Reconciliation of the U.S.-Canadian current account, 2004 and 2005.

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

ON a reconciled basis, the U.S. deficit, or Canadian surplus, is $52.8 billion for 2004 and $67.5 billion for 2005 (chart 1, table 1). (1) The U.S.-published current-account balance with Canada is a U.S. deficit of $43.0 billion for 2004 and a U.S. deficit of $51.5 billion for 2005; the corresponding Canadian-published balance is a Canadian surplus of $51.3 billion for 2004 and a Canadian surplus of $67.0 billion for 2005. (2)

[GRAPHIC 1 OMITTED]

The results of the reconciliation of the bilateral cur rent-account estimates of Canada and the United States for 2004 and 2005 are presented in this article. (3) The details of the current-account reconciliation for 2004 and 2005 are presented in the tables that follow this article. Tables 2.1 and 2.2 show the details of the major types of reconciliation adjustments--definitional, methodological, and statistical--that were made to the major current-account components. Tables 3.1 and 3.2 present the published estimates, the estimates on a common basis (after the estimates have been adjusted for definitional and methodological differences), the reconciled estimates, and the amounts of the adjustments for each major current-account component. Tables 4-7 present the reconciliation details for goods, services, and investment income. (4)

Reconciled Current-Account Balances

In the U.S. current account, the reconciliation adjustments result in an increase of $9.8 billion in the U.S. deficit for 2004 and an increase of $16.0 billion in the U.S. deficit for 2005. For both years, the increases reflect larger upward adjustments to the U.S. southbound estimates than to the U.S. northbound estimates (tables 2.1 and 2.2). (5) For both years, the largest increases in the U.S. southbound estimates result from the addition of Canadian reexports to U.S. goods imports (a definitional adjustment), from statistical adjustments to southbound services, and from the valuation of U.S. natural gas imports to include inland freight (a definitional adjustment). For both years, the largest increases in the U.S. northbound estimates result from upward adjustments to investment income for statistical differences in income on U.S. holdings of Canadian bonds and from adjustments for statistical differences in "other" services.

In the Canadian current account, the reconciliation adjustments result in an increase of $1.5 billion in the Canadian surplus for 2004 and in an increase of $0.5 billion in the Canadian surplus for 2005. For both years, the increases in the Canadian surplus reflect larger downward adjustments to the Canadian northbound estimates than to the Canadian southbound estimates. For both years, the largest downward adjustments to the Canadian southbound estimates are from definitional adjustments to goods, from the elimination of the withholding taxes in current unilateral transfers (definitional adjustment), and from adjustments for statistical differences in affiliated services. In the Canadian northbound estimates, the largest downward adjustments are to eliminate statistical differences in income on U.S. holdings of Canadian bonds, to eliminate statistical differences in affiliated services, and to eliminate withholding taxes from direct investment and "other" investment income (definitional adjustments).

Summary of Reconciliation Methodology

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

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

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

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

Tables 2.1 through 7.2 follow.

Acknowledgments

The reconciliations were carried out under the direction of Denis Caron, Chief, Current Account, at Statistics Canada and Edward Dozier and Renee Sauers, international economists at BEA. At Statistics Canada, Angela Yuan was responsible for the production and coordination of reconciliation tables and for reconciling Canadian goods; Denis Caron was responsible for reconciling Canadian services; Christian Lajule, for Canadian direct investment income; and Barry Mersereau, for Canadian portfolio investment income, with the collaboration and assistance of Heather Collier, Francois Lavoie, Eric Simard and Robert Theberge. At BEA, Mai-Chi Hoang was responsible for reconciling goods; Edward Dozier and Erin Nephew, for services, with the assistance of Matthew Argersinger for financial services; Gregory Fouch, for the accounts related to Canadian direct investment in the United States; Mark New, for the accounts related to U.S. direct investment in Canada; and Kristy Howell, for the portfolio income accounts.

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

(2.) For this year's reconciliation, the U.S. deficit for 2004 is revised up from the previously published deficit of $42.2 billion used in last year's reconciliation, and the Canadian surplus for 2004 is revised down from the previously published surplus of $53.4 billion used in last year's reconciliation.

(3.) The reconciliation of the current account has been undertaken each year since 1970. Summary results of the reconciliations were published in the United States in the following issues of the SURVEY OF CURRENT BUSINESS: June 1975, September 1976 and 1977, December 1978 and 1979, June 1981, and December 1981-91. Complete details of the reconciliations were published in the following issues of the SURVEY: November 1992, each October of 1993-95, and each November of 1996-2005. In Canada, the results were published in the following issues of Canada's Balance of International Payments (catalogue 67-001), a publication of Statistics Canada: Fourth Quarter 1973, Second Quarter 1976 and 1977, Third Quarter 1978 and 1979, First Quarter 1981, and each Third Quarter of 1981-2005.

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

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

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

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

In principle, the bilateral current account of one country should mirror the bilateral current account of the other country. Differences occur in the published estimates of the U.S. and Canadian current accounts because of variations in the definitions, methodologies, and statistical sources that are used by each country. Some of the differences for 2005 are in components of the current account for which data are still preliminary and subject to revision; these differences may be eliminated when final data for these components become available.

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

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

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

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

 Published estimates

 United Canada
 States
2004

 Goods and services -60.4 70.1
 Goods -69.1 77.0
 Services 8.6 -6.9
 Income 17.8 -21.5
 Current unilateral transfers -0.4 2.7
Current account -43.0 51.3

2005

 Goods and services -70.9 82.0
 Goods -81.1 89.8
 Services 10.2 -7.8
 Income 19.4 -18.0
 Current unilateral transfers (*) 3.0
Current account -51.5 67.0

 Reconciled estimates

 United Canada
 States
2004

 Goods and services -72.0 72.4
 Goods -78.7 78.7
 Services 6.3 -6.3
 Income 19.9 -19.9
 Current unilateral transfers -0.3 0.3
Current account 52.8

2005

 Goods and services -86.3 86.3
 Goods -94.0 94.0
 Services 7.7 -7.7
 Income 18.6 -18.6
 Current unilateral transfers 0.2 -0.2
Current account -67.5 67.5

* Less than $500 million (+/-).

