Direct investment positions for 2005: country and industry detail.

Koncz, Jennifer L. ; Yorgason, Daniel R.

IN 2005, the historical-cost position of U.S. direct investment abroad (USDIA) grew 1 percent after growing 16 percent in 2004. The historical-cost position of foreign direct investment in the United States (FDIUS) grew 8 percent, down slightly from 9-percent growth in 2004 (table A and chart 1).

The much slower growth in the USDIA position was almost entirely the result of a shift from U.S. outflows to U.S. inflows of direct investment capital. (1) The slightly slower growth in the FDIUS position reflected lower capital inflows that were partially offset by higher valuation adjustments.

Highlights of the USDIA estimates include the following:

* The 1-percent increase in 2005 was the smallest recorded percentage increase since 1982.2 For 1994-2004, the average annual growth rate was 13 percent.

* The principal reason for the unusually small increase in the position was that reinvested earnings turned negative in 2005, as cumulative retained earnings of foreign affiliates were drawn down to fund distributions to U.S. parents as a result of tax incentives provided by the American Jobs Creation Act of 2004. The shift to negative reinvested earnings was more than accounted for by holding companies. (3) Historically, reinvested earnings have been one of the largest sources of growth in the USDIA position.

* Equity capital outflows and valuation adjustments were the largest positive contributors to the increase, though both were substantially lower than in 2004.

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Highlights of the FDIUS estimates include the following:

* The 8-percent increase in the FDIUS position in 2005 was slightly below the 9-percent increase in 2004. Growth in both years was significantly below the 12-percent average annual growth in 1982-2003.

* As in many previous years, the largest contributor to the increase in the FDIUS position in 2005 was equity capital inflows. However, these inflows declined for the fifth consecutive year and were the smallest recorded since 1995.

* Reinvested earnings increased modestly in 2005 after an exceptionally large increase in 2004. The increase in 2005 was a result of stronger earnings and higher shares of earnings reinvested in several industries.

This article presents a discussion of the historical-cost direct investment positions by type of capital flow and by host country for USDIA and by type of capital flow and by country of foreign parent for FDIUS.

U.S. Direct Investment Abroad

The USDIA position valued at historical cost--the book value of U.S. direct investors' equity in, and net outstanding loans to, their foreign affiliates--was $2,070.0 billion at the end of 2005 (table A and chart 1). Three host countries--the United Kingdom, Canada, and the Netherlands--accounted for over a third of the total position (table 1.2 and chart 2). Positions in the United Kingdom and Canada were more than twice as large as those in any other country except the Netherlands. The position in the United Kingdom was $323.8 billion, or 16 percent of the total. The position in Canada was $234.8 billion (11 percent), and the position in the Netherlands was $181.4 billion (9 percent).

The USDIA position increased $18.8 billion in 2005, less than 1 percent. The increase was the smallest percentage increase since 1982, when the position declined because of special factors (see footnote 2).

Changes by component

The $18.8 billion increase in the USDIA position was the net result of capital inflows (which decrease the USD IA position) of $12.7 billion and valuation adjustments of $31.5 billion (table B and chart 3).

Capital flows

Capital flows for USDIA shifted from outflows (which, as noted earlier, increase the USDIA position) of $222.4 billion in 2004 to inflows of $12.7 billion in 2005. The inflows in 2005 were composed of -$33.0 billion of reinvested earnings and $19.4 billion of intercompany debt inflows. (4) These inflows were partly offset by $39.7 billion of equity capital outflows.

Equity capital transactions. Equity capital outflows fell to $39.7 billion in 2005, down sharply from $81.4 billion in 2004, but were nonetheless the largest contributor to the net change in the USDIA position. Equity capital outflows resulted from equity capital increases of $67.0 billion, partially offset by equity capital decreases of $27.3 billion. Each of these flows was little more than half of the corresponding flow in 2004. Of the equity capital increases, $40.0 billion, or 60 percent, financed the acquisition or establishment of new foreign affiliates. Capital contributions to existing foreign affiliates accounted for the remaining $27.0 billion, or 40 percent.

Equity capital increases in Europe and Canada accounted for over four-fifths of all such increases. In Europe, equity capital increases were largest in the United Kingdom, where they were spread among several industries, including "finance (except depository institutions) and insurance" Equity capital increases in Belgium and the Netherlands were also relatively large. In Canada, increases in "other industries"--mainly oil pipelines--were particularly large.

In contrast to 2004, when decreases in equity capital were largely the result of sales or liquidations of affiliates, the decreases in 2005 were due primarily to returns of capital from ongoing affiliates. (5) Decreases were largest in Europe, particularly in "finance (except depository institutions) and insurance" and in holding companies.

Reinvested earnings. Reinvested earnings--the difference between U.S. parent companies' share in their foreign affiliates' total earnings and the distributions made to the parents from the affiliates' cumulative retained earnings--shifted from $135.6 billion in 2004 to -$33.0 billion in 2005. While the positive reinvested earnings in 2004 were unusually high, the reversal to negative reinvested earnings in 2005 was unprecedented since at least 1950. The shift occurred even though earnings were up by 13 percent in 2005 because several affiliates paid very large dividends to their U.S. parents, including some that were many times larger than those affiliates' current-year earnings. (6) Most of these large distributions were encouraged by incentives associated with the American Jobs Creation Act of 2004, which allowed U.S. parent companies that receive dividends from their foreign affiliates during a specified period to be taxed at lower rates. (7)

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The phenomenon of negative reinvested earnings was rather concentrated. In only two of the major geographic areas--Europe and "Latin America and Other Western Hemisphere"--were reinvested earnings negative. Fewer than a third of countries with reported reinvested earnings showed negative reinvested earnings. Negative reinvested earnings in Europe more than accounted for the worldwide total. Negative reinvested earnings were particularly large in four European countries: The Netherlands, Luxembourg, Switzerland, and Austria. In "Latin America and Other Western Hemisphere,' negative reinvested earnings in the "United Kingdom Islands, Caribbean" and Bermuda more than offset relatively large positive reinvested earnings in other countries.

Negative reinvested earnings were also highly concentrated by industry. Only three industries--holding companies, depository institutions, and transportation equipment manufacturing--had negative reinvested earnings, with those in holding companies the largest by far. The -$98.8 billion of reinvested earnings in holding companies contrasts with $65.8 billion in (positive) reinvested earnings in all other industries combined. Holding companies distributed nearly 2 1/2 times their 2005 earnings to their U.S. parent companies. These distributions were made to U.S. parents in a variety of industries, including pharmaceuticals, petroleum manufacturing, electronic components, and beverages. Partially offsetting the negative reinvested earnings associated with distributions by holding companies, reinvested earnings were positive and relatively strong in wholesale trade, "finance (except depository institutions) and insurance" and mining.

Earnings were broadly higher in 2005, with growth rates ranging from 2 percent to 26 percent in the broad geographic regions. The largest earnings, and the largest dollar increase in earnings, were in Europe. By industry, earnings and earnings increases were highest in holding companies. Earnings in mining were also strongly higher. The reinvestment ratio--the share of current-year earnings reinvested by affiliates--shifted from 68 percent in 2004 to -15 percent in 2005.

Intercompany debt transactions. In 2005, foreign affiliates reduced their indebtedness to their U.S. parents, while U.S. parents increased their indebtedness to their foreign affiliates. As a result, net intercompany debt inflows from foreign affiliates (which reduce the USDIA position), totaling $19.4 billion, were recorded for the year. In comparison, net outflows of $5.4 billion were recorded in 2004.s Inflows from Europe, especially Luxembourg and the United Kingdom, accounted for a large majority of all inflows in 2005. By industry, holding companies accounted for all of the inflows.

Valuation adjustments

Valuation adjustments, which are made to account for currency-translation and other valuation changes, were a positive $31.5 billion in 2005, which more than offset the inflow of capital, resulting in the slight increase in the USDIA position. These positive adjustments did not result from changing currency values; currency-translation adjustments were negative as the U.S. dollar firmed in 2005 following several years of weakening. Rather, the overall increase in valuation adjustments reflected "other" valuation adjustments. These "other" valuation adjustments arose from a variety of sources, including capital gains and losses of foreign affiliates. By area, other valuation adjustments were largest in "Latin America and Other Western Hemisphere," particularly in the "United Kingdom Islands, Caribbean" and Bermuda.

Changes by area and by country

The USDIA position increased in 2005 in each of the major geographic areas except Europe, where the dollar-value decrease in position was larger than the increase in position in any other single major geographic area (table C). However, the percentage decrease in Europe was 4 percent, much smaller than (and the opposite sign of) the percentage changes in most other geographic areas. The position grew 10 percent or more in the Middle East, Africa, and Canada.

Europe. The $45.4 billion fall in the position in this region resulted from decreases in a relatively small number of countries. Three countries--Switzerland, the Netherlands, and Luxembourg--together accounted for a drop of more than $65 billion, $20 billion more than the entire regional drop. In all three countries, drops in the position in holding companies more than accounted for the decreases. The main source of the decreases in all three countries was negative reinvested earnings. Of those European countries in which the position increased, the largest increases were in the United Kingdom and Belgium. In the United Kingdom, several manufacturing industries were responsible for the increase. In Belgium, increases in chemicals manufacturing were largest.

Latin America and Other Western Hemisphere. The increase in the USDIA position--$22.5 billion--was (slightly) larger in this region than in any other region. The largest increases were in Mexico and in parts of "Other Western Hemisphere" including the "United Kingdom Islands, Caribbean," Bermuda, and the Bahamas. In Mexico, several industries contributed to the overall increase, including "finance (except depository institutions) and insurance." In the "United Kingdom Islands, Caribbean," the position became much less negative in depository institutions; in Bermuda, it increased mainly in "finance (except depository institutions) and insurance"; and in the Bahamas, holding companies accounted for nearly the entire increase.

Canada. Several industries contributed to the $22.0 billion increase in the position. In "other industries"(mainly oil pipelines) and "other manufacturing" (mainly beverages), acquisitions accounted for over half the overall increase. In mining and "finance (except depository institutions) and insurance," reinvested earnings and valuation adjustments (of which some were positive translation adjustments) combined to increase the position.

Asia and Pacific. The USDIA position rose $14.0 billion. Substantial increases in Japan and Hong Kong were partially offset by a large drop in the position in Singapore. In Japan and Hong Kong, several industries contributed to the increases, but the increases in both countries were largest in "finance (except depository institutions) and insurance," These increases were due primarily to reinvested earnings in Japan and to intercompany debt transactions with Hong Kong. The decrease in Singapore was largely due to negative reinvested earnings of holding companies.

Africa. The $2.8 billion increase in the USDIA position in Africa, though relatively small in dollar terms, represented the second largest percentage increase of the regions. In this region, the largest dollar increases were in Equatorial Guinea, Egypt, and Chad. In each of these three countries, reinvested earnings of affiliates in oil and gas extraction (classified in mining in tables 1.1 and 1.2) accounted for much of the increase. The net position in the rest of Africa declined.

Middle East. The $2.8 billion increase in the position resulted in the largest percentage increase of any region. In this region, Israel, Qatar, the United Arab Emirates, and Saudi Arabia had the largest dollar increases. In Israel, equity capital increases in pharmaceuticals and medicines (classified in chemicals) accounted for much of the increase. In Qatar, affiliates in oil and gas extraction and holding companies with parents in the petroleum industry reported strong reinvested earnings, as high oil prices boosted earnings. In the United Arab Emirates, affiliates in several industries contributed to the increase in the position. In Saudi Arabia, holding company affiliates of petroleum industry parents contributed to the increase.

Foreign Direct Investment in the United States

The FDIUS position valued at historical cost--the book value of foreign direct investors' equity in, and outstanding loans to, their U.S. affiliates--was $1,635.3 billion at the end of 2005 (table A and chart 1). The United Kingdom, Japan, Germany, and the Netherlands had the largest positions in 2005, as they did in 2004 (table 2.2 and chart 4). Foreign parents in these four countries together accounted for 51 percent of the total position in 2005. The position of the United Kingdom was $282.5 billion, or 17 percent of the total. The position of Japan was $190.3 billion (12 percent), Germany's position was $184.2 billion (11 percent), and the Netherlands' position was $170.8 billion (10 percent).

The FDIUS position increased $114.6 billion, or 8 percent, in 2005, a slight slowdown from the 9-percent growth in 2004.

Changes by component

The $114.6 billion increase in the FDIUS position consisted of capital inflows of $99.4 billion, which accounted for 87 percent of the increase, and valuation adjustments of $15.1 billion, which accounted for 13 percent (table D and chart 5).

Capital flows

Capital inflows (which increase the FDIUS position) decreased from $122.4 billion in 2004 to $99.4 billion in 2005. Despite the decrease, inflows in 2005 exceeded those in 2002 and 2003. In 2005, capital inflows consisted of $57.7 billion in equity capital inflows and reinvested earnings of $48.6 billion. These inflows were partially offset by $6.9 billion in outflows of intercompany debt.

Equity capital transactions. Equity capital inflows were $57.7 billion in 2005, a $16.4 billion decrease from 2004. Equity capital inflows have decreased in each of the 5 years since their peak of $259.6 billion in 2000. Equity capital inflows in 2005 resulted from equity capital increases of $70.6 billion, reflecting both new acquisitions and additional capital contributions to existing affiliates, and partially offsetting equity capital decreases of $12.9 billion, reflecting selloffs, liquidations, or returns of contributed capital to foreign parents. Equity capital increases were down 27 percent in 2005, reflecting lower capital contributions to existing affiliates by foreign parents, fewer investments by foreigners to establish new U.S. businesses, and slow growth in acquisitions.

Equity capital increases in 2005 largely consisted of acquisitions of U.S. businesses by foreign direct investors, either directly or through their existing U.S. affiliates. The largest acquisitions of U.S. businesses by foreign direct investors were in depository institutions, in "other industries" (mainly mining), and in "finance (except depository institutions) and insurance." (9) Additionally, contributions of equity capital from foreign parents to their existing U.S. affiliates for various reasons--such as to offset affiliates' losses or to convert debt to equity--and increases in parents' ownership shares in existing affiliates accounted for part of the increase.

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Equity capital increases were spread over several industries in 2005. They were largest in depository institutions, "other industries," and "finance (except depository institutions) and insurance," which together accounted for 45 percent of the total increase. In depository institutions, Canada and the United Kingdom had the largest increases, due to both acquisitions and capital contributions to existing affiliates. In "other industries," the largest increases were in mining and in transportation. Norway and Canada had the largest equity capital increases in "other industries." In "finance (except depository institutions) and insurance," the United Kingdom accounted for the largest share of the increase.

