200 38,375 -175
 Investment income 38,077 38,375 -298
 Direct investment 23,034 19,183 3,851
 Other investment 15,043 19,192 -4,149
 Compensation of employees 123 (1) 123

Current unilateral transfers (2) 1,111 -1,111

 Current account,
 northbound 284,478 291,385 -6,907

 2006

Goods and services 270,627 273,697 -3,070

 Goods, balance-of-payments
 basis 230,982 233,568 -2,586

 Services 39,645 40,129 -484
 Travel 10,334 11,405 -1,071
 Passenger fares 3,095 2,829 266
 Other transportation 3,189 3,444 -255
 Other services 23,027 22,451 576

Income 43,344 39,273 4,071
 Investment income 43,206 39,273 3,933
 Direct investment 23,442 16,008 7,434
 Other investment 19,764 23,265 -3,501
 Compensation of employees 138 (1) 138

Current unilateral transfers (2) 2,571 -2,571

 Current account,
 northbound 313,971 315,541 -1,570

 Common-basis estimates
 after definitional and
 methodological adjustments

 US Canadian Difference
 receipts payments

 2005

Goods and services 246,240 249,608 -3,368

 Goods, balance-of-payments
 basis 212,310 213,570 -1,260

 Services 33,930 36,038 -2,108
 Travel 10,099 10,065 34
 Passenger fares 2,631 2,486 145
 Other transportation 3,093 3,237 -144
 Other services 18,107 20,250 -2,143

Income 37,977 35,260 2,717
 Investment income 37,854 35,135 2,719
 Direct investment 22,747 18,115 4,632
 Other investment 15,107 17,020 -1,913
 Compensation of employees 123 125 -2

Current unilateral transfers 1,229 280 949

 Current account,
 northbound 285,446 285,148 298

 2006

Goods and services 270,708 271,531 -823

 Goods, balance-of-payments
 basis 231,278 232,556 -1,278

 Services 39,430 38,975 455
 Travel 11,389 11,405 -16
 Passenger fares 3,095 2,829 266
 Other transportation 3,189 3,505 -316
 Other services 21,757 21,236 521

Income 42,369 34,019 8,350
 Investment income 42,231 33,880 8,351
 Direct investment 23,307 15,051 8,256
 Other investment 18,924 18,829 95
 Compensation of employees 138 139 -1

Current unilateral transfers 1,645 1,289 356

 Current account,
 northbound 314,722 306,839 7,883

 Reconciled estimates,
 including statistical
 adjustments

 US Canadian
 receipts payments
 2005

Goods and services 248,443 248,443

 Goods, balance-of-payments
 basis 212,739 212,739

 Services 35,704 35,704
 Travel 10,099 10,099
 Passenger fares 2,486 2,486
 Other transportation 3,114 3,114
 Other services 20,005 20,005

Income 36,250 36,250
 Investment income 36,127 36,127
 Direct investment 20,725 20,725
 Other investment 15,402 15,402
 Compensation of employees 123 123

Current unilateral transfers 1,239 1,239

 Current account,
 northbound 285,932 285,932

 2006

Goods and services 272,011 272,011

 Goods, balance-of-payments
 basis 231,726 231,726

 Services 40,285 40,285
 Travel 11,389 11,389
 Passenger fares 2,829 2,829
 Other transportation 3,210 3,210
 Other services 22,857 22,857

Income 37,235 37,235
 Investment income 37,097 37,097
 Direct investment 19,348 19,348
 Other investment 17,749 17,749
 Compensation of employees 138 138

Current unilateral transfers 1,936 1,936

 Current account,
 northbound 311,182 311,182

 Total adjustments
 to published
 estimates

 United Canada
 States

 2005

Goods and services 2,165 -3,456

 Goods, balance-of-payments
 basis 547 -1,684

 Services 1,618 -1,772
 Travel 1,011 34
 Passenger fares -145 ...
 Other transportation 21 32
 Other services 731 -1,838

Income -1,950 -2,125
 Investment income -1,950 -2,248
 Direct investment -2,309 1,542
 Other investment 359 -3,790
 Compensation of employees ... 123

Current unilateral transfers 1,239 128

 Current account,
 northbound 1,454 -5,453

 2006

Goods and services 1,384 -1,686

 Goods, balance-of-payments
 basis 744 -1,842

 Services 640 156
 Travel 1,055 -16
 Passenger fares -266 ...
 Other transportation 21 -234
 Other services -170 406

Income -6,109 -2,038
 Investment income -6,109 -2,176
 Direct investment 4,094 3,340
 Other investment -2,015 -5,516
 Compensation of employees ... 138

Current unilateral transfers 1,936 -635

 Current account,
 northbound -2,789 4,359

(1) In the Canadian published accounts, compensation of employees is
included in "other" services.

(2) Current unilateral transfers are published on a net basis in the
US accounts and appear as net payments in table 32.

Table 3.2 U.S.-Canadian Current-Account Reconciliation, Southbound

[Millions of U.S. dollars]

 Published estimates

 Canadian US Difference
 receipts payments

 2005

Goods and services 333,599 316,933 16,666

 Goods, balance-of-payments
 basis 303,937 294,081 9,856

 Services 29,662 22,852 6,810
 Travel 7,410 7,160 250
 Passenger fares 358 358 ...
 Other transportation 4,015 4,345 -330
 Other services 17,879 10,989 6,890
Income 17,128 15,130 1,998
 Investment income 17,128 14,695 2,433
 Direct investment 8,450 5,916 2,534
 Other investment 8,678 8,779 -101
 Other private investment 7,374 7,822 -448
 US Government liabilities 1,304 957 347
 Compensation of employees (1) 435 -435
Current unilateral transfers 4,052 328 3,724

 Current account, southbound 354,779 332,391 22,388

 2006

Goods and services 349,781 330,187 19,594

 Goods, balance-of-payments
 basis 318,282 306,067 12,215

 Services 31,499 24,120 7,379
 Travel 7,658 7,319 339
 Passenger fares 372 373 -1
 Other transportation 4,282 4,725 443
 Other services 19,187 11,703 7,484
Income 19,786 24,875 -5,089
 Investment income 19,786 24,405 -4,619
 Direct investment 7,375 12,426 -5,051
 Other investment 12,411 11,979 432
 Other private investment 10,425 10,638 -213
 US Government liabilities 1,986 1,341 645
 Compensation of employees (1) 470 470