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

Table 2.1. Summary of Reconciliation Adjustments, Northbound, 2004
[Millions of U.S. dollars]

 Definitional

 United Canada
 States

Goods, balance-of-payments basis -4 -673
 Definitional adjustments -4 -673
 Reclassification of equipment repairs from
 unaffiliated services ... ...
 Statistical adjustments ... ...

Services -89 -930

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

 Passenger fares

 Other transportation ... -158
 Definitional adjustments ... -158
 Reclassification of transportation services
 from unaffiliated services ... ...
 Statistical adjustments ... ...

 Other services -89 -772

 Affiliated ... -144
 Definitional adjustments ... -144
 Reclassification of film rentals and
 courier services to unaffiliated services ... ...
 Reclassification of selected services from
 unaffiliated services ... ...
 Statistical adjustments ... ...

 Unaffiliated ... -628
 Definitional adjustments ... -628
 Reclassification of transactions to or
 from other accounts ... ...
 Statistical adjustments ... ...

 U.S. military sales -89 ...
 Definitional adjustments -89 ...
 Statistical adjustments ... ...

Income 590 -1,390

 Direct investment -146 -408
 Definitional adjustments -146 -408
 Adjustment of interest income to a net basis ... ...
 Statistical adjustments ... ...

 Other investment 736 -982
 Definitional adjustments 736 -982
 Adjustment of interest income to a net basis ... ...
 Statistical adjustments ... ...

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

Current unilateral transfers ... -466
 Definitional adjustments ... -466
 Adjustment of U.S. transfers to a gross basis ... ...
 Statistical adjustments ... ...

Total adjustments 497 -3,459

 Methodological

 United Canada
 States

Goods, balance-of-payments basis 152 ...
 Definitional adjustments ... ...
 Reclassification of equipment repairs from
 unaffiliated services 152 ...
 Statistical adjustments ... ...

Services -152 -96

 Travel 941 ...
 Reclassification of education from
 unaffiliated services 695 ...
 Reclassification of medical services from
 unaffiliated services 246 ...
 Statistical adjustments ... ...

 Passenger fares

 Other transportation ... 188
 Definitional adjustments ... ...
 Reclassification of transportation services
 from unaffiliated services ... 188
 Statistical adjustments ... ...

 Other services -1,093 -284

 Affiliated -350 -280
 Definitional adjustments ... ...
 Reclassification of film rentals and
 courier services to unaffiliated services -350 ...
 Reclassification of selected services from
 unaffiliated services ... -280
 Statistical adjustments ... ...

 Unaffiliated -743 -4
 Definitional adjustments ... ...
 Reclassification of transactions to or
 from other accounts -743 -4
 Statistical adjustments ... ...

 U.S. military sales ... ...
 Definitional adjustments ... ...
 Statistical adjustments ... ...

Income -519 -606

 Direct investment ... -125
 Definitional adjustments ... ...
 Adjustment of interest income to a net basis ... -125
 Statistical adjustments ... ...

 Other investment -519 -586
 Definitional adjustments ... ...
 Adjustment of interest income to a net basis -519 -586
 Statistical adjustments ... ...

 Compensation of employees ... 105
 Reclassification from unaffiliated services ... 105

Current unilateral transfers 947 ...
 Definitional adjustments ... ...
 Adjustment of U.S. transfers to a gross basis 947 ...
 Statistical adjustments ... ...

Total adjustments 428 -702

 Statistical

 United Canada
 States

Goods, balance-of-payments basis 980 -699
 Definitional adjustments ... ...
 Reclassification of equipment repairs from
 unaffiliated services ... ...
 Statistical adjustments 980 -699

Services 1,397 -1,679

 Travel -140 -74
 Reclassification of education from
 unaffiliated services ... ...
 Reclassification of medical services from
 unaffiliated services ... ...
 Statistical adjustments -140 -74

 Passenger fares -666 ...

 Other transportation -29 -44
 Definitional adjustments ... ...
 Reclassification of transportation services
 from unaffiliated services ... ...
 Statistical adjustments -29 -44

 Other services 2,232 -1,561

 Affiliated 1,252 -2,207
 Definitional adjustments ... ...
 Reclassification of film rentals and
 courier services to unaffiliated services ... ...
 Reclassification of selected services from
 unaffiliated services ... ...
 Statistical adjustments 1,252 -2,207

 Unaffiliated 980 605
 Definitional adjustments ... ...
 Reclassification of transactions to or
 from other accounts ... ...
 Statistical adjustments 980 605

 U.S. military sales ... 41
 Definitional adjustments ... ...
 Statistical adjustments ... 41

Income 144 2,609

 Direct investment -2,909 4,955
 Definitional adjustments ... ...
 Adjustment of interest income to a net basis ... ...
 Statistical adjustments -2,909 4,955

 Other investment 3,053 -2,351
 Definitional adjustments ... ...
 Adjustment of interest income to a net basis ... ...
 Statistical adjustments 3,053 -2,351

 Compensation of employees ... 5
 Reclassification from unaffiliated services ... 5

Current unilateral transfers -56 515
 Definitional adjustments ... ...
 Adjustment of U.S. transfers to a gross basis ... ...
 Statistical adjustments -56 515

Total adjustments 2,465 746

 Total

 United Canada
 States

Goods, balance-of-payments basis 1,128 -1,372
 Definitional adjustments -4 -673
 Reclassification of equipment repairs from
 unaffiliated services 152 ...
 Statistical adjustments 980 -699

Services 1,156 -2,705

 Travel 801 -74
 Reclassification of education from
 unaffiliated services 695 ...
 Reclassification of medical services from
 unaffiliated services 246 ...
 Statistical adjustments -140 -74

 Passenger fares -666 ...