Reinvested earnings. Earnings that were reinvested in U.S. affiliates--the foreign parents' share of affiliates' current-period earnings less affiliates' distributions from current and cumulative retained earnings--increased 8 percent, to $48.6 billion, making 2005 the second consecutive year of particularly large reinvested earnings. Reinvested earnings in 2005 were largest in chemicals manufacturing and in wholesale trade. By country, affiliates with foreign parents in the United Kingdom, Japan, and France had the largest reinvested earnings. Reinvested earnings increased in several industries in 2005, including chemicals manufacturing, wholesale trade, and machinery manufacturing. Much of the growth in reinvested earnings in these industries was attributable to higher earnings in 2005.

U.S. affiliates' earnings grew 19 percent, to $92.3 billion, in 2005, enabling the overall increase in reinvested earnings. In particular, earnings grew strongly for affiliates in chemicals manufacturing, in "other industries" in machinery manufacturing, and in wholesale trade (especially petroleum wholesaling). In chemicals, European-owned pharmaceutical companies accounted for much of the increase. In "other industries," mining and utilities together accounted for most of the increase. In contrast to the increases mentioned above, which enabled growth in reinvested earnings, earnings growth in petroleum manufacturing (included in "other manufacturing" in tables 2.1 and 2.2), reflecting higher oil prices, was exceeded by an even larger increase in distributions to foreign parents, resulting in a shift to negative reinvested earnings in that industry. These negative reinvested earnings partially offset positive reinvested earnings in several other industries and held down the overall reinvestment ratio--the ratio of earnings reinvested to total earnings. The reinvestment ratio decreased overall, from 58 percent in 2004 to 53 percent in 2005.

Intercompany debt transactions. In 2005, foreign parents of U.S. affiliates increased their indebtedness to their affiliates more than U.S. affiliates increased their indebtedness to their foreign parents. As a result of these transactions, net outflows of intercompany debt totaling $6.9 billion were recorded in 2005, which partly offset increases in the FDIUS position from equity capital transactions and reinvested earnings. In comparison, net inflows of $3.5 billion were recorded in 2004. Affiliates with parents in "Latin America and Other Western Hemisphere" (particularly Bermuda), France, and the Netherlands had the largest net outflows. Net outflows of intercompany debt were largest in "other industries" and in chemicals manufacturing. In "other industries" the largest net outflows were in administrative and support services, holding companies, and health care services.

Valuation adjustments

Positive valuation adjustments also contributed to the increase in the FDIUS position. Valuation adjustments totaled $15.1 billion in 2005, compared with $3.2 billion in 2004. Currency-translation adjustments of-$2.0 billion--reflecting the appreciation of the U.S. dollar against some major currencies--partially offset $17.1 billion in "other" valuation adjustments. "Other" valuation adjustments largely reflected capital gains, as well as differences between affiliates' sale prices, liquidation proceeds, or purchase prices and their book values. Valuation adjustments were largest in "finance (except depository institutions) and insurance" and in information.

Changes by area and by country

Foreign direct investors in Europe had the largest dollar increase in position in 2005 (table E). In fact, foreign parents in Europe accounted for two-thirds of the increase in the FDIUS position. Asia and Pacific had the next largest increase in position. "Latin America and Other Western Hemisphere" was the only region for which the position decreased.

Europe. The position for this region increased $76.7 billion, with equity capital transactions and reinvested earnings accounting for most of the increase. Equity capital transactions were spread across industries, and reinvested earnings were particularly large in chemicals manufacturing. The United Kingdom, Germany, and the Netherlands had the largest dollar increases within this region.

The $31.0 billion increase in the position for the United Kingdom was the largest dollar increase for any country. The increase in the United Kingdom position was broadly based, with the largest increases in "other manufacturing" (mainly petroleum), in "finance (except depository institutions) and insurance" in "other industries" (mainly mining and utilities), and in depository institutions. In "other manufacturing," intercompany debt transactions were the largest component of the increase. In "finance (except depository institutions) and insurance," the position was boosted by equity capital increases, mainly due to acquisitions. In "other industries" and in depository institutions, reinvested earnings was the largest component of the increase.

For Germany, the $20.2 billion increase in position was mainly concentrated in information and several manufacturing industries--particularly chemicals, machinery, and transportation equipment. In information, the increase resulted from valuation adjustments, reinvested earnings, and net inflows of intercompany debt. In chemicals manufacturing, the increase was attributable to both reinvested earnings and intercompany debt transactions. In machinery manufacturing, intercompany debt transactions were the largest component of the increase. In transportation equipment manufacturing, much of the increase was attributable to reinvested earnings.

For the Netherlands, the $15.3 billion increase was largely attributable to "finance (except depository institutions) and insurance"; professional, scientific, and technical services; primary and fabricated metals manufacturing; and information. In nonbank finance and insurance, the increase reflected valuation adjustments and reinvested earnings. In professional, scientific, and technical services and in information, valuation adjustments reflecting transfers of ownership of U.S. affiliates from France and Switzerland to the Netherlands boosted the Dutch position. (10) In primary and fabricated metals, equity capital increases related to acquisitions accounted for much of the increase.

Asia and Pacific. For this region, most of the $21.1 billion increase in position was attributable to parents in Japan, and to a lesser extent, Australia. For Japan, 45 percent of the $14.6 billion increase in position was in wholesale trade, mainly due to reinvested earnings. The position also increased in retail trade and in computers and electronic products manufacturing. In retail trade, the increase was largely attributable to equity capital increases relating to increases in Japanese parents' ownership interest in existing affiliates. In computers and electronic products manufacturing, both equity capital increases--related to acquisitions--and intercompany debt inflows contributed to the increase. For Australia, the largest share of the $3.2 billion increase was attributable to real estate and rental and leasing, mainly due to equity capital increases that financed acquisitions.

Canada. The position for Canada increased $18.5 billion in 2005. Most of the increase was attributable to "finance (except depository institutions) and insurance," "other industries," depository institutions, and transportation equipment manufacturing. In nonbank finance and insurance, valuation adjustments reflecting a reclassification of affiliates that were previously in depository institutions accounted for most of the increase, although the reclassification left the overall position unchanged. (11) In "other industries," the increase was mainly in mining, transportation, and waste management, and was attributable to reinvested earnings and equity capital increases. In depository institutions, the increase was mainly attributable to equity capital increases due to both acquisitions and capital contributions to existing affiliates. In transportation equipment manufacturing, much of the increase was due to intercompany debt transactions.

Latin America and Other Western Hemisphere. The $4.7 billion decrease in the position for this region was more than accounted for by Bermuda, which recorded a $9.6 billion decrease in position, mainly due to intercompany debt outflows. The largest decreases for Bermuda were in "finance (except depository institutions) and insurance" and in information. Increases in the positions of the "United Kingdom Islands, Caribbean," Brazil, Venezuela, and Panama partially offset the decrease for Bermuda. For the "United Kingdom Islands, Caribbean," nonbank finance and insurance and chemicals manufacturing had the largest increases. For both Brazil and Venezuela, the largest increase was in wholesale trade. For Panama, the largest increase was in "finance (except depository institutions) and insurance."

Middle East and Africa. Although these two regions had relatively small dollar increases, they had the two largest percentage increases in position of all major geographic areas. The position for the Middle East increased $2.1 billion, with the United Arab Emirates recording the largest dollar increase within the region. (12) The position for Africa increased $0.9 billion, with the largest increase in wholesale trade.

Revisions

The estimates of direct investment positions presented here for 2005 are preliminary. The revised estimates of the USDIA position for 2003-2004 and of the FDIUS position for 2002-2004 incorporate new information from BEA's quarterly, annual, and benchmark surveys. (13)

The historical-cost USDIA position for 2003 was revised down $22.3 billion, to $1,769.6 billion, as a downward revision of valuation adjustments of $32.2 billion exceeded a $9.9 billion upward revision in capital outflows. The preliminary estimate for the 2004 USDIA position was revised down $12.8 billion to $2,051.2 billion. This revision was the net result of the $22.3 billion downward revision to the 2003 position, a $6.9 billion downward revision to 2004 capital outflows, and a $16.3 billion upward revision to 2004 valuation adjustments.

The estimates of the historical-cost FDIUS position and related flows for 2002 have been revised to incorporate data collected on BEA's benchmark survey of foreign direct investment in the United States for 2002, which covers the universe of FDIUS. The estimates for the position and related flows for 2003 and 2004 have been revised by extrapolating the 2002 universe based on data collected in BEA's quarterly surveys, which cover foreign-owned U.S. businesses above a certain exemption level. Previously, the estimates for 2002-2004 were extrapolated based on the prior benchmark survey, which covered 1997.

The historical-cost FDIUS position for 2002 was revised down $17.5 billion, to $1,327.2 billion. The revision was the net result of a $20.7 billion downward revision (to a larger negative value) to valuation adjustments and a $3.1 billion upward revision to capital inflows. Although the revision to the position was small--about 1 percent--the direction of the change in position from 2001 to 2002 was reversed from a small positive rate of growth (0.1 percent) to a small negative rate (-1.3 percent). When changes are very close to zero, both the uncertainty in correctly predicting the direction of change and the sensitivity of the estimates to the incorporation of new information increase. The estimate for the 2003 FDIUS position was revised down $15.5 billion, to $1,395.2 billion. Most of the revision was attributable to the downward revision to the 2002 position, as well as a $3.7 billion downward revision to capital inflows and an offsetting $5.7 billion upward revision to valuation adjustments. The preliminary estimate for the 2004 position was revised down $5.6 billion, to $1,520.7 billion. The revision was the net result of the downward revision to the 2003 position, a $16.6 billion downward revision to valuation adjustments, and a partly offsetting $26.5 billion upward revision to capital inflows.

For additional information, see "Annual Revision of the U.S. International Accounts, 1995-2005" in this issue. A more detailed discussion of the benchmark revisions to the estimates for 2002 forward, as well as detailed revisions by area and by major industry for 2002, will be published in the September SURVEY.

Tables 1.1-2.2 follow.

Alternative Measures of the Direct Investment Positions

The detailed estimates of the positions of U.S. direct investment abroad and of foreign direct investment in the United States by country and industry are prepared only on a historical-cost basis, so these estimates largely reflect the price levels of earlier periods. The estimates are also prepared on current-cost and market-value bases, but only at an aggregate level. The current-cost estimates value the U.S. and foreign parents' shares of their affiliates' investment in plant and equipment, using the current cost of capital equipment; in land, using general price indexes; and in inventories, using estimates of their replacement cost. The market-value estimates value the equity portion of direct investment, using indexes of stock market prices.

The historical-cost estimates are not ordinarily adjusted to reflect the changes in the current costs or the replacement costs of tangible assets or in the stock market valuations of firms. Over time, the current costs of tangible assets and the stock market valuations of firms tend to increase. As a result, the historical-cost estimates of the positions are less than the current-cost and market-value estimates of the positions. The current-cost and market-value estimates of the position are discussed in "The International Investment Position of the United States at Yearend 2005" in this issue.

Alternative Direct Investment Position Estimates,
2004 and 2005

[Millions of dollars]

 Changes in 2005

 Position at
Valuation method yearend Capital
 2004 (r) Total flows
USDIA:
 Historical cost 2,051,204 18,779 -12,714
 Current cost 2,399,224 54,709 9,072
 Market value 3,287,900 236,559 9,072

FDIUS:
 Historical cost 1,520,729 114,562 99,443
 Current cost 1,727,062 147,201 109,754
 Market value 2,703,697 93,468 109,754

 Changes in 2005

 Position at
Valuation method Valuation yearend
 adjustments 2005 (p)
USDIA:
 Historical cost 31,492 2,069,983
 Current cost 45,637 2,453,933
 Market value 227,487 3,524,459

FDIUS:
 Historical cost 15,119 1,635,291
 Current cost 37,447 1,874,263
 Market value -16,286 2,797,165

(p) Preliminary
(r) Revised

Holding Companies in the Data on U.S. Direct Investment Abroad

In the two decades prior to 2005, U.S. parent companies funneled an increasing share of their direct investments abroad through holding company affiliates. (1) In 2005, this upward trend was abruptly, although possibly temporarily, reversed. In 1982, foreign affiliates classified as holding companies accounted for 9 percent of the U.S. direct investment position abroad; by 2004, they accounted for 35 percent of the position (chart A). In 2005, this share fell to 30 percent. The upward trend of the holding company share is part of a broader trend of indirect ownership in which U.S. parents own foreign affiliates that own other foreign affiliates. The 2005 reversal of this trend was primarily the result of large earnings distributions (and the resulting negative reinvested earnings) associated with the American lobs Creation Act of 2004 (see the text and footnote 7 for a discussion of this act and its effect on capital flows in 2005). The largest distributions were, by far, from holding companies.

One consequence of the rising use of indirect ownership arrangements is that U.S. direct investment abroad (USDIA) estimates of the position and related flows show industry and country patterns that are increasingly different from the industries and countries in which the production of goods and services by foreign affiliates occurs. (2)

The Bureau of Economic Analysis (BEA) is currently working on developing a methodology for allocating the equity portion of U.S. direct investment abroad to its ultimate destination, thus effectively "looking through" holding companies and other indirect ownership arrangements. This method would allocate data on positions between U.S. parent companies and their foreign affiliates using company chain-of-ownership information collected on BEA's survey of the operations of U.S. parent companies and their foreign affiliates.

Data from BEA's survey of the operations of U.S. parent companies and their foreign affiliates give an indication of the degree to which indirect ownership affects the country and industry distribution of the USDIA position data. (3) The estimates of the operations of these foreign affiliates are classified in the country where the affiliate's physical assets are located or where its primary activity is carried out, and they are classified in the industry that reflects the affiliate's primary activity. Thus, these estimates reflect more closely the countries and industries in which the production of goods and services by foreign affiliates actually occurs than do the estimates classified by the country and industry of the affiliate with which the parent company has a direct position or transaction. (However, as measures of overall operations, these estimates are not adjusted for the percentage of U.S. ownership or for double-counting in some measures of affiliate size or operations--such as assets, liabilities, and earnings--when foreign affiliates hold ownership interests or debt positions in one another.)