Current unilateral transfers 5,321 -387 5,708

 Current account, southbound 374,888 354,675 20,213

 Common-basis estimates
 after definitional and
 methodological adjustments

 Canadian US Difference
 receipts payments

 2005

Goods and services 330,544 330,151 393

 Goods, balance-of-payments
 basis 301,955 307,339 -5,384

 Services 28,589 22,812 5,777
 Travel 7,410 7,321 89
 Passenger fares 358 358 ...
 Other transportation 3,999 4,081 -82
 Other services 16,822 11,052 5,770
Income 15,315 14,069 1,246
 Investment income 14,984 13,634 1,350
 Direct investment 7,904 5,903 2,001
 Other investment 7,080 7,731 -651
 Other private investment 5,776 6,774 -998
 US Government liabilities 1,304 957 347
 Compensation of employees 331 435 -104
Current unilateral transfers 1,126 1,557 -431

 Current account, southbound 346,985 345,777 1,208

 2006

Goods and services 347,114 344,586 2,528

 Goods, balance-of-payments
 basis 316,801 320,534 -3,733

 Services 30,313 24,052 6,261
 Travel 7,658 7,497 161
 Passenger fares 372 373 -1
 Other transportation 4,289 4,299 -10
 Other services 17,994 11,883 6,111
Income 15,971 22,825 -6,854
 Investment income 15,607 22,355 -6,748
 Direct investment 6,443 12,405 -5,962
 Other investment 9,164 9,950 -786
 Other private investment 7,178 8,609 -1,431
 US Government liabilities 1,986 1,341 645
 Compensation of employees 364 470 -106

Current unilateral transfers 1,258 1,258 ...

 Current account, southbound 364,343 368,669 4,326

 Reconciled estimates,
 including statistical
 adjustments

 Canadian US
 receipts payments

 2005

Goods and services 334,701 334,701

 Goods, balance-of-payments
 basis 307,416 307,416

 Services 27,285 27,285
 Travel 7,410 7,410
 Passenger fares 358 358
 Other transportation 4,175 4,175
 Other services 15,342 15,342
Income 15,622 15,622
 Investment income 15,187 15,187
 Direct investment 7,765 7,765
 Other investment 7,422 7,422
 Other private investment 6,352 6,352
 US Government liabilities 1,070 1,070
 Compensation of employees 435 435
Current unilateral transfers 1,368 1,368

 Current account, southbound 351,691 351,691

 2006

Goods and services 349,813 349,813

 Goods, balance-of-payments
 basis 320,624 320,624

 Services 29,189 29,189
 Travel 7,658 7,658
 Passenger fares 372 372
 Other transportation 4,387 4,387
 Other services 16,772 16,772
Income 20,398 20,398
 Investment income 19,928 19,928
 Direct investment 10,561 10,561
 Other investment 9,367 9,367
 Other private investment 7,781 7,781
 US Government liabilities 1,586 1,586
 Compensation of employees 470 470

Current unilateral transfers 1,075 1,075

 Current account, southbound 371,286 371,286

 Total adjustments to
 published estimates

 Canada United
 States

 2005

Goods and services 1,102 17,768

 Goods, balance-of-payments
 basis 3,479 13,335

 Services -2,377 4,433
 Travel ... 250
 Passenger fares ... ...
 Other transportation 160 -170
 Other services -2,537 4,353
Income -1,506 492
 Investment income -1,941 492
 Direct investment -685 1,849
 Other investment -1,256 -1,357
 Other private investment -1,022 -1,470
 US Government liabilities -234 113
 Compensation of employees 435 ...
Current unilateral transfers -2,684 1,040

 Current account, southbound -3,088 19,300

 2006

Goods and services 32 19,626

 Goods, balance-of-payments
 basis 2,342 14,557

 Services -2,310 5,069
 Travel ... 339
 Passenger fares ... -1
 Other transportation 105 -338
 Other services -2,415 5,069
Income 612 -4,477
 Investment income 142 -4,477
 Direct investment 3,186 -1,865
 Other investment -3,044 -2,612
 Other private investment -2,644 -2,857
 US Government liabilities -400 245
 Compensation of employees 470 ...

Current unilateral transfers -4,246 1,462

 Current account, southbound -3,602 16,611

(1) In the Canadian published accounts, compensation of employees is
included in "other" services.

Table 4.1 Trade in Goods, Northbound

[Millions of U.S. dollars]

 US Canadian
 receipts payments

 2005

Balance-of-payments basis, published 212,192 214,423

 Definitional and methodological
 adjustments:
 Definitional adjustments -79 -853
 Reclassification of equipment repairs
 from unaffiliated services 197 ...

 Common basis after definitional and
 methodological adjustments 212,310 213,570

 Statistical adjustments 429 -831

Reconciled, including statistical
 adjustments 212,739 212,739

 2006

Balance-of-payments basis, published 230,982 233,568

 Definitional and methodological
 adjustments:
 Definitional adjustments 71 -1,012
 Reclassification of equipment repairs
 from unaffiliated services 225 ...

 Common basis after definitional and
 methodological adjustments 231,278 232,556

 Statistical adjustments 448 -830

Reconciled, including statistical
 adjustments 231,726 231,726

Table 4.2 Trade in Goods, Southbound

[Millions of US dollars]

 Canadian US
 receipts payments

 2005

Balance-of-payments basis, published 303,937 294,081

 Definitional and methodological
 adjustments:
 Canadian reexports to the United States ... 8,776
 Inland freight adjustment 3,572 3,917
 Other definitional adjustments -5,554 545
 Reclassification of equipment repairs
 from unaffiliated services ... 16
 Reclassification of vessel repairs
 from other transportation services ... 4
 Common basis after definitional and
 methodological adjustments 301,955 307,339

 Statistical adjustments 5,461 77

Reconciled, including statistical 307,416 307,416
 adjustments

 2006

Balance-of-payments basis, published 318,282 306,067

 Definitional and methodological
 adjustments:
 Canadian reexports to the United States ... 10,547
 Inland freight adjustment 2,862 3,192
 Other definitional adjustments -4,343 682
 Reclassification of equipment repairs
 from unaffiliated services ... 7
 Reclassification of vessel repairs
 from other transportation services ... 39