 Other transportation -29 -14
 Definitional adjustments ... -158
 Reclassification of transportation services
 from unaffiliated services ... 188
 Statistical adjustments -29 -44

 Other services 1,050 -2,617

 Affiliated 902 -2,631
 Definitional adjustments ... -144
 Reclassification of film rentals and
 courier services to unaffiliated services -350 ...
 Reclassification of selected services from
 unaffiliated services ... 280
 Statistical adjustments 1,252 -2,207

 Unaffiliated 237 -27
 Definitional adjustments ... -628
 Reclassification of transactions to or
 from other accounts -743 ...
 Statistical adjustments 980 605

 U.S. military sales -89 41
 Definitional adjustments -89 ...
 Statistical adjustments ... 41

Income 215 613

 Direct investment -3,055 4,422
 Definitional adjustments -146 -408
 Adjustment of interest income to a net basis ... -125
 Statistical adjustments -2,909 4,955

 Other investment 3,270 -3,919
 Definitional adjustments 736 -982
 Adjustment of interest income to a net basis -519 -586
 Statistical adjustments 3,053 -2,351

 Compensation of employees ... 110
 Reclassification from unaffiliated services ... 110

Current unilateral transfers 891 49
 Definitional adjustments ... -466
 Adjustment of U.S. transfers to a gross basis 947 ...
 Statistical adjustments -56 515

Total adjustments 3,390 -3,415

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

 Definitional

 United
 States Canada

Goods, balance-of-payments basis -79 -902
 Definitional adjustments -79 -902
 Reclassification of equipment repairs from
 unaffiliated services ... ...
 Statistical adjustments ... ...

Services -116 -1,003

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

 Passenger fares ... ...

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

 Other services -116 -860

 Affiliated ... -150
 Definitional adjustments ... -150
 Reclassification of film rentals and
 courier services to unaffiliated services ... ...
 Reclassification of selected services from
 unaffiliated services ... ...
 Statistical adjustments ... ...

 Unaffiliated ... -710
 Definitional adjustments ... -710
 Reclassification of transactions to or
 from other accounts ... ...
 Statistical adjustments ... ...

 U.S. military sales -116 ...
 Definitional adjustments -116 ...
 Statistical adjustments ... ...

Income 557 -2,623

 Direct investment -305 -1,408
 Definitional adjustments -305 -1,408
 Adjustment of interest income to a net basis ... ...
 Statistical adjustments ... ...

 Other investment 862 -1,215
 Definitional adjustments 862 -1,215
 Adjustment of interest income to a net basis ... ...
 Statistical adjustments ... ...

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

Current unilateral transfers ... -588
 Definitional adjustments ... -588
 Adjustment of U.S. transfers to a gross basis ... ...
 Statistical adjustments ... ...

Total adjustments 362 -5,116

 Methodological

 United
 States Canada

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

Services -197 -108

 Travel 1,003 ...
 Reclassification of education from
 unaffiliated services 739 ...
 Reclassification of medical services from
 unaffiliated services 264 ...
 Statistical adjustments ... ...

 Passenger fares ... ...

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

 Other services -1,200 -284

 Affiliated -434 -320
 Definitional adjustments ... ...
 Reclassification of film rentals and
 courier services to unaffiliated services -434 ...
 Reclassification of selected services from
 unaffiliated services ... -320
 Statistical adjustments ... ...

 Unaffiliated -766 36
 Definitional adjustments ... ...
 Reclassification of transactions to or
 from other accounts -766 36
 Statistical adjustments ... ...

 U.S. military sales ... ...
 Definitional adjustments ... ...
 Statistical adjustments ... ...

Income -1,016 -1,149

 Direct investment ... -141
 Definitional adjustments ... ...
 Adjustment of interest income to a net basis ... -141
 Statistical adjustments ... ...

 Other investment -1,016 -1,126
 Definitional adjustments ... ...
 Adjustment of interest income to a net basis -1,016 -1,126
 Statistical adjustments ... ...

 Compensation of employees ... 118
 Reclassification from unaffiliated services ... 118

Current unilateral transfers 1,366 ...
 Definitional adjustments ... ...
 Adjustment of U.S. transfers to a gross basis 1,366 ...
 Statistical adjustments ... ...

Total adjustments 350 -1,257

 Statistical

 United
 States Canada

Goods, balance-of-payments basis 376 -826
 Definitional adjustments ... ...
 Reclassification of equipment repairs from
 unaffiliated services ... ...
 Statistical adjustments 376 -826

Services 1,695 -973

 Travel 158 -135
 Reclassification of education from
 unaffiliated services ... ...
 Reclassification of medical services from
 unaffiliated services ... ...
 Statistical adjustments 158 -135

 Passenger fares -147 ...