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As a result of the use of holding-company affiliates, the industry patterns and the country patterns of the position estimates differ from those of the estimates of the operations of foreign affiliates. (4) For example, in a comparison of the estimates of the USDIA position with the closely related estimates of the net property, plant, and equipment (PP&E) of foreign affiliates, the 22-percent share of the position accounted for by manufacturing (in 2005) differs sharply from the 41-percent share of PP&E accounted for by manufacturing (in 2003, the latest year for which operations data are available). By country, the share of the direct investment position accounted for by the Netherlands was 9 percent, but its share of PP&E was only 3 percent. (5)

For further discussion of the effect of holding companies on the estimates of USDIA series, see the "Technical Note" in Maria Borga and Raymond J. Mataloni, Jr., "Direct Investment Positions for 2000: Country and Industry Detail," SURVEY OF CURRENT BUSINESS 81 (July 2001): 23-25.

(1.) A holding company is a company whose primary activity is holding the securities or financial assets of other companies.

(2.) Estimates of the USDIA position and related flows are allocated to the industries and countries of the affiliates with which the U.S. parent companies have direct transactions and positions rather than to the industries and countries of the affiliates whose operations the parents ultimately own or control. This convention follows international guidelines in the International Monetary Fund's Balance of Payments Manual, 5th edition, and in the Organisation for Economic Co-operation and Development's Benchmark Definition of Foreign Direct Investment, 3rd edition.

(3.) Besides chain-of-ownership information, data collected on the operations survey include items such as assets, sales, employment, value added, and net property, plant, and equipment.

(4.) The use of holding-company affiliates appears to be the primary factor accounting for differences in the patterns of investment by country or by industry between the position estimates and the operations estimates, but other factors might also contribute.

(5.) The effect of the distributions associated with the American lobs Creation Act of 2004, with distributions concentrated in holding companies, is to reduce somewhat the disparity in shares such as these. With the 2004 USDIA position data, the disparities were higher still; the share of the position accounted for by manufacturing was 20 percent, and the share accounted for by the Netherlands was 10 percent.

Key Terms

The key terms used in this statistical presentation are described in this box. For a more detailed discussion of these terms and the methodologies used to prepare the estimates, see Foreign Direct Investment in the United States: Final Results From the 1997 Benchmark Survey and U.S. Direct Investment Abroad: Final Results From the 1999 Benchmark Survey on BEA's Web site at <www.bea.gov>.

Direct investment. Investment in which a resident of one country obtains a lasting interest in, and a degree of influence over the management of, a business enterprise in another country. In the United States, the criterion used to distinguish direct investment from other types of investment is ownership of at least 10 percent of the voting securities of an incorporated business enterprise or the equivalent interest in an unincorporated business enterprise.

U.S. direct investment abroad (USDIA). The ownership or control, directly or indirectly, by one U.S. resident of at least 10 percent of the voting securities of an incorporated foreign business enterprise or the equivalent interest in an unincorporated foreign business enterprise.

Foreign direct investment in the United States (FDIUS). The ownership or control, directly or indirectly, by one foreign resident of at least 10 percent of the voting securities of an incorporated U.S. business enterprise or the equivalent interest in an unincorporated U.S. business enterprise.

Foreign affiliate. A foreign business enterprise in which a single U.S. investor (a U.S. parent) directly or indirectly owns at least 10 percent of the voting securities, or the equivalent.

U.S. affiliate. A U.S. business enterprise in which a single foreign investor (a foreign parent) owns at least 10 percent of the voting securities, or the equivalent.

Ultimate beneficial owner (UBO). For a U.S. affiliate, that person (in the broad legal sense, including a company), proceeding up the affiliate's ownership chain beginning with the foreign parent, that is not owned more than 50 percent by another person. The UBO ultimately owns or controls the affiliate and derives the benefits associated with ownership or control. Unlike the foreign parent, the UBO of a U.S. affiliate may be located in the United States.

Foreign parent group. Consists of (1) the foreign parent, (2) any foreign person, proceeding up the foreign parent's ownership chain, that owns more than 50 percent of the person below it, up to and including the UBO, and (3) any foreign person, proceeding down the ownership chain(s) of each of these members, that is owned more than 50 percent by the person above it.

Direct investment capital flows without current-cost adjustment. Funds that parent companies provide to their affiliates net of funds that affiliates provide to their parents. For USDIA, capital flows without current-cost adjustment include the funds that U.S. direct investors pay to unaffiliated foreign parties when affiliates are acquired, the funds that U.S. investors receive from them when affiliates are sold, and debt and equity transactions between U.S. parents and their foreign affiliates. Similarly, FDIUS capital flows without current-cost adjustment include the funds that foreign direct investors pay to U.S. residents when affiliates are acquired, the funds that foreign investors receive from them when affiliates are sold, and debt and equity transactions between U.S. affiliates and members of their foreign parent group.

Direct investment capital flows without current-cost adjustment differ from direct investment capital flows as entered in BEA's international transactions accounts (ITAs), because they do not include a current-cost adjustment. A current-cost adjustment affects direct investment income and the reinvested earnings component of capital flows by converting depreciation charges to a current-cost, or replacement-cost, basis; adding charges for depletion of natural resources back to income and reinvested earnings (because these charges are not treated as production costs in the national income and product accounts); and reallocating expenses for mineral exploration and development across periods.

Capital inflows arise from transactions that increase U.S. liabilities or decrease U.S. assets. Capital outflows arise from transactions that decrease U.S. liabilities or increase U.S. assets.

Direct investment capital flows without current-cost adjustment consist of equity capital, intercompany debt, and reinvested earnings without current-cost adjustment. Equity capital flows are the net of equity capital increases and decreases. Equity capital increases consist of parents' establishments of new affiliates, payments by parents to unaffiliated third parties for the purchase of capital stock or other equity interests when they acquire an existing business, payments made to acquire additional ownership interests in their affiliates, and capital contributions to their affiliates. Equity capital decreases are the funds parents receive when they reduce their equity interest in their affiliates. Intercompany debt flows result from changes in net outstanding loans between parents (and for FDIUS, other members of the foreign parent groups) and their affiliates, including loans by parents to affiliates and loans by affiliates to parents. Reinvested earnings without current-cost adjustment are the parents' claim on the current-period undistributed earnings of their affiliates; unlike the measure of reinvested earnings used in the ITAs, these earnings do not include a current-cost adjustment at the aggregate level.

Direct investment position. The value of direct investors' equity in, and net outstanding loans to, their affiliates. The position may be viewed as the direct investors' net financial claims on their affiliates, whether in the form of equity (including reinvested earnings) or debt.

BEA prepares estimates of the positions for USDIA and for FDIUS that are valued on three bases--historical cost, current cost, and market value. See the box "Alternative Measures of the Direct Investment Positions" in this article.

Valuation adjustments to the historical-cost position. Adjustments that are made to account for the differences between changes in the historical-cost position, which are measured at book value, and direct investment capital flows, which are measured at transaction value. (Unlike the positions on current-cost and market-value bases, the historical-cost position is not ordinarily adjusted to account for changes in the replacement cost of the tangible assets of affiliates or in the market value of parent companies' equity in affiliates.)

Valuation adjustments to the historical-cost position consist of currency-translation and "other" adjustments. Currency-translation adjustments are made to account for changes in the exchange rates that are used to translate affiliates' foreign-currency-denominated assets and liabilities into U.S. dollars. The effects of currency fluctuations on these adjustments depend on the value and currency composition of affiliates' assets and liabilities. If an affiliate's assets exceed its liabilities denominated in a particular foreign currency, depreciation (appreciation) of the currency against the dollar will result in negative (positive) translation adjustments. In the case of a net liability position in a foreign currency, depreciation (appreciation) of the currency will result in positive (negative) translation adjustments.

"Other" valuation adjustments are made to account for differences between the proceeds from the sale or liquidation of affiliates and their book values; for differences between the purchase prices of affiliates and their book values; for writeoffs resulting from uncompensated expropriations of affiliates; and for capital gains and losses (excluding currency-translation adjustments) on transactions, such as the sale of assets (excluding inventories) for an amount that differs from their book value, or capital gains and losses that represent the revaluation of the assets of ongoing affiliates for reasons other than exchange-rate changes, such as the writedown of assets whose value has been impaired. In addition, for individual industries, offsetting adjustments may be made to effect changes in the industry of an affiliate. For individual countries, offsetting adjustments are made when the political boundaries of countries change, such as when countries merge or are newly formed. In addition, for FDIUS, offsetting adjustments are made when transactions between foreign residents result in a change in the country of the foreign parent.

Data Availability

A summary of the preliminary estimates of direct investment positions for 2005 that are based on BEA's quarterly, annual, and benchmark surveys is presented in this article. A summary of the revised estimates of the USDIA position for 2003 and 2004 and revised estimates of the FDIUS position for 2002-2004 are also presented. More detailed estimates of the positions and capital flows presented here, as well as related income and services transactions, will be presented in the September SURVEY OF CURRENT BUSINESS. Revised estimates for 2004 and 2005 will be released next year.

Detailed estimates of the USDIA position and related capital flows, income, and services transactions for 1982-2005 and detailed estimates of the FDIUS position and related capital flows, income, and services transactions for 1980-2005 are available on BEA's Web site. In addition, detailed estimates by country and by industry will be posted on the Web site when they become available. To access these files, which can be downloaded at no charge, go to BEA's Web site at <www.bea.gov> and, under "International" click on "Direct Investment."

For more information on these products and how to access them, see the International Investment Division Product Guide at <www.bea.gov/bea/ai/iidguide.htm>.

Acknowledgments

The estimates of the U.S. direct investment position abroad are based on data from BEA's quarterly survey of transactions between U.S. parent companies and their foreign affiliates. The survey was conducted under the supervision of Mark W. New, who was assisted by Laura A. Downey, Marie K. Laddomada, Sherry Lee, Leila C. Morrison, and Dwayne Torney. Computer programming for data estimation and tabulation was provided by Marie Colosimo, assisted by Alexandra E. Karaer.

The estimates of the foreign direct investment position in the United States are based on data from BEA's quarterly survey of transactions between U.S. affiliates of foreign companies and their foreign parents. The survey was conducted under the supervision of Gregory G. Fouch, who was assisted by Peter J. Fox, Michelle L. Granson, Barbara C. Huang, Y. Louise Ku-Graf, Susan M. LaPorte, and Beverly E. Palmer. Computer programming for data estimation and tabulation was provided by Karen E. Poffel, Paula D. Brown, and Tracy K. Leigh.

(1.) For U.S. direct investment abroad, direct investment capital outflows and positive valuation adjustments increase the U.S. direct investment position abroad; capital inflows and negative valuation adjustments decrease the position. For foreign direct investment in the United States, direct investment capital inflows and positive valuation adjustments increase the foreign direct investment position in the United States; capital outflows and negative valuation adjustments decrease the position. The measure of direct investment capital flows used in this article differs from the measure of direct investment capital flows used in the international transaction accounts in that the reinvested earnings component of these flows excludes a current-cost adjustment. See the box "Key Terms" for more information. For ease of exposition, throughout this article, the term "(direct investment) capital flows" is used as shorthand for "(direct investment) capital flows without current-cost adjustment" and the term "reinvested earnings" is used as shorthand for "reinvested earnings without current-cost adjustment."

(2.) The USDIA position declined in 1982, but the decline was the result of special factors. Specifically, the decline resulted from the combination of intercompany debt inflows from financial intermediaries in the Netherlands Antilles--flows that, starting with 1994, are not included in direct investment--and a rebenchmarking of the 1982 (but not 1981) data. A discontinuity in the direct investment position data between 1993 and 1994 due to methodological changes does not permit the calculation of a precise growth rate for 1994. However, preliminary estimates for 1994--prior to the introduction of the methodological changes--suggest that the USDIA position grew at a double-digit rate in that year. Prior to 1982, the position had risen in every year since just after World War II.

(3.) Holding companies derive virtually all of their earnings from affiliates that are classified in other industries and that, in many cases, are located in other foreign countries. For more intbrmation, see the box "Holding Companies in the Data on U.S. Direct Investment Abroad."

(4.) In BEA's estimates of USDIA, reinvested earnings are negative whenever distributions from foreign affiliates to their U.S. parent companies exceed current-period earnings. In the U.S. international transactions accounts, negative reinvested earnings on USDIA are recorded as capital inflows.

(5.) Despite the increasing rek+tive prominence of returns of capital from ongoing affiliates, such returns fell slightly in dollar terms from 2004.

(6.) Several affiliates paid dividends of at least $6 billion during the year.

(7.) This act, which was signed into law on October 22, 2004, allowed U.S. companies that received dividends from foreign subsidiaries during a specified period (calendar year 2004 or calendar year 2005, at taxpayer option, for calendar year taxpayers) to be taxed on the dividends at reduced rates. Most such dividends were not paid until 2005, as the act was signed into law late in 2004 and many companies delayed distributions until regulatory guidance had been issued. One condition that had to be satisfied to realize the tax savings was the development of a domestic reinvestment plan for the dividends. Another condition was for the dividends to exceed the amount that had historically been paid. (For more information on this act and its effects on BENs international accounts, see FAQs on this topic on BENs Web site at <www.bea.gov/bea/faq/international/FAQ.htm>.) Although the distributions associated with this act could potentially continue into 2006 in some circumstances, preliminary data from the first quarter of 2006 give little or no indication that such distributions have continued beyond 2005.

(8.) The direction of net intercompany debt flows can be difficult to gauge accurately when the much larger underlying gross outflows and inflows are similar in magnitude. In preliminary estimates published last year, the 2004 intercompany debt flows were estimated to be small net inflows, contrasting with the revised estimates that now show small net outflows.

(9.) According to preliminary data (or 2005 from BEA's survey of new foreign direct investment, total outlays to acquire or establish U.S. businesses, including those financed by capital inflows from foreign parents, were virtually unchanged from the previous year, at $86.8 billion. See Lawrence R. McNeil, "Foreign Direct Investment in the United States: New Investment in 2005," SURVEY OF CURRENT BUSINESS 86 (June 2006): 32-39. These data include only those transactions in which U.S. businesses are newly acquired or established by foreign direct investors, regardless of whether the source of financing is the foreign parent or existing U.S. affiliates. The data on changes to the FDIUS position differ from these data in two ways. First, changes to the FDIUS position reflect transactions of both new and existing U.S. affiliates with members of their foreign parent group, as well as valuation adjustments. Second, changes in the FDIUS position exclude financing from sources other than the foreign parent group.

Despite these differences, the two types of data are related. Any outlays to acquire or establish U.S. businesses that are funded by foreign parent groups are included in the capital flows that largely determine changes in the FDIUS position. In 2005, foreign parent groups financed 79 percent of total outlays to acquire or establish U.S. businesses, according to data from the new investment survey.