 Common basis after definitional and
 methodological adjustments 316,801 320,534

 Statistical adjustments 3,823 90

Reconciled, including statistical
 adjustments 320,624 320,624

Table 5.1 Travel, Passenger Fares, and Other Transportation,
Northbound

[Millions of U.S. dollars]

 Published estimates

 US Canadian Difference
 receipts payments

 2005

Travel 9,088 10,065 -977
 Business and personal 9,088 9,108 -20
 Education ... 693 -693
 Medical ... 264 -264

Passenger fares 2,631 2,486 145

Other transportation 3,093 3,082 11

 Freight 2,208 2,436 -228
 Ocean 102 476 -374
 Air 140 33 107
 Truck 1,534 1,533 1
 Other 432 394 38

 Port services 885 596 289
 Vessel operators 92 126 -34
 Airline operators 464 446 18
 Other 329 24 305

 Other ... 50 -50

 2006

Travel 10,334 11,405 -1,071
 Business and personal 10,334 10,363 -29
 Education ... 758 -758
 Medical ... 284 -284

Passenger fares 3,095 2,829 266

Other transportation 3,189 3,444 -255

 Freight 2,257 2,588 -331
 Ocean 97 520 -423
 Air 149 38 111
 Truck 1,619 1,619 ...
 Other 392 411 -19

 Port services 932 801 131
 Vessel operators 125 141 -16
 Airline operators 462 634 -172
 Other 345 26 319
 Other ... 55 -55

 Common-basis estimates
 after definitional and
 methodological adjustments

 US Canadian Difference
 receipts payments

 2005

Travel 10,099 10,065 34
 Business and personal 9,088 9,108 -20
 Education 747 693 54
 Medical 264 ... 264

Passenger fares 2,631 2,486 145

Other transportation 3,093 3,237 -144

 Freight 2,204 2,293 -89
 Ocean 98 333 -235
 Air 140 33 107
 Truck 1,534 1,533 1
 Other 432 394 38

 Port services 885 894 -9
 Vessel operators 92 126 -34
 Airline operators 464 446 18
 Other 329 322 7

 Other 4 50 46

 2006

Travel 11,389 11,405 -16
 Business and personal 10,334 10,363 -29
 Education 772 758 14
 Medical 283 284 -1

Passenger fares 3,095 2,829 266

Other transportation 3,189 3,505 -316

 Freight 2,253 2,428 -175
 Ocean 93 360 -267
 Air 149 38 111
 Truck 1,619 1,619 ...
 Other 392 411 -19

 Port services 932 1,022 -90
 Vessel operators 125 141 -16
 Airline operators 462 634 -172
 Other 345 247 98
 Other 4 55 -51

 Reconciled estimates,
 including statistical
 adjustments

 US Canadian
 receipts payments

 2005

Travel 10,099 10,099
 Business and personal 9,088 9,088
 Education 747 747
 Medical 264 264

Passenger fares 2,486 2,486

Other transportation 3,114 3,114

 Freight 2,262 2,262
 Ocean 251 251
 Air 33 33
 Truck 1,534 1,534
 Other 444 444

 Port services 802 802
 Vessel operators 126 126
 Airline operators 349 349
 Other 327 327

 Other 50 50

 2006

Travel 11,389 11,389
 Business and personal 10,334 10,334
 Education 772 772
 Medical 283 283

Passenger fares 2,829 2,829

Other transportation 3,210 3,210

 Freight 2,314 2,314
 Ocean 258 258
 Air 33 33
 Truck 1,619 1,619
 Other 404 404

 Port services 846 846
 Vessel operators 134 134
 Airline operators 462 462
 Other 250 250
 Other 50 50

 Total adjustments to
 published estimates

 United Canada
 States

 2005

Travel 1,011 34
 Business and personal ... -20
 Education 747 54
 Medical ... 264

Passenger fares -145

Other transportation 21 32

 Freight 54 -174
 Ocean 149 -225
 Air ... -107
 Truck ... 1
 Other 12 50

 Port services -83 206
 Vessel operators 34
 Airline operators -115 -97
 Other -2 303

 Other 50

 2006

Travel 1,055 -16
 Business and personal ... -29
 Education 772 14
 Medical 283 -1

Passenger fares -266

Other transportation 21 -234

 Freight 57 -274
 Ocean 161 -262
 Air -116 -5
 Truck ...
 Other 12 -7

 Port services -86 45
 Vessel operators 9 -7
 Airline operators ... -172
 Other -95 224
 Other 50 -5

 Total adjustments to
 published estimates

 Type of
 adjustment

 2005

Travel
 Business and personal Statistical
 Education Methodological and statistical
 Medical Methodological

Passenger fares Statistical

Other transportation

 Freight
 Ocean Definitional, methodological, and
 statistical
 Air Statistical
 Truck Statistical
 Other Statistical

 Port services
 Vessel operators Statistical
 Airline operators Statistical
 Other Methodological and statistical

 Other Methodological and statistical

 2006

Travel
 Business and personal Statistical
 Education Methodological and statistical
 Medical Methodological and statistical

Passenger fares Statistical

Other transportation

 Freight
 Ocean Definitional, methodological, and
 statistical
 Air Statistical
 Truck
 Other Statistical

 Port services
 Vessel operators Statistical
 Airline operators Statistical
 Other Methodological and statistical
 Other Methodological and statistical

Table 5.2. Travel, Passenger Fares, and Other Transportation,
Southbound

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S. Difference
 receipts payments

 2005

Travel 7,410 7,160 250
 Business and personal 7,161 7,160 1
 Education 180 ... 180
 Medical 69 ... 69

Passenger fares 358 358

Other transportation 4,015 4,345 -330

 Freight 3,198 3,399 -201
 Ocean 258 439 -181
 Air 27 27 ...
 Truck 2,672 2,673 -1
 Other 241 260 -19

 Port services 660 946 -286
 Vessel operators 69 106 -37
 Airline operators 510 758 -248
 Other 81 82 -1

Other 157 157

 2006

Travel 7,658 7,319 339
 Business and personal 7,361 7,319 42
 Education 221 ... 221
 Medical 76 ... 76

Passenger fares 372 373 -1

Other transportation 4,262 4,725 -443

 Freight 3,421 3,627 -206
 Ocean 301 499 -198
 Air 23 23 ...
 Truck 2,832 2,833 -1
 Other 265 272 -7