 Other transportation -67 33
 Definitional adjustments ... ...
 Reclassification of transportation services
 from unaffiliated services ... ...
 Statistical adjustments -67 33

 Other services 1,751 -871

 Affiliated 722 -1,624
 Definitional adjustments ... ...
 Reclassification of film rentals and
 courier services to unaffiliated services ... ...
 Reclassification of selected services from
 unaffiliated services ... ...
 Statistical adjustments 722 -1,624

 Unaffiliated 1,029 707
 Definitional adjustments ... ...
 Reclassification of transactions to or
 from other accounts 1,029 ...
 Statistical adjustments ... 707

 U.S. military sales ... 46
 Definitional adjustments ... ...
 Statistical adjustments ... 46

Income 556 4,445

 Direct investment -1,101 6,147
 Definitional adjustments ... ...
 Adjustment of interest income to a net basis ... ...
 Statistical adjustments -1,101 6,147

 Other investment 1,657 -1,704
 Definitional adjustments ... ...
 Adjustment of interest income to a net basis ... ...
 Statistical adjustments 1,657 -1,704

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

Current unilateral transfers -18 859
 Definitional adjustments ... ...
 Adjustment of U.S. transfers to a gross basis ... ...
 Statistical adjustments -18 859

Total adjustments 2,609 3,505

 Total

 United
 States Canada

Goods, balance-of-payments basis 494 -1,728
 Definitional adjustments -79 -902
 Reclassification of equipment repairs from
 unaffiliated services 197 ...
 Statistical adjustments 376 -826

Services 1,382 -2,084

 Travel 1,161 -135
 Reclassification of education from
 unaffiliated services 739 ...
 Reclassification of medical services from
 unaffiliated services 264 ...
 Statistical adjustments 158 -135

 Passenger fares -147 ...

 Other transportation -67 66
 Definitional adjustments ... -143
 Reclassification of transportation services
 from unaffiliated services ... 176
 Statistical adjustments -67 33

 Other services 435 -2,015

 Affiliated 722 -2,094
 Definitional adjustments ... -150
 Reclassification of film rentals and
 courier services to unaffiliated services -434 ...
 Reclassification of selected services from
 unaffiliated services ... -320
 Statistical adjustments 722 -1,624

 Unaffiliated 263 33
 Definitional adjustments ... -710
 Reclassification of transactions to or
 from other accounts -766 36
 Statistical adjustments 1,029 707

 U.S. military sales -166 46
 Definitional adjustments -166 ...
 Statistical adjustments ... 46

Income 97 673

 Direct investment -1,406 4,598
 Definitional adjustments -305 -1,408
 Adjustment of interest income to a net basis ... -141
 Statistical adjustments -1,101 6,147

 Other investment 1,503 -4,045
 Definitional adjustments 862 -1,215
 Adjustment of interest income to a net basis -1,016 -1,126
 Statistical adjustments 1,657 -1,704

 Compensation of employees ... 120
 Reclassification from unaffiliated services ... 120

Current unilateral transfers 1,348 271
 Definitional adjustments ... -588
 Adjustment of U.S. transfers to a gross basis 1,366 ...
 Statistical adjustments -18 859

Total adjustments 3,321 -2,868

Table 2.2. Summary of Reconciliation Adjustments, Southbound, 2004
[Millions of U.S. dollars]

 Definitional Methodological

 United United
 Canada States Canada States

Goods, balance-of-payments basis -1,728 10,629 ... 32
 Canadian reexports to the
 United States ... 7,091 ... ...
 Inland freight adjustment 2,627 2,964 ... ...
 Other definitional adjustments 4,355 574 ... ...
 Reclassification of equipment
 repairs from unaffiliated
 services ... ... ... 32
 Statistical adjustments ... ... ... ...

Services -582 -20 -303 -32

 Travel ... ... ... 142
 Reclassification of education
 from unaffiliated services ... ... ... 78
 Reclassification of medical
 services from unaffiliated
 services ... ... ... 64
 Statistical adjustments ... ... ... ...

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

 Other transportation -94 ... 64 -207
 Definitional adjustments -94 ... ... ...
 Reclassification of courier
 services to unaffiliated
 services ... ... ... -207
 Reclassification of
 transportation services
 from unaffiliated services ... ... 64 ...
 Statistical adjustments ... ... ... ...

 Other services 488 -20 -367 33

 Affiliated -44 ... 136 -56
 Definitional adjustments 44 ... ... ...
 Reclassification of
 selected services to or
 from unaffiliated
 services ... ... 136 -56
 Statistical adjustments ... ... ... ...

 Unaffiliated -444 ... -503 89
 Definitional adjustments -444 ... ... ...
 Reclassification of
 transactions to or from
 other accounts ... ... -503 89
 Statistical adjustments ... ... ... ...

 U.S. defense expenditures ... -20 ... ...
 Definitional adjustments ... -20 ... ...
 Statistical adjustments ... ... ...

Income -195 -152 444 -519

 Direct investment -89 -152 -125 ...
 Definitional adjustments -89 -152 ... ...
 Adjustment of interest income
 to a net basis ... ... -125 ...
 Statistical adjustments ... ... ... ...

 Other investment -106 ... -586 -519
 Definitional adjustments -106 ... ... ...
 Adjustment of interest income
 to a net basis ... ... -586 -519
 Statistical adjustments ... ... ... ...

 Compensation of employees ... ... 267 ...
 Reclassification from
 unaffiliated services ... ... 267 ...
 Statistical adjustments ... ... ... ...

Current unilateral transfers -2,443 ... 45 947
 Definitional adjustments -2,443 ... ... ...
 Reclassification from
 unaffiliated services ... ... 45 ...
 Adjustment of U.S. transfers
 to a gross basis ... ... ... 947
 Statistical adjustments ... ... ... ...