(10.) Although transfers of ownership of affiliates increases the position for the countries to which ownership is transferred, the overall FDIUS position is not affected because of offsetting decreases for the position of the countries from which ownership was transferred.

(11.) Similar to valuation adjustments reflecting transfers of ownership between countries, adjustments to reflect changes in industry classification are offsetting in the overall FDIUS position. That is, adjustments for changes in industry classification decrease the position in the industry in which an affiliate was previously classified and increase the position in the industry to which the affiliate is reclassified.

(12.) As is consistent with international standards, the estimates of the FDIUS position presented in this article are classified by country of the foreign parent having direct transactions and positions with the U.S. affiliate. The country of the foreign parent may, however, differ from the country where an affiliate's ultimate beneficial owner (UBO) is located, particularly when investments are channeled through affiliates in financial centers in other countries. Because investments from the Middle East are often routed through affiliates in other countries, the positions of these countries as presented in this article will be relatively higher--and the position of the Middle East will be relatively lower--than those positions on a UBO basis.

Estimates of the FDIUS position and related capital flows on a UBO basis will be published in the September 2006 SURVEY OF CURRENT BUSINESS.

(13.) For the previously published estimates, see Jennifer L. Koncz and Daniel R. Yorgason, "Direct Investment Positions for 2004: Country and Industry Detail," SURVEY 85 (July 2005): 40-53.

Table A. USDIA and FDIUS Positions on a Historical-Cost Basis,
 1982-2005

Yearend Billions of dollars Percent change from
 preceding year

 USDIA FDIUS USDIA FDIUS

1982 207.8 124.7 ... ...
1983 212.2 137.1 2.1 9.9
1984 218.1 164.6 2.8 20.1
1985 238.4 184.6 9.3 12.2
1986 270.5 220.4 13.5 19.4
1987 326.3 263.4 20.6 19.5
1988 347.2 314.8 6.4 19.5
1989 381.8 368.9 10.0 17.2
1990 430.5 394.9 12.8 7.0
1991 467.8 419.1 8.7 6.1
1992 502.1 423.1 7.3 1.0
1993 564.3 467.4 12.4 10.5
1994 612.9 480.7 (1) (1)
1995 699.0 535.6 14.1 11.4
1996 795.2 598.0 13.8 11.7
1997 871.3 681.8 9.6 14.0
1998 1,000.7 778.4 14.8 14.2
1999 1,216.0 955.7 21.5 22.8
2000 1,316.2 1,256.9 8.2 31.5
2001 1,460.4 1,344.0 10.9 6.9
2002 1,616.5 1,327.2 (r) 10.7 -1.3
2003 1,769.6 (r) 1,395.2 (r) 9.5 5.1
2004 2,051.2 (r) 1,520.7 (r) 15.9 9.0
2005 2,070.0 (p) 1,635.3 (p) 0.9 7.5

(p) Preliminary

(r) Revised

(1.) The USDIA and FDIUS positions reflect a discontinuity between 1993
and 1994 because of the reclassification of intercompany debt between
parent companies and affiliates that are nondepository financial
intermediaries from direct investment to other investment accounts.

USDIA U.S. direct investment abroad

FDIUS Foreign direct investment in the United States

Table B. Change in the USDIA Position by Account
[Billions of dollars]

 2004 2005

Total 281.6 18.8
 Capital flows without
 current-cost adjustment 222.4 -12.7
 Equity capital 81.4 39.7
 Increases 132.4 67.0
 Decreases 51.0 27.3
 Intercompany debt 5.4 -19.4
 Reinvested earnings without
 current-cost adjustment 135.6 -33.0
 Valuation adjustments 59.2 31.5
 Currency translation 28.0 -16.0
 Other 31.2 47.5

Table C. Change in the USDIA Position
by Country of Foreign Affiliate

 Change (2004-2005)

 Billions Percent
 of dollars

All countries 18.8 1

 Canada 22.0 10

 Europe -45.4 -4
 Of which:
 United Kingdom 11.6 4
 Belgium 6.5 22
 Germany 2.7 3
 Austria 2.1 31
 Ireland -2.4 -4
 Luxembourg -19.5 -24
 Netherlands -22.9 -11
 Switzerland -23.4 -22

 Latin America and Other
 Western Hemisphere 22.5 7
 Of which:
 Mexico 7.9 12
 United Kingdom
 Islands, Caribbean 4.5 6
 Bermuda 3.8 4
 Bahamas 2.8 28
 Brazil 2.2 7
 Jamaica -2.6 -72

 Africa 2.8 13

 Middle East 2.8 15

 Asia and Pacific 14.0 4
 Of which:
 Japan 7.4 11
 Hong Kong 3.0 9
 Korea. Republic of 2.0 12
 Singapore -9.0 -16

Table D. Change in the FDIUS Position by Account
[Billions of dollars]

 2004 2005

Total. 125.6 114.6
 Capital flows without
 current-cost adjustment 122.4 99.4
 Equity capital 74.1 57.7
 Increases 96.7 70.6
 Decreases 22.6 12.9
 Intercompany debt 3.5 -6.9
 Reinvested earnings without
 current-cost adjustment 44.8 48.6
 Valuation adjustments 3.2 15.1
 Currency translation 2.1 -2.0
 Other 1.1 17.1

Table E. Change in the FDIUS Position
by Country of Foreign Parent

 Change (2004-2005)

 Billions Percent
 of dollars

All countries 114.6 8

 Canada 18.5 15

 Europe 76.7 7
 Of which:
 United Kingdom 31.0 12
 Germany 20.2 12
 Netherlands 15.3 10
 Norway 2.6 84
 Spain 1.5 27
 France -0.2 (*)
 Belgium -2.0 -17
 Latin America and Other -4.7 -5
 Western Hemisphere
 Of which:
 United Kingdom 27.0 11
 Islands, Caribbean
 Brazil 1.3 109
 Bermuda -9.6 -86

 Africa 0.9 53

 Middle East 2.1 26

 Asia and Pacific 21.1 9
 Of which:
 Japan 14.6 8
 Australia 3.2 8
 Hong Kong 1.2 81

* Less than 0.5 percent (+/-).

Table 1.1. U.S. Direct Investment Position Abroad on a
Historical-Cost Basis, 2004

[Millions of dollars]

 Manufacturing

 All Mining
 industries Total

 All countries 2,051,204 102,058 414,353

Canada 212,829 30,288 81,686

Europe 1,104,866 22,880 208,313
 Austria 6,688 1 2,096
 Belgium 30,218 13 7,621
 Czech Republic 2,283 (*) 905
 Denmark 5,499 -137 2,268
 Finland 2,089 0 1,076
 France 61,200 59 21,750

 Germany 83,588 580 19,637
 Greece 1,681 (*) 174
 Hungary 3,317 (*) 2,316
 Ireland 63,983 (D) 20,703
 Italy 26,909 -17 17,284
 Luxembourg 81,129 163 3283
 Netherlands 204,319 4,022 27,334

 Norway 8,418 5,499 564
 Poland 5,942 4 2,932
 Portugal 2,657 (*) 630
 Russia 3,809 2,295 264
 Spain 44,808 (D) 11,080
 Sweden 32,941 0 1,302
 Switzerland 106,849 (D) 12,324
 Turkey 2,399 17 823
 United Kingdom 312,156 5,158 50,238
 Other 12,001 4,528 1,708

Latin America and
 Other Western
 Hemisphere 330,468 15,198 42,705
 South America 67,568 7,770 19,551
 Argentina 11,455 432 1,574
 Brazil 30,226 1,609 11,428
 Chile 9,672 1,023 1,639
 Colombia 2,811 579 1,050
 Ecuador 720 540 33
 Peru 3,387 1,558 198
 Venezuela 8,034 1,583 3,428
 Other 1,263 446 200

 Central America 72,086 1,808 18,702
 Costa Rica 1,085 (*) 769
 Honduras 314 0 216
 Mexico 63,502 1,703 16,895
 Panama 5,631 95 183
 Other 1,553 10 639

 Other Western
 Hemisphere 190,813 5,620 4,452
 Barbados 2,519 4 74
 Bermuda 86,547 26 -123
 Dominican
 Republic 1,076 (*) 522
 United Kingdom
 Islands,
 Caribbean 80,824 2,139 674
 Other 19,847 3,451 3,305

Africa 21,414 13,131 2,094
 Egypt 4,125 3,546 148
 Nigeria 1,999 1,072 80
 South Africa 3,432 120 1,496
 Other 11,857 8,393 371

Middle East 18,775 5,286 4,830
 Israel 6,854 22 3,671
 Saudi Arabia 3,202 148 364
 United Arab
 Emirates 2,292 1,082 (D)
 Other 6,427 4,034 (D)

Asia and Pacific 362,833 15,275 74,725
 Australia (D) 4,635 12,466
 China 15,006 1,743 8,099
 Hong Kong 34,848 (*) 2,410
 India 7,677 85 1,440
 Indonesia (D) (D) (D)
 Japan 68,071 18 13,141
 Korea, Republic of 16,752 1 7,588
 Malaysia 8,096 461 3,593
 New Zealand 4,668 265 817
 Philippines 6,009 333 2,276
 Singapore 57,075 -126 13,858
 Taiwan (D) (*) 4,264
 Thailand 7,582 764 3,748
 Other (D) (D) (D)

Addenda:
 European Union
 (25) (1) 972,994 10,199 193,873
 OPEC (2) 34,257 16,714 5,391

 Manufacturing

 Primary
 Food Chemi- and
 cals fabricated
 metals

 All countries 29,452 99,435 23,629

Canada 3,334 14,144 4,182

Europe 18,001 60,661 11,391
 Austria (D) 85 73
 Belgium 350 4,026 -28
 Czech Republic (D) 214 19
 Denmark 86 34 85
 Finland 9 112 24
 France 1,418 6,484 1,983

 Germany 238 3,206 2,283
 Greece (D) 146 -1
 Hungary 89 95 (D)
 Ireland 241 9,764 61
 Italy 1,996 3,385 367
 Luxembourg 0 17 (D)
 Netherlands 7,828 10,616 2,611

 Norway 26 1 30
 Poland 556 442 151
 Portugal 3 62 18
 Russia 202 (D) 0
 Spain 707 4,315 195
 Sweden (D) 302 154
 Switzerland 55 4,326 84
 Turkey (D) 91 1
 United Kingdom 3,245 12,708 1,790
 Other 288 (D) 1,098

Latin America and
 Other Western
 Hemisphere 4,642 10,228 5,172
 South America 2,134 5,740 1,347
 Argentina (D) 719 (*)
 Brazil 978 3,438 1,253
 Chile 12 611 42
 Colombia (D) 481 12
 Ecuador 14 9 -3
 Peru 70 46 -70
 Venezuela 193 358 114
 Other 84 77 (*)

 Central America 2,470 3,732 (D)
 Costa Rica 96 99 33
 Honduras 9 (*) 0
 Mexico 2,235 3,388 (D)
 Panama 31 (D) (*)
 Other 100 (D) -10

 Other Western
 Hemisphere 38 755 (D)
 Barbados 24 8 1
 Bermuda 1 (D) 0
 Dominican
 Republic (D) 29 44
 United Kingdom
 Islands,
 Caribbean 7 (D) -39
 Other (D) 211 (D)

Africa 193 279 24
 Egypt (*) -41 5
 Nigeria (*) 15 (D)
 South Africa 19 274 -15
 Other 174 32 (D)

Middle East 73 666 66
 Israel 65 4 2
 Saudi Arabia 8 (D) (D)
 United Arab
 Emirates 0 38 (D)
 Other (*) (D) 2

Asia and Pacific 3,208 13,437 2,794
 Australia 1,120 2.074 1.977
 China 561 1,803 123
 Hong Kong 1 198 66
 India 40 342 40
 Indonesia 29 (D) 36
 Japan 248 2,910 123
 Korea, Republic of 680 1,227 90
 Malaysia -11 460 15
 New Zealand (D) 95 17
 Philippines 275 234 22
 Singapore 14 1,439 82
 Taiwan 62 1,332 107
 Thailand 1 983 96
 Other (D) (D) (*)

Addenda:
 European Union
 (25) (1) 17,383 56,071 11,124
 OPEC (2) 230 1,297 224

 Manufacturing

 Electrical
 Compu- equip-
 Machin- ters and ment,
 ery electronic appliances,
 products and compo-
 nents

 All countries 25,251 54,317 11,679

Canada 3,867 6,257 1,732

Europe 13,923 23,301 6,779
 Austria 106 (D) (D)
 Belgium 44 50 (D)
 Czech Republic 117 -50 14
 Denmark 206 1,412 (*)
 Finland 149 375 34
 France 534 1,427 653

 Germany 1,358 3,406 1,400
 Greece 0 (D) 0
 Hungary 3 -41 (D)
 Ireland 238 6,061 490
 Italy 3,405 3,417 642
 Luxembourg 7 5 0
 Netherlands 964 1,389 329

 Norway 467 -30 0
 Poland (D) 14 (D)
 Portugal (D) (D) 2
 Russia -42 29 1
 Spain 51 397 580
 Sweden 135 356 -228
 Switzerland 677 148 452
 Turkey (*) (*) -13
 United Kingdom 5,499 3,618 814
 Other (D) 13 27

Latin America and
 Other Western
 Hemisphere 2,183 -2,411 1,153
 South America 1,544 1,048 129
 Argentina 133 41 -81
 Brazil 1,266 1,003 133
 Chile 29 2 16
 Colombia 0 (*) 14
 Ecuador 0 0 0
 Peru (*) 0 (*)
 Venezuela 113 1 46
 Other 4 0 (D)

 Central America (D) (D) 1,016
 Costa Rica 1 -9 106
 Honduras 0 0 3
 Mexico (D) -3,742 907
 Panama 0 0 0
 Other 0 (D) (*)

 Other Western
 Hemisphere (D) (D) 7
 Barbados (*) (D) 5
 Bermuda (D) 1 0
 Dominican
 Republic 0 0 0
 United Kingdom
 Islands,
 Caribbean (*) (D) 0
 Other 1 1 3

Africa 338 -94 -3
 Egypt 118 0 5
 Nigeria 0 0 0
 South Africa 218 4 (D)
 Other 2 -98 (D)

Middle East 243 3,238 -9
 Israel 88 3,232 -27
 Saudi Arabia 23 6 17
 United Arab
 Emirates 119 0 0
 Other 13 0 0