 Port services 687 1,098 -411
 Vessel operators 80 102 -22
 Airline operators 523 910 -387
 Other 84 86 -2

Other 174 ... 174

 Common-basis estimates
 after definitional and
 methodological adjustments

 Canadian U.S. Difference
 receipts payments

 2005

Travel 7,410 7,321 89
 Business and personal 7,161 7,160 1
 Education 180 90 90
 Medical 69 71 -2

Passenger fares 358 358.00

Other transportation 3,999 4,081 -82

 Freight 3,198 3,207 -9
 Ocean 258 398 -140
 Air 27 ... 27
 Truck 2,672 2,673 -1
 Other 241 109 132

 Port services 755 833 -78
 Vessel operators 74 90 -16
 Airline operators 510 ... 510
 Other 171 233 -62

Other 46 41 5

 2006

Travel 7,658 7,497 161
 Business and personal 7,361 7,319 42
 Education 221 100 121
 Medical 76 78 -2

Passenger fares 372 373 -1

Other transportation 4,289 4,299 -10

 Freight 3,421 3,429 -8
 Ocean 301 460 -159
 Air 23 ... 23
 Truck 2,832 2,833 -1
 Other 265 113 152

 Port services 814 831 -17
 Vessel operators 85 63 22
 Airline operators 523 523
 Other 206 245 -39

Other 54 39 15

 Reconciled estimates,
 including statistical
 adjustments

 Canadian U.S.
 receipts payments

 2005

Travel 7,410 7,410
 Business and personal 7,161 7,161
 Education 180 180
 Medical 69 69

Passenger fares 358 358

Other transportation 4,175 4,175

 Freight 3,339 3,339
 Ocean 398 398
 Air 27 27
 Truck 2,673 2,673
 Other 241 241

 Port services 795 795
 Vessel operators 82 82
 Airline operators 510 510
 Other 203 203

Other 41 41

 2006

Travel 7,658 7,658
 Business and personal 7,361 7,361
 Education 221 221
 Medical 76 76

Passenger fares 372 372

Other transportation 4,387 4,387

 Freight 3,511 3,511
 Ocean 381 381
 Air 23 23
 Truck 2,833 2,833
 Other 274 274

 Port services 837 837
 Vessel operators 74 74
 Airline operators 537 537
 Other 226 226

Other 39 39

 Total adjustments to
 published estimates

 Canada United
 States

 2005

Travel ... 250
 Business and personal ... 1
 Education ... 180
 Medical ... 69

Passenger fares ... ...

Other transportation 160 -170

 Freight 141 -60
 Ocean 140 -41
 Air ... ...
 Truck 1
 Other ... -19

 Port services 135 -151
 Vessel operators 13 -24
 Airline operators ... -248
 Other 122 121

Other -116 41

 2006

Travel ... 339
 Business and personal ... 42
 Education ... 221
 Medical ... 76

Passenger fares ... -1

Other transportation 105 -338

 Freight 90 -116
 Ocean 80 -118
 Air ... ...
 Truck 1 ...
 Other 9 2

 Port services 150 -261
 Vessel operators -6 -28
 Airline operators 14 -373
 Other 142 140

Other -135 39

 Total adjustments to
 published estimates

 Type of
 adjustment

 2005

Travel
 Business and personal Statistical
 Education Methodological and statistical
 Medical Methodological and statistical

Passenger fares

Other transportation

 Freight
 Ocean Methodological and statistical
 Air
 Truck Statistical
 Other Methodological and statistical

 Port services
 Vessel operators Definitional, methodological, and
 statistical
 Airline operators Methodological
 Other Methodological and statistical

Other Definitional, methodological, and
 statistical

 2006

Travel
 Business and personal Statistical
 Education Methodological and statistical
 Medical Methodological and statistical

Passenger fares Statistical

Other transportation

 Freight
 Ocean Methodological and statistical
 Air
 Truck Statistical
 Other Methodological and statistical

 Port services
 Vessel operators Definitional, methodological, and
 statistical
 Airline operators Methodological and statistical
 Other Methodological and statistical

Other Definitional, methodological, and
 statistical

Table 6.1. Other Services, Northbound

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Difference
 receipts payments

 2005

 Total 19,274 21,843 -2,569

Affiliated 9,372 12,506 -3,134

 Royalties and license fees 3,766 4,400 -634
 Other services 5,606 8,106 -2,500

Unaffiliated 9,745 9,337 408

 Royalties, license fees,
 and selected services 1,781 2,178 -397
 Insurance 1,685 652 1,033
 Financial services 1,671 1,201 470
 Education and training 782 20 762
 Communications 696 704 -8
 Computer services 722 911 -189
 Business services 1,776 1,551 225
 Sports and entertainment 529 1,458 -929
 Other private ... 343 -343
 Government:
 United States (nonmilitary) 103 87 16
 Canada ... 232 -232
 U.S. military sales 157 ... 157

 2006

 Total 23,027 22,451 576

Affiliated 10,743 12,588 -1,845

 Royalties and license fees 4,159 4,279 -120
 Other services 6,584 8,309 -1,725

Unaffiliated 12,071 9,863 2,208

 Royalties, license fees,
 and selected services 2,708 2,441 267
 Insurance 1,918 441 1,477
 Financial services 2,257 1,413 844
 Education and training 820 21 799
 Communications 651 668 -17
 Computer services 847 1,050 -203
 Business services 1,931 1,528 403
 Sports and entertainment 816 1,684 -868
 Other private 266 -266
 Government:
 United States (nonmilitary) 123 97 26
 Canada 254 -254

U.S. military sales 213 ... 213

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian Difference
 receipts payments

 2005

 Total 18,107 20,250 -2,143

Affiliated 8,964 11,395 -2,431

 Royalties and license fees 3,766 4,169 -403
 Other services 5,198 7,226 -2,028

Unaffiliated 9,098 8,855 243

 Royalties, license fees,
 and selected services 1,774 2,215 -441
 Insurance 1,685 808 877
 Financial services 1,671 779 892
 Education and training 35 25 10
 Communications 696 650 46
 Computer services 722 917 -195
 Business services 1,526 1,897 -371
 Sports and entertainment 733 1,334 -6O1
 Other private ... ... ...
 Government:
 United States (nonmilitary) 103 87 16
 Canada 153 143 10
 U.S. military sales 45 45