 Total adjustments 4,948 10,457 -702 428

 Statistical Total

 United United
 Canada States Canada States

Goods, balance-of-payments basis 2,008 81 280 10,742
 Canadian reexports to the
 United States ... ... ... 7,091
 Inland freight adjustment ... ... 2,627 2,964
 Other definitional adjustments ... ... 4,355 574
 Reclassification of equipment
 repairs from unaffiliated
 services ... ... ... 32
 Statistical adjustments 2,008 81 2,008 81

Services -1,182 3,552 -2,067 3,500

 Travel ... 145 ... 287
 Reclassification of education
 from unaffiliated services ... ... ... 78
 Reclassification of medical
 services from unaffiliated
 services ... ... ... 64
 Statistical adjustments ... 145 ... 145

 Passenger fares ... -22 ... -22

 Other transportation 107 -88 77 -295
 Definitional adjustments ... ... -94 ...
 Reclassification of courier
 services to unaffiliated
 services ... ... ... -207
 Reclassification of
 transportation services
 from unaffiliated services ... ... 64 ...
 Statistical adjustments 107 -88 107 -88

 Other services -1,289 3,517 -2,144 3,530

 Affiliated -1,564 1,457 -1,472 1,401
 Definitional adjustments ... ... -44 ...
 Reclassification of
 selected services to or
 from unaffiliated
 services ... ... 136 -56
 Statistical adjustments -1,564 1,457 -1,564 1,457

 Unaffiliated 274 2,060 -673 2,149
 Definitional adjustments ... ... -444 ...
 Reclassification of
 transactions to or from
 other accounts ... ... -503 89
 Statistical adjustments 274 2,060 274 2,060

 U.S. defense expenditures 1 ... 1 -20
 Definitional adjustments ... ... ... -20
 Statistical adjustments 1 ... 1 ...

Income 2,830 -1,234 2,191 -1,905

 Direct investment 1,479 -512 1,265 -664
 Definitional adjustments ... ... -89 -152
 Adjustment of interest income
 to a net basis ... ... -125 ...
 Statistical adjustments 1,479 -512 1,479 -512

 Other investment 1,234 -722 542 -1,241
 Definitional adjustments ... ... -106 ...
 Adjustment of interest income
 to a net basis ... ... -586 -519
 Statistical adjustments 1,234 -722 1,234 -722

 Compensation of employees 117 ... 384 ...
 Reclassification from
 unaffiliated services ... ... 267 ...
 Statistical adjustments 117 ... 117 ...

Current unilateral transfers 109 -79 -2,289 868
 Definitional adjustments ... ... -2,443 ...
 Reclassification from
 unaffiliated services ... ... 45 ...
 Adjustment of U.S. transfers
 to a gross basis ... ... ... 947
 Statistical adjustments 109 -79 109 -79

 Total adjustments 3,765 2,320 -1,885 13,205

Table 2.2. Summary of Reconciliation Adjustments, Southbound, 2005
[Millions of U.S. dollars]

 Definitional Methodological

 United United
 Canada States Canada States

Goods, balance-of-payments basis -2,221 13,239 ... 20
 Canadian reexports to the
 United States ... 8,776 ... ...
 Inland freight adjustment 3,604 3,949 ... ...
 Other definitional adjustments -5,825 514 ... ...
 Reclassification of equipment
 repairs from unaffiliated
 services ... ... ... 20
 Statistical adjustments ... ... ... ...

Services -746 -20 -329 -20

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

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

 Other transportation -123 ... 116 -219
 Definitional adjustments -123 ... ... ...
 Reclassification of courier
 services to unaffiliated
 services ... ... ... -219
 Reclassification of
 transportation services
 from unaffiliated services ... ... 116 ...
 Statistical adjustments ... ... ... ...

 Other services -623 -20 -445 38

 Affiliated -46 ... 124 -77
 Definitional adjustments -46 ... ... ...
 Reclassification of
 selected services to or
 from unaffiliated
 services ... ... 124 -77
 Statistical adjustments ... ... ... ...

 Unaffiliated -577 ... -569 115
 Definitional adjustments -577 ... ... ...
 Reclassification of
 transactions to or from
 other accounts ... ... -569 115
 Statistical adjustments ... ... ... ...

 U.S. defense expenditures ... -20 ... ...
 Definitional adjustments ... -20 ... ...
 Statistical adjustments ... ... ... ...

Income -784 -79 -945 -1,016

 Direct investment -255 -79 -141 ...
 Definitional adjustments -255 -79 ... ...
 Adjustment of interest income
 to a net basis ... ... -141 ...
 Statistical adjustments ... ... ... ...

 Other investment -529 ... -1,126 -1,016
 Definitional adjustments -529 ... ... ...
 Adjustment of interest income
 to a net basis ... ... -1,126 -1,016
 Statistical adjustments ... ... ... ...

 Compensation of employees ... ... 322 ...
 Reclassification from
 unaffiliated services ... ... 322 ...
 Statistical adjustments ... ... ... ...

 Current unilateral transfers -2,761 ... 17 1,366
 Definitional adjustments -2,761 ... ... ...
 Reclassification from
 unaffiliated services ... ... 17 ...
 Adjustment of U.S. transfers
 to a gross basis ... ... ... 1,366
 Statistical adjustments ... ... ... ...

 Total adjustments -6,512 13,140 -1,257 350

 Statistical Total

 United United
 Canada States Canada States

Goods, balance-of-payments basis 4,664 77 2,443 13,336
 Canadian reexports to the
 United States ... ... ... 8,776
 Inland freight adjustment ... ... 3,604 3,949
 Other definitional adjustments ... ... -5,825 514
 Reclassification of equipment
 repairs from unaffiliated
 services ... ... ... 20
 Statistical adjustments 4,664 77 4,664 77

Services -909 3,965 -1,984 3,925

 Travel ... 267 ... 428
 Reclassification of education ... ... ... 90
 from unaffiliated services
 Reclassification of medical ... ... ... 71
 services from unaffiliated
 services
 Statistical adjustments ... 267 ... 267

 Passenger fares ... 10 ... 10

 Other transportation -38 -9 -45 -228
 Definitional adjustments ... ... -123 ...
 Reclassification of courier
 services to unaffiliated
 services ... ... ... -219
 Reclassification of
 transportation services
 from unaffiliated services ... ... 116 ...
 Statistical adjustments -38 -9 -38 -9

 Other services -871 3,697 -1,939 3,715

 Affiliated -1,204 1,243 -1,126 1,166
 Definitional adjustments ... ... -46 ...
 Reclassification of
 selected services to or
 from unaffiliated
 services ... ... 124 -77
 Statistical adjustments -1,204 1,243 -1,204 1,243

 Unaffiliated 334 2,454 -812 2,569
 Definitional adjustments ... ... -577 ...
 Reclassification of
 transactions to or from
 other accounts ... ... -569 115
 Statistical adjustments 334 2,454 334 2,454

 U.S. defense expenditures -1 ... -1 -20
 Definitional adjustments ... ... ... -20
 Statistical adjustments -1 ... -1 ...