Asia and Pacific 4,697 24,026 2,028
 Australia 604 630 102
 China 389 1,267 354
 Hong Kong 105 860 200
 India 476 226 (D)
 Indonesia 275 -1 16
 Japan 1,040 2,804 709
 Korea, Republic of 419 2,526 211
 Malaysia 117 2,471 (D)
 New Zealand 18 52 (*)
 Philippines 31 1,063 3
 Singapore 706 9,658 289
 Taiwan 311 1,705 64
 Thailand 203 759 19
 Other 3 7 0

Addenda:
 European Union
 (25) (1) 12,811 23,141 6,332
 OPEC (2) 536 7 79

 Manufacturing

 Trans- Other Whole-
 portation manu- sale
 equip- facturing trade
 ment

 All countries 50,732 119,859 130,594

Canada 19,343 28,827 11,296

Europe 19,015 55,222 80,110
 Austria (D) 217 2,093
 Belgium 1,002 (D) 3,485
 Czech Republic 373 (D) (*)
 Denmark 2 443 669
 Finland 228 145 821
 France 1,753 7,498 5,250

 Germany 4,281 3,465 15,503
 Greece 0 31 829
 Hungary 556 378 273
 Ireland 100 3,748 3,351
 Italy 1,356 2,718 2,296
 Luxembourg 0 (D) 214
 Netherlands 1,230 2,367 13,059

 Norway 7 64 453
 Poland 568 (D) 59
 Portugal (D) 55 615
 Russia 90 (D) 370
 Spain 1,287 3,547 2,754
 Sweden -349 (D) 841
 Switzerland (D) (D) 12,672
 Turkey 351 (D) 672
 United Kingdom 5,106 17,460 13,294
 Other 44 124 536

Latin America and
 Other Western
 Hemisphere 4,356 17,383 11,329
 South America 887 6,721 2,618
 Argentina -278 (D) 315
 Brazil 378 2,979 739
 Chile (D) (D) 679
 Colombia (D) 340 314
 Ecuador (D) (D) 43
 Peru -1 152 63
 Venezuela 484 2,119 236
 Other 20 15 230

 Central America (D) 9,596 2,885
 Costa Rica 0 443 244
 Honduras (D) (D) 76
 Mexico 3,931 8,680 1,892
 Panama -5 (D) 482
 Other 0 (D) 193

 Other Western
 Hemisphere (D) 1,066 5,825
 Barbados -13 (D) 833
 Bermuda (D) 1 1,519
 Dominican
 Republic 0 (D) 155
 United Kingdom
 Islands,
 Caribbean (D) 475 2,802
 Other 0 (D) 516

Africa (D) (D) 1,077
 Egypt (D) (D) 62
 Nigeria (D) (D) 141
 South Africa 798 (D) 473
 Other (D) 212 401

Middle East (D) (D) 535
 Israel 0 306 784
 Saudi Arabia (D) 156 233
 United Arab
 Emirates (*) (D) -487
 Other 0 17 5

Asia and Pacific 7,134 17,401 26,247
 Australia 1,832 4,127 2,588
 China 1,783 1,821 1,705
 Hong Kong 27 953 6,174
 India 46 (D) 315
 Indonesia 19 (D) 131
 Japan 505 4,802 8,273
 Korea, Republic of 871 1,563 1,085
 Malaysia 82 (D) 282
 New Zealand 11 (D) 569
 Philippines (D) (D) (D)
 Singapore 1,411 260 2,910
 Taiwan (D) (D) (D)
 Thailand 251 1,435 609
 Other (D) (D) -21

Addenda:
 European Union
 (25) (1) 18,040 48,971 65,455
 OPEC (2) 520 2,499 254

 Finance
 Informa- Deposi- (except
 tion tory depository
 insti- institutions)
 tutions and
 insurance
Canada
 All countries 49,155 64,719 369,281
Europe
 3,517 3,180 35,196

 29,551 40,797 176,017
 Austria 89 (D) 30
 Belgium -430 788 9,401
 Czech Republic 86 (D) (D)
 Denmark 154 0 (D)
 Finland -12 0 1
 France 1,516 1,990 4,970

 Germany 2,910 1,543 14,470
 Greece 2 -64 226
 Hungary 18 (D) 47
 Ireland 10,670 (D) 11,765
 Italy 2,980 -120 1,190
 Luxembourg (D) 594 3,096
 Netherlands 4,506 34 25,301

 Norway 136 40 (D)
 Poland 356 1,802 376
 Portugal 390 3 557
 Russia 71 (D) -15
 Spain 1,240 1,654 5,179
 Sweden 126 (D) 4,106
 Switzerland -2,564 8,245 10,988
 Turkey 10 608 11
 United Kingdom 6,627 18,563 81,078
 Other (D) 212 421

Latin America and
 Other Western
 Hemisphere 7,247 4,908 101,495
 South America 3,208 5,409 8.678
 Argentina 1,090 449 896
 Brazil 914 3,112 4,358
 Chile 512 1,128 2,361
 Colombia 69 (D) 297
 Ecuador 2 (D) 19
 Peru 81 (D) 143
 Venezuela 431 (D) 487
 Other 108 159 118

 Central America 1,001 17,066 12,194
 Costa Rica (D) 0 22
 Honduras (*) (D) 8
 Mexico 932 16,835 11,248
 Panama (*) 178 887
 Other (D) (D) 29

 Other Western
 Hemisphere 3,038 -17,567 80,622
 Barbados (D) 26 451
 Bermuda 1,129 0 43,019
 Dominican
 Republic (D) (D) -57
 United Kingdom
 United Kingdom
 Islands,
 Caribbean (D) -16,639 33,063
 Other 258 (D) 4,146

Africa 168 796 269
 Egypt (D) (D) (D)
 Nigeria 0 (D) (D)
 South Africa 143 (D) 51
 Other (D) 247 127

Middle East 1,375 237 1,007
 Israel 1,354 (D) 255
 Saudi Arabia 15 0 (D)
 United Arab
 Emirates -1 (D) (D)
 Other 8 (D) 192

Asia and Pacific 7,297 14,800 55,298
 Australia 199 2,893 5,249
 China 565 560 -1
 Hong Kong 786 2,321 7,624
 India (D) 889 604
 Indonesia (D) 440 -1
 Japan 2,299 120 29,237
 Korea, Republic of 285 3,457 2,008
 Malaysia 28 (D) 333
 New Zealand 105 (D) 973
 Philippines 37 (D) 664
 Singapore 1,037 756 2,047
 Taiwan 125 1,095 6,003
 Thailand 6 661 556
 Other 11 239 1

Addenda:
 European Union
 (25) (1) 31,671 31,365 163,979
 OPEC (2) (D) (D) 1,144

 Profes-
 sional, Holding Other
 scientific, companies industries
 and (nonbank)
 technical
 services

 All countries 45,167 724,229 151,647

Canada 2,161 22,479 23,025

Europe 26,136 437,973 83,109
 Austria 158 598 (D)
 Belgium 4,098 4,271 972
 Czech Republic 50 5 152
 Denmark 176 (D) 209
 Finland 122 8 73
 France 1,629 12,187 11,848

 Germany 3,834 18,609 6,502
 Greece 22 (D) (D)
 Hungary 42 0
 Ireland 2,014 11,976 12,101
 Italy 901 545 1,849
 Luxembourg 29 72,589 (D)
 Netherlands 2,004 125,272 2,786

 Norway 75 (D) 442
 Poland 78 63 272
 Portugal 53 -92 502
 Russia 24 -10 (D)
 Spain 242 21,687 (D)
 Sweden 207 18,990 (D)
 Switzerland 1,794 62,148 D)
 Turkey 41 (*) 216
 United Kingdom 8,489 84,465 44,244
 Other 54 3,435 (D)

Latin America and
 Other Western
 Hemisphere 2,071 124,899 20,615
 South America 1,086 13,325 5,923
 Argentina 19 5,954 727
 Brazil 298 5,318 2,449
 Chile 38 545 1,747
 Colombia 20 (D) (D)
 Ecuador -2 74 (D)
 Peru 39 (D) 272
 Venezuela 664 386 (D)
 Other 11 (*) -9

 Central America 546 9,017 8,866
 Costa Rica 7 0 (D)
 Honduras 0 0 (D)
 Mexico 554 6,034 7,410
 Panama -15 2,898 923
 Other 1 85 (D)

 Other Western
 Hemisphere 439 102,558 5,826
 Barbados -36 49 (D)
 Bermuda 180 37,534 3,263
 Dominican
 Republic 1 0 121
 United Kingdom
 Islands,
 Caribbean 475 56,456 (D)
 Other -180 8,518 (D)

Africa 157 2,512 1,210
 Egypt 3 0 (D)
 Nigeria 27 (D) 131
 South Africa 101 (D) 140
 Other 26 1,464 (D)

Middle East 930 3,753 822
 Israel 461 (D) (D)
 Saudi Arabia 316 2,088 (D)
 United Arab
 Emirates 34 (D) 145
 Other 119 (D) 431

Asia and Pacific 13,712 132,612 22,867
 Australia 1,629 (D) (D)
 China 209 1,249 876
 Hong Kong 410 12,790 2,333
 India 764 763 (D)
 Indonesia (D) 1,423 (D)
 Japan 7,616 1,032 6,336
 Korea, Republic of 779 (D) (D)
 Malaysia 155 2,031 (D)
 New Zealand 103 (D) 513
 Philippines -65 502 (D)
 Singapore 1,207 (D) (D)
 Taiwan 90 24 244
 Thailand 769 5 465
 Other (D) 76 2,206

Addenda:
 European Union
 (25) (1) 24,187 371.959 80,304
 OPEC (2) 1,200 5,821 2,473

(*) Less than $500,000 (+/-).

(D) Suppressed to avoid disclosure of data of individual companies.

(1.) The European Union (25) comprises Austria, Belgium, Cyprus, the
Czech Republic, Denmark. Estonia, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the
Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden,
and the United Kingdom.

(2.) OPEC is the Organization of Petroleum Exporting Countries. Its
members are Algeria, Indonesia, Iron, Iraq, Kuwait, Libya, Nigeria,
Qatar. Saudi Arabia, the United Arab Emirates, and Venezuela.

NOTE. Estimates for 2004 are revised.

Table 1.2. U.S. Direct Investment Position Abroad on a
Historical-Cost Basis, 2005
[Millions of dollars]

 Manufacturing

 All
 industries Mining Total

 All countries 2,069,983 114,386 451,402

Canada 234,831 33,718 86,013

Europe 1,059,443 25,559 233,608
 Austria 8,762 1 2,179
 Belgium 36,733 11 12,635
 Czech Republic 2,786 (*) 1,028
 Denmark 5,695 -116 2,968
 Finland 2,493 0 1,434
 France 60,860 69 22,214
 Germany 86,319 504 22,200
 Greece 1,903 (*) 162
 Hungary 3,402 9 2,490
 Ireland 61,596 (D) 22,949
 Italy 25,931 (D) 15,717
 Luxembourg 61,615 159 4,921
 Netherlands 181,384 4,018 29,508
 Norway 8,795 5,331 1,552
 Poland 5.736 4 3,054
 Portugal 2,712 (*) 421
 Russia 5,545 3,148 667
 Spain 43,280 56 10,286
 Sweden 33,398 0 2,562
 Switzerland 83,424 379 13,059
 Turkey 2,417 48 643
 United Kingdom 323,796 5,995 60,355
 Other 10,863 (D) 603

Latin America and Other
 Western Hemisphere 353,011 17,225 42,967
 South America 74403 8,679 22,462
 Argentina 13,163 508 1,410
 Brazil 32,420 2,040 13,486
 Chile 9,811 1,040 1,683
 Colombia 3,393 630 1,345
 Ecuador 760 557 48
 Peru 3,900 2,082 216
 Venezuela 9,610 1,378 4,074
 Other 1,347 445 200

 Central America 79,924 2,187 21,309
 Costa Rica 1,277 (*) 804
 Honduras 402 0 244
 Mexico 71,423 2,082 19,395
 Panama 5,162 95 182
 Other 1,660 10 685

 Other Western Hemisphere 198,684 6,358 -804
 Barbados 2,940 4 125
 Bermuda 90,358 118 -199
 Dominican Republic 758 (*) 442
 United Kingdom
 Islands, Caribbean 85,295 2,461 -1,620
 Other 19,333 3,775 447

Africa 24,257 15,305 2,364
 Egypt 4,839 4,085 218
 Nigeria 874 278 87
 South Africa 3,594 -5 1,610
 Other 14,950 10,948 449

Middle East 21,591 5,617 5,499
 Israel 7,920 (D) 4,259
 Saudi Arabia 3,351 (D) 419
 United Arab Emirates 2,663 1,064 (D)
 Other 7,478 4,514 (D)
Asia and Pacific 376,849 16,962 80,951

 Australia 113,385 5,059 13,174
 China 16,877 1,717 8,840
 Hong Kong 37,884 (*) 2,369
 India 8,456 134 1,551
 Indonesia 9,948 6,003 920
 Japan 75,491 12 15,264
 Korea, Republic of 18,759 1 8,251
 Malaysia 9,993 1,493 4,166
 New Zealand 4,809 251 920
 Philippines 6,649 414 2,482
 Singapore 48,051 -160 14,307
 Taiwan 13,374 (*) 4,020
 Thailand 8,556 (D) 4,381
 Other 4,616 (D) 306

Addenda:
 European Union (25) (1) 948,978 11,052 217,292
 OPEC (2) 37,191 16,517 6,363

 Manufacturing

 Primary
 Food Chemi- and
 cals fabricated
 metals

 All countries 31,524 109,354 21,671

Canada 3,375 14,164 4,649

Europe 19,112 67,987 10,047
 Austria (D) 67 78
 Belgium 410 6,647 25
 Czech Republic (D) 262 9
 Denmark 77 40 91
 Finland 10 125 28
 France 997 6,955 1,936
 Germany 257 4,078 2,091
 Greece (D) (D) -3
 Hungary 98 115 (D)
 Ireland 329 10,696 85
 Italy 2,052 3,391 367
 Luxembourg 0 (D) 107
 Netherlands 9,011 10,583 2,488
 Norway 26 28 55
 Poland 407 488 150
 Portugal (*) 73 19
 Russia 215 (D) 0
 Spain 635 4,063 279
 Sweden (D) 373 171
 Switzerland 60 4,835 132
 Turkey (D) 55 (D)
 United Kingdom 3,630 13,136 1,723
 Other 260 203 (D)