 2006

 Total 21,757 21,236 521

Affiliated 10,214 11,368 -1,154

 Royalties and license fees 4,159 3,998 161
 Other services 6,055 7,370 -1,315

Unaffiliated 11,483 9,868 1,615

 Royalties, license fees,
 and selected services 2,693 2,478 215
 Insurance 1,918 814 1,104
 Financial services 2,257 1,258 999
 Education and training 48 27 21
 Communications 651 610 41
 Computer services 847 1,056 -209
 Business services 1,656 1,894 -238
 Sports and entertainment 1,127 1,474 -347
 Other private ... ... ...
 Government:
 United States (nonmilitary) 123 97 26
 Canada 163 160 3

U.S. military sales 60 ... 60

 Reconciled estimates,
 including statistical
 adjustments

 U.S. Canadian
 receipts payments
 2005

 Total 20,005 20,005

Affiliated 9,944 9,944

 Royalties and license fees (1) (1)
 Other services (1) (1)

Unaffiliated 10,016 10,016

 Royalties, license fees,
 and selected services 1,774 1,774
 Insurance 1,685 1,685
 Financial services 1,671 1,671
 Education and training 35 35
 Communications 696 696
 Computer services 722 722
 Business services 1,854 1,854
 Sports and entertainment 1,333 1,333
 Other private ... ...
 Government:
 United States (nonmilitary) 103 103
 Canada 143 143
 U.S. military sales 45 45

 2006

 Total 22,857 22,857

Affiliated 10,513 10,513

 Royalties and license fees (1) (1)
 Other services (1) (1)

Unaffiliated 12,284 12,284

 Royalties, license fees,
 and selected services 2,693 2,693
 Insurance 1,918 1,918
 Financial services 2,285 2,285
 Education and training 48 48
 Communications 651 651
 Computer services 847 847
 Business services 1,951 1,951
 Sports and entertainment 1,608 1,608
 Other private ... ...
 Government:
 United States (nonmilitary) 123 123
 Canada 160 160

U.S. military sales 60 60

 Total adjustments to
 published estimates

 United Canada
 States

 2005

 Total 731 -1,838

Affiliated 572 -2,562

 Royalties and license fees (1) (1)
 Other services (1) (1)

Unaffiliated 271 679

 Royalties, license fees,
 and selected services -7 -404
 Insurance ... 1,033
 Financial services ... 470
 Education and training -747 15
 Communications ... -8
 Computer services ... -189
 Business services 78 303
 Sports and entertainment 804 -125
 Other private ... -343
 Government:
 United States (nonmilitary) ... 16
 Canada 143 -89
 U.S. military sales -112 45

 2006

 Total -170 406

Affiliated -230 -2,075

 Royalties and license fees (1) (1)
 Other services (1) (1)

Unaffiliated 213 2,421

 Royalties, license fees,
 and selected services -15 252
 Insurance ... 1,477
 Financial services 28 872
 Education and training -772 27
 Communications ... -17
 Computer services ... -203
 Business services 20 423
 Sports and entertainment 792 -76
 Other private ... -266
 Government:
 United States (nonmilitary) ... 26
 Canada 160 -94

U.S. military sales -153 60

 Total adjustments to
 published estimates

 Type of adjustment

 2005

 Total

Affiliated Definitional, methodological, and
 statistical

 Royalties and license fees
 Other services

Unaffiliated

 Royalties, license fees,
 and selected services Definitional, methodological, and
 statistical
 Insurance Definitional, methodological, and
 statistical
 Financial services Definitional and statistical
 Education and training Methodological and statistical
 Communications Methodological and statistical
 Computer services Methodological and statistical
 Business services Methodological and statistical
 Sports and entertainment Definitional, methodological, and
 statistical
 Other private Definitional and methodological
 Government:
 United States (nonmilitary) Statistical
 Canada Definitional, methodological, and
 statistical
 U.S. military sales Definitional and statistical

 2006

 Total

Affiliated Definitional, methodological, and
 statistical

 Royalties and license fees
 Other services

Unaffiliated

 Royalties, license fees,
 and selected services Definitional, methodological, and
 statistical
 Insurance Definitional, methodological, and
 statistical
 Financial services Definitional and statistical
 Education and training Methodological and statistical
 Communications Methodological and statistical
 Computer services Methodological and statistical
 Business services Methodological and statistical
 Sports and entertainment Definitional, methodological, and
 statistical
 Other private Definitional and methodological
 Government:
 United States (nonmilitary) Statistical
 Canada Definitional, methodological. and
 statistical

U.S. military sales Definitional and statistical

(1.) Royalties and license fees are combined with "other' services for
reconciliation.

Table 6.2. Other Services, Southbound

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S. Difference
 receipts payments

 2005

 Total 17,879 10,989 6,890

Affiliated 7,600 5,138 2,462

 Royalties and license fees 599 658 -59
 Other services 7,001 4,480 2,521

Unaffiliated 10,113 5,665 4,448

 Royalties, license fees,
 and selected services 3,204 791 2,413
 Insurance -10 652 -662
 Financial services 561 359 202
 Education and training 76 117 -41
 Communications 947 366 581
 Computer services 1,802 1,586 216
 Business services 1,618 1,349 269
 Sports and entertainment 1,358 105 1,253
 Other private 167 ... 167
 Government:
 Canada 51 ... 51
 United States (nondefense) 339 340 -1

U.S. defense expenditures 166 186 -20

 2006

 Total 19,187 11,703 7,484

Affiliated 7,837 5,696 2,141

 Royalties and license fees 714 622 92
 Other services 7,123 5,074 2,049

Unaffiliated 11,130 5,767 5,363

 Royalties, license fees,
 and selected services 3,546 719 2,827
 Insurance 58 645 -587
 Financial services 757 435 322
 Education and training 73 131 -58
 Communications 1,031 372 659
 Computer services 1,893 1,678 215
 Business services 1,703 1,351 352
 Sports and entertainment 1,474 98 1,376
 Other private 206 ... 206
 Government:
 Canada 64 ... 64
 United States (nondefense) 325 338 -13

U.S. defense expenditures 220 240 -20

 Common-basis estimates
 after definitional and
 methodological adjustments

 Canadian U.S. Difference
 receipts payments

 2005

 Total 16,822 11,052 5,770

Affiliated 7,483 5,061 2,422

 Royalties and license fees 596 658 -62
 Other services 6,887 4,403 2,484

Unaffiliated 9,173 5,825 3,348

 Royalties, license fees,
 and selected services 2,849 787 2,062
 Insurance 170 652 -482
 Financial services 561 359 202
 Education and training 26 27 -1
 Communications 726 366 360
 Computer services 1,802 1,586 216
 Business services 1,759 1,242 517
 Sports and entertainment 890 466 424
 Other private ... ... ...
 Government:
 Canada 51 ... 51
 United States (nondefense) 339 340 -1

U.S. defense expenditures 166 166 ...