Income 1,784 1,977 55 882

 Direct investment 986 2,138 590 2,059
 Definitional adjustments ... ... 255 -79
 Adjustment of interest income
 to a net basis ... ... -141 ...
 Statistical adjustments 986 2,138 986 2,138

 Other investment 689 -161 -966 -1,177
 Definitional adjustments ... ... -529 ...
 Adjustment of interest income
 to a net basis ... ... -1,126 -1,016
 Statistical adjustments 689 -161 689 -161

 Compensation of employees 109 ... 431 ...
 Reclassification from
 unaffiliated services ... ... 322 ...
 Statistical adjustments 109 ... 109 ...

 Current unilateral transfers -121 -153 -2,865 1,213
 Definitional adjustments ... ... -2,761 ...
 Reclassification from
 unaffiliated services ... ... 17 ...
 Adjustment of U.S. transfers
 to a gross basis ... ... ... 1,366
 Statistical adjustments -121 -153 -121 -153

 Total adjustments 5,418 5,866 -2,351 19,356

Table 3.1. U.S. Canadian Current-Account Reconciliation, Northbound
[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian
 receipts payments Difference

 2004

Goods and services 219,683 226,044 -6,361
 Goods, balance-of-payments basis 189,982 192,482 -2,500
 Services 29,701 33,562 -3,861
 Travel 7,996 8,871 -875
 Passenger fares 2,499 1,833 666
 Other transportation 2,787 2,772 15
 Other services 16,419 20,086 -3,667

Income 32,358 31,960 398
 Investment income 32,248 31,960 288
 Direct investment 22,127 14,650 7,477
 Other investment 101,211 17,310 -7,189
 Compensation of employees 110 (1) 110
Current unilateral transfers (2) 842 -842

 Current account, northbound 252,041 258,846 -6,805

 2005 244,964 250,652 -5,688

Goods and services
 Goods, balance-of-payments basis 212,192 214,414 -2,222
 Services 32,772 36,238 -3,466
 Travel 8,952 10,248 -1,296
 Passenger fares 2,634 2,487 147
 Other transportation 3,031 2,898 133
 Other services 18,155 20,605 -2,450

Income 35,885 35,309 576
 Investment income 35,765 35,309 456
 Direct investment 22,564 16,560 6,004
 Other investment 13,201 18,749 -5,548
 Compensation of employees 120 (1) 120

Current unilateral transfers (2) 1,077 -1,077

 Current account, northbound 280,849 287,038 -6,189

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian
 receipts payments Difference

 2004

Goods and services 219,590 224,345 -4,755
 Goods, balance-of-payments basis 190,130 191,809 -1,679
 Services 29,460 32,536 -3,076
 Travel 8,937 8,871 66
 Passenger fares 2,499 1,833 666
 Other transportation 2,787 2,802 -15
 Other services 15,237 19,030 -3,793

Income 32,429 29,964 2,465
 Investment income 32,319 29,859 2,460
 Direct investment 21,981 14,117 7,864
 Other investment 10,338 15,742 -5,404
 Compensation of employees 110 105 5
Current unilateral transfers 947 376 571

 Current account, northbound 252,966 254,685 -1,719

 2005

Goods and services 244,769 248,639 -3,870
 Goods, balance-of-payments basis 212,310 213,512 -1,202
 Services 32,459 35,127 -2,668
 Travel 9,955 10,248 -293
 Passenger fares 2,634 2,487 147
 Other transportation 3,031 2,931 100
 Other services 16,839 19,461 -2,622

Income 35,426 31,537 3,889
 Investment income 35,306 31,419 3,887
 Direct investment 22,259 15,011 7,248
 Other investment 13,047 16,408 -3,361
 Compensation of employees 120 118 2

Current unilateral transfers 1,366 489 877

 Current account, northbound 281,561 280,665 896

 Reconciled
 estimates, including
 statistical adjustments

 U.S. Canadian
 receipts payments

 2004

Goods and services 221,967 221,967
 Goods, balance-of-payments basis 191,110 191,110
 Services 30,857 30,857
 Travel 8,797 8,797
 Passenger fares 1,833 1,833
 Other transportation 2,758 2,758
 Other services 17,469 17,469

Income 32,573 32,573
 Investment income 32,463 32,463
 Direct investment 19,072 19,072
 Other investment 13,391 13,391
 Compensation of employees 110 110
Current unilateral transfers 891 891

 Current account, northbound 255,431 255,431

 2005

Goods and services 246,840 246,840
 Goods, balance-of-payments basis 212,686 212,686
 Services 34,154 34,154
 Travel 10,113 10,113
 Passenger fares 2,487 2,487
 Other transportation 2,964 2,964
 Other services 18,590 18,590

Income 35,982 35,982
 Investment income 35,862 35,862
 Direct investment 21,158 21,158
 Other investment 14,704 14,704
 Compensation of employees 120 120

Current unilateral transfers 1,348 1,348

 Current account, northbound 284,170 284,170

 Total adjustments
 to published estimates

 United Canada
 States

 2004

Goods and services 2,284 -4,077
 Goods, balance-of-payments basis 1,128 -1,372
 Services 1,156 -2,705
 Travel 801 -74
 Passenger fares -666 ...
 Other transportation -29 -14
 Other services 1,050 -2,617