Latin America and Other
 Western Hemisphere 5,237 10,744 3,129
 South America 2,015 6,013 1,790
 Argentina (D) 389 20
 Brazil 912 3,899 1,521
 Chile 13 630 44
 Colombia (D) 522 175
 Ecuador 15 1 -3
 Peru 76 51 -87
 Venezuela 129 439 121
 Other 76 82 (*)

 Central America 3,183 4,068 (D)
 Costa Rica 130 92 (D)
 Honduras 9 (*) 0
 Mexico 2,911 3,754 (D)
 Panama 32 134 (*)
 Other 102 88 -12

 Other Western Hemisphere 38 663 (D)
 Barbados 26 8 1
 Bermuda 1 (D) 0
 Dominican Republic (D) 26 (D)
 United Kingdom
 Islands, Caribbean 6 (D) -37
 Other (D) (D) (D)

Africa 242 283 17
 Egypt 3 -50 1
 Nigeria (*) (D) 12
 South Africa 10 281 -21
 Other 228 (D) 26

Middle East 87 1,098 91
 Israel 78 441 2
 Saudi Arabia 10 (D) 49
 United Arab Emirates 0 (D) 38
 Other (*) (D) 2
Asia and Pacific 3,471 15,077 3,738

 Australia 1,182 1,889 2,528
 China 603 2,388 202
 Hong Kong 5 220 144
 India 48 376 55
 Indonesia 42 312 42
 Japan 206 3,650 276
 Korea, Republic of 795 1,515 102
 Malaysia -12 498 15
 New Zealand (D) 108 18
 Philippines 314 255 24
 Singapore 17 1,524 94
 Taiwan 35 1,198 131
 Thailand (*) 1,056 102
 Other (D) 90 5

Addenda:
 European Union (25) (1) 18,434 62,772 9,747
 OPEC (2) 181 1,502 261

 Manufacturing

 Electrical
 Compu- equip-
 Machin- ters and ment, appli-
 ery electronic ances and
 products compo-
 nents

 All countries 29,224 56,785 13,079

Canada 4,860 6,780 2,080

Europe 15,292 27,620 7,261
 Austria (D) (D) (D)
 Belgium -19 121 625
 Czech Republic 118 -44 14
 Denmark 741 1,644 (*)
 Finland 158 686 50
 France 573 1,532 776
 Germany 14,721 4,089 1,699
 Greece 0 (D) 0
 Hungary -1 175 (D)
 Ireland (D) 6,778 472
 Italy 16,561 3,400 571
 Luxembourg 7 (D) 0
 Netherlands 937 1,242 427
 Norway 1,307 -56 27
 Poland 24 24 28
 Portugal (*) 74 2
 Russia -45 38 11
 Spain 50 434 552
 Sweden 825 373 -220
 Switzerland 133 176 401
 Turkey (*) (*) -16
 United Kingdom 6,728 5,815 852
 Other 4 8 (D)

Latin America and Other
 Western Hemisphere 2,598 -2,746 1,367
 South America 1,976 961 239
 Argentina 156 44 -96
 Brazil 1,695 914 252
 Chile 1 2 17
 Colombia 0 (*) 15
 Ecuador 0 0 0
 Peru (*) 0 (*)
 Venezuela 122 1 51
 Other 2 0 0

 Central America (D) -3,924 1,120
 Costa Rica 1 (D) 75
 Honduras 0 0 4
 Mexico (D) -4,026 1,042
 Panama 0 0 0
 Other 0 (D) (*)

 Other Western Hemisphere (D) 217 7
 Barbados (*) (D) 5
 Bermuda (D) 1 0
 Dominican Republic 0 0 0
 United Kingdom
 Islands, Caribbean (*) (D) 0
 Other 1 2 3

Africa 375 -59 57
 Egypt 126 0 5
 Nigeria 0 0 0
 South Africa 246 35 43
 Other 2 -95 9

Middle East 281 3,327 -11
 Israel 98 3,305 -31
 Saudi Arabia (D) 22 21
 United Arab Emirates 145 0 0
 Other (D) 0 0
Asia and Pacific 5,818 23,864 2,325

 Australia 677 616 115
 China 458 1,157 552
 Hong Kong 135 998 150
 India 533 172 (D)
 Indonesia 387 -7 16
 Japan 1,315 3,026 672
 Korea, Republic of 495 2,328 286
 Malaysia 136 2,977 (D)
 New Zealand 22 34 (*)
 Philippines 42 1,125 3
 Singapore 968 9,016 336
 Taiwan 383 1,483 66
 Thailand 264 932 23
 Other 3 7 0

Addenda:
 European Union (25) (1) 13,889 27,451 6,832
 OPEC (2) 665 15 88

 Manufacturing

 Trans- Whole-
 portation Other sale
 equip- manu- Trade
 ment facturing

 All countries 48,930 138,836 142,960

Canada 17,555 32,551 12,663

Europe 20,763 65,527 86,795
 Austria (D) 211 2,339
 Belgium 951 3,875 3,895
 Czech Republic 452 (D) -72
 Denmark 2 371 819
 Finland 226 151 861
 France 1,703 7,742 5,909
 Germany 4,629 3,884 18,964
 Greece 0 21 925
 Hungary 627 308 193
 Ireland (D) (D) 4,109
 Italy 1,377 2,904 1,810
 Luxembourg 0 (D) 314
 Netherlands 1,900 2,921 14,152
 Norway 7 157 486
 Poland 530 1,404 18
 Portugal 199 55 771
 Russia 44 (D) 533
 Spain 877 3,395 3,117
 Sweden 107 (D) 932
 Switzerland (D) (D) 11,306
 Turkey 132 (D) 693
 United Kingdom 6,063 22,408 13,963
 Other 34 76 761

Latin America and Other
 Western Hemisphere 2,130 20,507 15,408
 South America (D) (D) 2,657
 Argentina -233 (D) 379
 Brazil 324 3,969 430
 Chile (D) (D) 754
 Colombia (D) 417 447
 Ecuador (D) (D) 28
 Peru -1 177 72
 Venezuela 611 2,598 267
 Other 24 16 280

 Central America 4,376 10,911 3,234
 Costa Rica 0 484 348
 Honduras (D) (D) 82
 Mexico (D) 9,887 2,057
 Panama -5 20 528
 Other 0 (D) 220

 Other Western Hemisphere (D) (D) 9,517
 Barbados -31 (D) 850
 Bermuda -201 1 3,186
 Dominican Republic 0 340 212
 United Kingdom
 Islands, Caribbean (D) 572 4,692
 Other 0 (D) 576

Africa 903 548 1,001
 Egypt (D) (D) 55
 Nigeria 4 (D) 159
 South Africa 816 199 437
 Other (D) (D) 350

Middle East 14 611 723
 Israel 0 366 795
 Saudi Arabia 14 154 276
 United Arab Emirates (*) (D) -346
 Other 0 (D) -2
Asia and Pacific 7,565 19,093 26,369

 Australia 1,840 4,328 2,532
 China 1,564 1,916 2,245
 Hong Kong 31 686 6.643
 India (D) 309 439
 Indonesia 6 123 137
 Japan 758 5,360 8,024
 Korea, Republic of 696 2,034 1,144
 Malaysia 74 (D) 284
 New Zealand 5 (D) 475
 Philippines 30 689 372
 Singapore 1,822 529 1,886
 Taiwan (D) (D) 1,463
 Thailand 372 1,632 706
 Other (D) 44 20

Addenda:
 European Union (25) (1) 20,075 58,092 73,072
 OPEC (2) 636 2,995 486

 Finance
 Informa- Deposi- (except
 tion tory depository
 institu- institutions)
 tons and
 insurance

 All countries 55,479 70,331 393,723

Canada 3,809 3,923 37,860

Europe 33,514 39,021 176,838
 Austria 171 (D) 19
 Belgium -517 829 9,580
 Czech Republic 83 649 658
 Denmark 198 0 (D)
 Finland -23 0 (*)
 France 1,559 1,901 4,342
 Germany 2,818 1,385 13,560
 Greece 16 (D) (D)
 Hungary 36 (D) 33
 Ireland 13,260 (D) 7,002
 Italy 3,716 (D) 1,207
 Luxembourg (D) 637 2,236
 Netherlands 4,385 49 28,695
 Norway 291 49 56
 Poland 316 1,346 578
 Portugal 440 3 232
 Russia 61 (D) 2
 Spain 1,632 1,617 5,328
 Sweden 250 0 4,388
 Switzerland -2,651 8,610 11,555
 Turkey 13 726 22
 United Kingdom 6,937 17,018 85,474
 Other (D) 179 (D)

Latin America and Other
 Western Hemisphere 6,496 11,066 111,883
 South America 3,103 6,255 9,241
 Argentina 1,182 845 989
 Brazil 804 3,271 4,412
 Chile 371 1,347 2,472
 Colombia 80 (D) 327
 Ecuador 2 (D) (D)
 Peru 87 (D) 176
 Venezuela 458 (D) 702
 Other 119 181 (D)

 Central America 1,172 17,876 14,269
 Costa Rica (D) 0 (D)
 Honduras (*) (D) (D)
 Mexico 1,089 17,671 13,307
 Panama (*) 147 918
 Other (D) (D) 15

 Other Western Hemisphere 2,221 -13,064 88,374
 Barbados (D) 26 410
 Bermuda 18 (*) 48,533
 Dominican Republic 4 (D) -22
 United Kingdom
 Islands, Caribbean (D) -11,703 35,437
 Other 342 (D) 4,016

Africa 174 1,031 341
 Egypt (D) (D) 13
 Nigeria 0 (D) 100
 South Africa 147 (D) 61
 Other (D) 292 168

Middle East 1,802 277 1,150
 Israel 1,766 -2 291
 Saudi Arabia 15 0 -49
 United Arab Emirates 12 (D) 666
 Other 9 (D) 243
Asia and Pacific 9,684 15,014 65,651

 Australia 510 2,804 6,455
 China 772 753 13
 Hong Kong 1,594 2,518 10,134
 India 2,048 1,080 659
 Indonesia -63 489 -4
 Japan 2,667 156 34,032
 Korea, Republic of 251 3,712 1,949
 Malaysia 31 (D) (D)
 New Zealand 123 (D) 1,066
 Philippines 41 (D) 792
 Singapore 1,608 849 (D)
 Taiwan 85 984 6,404
 Thailand 6 575 932
 Other 11 247 5

Addenda:
 European Union (25) (1) 35,513 28,997 164,904
 OPEC (2) 431 (D) 1,444

 Profes-
 sional, Holding Other
 scientific, companies industries
 and (nonbank)
 technical
 services

 All countries 49,202 623,076 169,424

Canada 2,180 23,705 30,961

Europe 30,052 345,629 88,428
 Austria 183 2,290 (D)
 Belgium 4,407 4,651 1,241
 Czech Republic 66 (D) (D)
 Denmark -37 520 (D)
 Finland 138 10 72
 France 1,909 12,656 10,301
 Germany 4,235 16,018 6,635
 Greece 21 233 325
 Hungary 52 0 (D)
 Ireland 2,675 5,438 3,280
 Italy 826 576 2,166
 Luxembourg 20 51,418 (D)
 Netherlands 2,388 95,071 3,118
 Norway 91 (D) (D)
 Poland 92 (D) (D)
 Portugal 39 -183 990
 Russia 26 39 (D)
 Spain 295 20,059 889
 Sweden 258 18,221 6,788
 Switzerland 2,426 37,702 1,038
 Turkey 30 (*) 241
 United Kingdom 9,863 78,467 45,723
 Other 48 1,896 1,001

Latin America and Other
 Western Hemisphere 2,300 124,044 21,622
 South America 1,365 14,675 5,967
 Argentina 30 7,014 806
 Brazil 362 5,309 2,305
 Chile 37 343 1,763
 Colombia 20 (D) (D)
 Ecuador (D) (D) -23
 Peru 36 784 (D)
 Venezuela 878 945 (D)
 Other (D) 1 (D)

 Central America 482 8,710 10,685
 Costa Rica 23 (*) 45
 Honduras 0 6 (D)
 Mexico 469 6,342 9,011
 Panama -11 2,295 1,008
 Other 1 67 (D)

 Other Western Hemisphere 453 100,659 4,970
 Barbados 13 -55 (D)
 Bermuda 68 36,015 2,619
 Dominican Republic 1 0 (D)
 United Kingdom
 Islands, Caribbean 580 53,497 (D)
 Other -210 11,201 (D)

Africa 174 2,409 1,456
 Egypt 3 0 (D)
 Nigeria (D) -59 117
 South Africa 114 (D) 279
 Other (D) (D) (D)

Middle East 981 4,606 936
 Israel 455 42 (D)
 Saudi Arabia 333 2,425 (D)
 United Arab Emirates 34 487 (D)
 Other 159 (D) (D)
Asia and Pacific 13,514 122,683 26,021

 Australia 1,948 77,339 3,564
 China 285 1,274 979
 Hong Kong 558 11,634 2,434
 India 792 744 1,009
 Indonesia 39 1,131 1,296
 Japan 6,688 1,253 7,394
 Korea, Republic of 856 312 2,284
 Malaysia 192 (D) (D)
 New Zealand 127 1,163 (D)
 Philippines -65 584 (D)
 Singapore 1,225 (D) 685
 Taiwan 84 28 307
 Thailand 781 91 (D)
 Other 6 -8 (D)

Addenda:
 European Union (25) (1) 27,475 305,504 85,170
 OPEC (2) 1,475 6,442 (D)

(*) Less than $500,000 ().

(D) Suppressed to avoid disclosure of data of individual companies.

(1.) The European Union (25) comprises Austria, Belgium, Cyprus, the
Czech Republic, Denmark. Estonia, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the
Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden,
and the United Kingdom.

(2.) OPEC is the Organization of Petroleum Exporting Countries. Its
members are Algeria, Indonesia, Iron, Iraq, Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

NOTE. Estimates for 2004 are revised.