 2006

 Total 17,994 11,883 6,111

Affiliated 7,702 5,605 2,097

 Royalties and license fees 697 622 75
 Other services 7,005 4,983 2,022

Unaffiliated 10,072 6,060 4,012

 Royalties, license fees,
 and selected services 3,154 718 2,436
 Insurance 145 645 -500
 Financial services 758 435 323
 Education and training 23 31 -8
 Communications 794 372 422
 Computer services 1,893 1,678 215
 Business services 1,848 1,437 411
 Sports and entertainment 1,068 406 662
 Other private ... ... ...
 Government:
 Canada 64 ... 64
 United States (nondefense) 325 338 -13

U.S. defense expenditures 220 218 2

 Reconciled estimates,
 including statistical
 adjustments

 Canadian U.S.
 receipts payments

 2005

 Total 15,342 15,342

Affiliated 6,005 6,005

 Royalties and license fees (1) (1)
 Other services (1) (1)

Unaffiliated 9,171 9,171

 Royalties, license fees,
 and selected services 2,966 2,966
 Insurance 652 652
 Financial services 416 416
 Education and training 27 27
 Communications 546 546
 Computer services 1,697 1,697
 Business services 1,709 1,709
 Sports and entertainment 767 767
 Other private ... ...
 Government:
 Canada 51 51
 United States (nondefense) 340 340

U.S. defense expenditures 166 166

 2006

 Total 16,772 16,772

Affiliated 6,491 6,491

 Royalties and license fees (1) (1)
 Other services (1) (1)

Unaffiliated 10,063 10,063

 Royalties, license fees,
 and selected services 3,269 3,269
 Insurance 645 645
 Financial services 553 553
 Education and training 31 31
 Communications 583 583
 Computer services 1,790 1,790
 Business services 1,898 1,898
 Sports and entertainment 892 892
 Other private ... ...
 Government:
 Canada 64 64
 United States (nondefense) 338 338

U.S. defense expenditures 218 218

 Total adjustments to
 published estimates

 Canada United
 States

 2005

 Total -2,537 4,353

Affiliated -1,595 867

 Royalties and license fees (1) (1)
 Other services (1) (1)

Unaffiliated -942 3,506

 Royalties, license fees,
 and selected services -238 2,175
 Insurance 662 ...
 Financial services -145 57
 Education and training -49 -90
 Communications -401 180
 Computer services -105 111
 Business services 91 360
 Sports and entertainment -591 662
 Other private -167 ...
 Government:
 Canada ... 51
 United States (nondefense) 1 ...

U.S. defense expenditures ... -20

 2006

 Total -2,415 5,069

Affiliated -1,346 795

 Royalties and license fees (1) (1)
 Other services (1) (1)

Unaffiliated -1,067 4,296

 Royalties, license fees,
 and selected services -277 2,550
 Insurance 587 ...
 Financial services -204 118
 Education and training -42 -100
 Communications -448 211
 Computer services -103 112
 Business services 195 547
 Sports and entertainment -582 794
 Other private -206 ...
 Government:
 Canada ... 64
 United States (nondefense) 13 ...

U.S. defense expenditures -2 -22

 Total adjustments to
 published estimates

 Type of adjustment

 2005

 Total

Affiliated Definitional, methodological, and
 statistical

 Royalties and license fees
 Other services

Unaffiliated

 Royalties, license fees,
 and selected services Definitional and statistical
 Insurance Definitional, methodological, and
 statistical
 Financial services Statistical
 Education and training Methodological and statistical
 Communications Methodological and statistical
 Computer services Statistical
 Business services Definitional, methodological, and
 statistical
 Sports and entertainment Definitional, methodological, and
 statistical
 Other private Definitional and methodological
 Government:
 Canada Statistical
 United States (nondefense) Statistical

U.S. defense expenditures Definitional and statistical

 2006

 Total

Affiliated Definitional, methodological, and
 statistical

 Royalties and license fees
 Other services

Unaffiliated

 Royalties, license fees,
 and selected services Definitional and statistical
 Insurance Definitional, methodological, and
 statistical
 Financial services Definitional and statistical
 Education and training Methodological and statistical
 Communications Methodological and statistical
 Computer services Statistical
 Business services Definitional, methodological, and
 statistical
 Sports and entertainment Definitional, methodological, and
 statistical
 Other private Definitional and methodological
 Government:
 Canada Statistical
 United States (nondefense) Statistical

U.S. defense expenditures Definitional and statistical

(1.) Royalties and license fees are combined with "other" services for
reconciliation.

Table 7.1. Investment Income, Northbound

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Difference
 receipts payments

 2005

Investment Income 38,077 38,375 -298

 Direct investment income 23,034 19,183 3,851
 Earnings of incorporated
 affiliates 21,499 17,362 4,137
 Dividends 16,815 10,363 6,452
 Reinvested earnings 4,684 6,999 -2,315
 Earnings of unincorporated
 affiliates 694 1,147 -453
 Interest 841 674 167

 Other investment income 15,043 19,192 -4,149
 Securities 11,465 15,200 -3,735
 Dividends 4,022 3,513 509
 Interest 7,443 11,687 -4,244
 U.S. claims/Canadian
 liabilities 3,578 3,992 -414
 U.S. bank claims 2,197 1,705 492
 Other private U.S. claims 1,381 2,287 -906

 2006

Investment Income 43,206 39,273 3,933

 Direct investment income 23,442 16,008 7,434
 Earnings of incorporated
 affiliates 22,104 14,099 8,005
 Dividends 5,741 8,153 -2,412
 Reinvested earnings 16,363 5,946 10,417
 Earnings of unincorporated
 affiliates 545 1,224 -679
 Interest 793 685 108