Income 215 613
 Investment income 215 503
 Direct investment -3,055 4,422
 Other investment 3,270 -3,919
 Compensation of employees ... 110
Current unilateral transfers 891 49

 Current account, northbound 3,390 -3,415

 2005

Goods and services 1,876 -3,812
 Goods, balance-of-payments basis 494 -1,728
 Services 1,382 -2,084
 Travel 1,161 -135
 Passenger fares -147 ...
 Other transportation -67 66
 Other services 435 -2,015

Income 97 673
 Investment income 97 553
 Direct investment -1,406 4,598
 Other investment 1,503 -4,045
 Compensation of employees ... 120

Current unilateral transfers 1,348 271

 Current account, northbound 3,321 -2,868

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

(2.) Current unilateral transfers are published on a net basis
in the U.S. accounts and appear as net payments in table 3.2.

Table 3.2. U.S. Canadian Current-Account Reconciliation, Southbound
[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian
 receipts payments Difference

 2004

Goods and services 296,135 280,106 16,029
 Goods, balance-of-payments basis 269,497 259,035 10,462
 Services 26,638 21,071 5,567
 Travel 7,580 7,293 287
 Passenger fares 442 464 -22
 Other transportation 3,677 4,049 -372
 Other services 14,939 9,265 5,674

 Income 10,495 14,591 -4,096
 Investment income 10,495 14,207 -3,712
 Direct investment 4,942 6,871 -1,929
 Other investment 5,553 7,336 -1,783
 Other private investment 4,581 6,319 -1,738
 U.S. Government liabilities 972 1,017 -45
 Compensation of employees (1) 384 -384
Current unilateral transfers 3,520 363 3,157

 Current account, southbound 310,150 295,060 15,090

 2005

Goods and services 332,665 315,863 16,802
 Goods, balance-of-payments basis 304,207 293,314 10,893
 Services 28,458 22,549 5,909
 Travel 7,430 7,002 428
 Passenger fares 358 348 10
 Other transportation 4,204 4,387 -183
 Other services 16,466 10,812 5,654

Income 17,325 16,498 827
 Investment income 17,325 16,067 1,258
 Direct investment 8,759 7,290 1,469
 Other investment 8,566 8,777 -211
 Other private investment 7,139 7,618 -479
 U.S. Government liabilities 1,427 1,159 268
 Compensation of employees (1) 431 -431

Current unilateral transfers 4,052 -26 4,078

 Current account, southbound 354,042 332,335 21,707

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian
 receipts payments Difference

 2004

Goods and services 293,522 290,715 2,807
 Goods, balance-of-payments basis 267,769 269,696 -1,927
 Services 25,753 21,019 4,734
 Travel 7,580 7,435 145
 Passenger fares 442 464 -22
 Other transportation 3,647 3,842 -195
 Other services 14,084 9,278 4,806

 Income 9,856 13,920 -4,064
 Investment income 9,589 13,536 -3,947
 Direct investment 4,728 6,719 -1,991
 Other investment 4,861 6,817 -1,956
 Other private investment 3,928 5,800 -1,872
 U.S. Government liabilities 933 1,017 -84
 Compensation of employees 267 384 -117
Current unilateral transfers 1,122 1,310 -188

 Current account, southbound 304,500 305,945 -1,445

 2005

Goods and services 329,369 329,082 287
 Goods, balance-of-payments basis 301,986 306,573 -4,587
 Services 27,383 22,509 4,874
 Travel 7,430 7,163 267
 Passenger fares 358 348 10
 Other transportation 4,197 4,168 29
 Other services 15,398 10,830 4,568

Income 15,596 15,403 193
 Investment income 15,274 14,972 302
 Direct investment 8,363 7,211 1,152
 Other investment 6,911 7,761 -850
 Other private investment 5,566 6,602 -1,036
 U.S. Government liabilities 1,345 1,159 186
 Compensation of employees 322 431 -109

Current unilateral transfers 1,308 1,340 -32

 Current account, southbound 346,273 345,825 448

 Reconciled
 estimates, including
 statistical adjustments

 U.S. Canadian
 receipts payments

 2004

Goods and services 294,348 294,348
 Goods, balance-of-payments basis 269,777 269,777
 Services 24,571 24,571
 Travel 7,580 7,580
 Passenger fares 442 442
 Other transportation 3,754 3,754
 Other services 12,795 12,795

 Income 12,686 12,686
 Investment income 12,302 12,302
 Direct investment 6,207 6,207
 Other investment 6,095 6,095
 Other private investment 5,119 5,119
 U.S. Government liabilities 976 976
 Compensation of employees 384 384
Current unilateral transfers 1,231 1,231

 Current account, southbound 308,265 308,265

 2005

Goods and services 333,124 333,124
 Goods, balance-of-payments basis 306,650 306,650
 Services 26,474 26,474
 Travel 7,430 7,430
 Passenger fares 358 358
 Other transportation 4,159 4,159
 Other services 14,527 14,527

Income 17,380 17,380
 Investment income 16,949 16,949
 Direct investment 9,349 9,349
 Other investment 7,600 7,600
 Other private investment 6,348 6,348
 U.S. Government liabilities 1,252 1,252
 Compensation of employees 431 431

Current unilateral transfers 1,187 1,187

 Current account, southbound 351,691 351,691

 Total adjustments
 to published estimates

 United Canada
 States

 2004

Goods and services -1,787 14,242
 Goods, balance-of-payments basis 280 10,742
 Services -2,067 3,500
 Travel ... 287
 Passenger fares ... -22
 Other transportation 77 -295
 Other services -2,144 3,530

 Income 2,191 -1,905
 Investment income 1,807 -1,905
 Direct investment 1,265 -664
 Other investment 542 -1,241
 Other private investment 538 -1,200
 U.S. Government liabilities 4 -41
 Compensation of employees 384 ...
Current unilateral transfers -2,289 868

 Current account, southbound -1,885 13,205

 2005

Goods and services 459 17,261
 Goods, balance-of-payments basis 2,443 13,336
 Services -1,984 3,925
 Travel ... 428
 Passenger fares ... 10
 Other transportation -45 -228
 Other services -1,939 3,715

Income 55 882
 Investment income -376 882
 Direct investment 590 2,059
 Other investment -966 -1,177
 Other private investment -791 -1,270
 U.S. Government liabilities -175 93
 Compensation of employees 431 ...