Table 2.1. Foreign Direct Investment Position in the United States on
a Historical-Cost Basis, 2004
[Millions of dollars]

 Manufacturing

 All
 industries Total Food

 All countries 1,520,729 485,659 17,883

Canada 125,503 25,633 1,195

Europe 1,066,908 372,484 14,064
 Austria 3,675 2,141 7
 Belgium 11,735 4,101 -3
 Denmark 5,454 3,577 (D)
 Finland 5,665 3,671 (D)
 France 143,586 45,907 1,575
 Germany 163,981 56,122 79
 Ireland 20,403 4,228 1,093
 Italy 6,998 833 (D)
 Luxembourg 115,688 25,332 (D)
 Netherlands 155,452 68,455 (D)
 Norway 3,344 2,252 0
 Spain 5,581 2,212 (D)
 Sweden 23,712 9,466 0
 Switzerland 121,634 71,545 (D)
 United Kingdom 251,422 61,678 2,434
 Other 28,578 10,961 140

Latin America and Other
 Western Hemisphere 87,259 22,172 1,236
 South and Central
 America 26,088 975 1,056
 Brazil 1,221 -200 4
 Mexico 8,167 1,362 (D)
 Panama 10,360 -373 0
 Venezuela 5,525 195 (D)
 Other 814 -8 (D)

 Other Western Hemisphere 61,170 21,197 180
 Bahamas 1,257 (D) (D)
 Bermuda 11,116 1,849 (D)
 Netherlands Antilles 4,418 567 -1
 United Kingdom Islands,
 Caribbean 23,777 (D) 123
 Other 20,603 (D) (D)

Africa 1,671 586 -1
 South Africa 344 -31 -1
 Other 1,326 617 1

Middle East 7,888 870 8
 Israel 3,872 844 8
 Kuwait (D) (D) 0
 Lebanon (*) (*) 0
 Saudi Arabia (D) (D) 0
 United Arab Emirates 23 -13 0
 Other 140 (*) 0

Asia and Pacific 231,500 63,914 1,382
 Australia 40,884 4,317 (D)
 China 435 12 -1
 Hong Kong 1,437 -57 1
 India 630 26 1
 Japan 175,728 59,549 1,313
 Korea, Republic of 5,616 560 6
 Malaysia 336 -44 -1
 New Zealand 827 8 (D)
 Singapore 1,954 -1,451 (D)
 Taiwan 3,191 992 (*)
 Other 464 4 1

Addenda:
 European Union (25) (1) 932,017 294,036 8,664
 OPEC (2) 8,917 211 3

 Manufacturing

 Primary
 Chemi- and Machin-
 cals fabricated ery
 metals

 All countries 138,081 20,893 45,666

Canada 5,294 3,801 237

Europe 124,034 14,156 26,579
 Austria (D) 284 145
 Belgium 3,570 (D) 48
 Denmark 503 (D) 394
 Finland (D) (D) 389
 France 16,446 890 (D)
 Germany 21,682 4,197 6,133
 Ireland 33 (D) -6
 Italy 300 -16 151
 Luxembourg (D) (D) (D)
 Netherlands 24,045 211 (D)
 Norway 2,224 (D) (D)
 Spain 293 (D) 5
 Sweden (D) 975 1,076
 Switzerland 23,822 1,675 3,300
 United Kingdom 26,286 2,936 1,565
 Other (D) 439 (D)

Latin America and Other
 Western Hemisphere 1,672 173 (D)
 South and Central
 America 286 -17 288
 Brazil -64 43 -18
 Mexico 153 394 (D)
 Panama (D) (D) 1
 Venezuela -4 -1 -14
 Other (D) (D) (D)

 Other Western Hemisphere 1,385 190 (D)
 Bahamas 7 (D) 0
 Bermuda 13 (D) (D)
 Netherlands Antilles (D) (D) (*)
 United Kingdom Islands,
 Caribbean (D) 4 310
 Other 4 0 (D)

Africa (D) (D) -6
 South Africa -7 (D) -6
 Other (D) (D) (*)

Middle East (D) 3 (D)
 Israel (D) (D) (*)
 Kuwait 0 0 0
 Lebanon 0 0 0
 Saudi Arabia 0 (D) (D)
 United Arab Emirates 0 0 (D)
 Other 0 0 (*)

Asia and Pacific 5,981 (D) (D)
 Australia (D) 325 -8
 China 1 84 -32
 Hong Kong (D) -1 5
 India 6 (D) (D)
 Japan 5,524 2,095 3,460
 Korea, Republic of 15 219 -6
 Malaysia -4 (D) (D)
 New Zealand 0 (D) 1
 Singapore -95 -2 2
 Taiwan 297 2 -1
 Other -16 -2 (*)

Addenda:
 European Union (25) (1) 96,233 11,387 21,934
 OPEC (2) -12 (*) -15

 Manufacturing

 Electrical
 equip-
 Compu- ment, Trans-
 ters and appli- portation
 electronic ances, equip-
 products and ment
 compo-
 nents

 All countries 39,546 12,009 67,837

Canada 4,821 398 2,118

Europe 22,768 8,657 39,310
 Austria (D) -1 23
 Belgium 11 12 (D)
 Denmark 554 -1 4
 Finland (D) (*) (*)
 France 4,019 (D) 2,253
 Germany 601 382 19,482
 Ireland -1 0 (D)
 Italy 58 (D) -10
 Luxembourg (D) (D) (D)
 Netherlands 5,897 196 6,220
 Norway 3 0 (D)
 Spain -11 0 126
 Sweden 168 (D) 3,155
 Switzerland (D) 39 793
 United Kingdom 8,768 227 6,094
 Other 1,589 (D) 179

Latin America and Other
 Western Hemisphere -326 (D) -78
 South and Central
 America -217 18 -115
 Brazil -55 (*) 46
 Mexico -128 21 (D)
 Panama (D) (*) (D)
 Venezuela -2 -1 0
 Other (D) -2 -7

 Other Western Hemisphere -109 (D) 38
 Bahamas (*) 0 0
 Bermuda (D) (D) 0
 Netherlands Antilles -2 0 -4
 United Kingdom Islands,
 Caribbean (D) (D) 41
 Other (*) (D) 0

Africa 9 (*) (D)
 South Africa 9 (*) (D)
 Other 0 (*) (D)

Middle East 260 2 (D)
 Israel 268 0 9
 Kuwait (*) 2 (D)
 Lebanon 0 0 0
 Saudi Arabia 0 0 0
 United Arab Emirates -8 0 (D)
 Other 0 0 0

Asia and Pacific 12,015 (D) 26,460
 Australia -3 -7 -57
 China -48 -3 9
 Hong Kong 262 (D) -2
 India -7 (*) (D)
 Japan 12,686 600 26,448
 Korea, Republic of (D) -3 (D)
 Malaysia -21 0 -1
 New Zealand -8 -1 -2
 Singapore (D) -1 6
 Taiwan 72 (D) -14
 Other 4 -1 19

Addenda:
 European Union (25) (1) 22,417 8,612 38,495
 OPEC (2) -10 1 (D)

 Manufacturing

 Whole-
 Other sale Retail
 manu- trade trade
 facturing

 All countries 143,743 219,085 25,886

Canada 7,768 3,913 4,140

Europe 122,916 124,105 17,021
 Austria 1,258 435 (D)
 Belgium 333 2,585 (D)
 Denmark 1,758 152 5
 Finland 2,322 1,877 (D)
 France 13,796 12,746 299
 Germany 3,566 13,876 1,639
 Ireland (D) (D) (D)
 Italy 53 962 1,372
 Luxembourg 19,948 (D) 0
 Netherlands 24,793 10,163 (D)
 Norway (D) 707 (*)
 Spain 443 140 (D)
 Sweden 599 7,244 (D)
 Switzerland 36,209 4,932 282
 United Kingdom 13,370 66,590 2,592
 Other 2,156 364 (D)

Latin America and Other
 Western Hemisphere 1,722 9,757 1,542
 South and Central
 America -324 5,553 (D)
 Brazil -154 688 (D)
 Mexico -281 208 (D)
 Panama -73 14 3
 Venezuela (D) (D) (*)
 Other (D) (D) (D)

 Other Western Hemisphere 2,046 4,204 (D)
 Bahamas (D) 520 (D)
 Bermuda 461 (D) 0
 Netherlands Antilles (D) 385 (D)
 United Kingdom Islands,
 Caribbean 1,377 2,793 690
 Other 44 (D) (*)

Africa -90 -165 (D)
 South Africa -11 (D) 0
 Other -79 (D) (D)

Middle East 120 3,006 (D)
 Israel (D) 338 4
 Kuwait 0 0 0
 Lebanon (*) (*) 0
 Saudi Arabia (D) (D) (D)
 United Arab Emirates (D) (D) (*)
 Other 0 (D) 0

Asia and Pacific 11,306 78,469 3,148
 Australia (D) 1,692 2
 China 1 165 2
 Hong Kong 186 493 -9
 India (*) (D) 0
 Japan 7,423 70,154 2,997
 Korea, Republic of 100 4,092 (D)
 Malaysia 1 14 0
 New Zealand 2 (D) 0
 Singapore (D) 428 (D)
 Taiwan (D) 887 44
 Other -2 154 (*)

Addenda:
 European Union (25) (1) 86,293 118,277 16,722
 OPEC (2) (D) 6,354 5

 Finance
 Deposi- (except
 Informa- tory deposi-
 tion institu- tory
 tions institu-
 tions) and
 insurance

 All countries 137,871 122,700 193,743

Canada 5,905 12,799 39,214

Europe 103,036 93,908 119,341
 Austria (*) (D) (*)
 Belgium -3 (D) 486
 Denmark 0 (D) (*)
 Finland 0 (D) -1
 France 27,260 13,235 26,375
 Germany 24,465 17,193 19,734
 Ireland 409 (D) (D)
 Italy (D) 1,265 (D)
 Luxembourg (D) 0 (D)
 Netherlands 8,623 (D) 35,601
 Norway (D) 7 0
 Spain 116 2,387 458
 Sweden 34 63 (D)
 Switzerland (D) (D) 20,302
 United Kingdom 15,037 (D) (D)
 Other 6,683 760 754

Latin America and Other
 Western Hemisphere 3,887 3,169 18,348
 South and Central
 America 111 2,646 9,963
 Brazil 16 479 (D)
 Mexico 99 661 (D)
 Panama -5 (D) (D)
 Venezuela -4 (D) 2
 Other 5 587 13

 Other Western Hemisphere 3,776 524 8,385
 Bahamas (D) (D) (D)
 Bermuda 3,355 0 -1,342
 Netherlands Antilles (D) (D) 748
 United Kingdom Islands,
 Caribbean (D) 122 (D)
 Other (D) (D) 4,249

Africa (D) (D) (D)
 South Africa (D) 0 (D)
 Other (D) (D) (*)

Middle East 447 (D) (D)
 Israel 441 1,547 (D)
 Kuwait 0 (D) (D)
 Lebanon 0 0 0
 Saudi Arabia 6 (D) 2
 United Arab Emirates (*) (D) 1
 Other 0 (D) 0

Asia and Pacific (D) (D) 16,723
 Australia (D) (D) 1,918
 China (*) (D) 6
 Hong Kong (D) 295 (D)
 India 6 162 (*)
 Japan 1,635 7,422 13,212
 Korea, Republic of (D) 244 136
 Malaysia 4 (D) 0
 New Zealand 2 0 0
 Singapore 19 262 (D)
 Taiwan (D) 926 4
 Other (D) 176 (D)

Addenda:
 European Union (25) (1) 84,927 93,825 98,998
 OPEC (2) 2 1,099 -8

 Profes-
 sional,
 Real scientific,
 estate and and Other
 rental and technical industries
 leasing services

 All countries 38,964 38,209 258,512

Canada 2,859 1,928 29,112

Europe 19,204 35,296 182,512
 Austria 36 (D) (D)
 Belgium (D) -950 2,015
 Denmark 3 (D) 1,319
 Finland (D) (D) 6
 France 301 6,941 10,521
 Germany 5,618 530 24,805
 Ireland -31 (*) 11,699
 Italy 33 (D) 1,892
 Luxembourg (D) (D) (D)
 Netherlands 2,607 3,861 11,602
 Norway 22 (D) -250
 Spain 9 (D) 110
 Sweden (D) 310 3,516
 Switzerland 1,663 563 8,576
 United Kingdom 4,754 15,655 24,039
 Other (D) (D) 6,903

Latin America and Other
 Western Hemisphere 6,254 -997 23,126
 South and Central
 America 514 (D) 5,415
 Brazil (D) -13 143
 Mexico 4 (D) (D)
 Panama (D) (*) 475
 Venezuela 9 (*) 23
 Other 15 -11 (D)

 Other Western Hemisphere 5,739 (D) 17,711
 Bahamas 229 -1 2
 Bermuda (D) (D) 6,647
 Netherlands Antilles 1,045 (D) 1,843
 United Kingdom Islands,
 Caribbean 3,135 (D) 8,849
 Other (D) (*) 371

Africa 261 (D) 723
 South Africa 1 (D) -1
 Other 261 (*) 723

Middle East 1,170 (D) 722
 Israel 4 (D) 619
 Kuwait (D) 0 (D)
 Lebanon 0 0 (*)
 Saudi Arabia 65 (*) -11
 United Arab Emirates 22 0 (D)
 Other (D) (*) (D)

Asia and Pacific 9,216 1,909 22,418
 Australia 3,461 324 5,571
 China 2 72 (D)
 Hong Kong 161 -2 232
 India (*) 404 (D)
 Japan 4,914 1,033 14,812
 Korea, Republic of (D) (D) -21
 Malaysia (D) (D) (D)
 New Zealand (D) (*) (D)
 Singapore 367 9 (D)
 Taiwan 58 (D) 195
 Other 18 -9 108

Addenda:
 European Union (25) (1) 17,486 33,590 174,155
 OPEC (2) 1,163 -2 92

(*) Less than $500,000 ().

(D) Suppressed to avoid disclosure of data of individual companies.

(1.) The European Union (25) comprises Austria, Belgium, Cyprus, the
Czech Republic, Denmark. Estonia, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the
Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden,
and the United Kingdom.

(2.) OPEC is the Organization of Petroleum Exporting Countries. Its
members are Algeria, Indonesia, Iron, Iraq, Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

NOTE. Estimates for 2004 are revised.