 Other investment income 19,764 23,265 -3,501
 Securities 13,354 15,255 -1,901
 Dividends 5,395 3,941 1,454
 Interest 7,959 11,314 -3,355
 U.S. claims/Canadian
 liabilities 6,410 8,010 -1,600
 U.S. bank claims 3,819 3,923 -104
 Other private U.S. claims 2,591 4,087 -1,496

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian Difference
 receipts payments

 2005

Investment Income 37,854 35,135 2,719

 Direct investment income 22,747 18,115 4,632
 Earnings of incorporated
 affiliates 21,267 16,424 4,843
 Dividends 16,583 9,425 7,158
 Reinvested earnings 4,684 6,999 -2,315
 Earnings of unincorporated
 affiliates 694 1,212 -518
 Interest 786 479 307

 Other investment income 15,107 17,020 -1,913
 Securities 12,577 15,643 -3,066
 Dividends 4,022 3,956 66
 Interest 8,555 11,687 -3,132
 U.S. claims/Canadian
 liabilities 2,530 1,377 1,153
 U.S. bank claims 1,219 579 640
 Other private U.S. claims 1,311 798 513

 2006

Investment Income 42,231 33,880 8,351

 Direct investment income 23,307 15,051 8,256
 Earnings of incorporated
 affiliates 22,024 13,363 8,661
 Dividends 5,661 7,417 -1,756
 Reinvested earnings 16,363 5,946 10,417
 Earnings of unincorporated
 affiliates 545 1,288 -743
 Interest 738 400 338

 Other investment income 18,924 18,829 95
 Securities 14,543 15,751 -1,208
 Dividends 5,395 4,437 958
 Interest 9,148 11,314 -2,166
 U.S. claims/Canadian
 liabilities 4,381 3,078 1,303
 U.S. bank claims 1,928 1,401 527
 Other private U.S. claims 2,453 1,677 776

 Reconciled estimates,
 including statistical
 adjustments

 U.S. Canadian
 receipts payments

 2005

Investment Income 36,127 36,127

 Direct investment income 20,725 20,725
 Earnings of incorporated
 affiliates 18,986 18,986
 Dividends 12,961 12,961
 Reinvested earnings 6,025 6,025
 Earnings of unincorporated
 affiliates 953 953
 Interest 786 786

 Other investment income 15,402 15,402
 Securities 13,411 13,411
 Dividends 3,989 3,989
 Interest 9,422 9,422
 U.S. claims/Canadian
 liabilities 1,991 1,991
 U.S. bank claims 937 937
 Other private U.S. claims 1,054 1,054

 2006

Investment Income 37,097 37,097

 Direct investment income 19,348 19,348
 Earnings of incorporated
 affiliates 17,693 17,693
 Dividends 3,830 3,830
 Reinvested earnings 13,863 13,863
 Earnings of unincorporated
 affiliates 917 917
 Interest 738 738

 Other investment income 17,749 17,749
 Securities 14,019 14,019
 Dividends 4,916 4,916
 Interest 9,103 9,103
 U.S. claims/Canadian
 liabilities 3,730 3,730
 U.S. bank claims 1,665 1,665
 Other private U.S. claims 2,065 2,065

 Total adjustments to
 published estimates

 United Canada
 States

 2005

Investment Income -1,950 -2,248

 Direct investment income -2,309 1,542
 Earnings of incorporated
 affiliates -2,513 1,624
 Dividends -3,854 2,598
 Reinvested earnings 1,341 -974
 Earnings of unincorporated
 affiliates 259 -194
 Interest -55 112

 Other investment income 359 -3,790
 Securities 1,946 -1,789
 Dividends -33 476
 Interest 1,979 -2,265
 U.S. claims/Canadian
 liabilities -1,587 -2,001
 U.S. bank claims -1,260 -768
 Other private U.S. claims -327 -1,233

 2006

Investment Income -6,109 -2,176

 Direct investment income -4,094 3,340
 Earnings of incorporated
 affiliates -4,411 3,594
 Dividends -1,911 -4,323
 Reinvested earnings -2,500 7,917
 Earnings of unincorporated
 affiliates 372 -307
 Interest -55 53

 Other investment income -2,015 -5,516
 Securities 665 -1,236
 Dividends -479 975
 Interest 1,144 -2,211
 U.S. claims/Canadian
 liabilities -2,680 -4,280
 U.S. bank claims -2,154 -2,258
 Other private U.S. claims -526 -2,022

 Total adjustments to
 published estimates

 Type of adjustment

 2005

Investment Income

 Direct investment income
 Earnings of incorporated
 affiliates
 Dividends Definitional and statistical
 Reinvested earnings Statistical
 Earnings of unincorporated
 affiliates Definitional and statistical
 Interest Definitional, methodological, and
 statistical

 Other investment income
 Securities
 Dividends Definitional and statistical
 Interest Definitional and statistical
 U.S. claims/Canadian
 liabilities
 U.S. bank claims Methodological and statistical
 Other private U.S. claims Definitional, methodological, and
 statistical

 2006

Investment Income

 Direct investment income
 Earnings of incorporated
 affiliates
 Dividends Definitional and statistical
 Reinvested earnings Statistical
 Earnings of unincorporated
 affiliates Definitional and statistical
 Interest Definitional, methodological, and
 statistical

 Other investment income
 Securities
 Dividends Definitional and statistical
 Interest Definitional and statistical
 U.S. claims/Canadian
 liabilities
 U.S. bank claims Methodological and statistical
 Other private U.S. claims Definitional, methodological, and
 statistical

Table 7.2. Investment Income, Southbound

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S. Difference
 receipts payments

 2005

Investment Income 17,128 14,695 2,433

 Direct investment income 8,450 5,916 2,534
 Earnings of incorporated
 affiliates 6,875 8,382 -1,507
 Dividends 1,570 823 747
 Reinvested earnings 5,305 7,559 -2,254
 Earnings of unincorporated
 affiliates 1,348 -2,588 3,936
 Interest 227 122 105

 Other investment income 8,678 8,779 -101
 Securities 4,993 6,258 -1,265
 Dividends 3,110 3,573 -463
 Interest 1,883 2,685 -802
 Canadian claims/U.S.
 liabilities 2,381 1,564 817
 Canadian bank claims 1,460 814 646
 Other private Canadian
 claims 921 750 171
 U.S. Government liabilities 1,304 957 347

 2006

 Investment Income 19,786 24,405 4,619

 Direct investment income 7,375 12,426 -5,051
 Earnings of incorporated
 affiliates 5,439 11,418 -5,979
 Dividends 1,813 1,091 722
 Reinvested earnings 3,626 10,327 -6,701
 Earnings of unincorporated
 affiliates 1,645 558 1,087
 Interest 291 450 -159

 Other investment income 12,411 11,979 432
 Securities 6,407 8,049 -1,642
 Dividends 4,004 4,453 -449
 Interest 2,403 3,596 -1,193
 Canadian claims/U.S.
 liabilities 4,018 2,589 1,429
 Canadian bank claims 3,084 1,383 1,701
 Other private Canadian
 claims 934 1,206 -272
 U.S. Government liabilities 1,986 1,341 645

 Common-basis estimates
 after definitional and
 methodological adjustments

 Canadian U.S. Difference
 receipts payments

 2005

Investment Income 14,984 13,634 1,350

 Direct investment income 7,904 5,903 2,001
 Earnings of incorporated
 affiliates 7,725 8,347 -622
 Dividends 2,420 788 1,632
 Reinvested earnings 5,305 7,559 -2,254
 Earnings of unincorporated
 affiliates 87 -2,588 2,675
 Interest 92 144 -52

 Other investment income 7,080 7,731 -651
 Securities 4,636 6,404 -1,768
 Dividends 2,853 3,573 -720
 Interest 1,783 2,831 -1,048
 Canadian claims/U.S.
 liabilities 1,140 370 770
 Canadian bank claims 219 -54 273
 Other private Canadian
 claims 921 424 497
 U.S. Government liabilities 1,304 957 347

 2006

 Investment Income 15,607 22,355 -6,748

 Direct investment income 6,443 12,405 -5,962
 Earnings of incorporated
 affiliates 6,278 11,385 -5,107
 Dividends 2,652 1,058 1,594
 Reinvested earnings 3,626 10,327 -6,701
 Earnings of unincorporated
 affiliates 95 558 463
 Interest 70 462 -392

 Other investment income 9,164 9,950 -786
 Securities 5,911 8,231 -2,320
 Dividends 3,674 4,453 -779
 Interest 2,237 3,778 -1,541
 Canadian claims/U.S.
 liabilities 1,267 378 889
 Canadian bank claims 333 -379 712
 Other private Canadian
 claims 934 757 177
 U.S. Government liabilities 1,986 1,341 645

 Reconciled estimates,
 including statistical
 adjustments

 Canadian U.S.
 receipts payments

 2005

Investment Income 15,187 15,187

 Direct investment income 7,765 7,765
 Earnings of incorporated
 affiliates 8,871 8,871
 Dividends 935 935
 Reinvested earnings 7,936 7,936
 Earnings of unincorporated
 affiliates -1,250 -1,250
 Interest 144 144

 Other investment income 7,422 7,422
 Securities 5,443 5,443
 Dividends 3,213 3,213
 Interest 2,230 2,230
 Canadian claims/U.S.
 liabilities 909 909
 Canadian bank claims 34 34
 Other private Canadian
 claims 875 875
 U.S. Government liabilities 1,070 1,070

 2006

 Investment Income 19,928 19,928

 Direct investment income 10,561 10,561
 Earnings of incorporated
 affiliates 9,773 9,773
 Dividends 1,135 1,135
 Reinvested earnings 8,638 8,638
 Earnings of unincorporated
 affiliates 326 326
 Interest 462 462

 Other investment income 9,367 9,367
 Securities 7,047 7,047
 Dividends 4,064 4,064
 Interest 2,983 2,983
 Canadian claims/U.S.
 liabilities 734 734
 Canadian bank claims -237 -237
 Other private Canadian
 claims 971 971
 U.S. Government liabilities 1,586 1,586

 Total adjustments to
 published estimates

 Canada United
 States

 2005

Investment Income -1,941 492

 Direct investment income -685 1,849
 Earnings of incorporated
 affiliates 1,996 489
 Dividends -635 112
 Reinvested earnings 2,631 377
 Earnings of unincorporated
 affiliates -2,598 1,338
 Interest -83 22

 Other investment income -1,256 -1,357
 Securities 450 -815
 Dividends 103 -360
 Interest 347 -455
 Canadian claims/U.S.
 liabilities -1,472 -655
 Canadian bank claims -1,426 -780
 Other private Canadian
 claims -46 125
 U.S. Government liabilities -234 113

 2006

 Investment Income 142 -4,477

 Direct investment income 3,186 -1,865
 Earnings of incorporated
 affiliates 4,334 -1,645
 Dividends -678 44
 Reinvested earnings 5,012 -1,689
 Earnings of unincorporated
 affiliates -1,319 -232
 Interest 171 12

 Other investment income -3,044 -2,612
 Securities 640 -1,002
 Dividends 60 -389
 Interest 580 -613
 Canadian claims/U.S.
 liabilities -3,284 -1,855
 Canadian bank claims -3,321 -1,620
 Other private Canadian
 claims 37 -235
 U.S. Government liabilities -400 245

 Type of adjustment

 2005

Investment Income

 Direct investment income
 Earnings of incorporated
 affiliates
 Dividends Definitional, methodological, and
 statistical
 Reinvested earnings Statistical
 Earnings of unincorporated
 affiliates Definitional, methodological, and
 statistical
 Interest Definitional, methodological, and
 statistical

 Other investment income
 Securities
 Dividends Definitional and statistical
 Interest Definitional, methodological, and
 statistical
 Canadian claims/U.S.
 liabilities
 Canadian bank claims Methodological and statistical
 Other private Canadian
 claims Methodological and statistical
 U.S. Government liabilities Statistical

 2006

 Investment Income

 Direct investment income
 Earnings of incorporated
 affiliates
 Dividends Definitional, methodological, and
 statistical
 Reinvested earnings Statistical
 Earnings of unincorporated
 affiliates Definitional, methodological, and
 statistical
 Interest Definitional, methodological, and
 statistical

 Other investment income
 Securities
 Dividends Definitional and statistical
 Interest Definitional, methodological, and
 statistical
 Canadian claims/U.S.
 liabilities
 Canadian bank claims Methodological and statistical
 Other private Canadian
 claims Methodological and statistical
 U.S. Government liabilities Statistical