Table 2.2. Foreign Direct Investment Position in the United States
on a Historical-Cost Basis, 2005

(Millions of dollars]
 Manufacturing

 All Total Food
 industries

 All countries 1,635,291 538,122 19,779

Canada 144,033 30,588 1,561

Europe 1,143,614 414,852 15,673
 Austria 2,502 1,242 7
 Belgium 9,712 3,209 -4
 Denmark 6,255 4,814 (D)
 Finland 6,205 3,740 (D)
 France 143,378 45,480 1,510

 Germany 184,213 70,943 78
 Ireland 21,898 5,268 1,048
 Italy 7,716 1,056 (D)
 Luxembourg 116,736 26,305 (D)
 Netherlands 170,770 72,459 (D)

 Norway 6,144 2,477 0
 Spain 7,114 2,410 (D)
 Sweden 24,774 9,236 0
 Switzerland 122,399 76,385 (D)
 United Kingdom 282,457 76,792 (D)
 Other 31,340 13,038 (D)

Latin America and Other
 Western Hemisphere 82,530 21,968 1,134
 South and Central America 30,012 806 994
 Brazil 2,551 -124 (D)
 Mexico 8,653 1,223 (D)
 Panama 11,470 (D) 0
 Venezuela 6,730 (D) 3
 Other 609 -127 5

 Other Western Hemisphere 52,518 21,162 140
 Bahamas 703 207 (D)
 Bermuda 1,517 1,450 (D)
 Netherlands Antilles 4,179 643 2
 United Kingdom Islands,
 Caribbean 26,501 (D) 132
 Other 19,618 (D) 0

Africa 2,564 721 -1
 South Africa 361 -3 -1
 Other 2,204 724 (*)

Middle East 9,965 882 8
 Israel 4,362 847 8
 Kuwait 612 (D) 0
 Lebanon -6 1 0
 Saudi Arabia (D) (D) 0
 United Arab Emirates (D) -15 0
 Other 102 1 0

Asia and Pacific 252,584 69,112 1,403
 Australia 44,061 4,986 66
 China 481 15 -1
 Hong Kong 2,600 448 (*)
 India 1,355 -39 1
 Japan 190,279 62,934 1,385
 Korea, Republic of 6,203 577 4
 Malaysia 410 -8 -1
 New Zealand 700 9 (D)
 Singapore 2,404 -991 (D)
 Taiwan 3,565 1,167 -1
 Other 527 13 (*)

Addenda:
 European Union (25) (1) 1,005,672 331,093 9,152
 OPEC (2) 12,356 379 31

 Manufacturing

 Chemicals Primary Machinery
 and
 fabricated
 metals

 All countries 151,624 28,651 48,673

Canada 15,330 5,347 317

Europe 135,975 20,240 30,681
 Austria (D) 278 180
 Belgium 2,268 (D) 37
 Denmark (D) (D) 376
 Finland (D) (D) 393
 France 16,163 1,235 (D)

 Germany 26,755 3,933 (D)
 Ireland 616 (D) (D)
 Italy 346 -14 177
 Luxembourg 948 604 (D)
 Netherlands 25,024 (D) 4,739

 Norway 2,513 (D) 35
 Spain (D) (D) 6
 Sweden 334 1,174 1,349
 Switzerland 26,972 2,083 3,263
 United Kingdom 29,714 3,461 1,888
 Other 2,281 (D) (D)

Latin America and Other
 Western Hemisphere 2,516 410 (D)
 South and Central America 154 205 -45
 Brazil -63 (D) -4
 Mexico 224 623 -35
 Panama 6 (D) 1
 Venezuela -3 -4 -11
 Other -10 (D) 5

 Other Western Hemisphere 2,362 205 (D)
 Bahamas (D) (D) 0
 Bermuda (D) (D) (D)
 Netherlands Antilles (D) (D) -1
 United Kingdom Islands,
 Caribbean 1,782 5 267
 Other 8 0 (D)

Africa (D) (D) -2
 South Africa -8 (D) -2
 Other (D) (O) (*)

Middle East (D) 3 (D)
 Israel (D) (D) 0
 Kuwait 0 0 0
 Lebanon 0 0 0
 Saudi Arabia 0 (D) (D)
 United Arab Emirates 0 0 (D)
 Other 0 0 1

Asia and Pacific 6,609 (D) (D)
 Australia (D) 352 (D)
 China -8 (D) -44
 Hong Kong (D) -2 (D)
 India 5 (D) 3
 Japan 6,017 2,022 4,150
 Korea, Republic of 32 139 -7
 Malaysia -6 -5 -3
 New Zealand 0 (D) 2
 Singapore -43 -3 -25
 Taiwan 410 2 -1
 Other -20 (*) (*)

Addenda:
 European Union (25) (1) 104,895 16,978 26,067
 OPEC (2) -14 -1 -17

 Manufacturing

 Compu- Electrical Trans-
 ters and equip- portation
 electronic ment, equip-
 products appli- meat
 ances,
 and
 compo-
 nents

 All countries 47,016 14,191 76,036

Canada 4,884 402 5,073

Europe 28,498 10,632 44,570
 Austria 3 -3 (D)
 Belgium 7 13 (D)
 Denmark (D) (*) -1
 Finland 93 -1 1
 France 3,403 (D) 2,654

 Germany 1,002 416 23,391
 Ireland -15 (*) (D)
 Italy 170 (D) -20
 Luxembourg (D) (D) 1,150
 Netherlands 8,322 217 6,147

 Norway 3 1 8
 Spain 1 0 100
 Sweden (D) (D) 3,434
 Switzerland 232 39 (D)
 United Kingdom 12,378 (D) 6,558
 Other 1,817 (D) 438

Latin America and Other
 Western Hemisphere -461 (D) -36
 South and Central America -254 35 -75
 Brazil -102 -2 65
 Mexico -116 38 (D)
 Panama (D) (*) (D)
 Venezuela -2 -1 1
 Other (D) -1 -2

 Other Western Hemisphere -207 (D) 39
 Bahamas (*) 0 0
 Bermuda (D) (D) 0
 Netherlands Antilles -2 O 4
 United Kingdom Islands,
 Caribbean (D) (D) 43
 Other (*) (D) 0

Africa 2 (*) 10
 South Africa (D) 0 10
 Other (D) (*) 0

Middle East 285 2 (D)
 Israel 291 0 (D)
 Kuwait (*) 2 (D)
 Lebanon 1 0 0
 Saudi Arabia 0 0 0
 United Arab Emirates -7 (*) (D)
 Other 0 0 0

Asia and Pacific 13,807 (D) (D)
 Australia -9 -7 -31
 China -51 23 (D)
 Hong Kong 580 (*) -1
 India (D) (*) 5
 Japan 13,821 693 26,363
 Korea, Republic of (D) (*) (D)
 Malaysia 22 (*) 2
 New Zealand -9 -1 -1
 Singapore -816 -3 8
 Taiwan 65 (D) -34
 Other 4 3 27

Addenda:
 European Union (25) (1) 28,259 1,056 43,750
 OPEC (2) -10 1 (D)

 Manufacturing

 Other Whole- Retail
 manu- sale trade
 facturing trade

 All countries 152,152 230,104 29,686

Canada 7,674 4,192 6,077

Europe 128,593 124,349 16,557
 Austria (D) 401 (D)
 Belgium 766 1,305 (D)
 Denmark 1,960 391 5
 Finland 2,308 2,242 (D)
 France 14,552 13,316 508

 Germany (D) 14,972 2,154
 Ireland (D) 402 (D)
 Italy 13 991 1,512
 Luxembourg 17,436 952 0
 Netherlands 21,596 9,691 (D)

 Norway (D) 556 (*)
 Spain 482 178 (D)
 Sweden 1,128 9,026 (D)
 Switzerland 36,556 7,055 395
 United Kingdom 19,792 62,392 2,707
 Other 3,620 480 (D)

Latin America and Other
 Western Hemisphere 2,407 10,936 1,682
 South and Central America -208 8,202 403
 Brazil -62 (D) (D)
 Mexico -403 1,400 (D)
 Panama -30 35 3
 Venezuela (D) (D) (*)
 Other (D) 187 5

 Other Western Hemisphere 2,614 2,734 1,278
 Bahamas (D) (D) (D)
 Bermuda 582 -856 0
 Netherlands Antilles (D) 354 (D)
 United Kingdom Islands,
 Caribbean 1,575 2,602 886
 Other 294 (D) -4

Africa -71 (D) (D)
 South Africa -5 (D) 0
 Other -66 (D) (D)

Middle East 115 (D) (D)
 Israel (D) 427 (D)
 Kuwait 0 -1 0
 Lebanon (*) (D) 0
 Saudi Arabia (D) (D) 0
 United Arab Emirates (D) (D) (*)
 Other 0 (D) 0

Asia and Pacific 1,344 86,722 (D)
 Australia (D) 1,722 2
 China 3 190 2
 Hong Kong 160 1,009 (D)
 India 3 (D) (*)
 Japan 8,482 76,732 4,965
 Korea, Republic of 89 4,539 (D)
 Malaysia -18 42 0
 New Zealand 1 (D) 0
 Singapore (D) 425 (D)
 Taiwan (D) 1,065 (D)
 Other -2 189 (*)

Addenda:
 European Union (25) (1) 91,405 116,507 16,162
 OPEC (2) (D) (D) (*)

 Informa- Deposi- Finance
 tion tory deposi-
 institu- tory
 tions institu-
 tions) and
 insurance

 All countries 142,556 130,940 207,552

Canada 6,122 15,811 43,735

Europe 109,677 98,544 130,356
 Austria -1 (D) 1
 Belgium -2 (D) 530
 Denmark -1 0 (*)
 Finland 0 (D) (*)
 France 26,202 16,194 28,215

 Germany 29,971 16,445 18,353
 Ireland (D) (D) 1,072
 Italy (D) 1,261 (D)
 Luxembourg 5,256 0 (D)
 Netherlands 12,283 (D) 40,847

 Norway 269 (D) 0
 Spain (D) (D) (D)
 Sweden (D) (D) 353
 Switzerland (D) (D) 19,637
 United Kingdom 17,918 (D) (D)
 Other (D) 818 627

Latin America and Other
 Western Hemisphere 1,316 3,510 15,188
 South and Central America (D) 2,849 (D)
 Brazil 19 479 46
 Mexico (D) 690 (D)
 Panama (D) (D) (D)
 Venezuela -5 (D) 6
 Other 9 610 15

 Other Western Hemisphere (D) 661 (D)
 Bahamas (D) (D) -3
 Bermuda 858 0 -5,932
 Netherlands Antilles (D) (D) (D)
 United Kingdom Islands,
 Caribbean (D) 129 5,749
 Other (D) (D) 4,131

Africa (D) (D) (D)
 South Africa (D) 0 (D)
 Other (D) (D) (*)

Middle East 809 (D) (D)
 Israel 803 1,550 -2
 Kuwait 0 (D) (D)
 Lebanon 0 0 0
 Saudi Arabia 6 (D) 2
 United Arab Emirates (*) (D) 1
 Other 0 (D) 0

Asia and Pacific (D) (D) 18,177
 Australia (D) (D) 2,447
 China (*) (D) (D)
 Hong Kong (D) 364 (D)
 India 72 190 (*)
 Japan 1,880 7,573 14,119
 Korea, Republic of (D) 328 144
 Malaysia 4 (D) 0
 New Zealand 1 0 0
 Singapore 20 286 (D)
 Taiwan (D) 931 9
 Other (D) 183 (D)

Addenda:
 European Union (25) (1) 94,819 100,310 110,680
 OPEC (2) 2 1,267 1

 Real Profes- Other
 estate and sional, industries
 rental and scienti-
 leasing fic, and
 technical
 services

 All countries 41,006 41,879 273,444

Canada 2,818 2,451 32,240

Europe 20,618 37,103 191,557
 Austria 37 (D) 24
 Belgium (D) -1,134 2,128
 Denmark 3 (D) (D)
 Finland (D) (D) -14
 France 399 2,529 10,535

 Germany 6,032 485 24,857
 Ireland -25 (D) 12,369
 Italy 45 (D) 2,085
 Luxembourg 249 (D) 76,770
 Netherlands 2,839 8,611 11,761

 Norway 23 (D) (D)
 Spain (D) (D) 421
 Sweden (D) 152 (D)
 Switzerland 1,708 454 8,254
 United Kingdom 4,849 18,052 28,956
 Other 958 (D) 7,254

Latin America and Other
 Western Hemisphere 6,194 -813 22,550
 South and Central America 762 (D) 5,537
 Brazil (D) -17 590
 Mexico (D) (D) 4,519
 Panama 441 1 504
 Venezuela 9 2 18
 Other 16 -13 -94

 Other Western Hemisphere 5,431 (D) 17,013
 Bahamas 223 -1 (D)
 Bermuda (D) (D) 5,864
 Netherlands Antilles 886 (D) 1,861
 United Kingdom Islands,
 Caribbean 3,283 -121 (D)
 Other (D) -16 455

Africa 266 (D) 945
 South Africa 1 (D) (D)
 Other 265 (*) (D)

Middle East (D) (D) (D)
 Israel 4 (D) 586
 Kuwait (D) 0 (D)
 Lebanon (D) (*) (*)
 Saudi Arabia 58 2 -9
 United Arab Emirates 22 5 (D)
 Other 47 (*) -6

Asia and Pacific (D) 3,050 (D)
 Australia 5,013 327 6,375
 China -3 75 (D)
 Hong Kong 160 -6 119
 India (*) 1,105 (D)
 Japan 4,777 1,492 15,806
 Korea, Republic of 59 2 14
 Malaysia (D) (D) 258
 New Zealand (D) (*) 51
 Singapore (D) 3 876
 Taiwan 59 (D) 215
 Other 17 -8 113

Addenda:
 European Union (25) (1) 18,853 35,339 181,910
 OPEC (2) (D) 8 (D)

(*) Less than $500,000 (+/-).

(D) Suppressed to avoid disclosure of data of individual companies.

(1.) The European Union (25) comprises Austria, Belgium, Cyprus, the
Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the
Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and
the United Kingdom.

(2.) OPEC is the Organization of Petroleum Exporting Countries. Its
members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

NOTE. Estimates for 2005 are preliminary.

Chart 2. USDIA Position by Host Country in 2005

Mexico (3.5%)
Japan (3.6%)
Switzerland (4.0%)
United Kingdom Islands,
 Caribbean (4.1%)
Germany (4.2%)
Bermuda (4.4%)
Australia (5.5%)
Netherlands (8.8%)
Canada (11.3%)
United Kingdom (15.6%)
Other (35.0%)

U.S. Bureau of Economic Analysis

Note: Table made from pie chart.

Chart 4. FDIUS Position by Country of Foreign
Parent in 2005

Luxembourg (7.1%)
Switzerland (7.5%)
France (8.8%)
Canada (8.8%)
Netherlands (10.4%)
Germany (11.3%)
Japan (11.6%)
United Kingdom (17.3%)
Other (17.2%)

Note: Table made from pie graph