Current unilateral transfers -2,865 1,213

 Current account, southbound -2,351 19,356

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

Table 4.1. Trade in Goods, Northbound
[Millions of US dollars]

 U.S. Canadian
 receipts payments

 2004

Balance-of-payments basis, published 189,982 192,482

 Definitional and methodological adjustments:
 Definitional adjustments -4 -673
 Reclassification of equipment repairs from
 unaffiliated services 152 ...

 Common basis after definitional and
 methodological adjustments 190,130 191,809

 Statistical adjustments 980 -699

Reconciled, including statistical adjustments 191,110 191,110

 2005

Balance-of-payments basis, published 212,192 214,414

 Definitional and methodological adjustments:
 Definitional adjustments -79 -902
 Reclassification of equipment repairs from
 unaffiliated services 197 ...

 Common basis after definitional and
 methodological adjustments 212,310 213,512

 Statistical adjustments 376 -826

Reconciled, including statistical adjustments 212,686 212,686

Table 4.2. Trade in Goods, Southbound
[Millions of U.S. dollars]

 Canadian U.S.
 receipts payments

 2004

Balance-of-Payments basis, published 269,497 259,035

 Definitional and methodological adjustments:
 Canadian reexports to the United States ... 7,091
 Inland freight adjustment 2,627 2,964
 Other definitional adjustments -4,355 574
 Reclassification of equipment repairs from
 unaffiliated services ... 32

 Common basis after definitional and
 methodological adjustments 267,769 269,696

 Statistical adjustments 2,008 81

Reconciled, including statistical adjustments 269,777 269,777

 2005

Balance-of-payments basis, published 304,207 293,314

 Definitional and methodological adjustments:
 Canadian reexports to the United States ... 8,776
 Inland freight adjustment 3,604 3,949
 Other definitional adjustments -5,825 514
 Reclassification of equipment repairs from
 unaffiliated services ... 20

 Common basis after definitional and
 methodological adjustments 301,986 306,573

 Statistical adjustments 4,664 77

Reconciled, including statistical adjustments 306,650 306,650

Table 5.1. Travel, Passenger Fares, and Other Transportation,
Northbound [Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Difference
 receipts payments

 2004

Travel 7,996 8,871 -875
 Business and personal 7,996 7,856 140
 Education ... 769 -769
 Medical ... 246 -246

Passenger fares 2,499 1,833 666

Other transportation 2,787 2,772 15

 Freight 2,160 2,318 -158
 Ocean 204 429 -225
 Air 115 42 73
 Truck 1,429 1,429 ...
 Other 412 418 -6

 Port services 627 400 227
 Vessel operators 86 46 40
 Airline operators 328 329 -1
 Other 213 25 188

 Other ... 54 -54

 2005

Travel 8,952 10,248 -1,296
 Business and personal 8,952 9,110 -158
 Education ... 875 -875
 Medical ... 263 -263

Passenger fares 2,634 2,487 147

Other transportation 3,031 2,898 133

 Freight 2,284 2,361 -77
 Ocean 178 390 -212
 Air 136 40 96
 Truck 1,534 1,533 1
 Other 436 398 38

 Port services 747 487 260
 Vessel operators 100 42 58
 Airline operators 447 421 26
 Other 200 24 176

Other ... 50 -50

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian Difference
 receipts payments

 2004

Travel 8,937 8,871 66
 Business and personal 7,996 7,856 140
 Education 695 769 -74
 Medical 246 246 ...

Passenger fares 2,499 1,833 666

Other transportation 2,787 2,802 -15

 Freight 2,156 2,160 -4
 Ocean 200 271 -71
 Air 115 42 73
 Truck 1,429 1,429 ...
 Other 412 418 -6

 Port services 627 588 39
 Vessel operators 86 46 40
 Airline operators 328 329 -1
 Other 213 213 ...

 Other 4 54 -50

 2005

Travel 9,955 10,248 -293
 Business and personal 8,952 9,110 -158
 Education 739 875 -136
 Medical 264 263 1

Passenger fares 2,634 2,487 147

Other transportation 3,031 2,931 100

 Freight 2,280 2,218 62
 Ocean 174 247 -73
 Air 136 40 96
 Truck 1,534 1,533 1
 Other 436 398 38

 Port services 747 663 84
 Vessel operators 100 42 58
 Airline operators 447 421 26
 Other 200 200 ...

Other 4 50 -46

 Reconciled
 estimates, including
 statistical adjustments

 U.S. Canadian
 receipts payments

 2004

Travel 8,797 8,797
 Business and personal 7,856 7,856
 Education 695 695
 Medical 246 246

Passenger fares 1,833 1,833

Other transportation 2,758 2,758

 Freight 2,117 2,117
 Ocean 236 236
 Air 36 36
 Truck 1,429 1,429
 Other 416 416

 Port services 587 587
 Vessel operators 46 46
 Airline operators 328 328
 Other 213 213

 Other 54 54

 2005

Travel 10,113 10,113
 Business and personal 9,110 9,110
 Education 739 739
 Medical 264 264

Passenger fares 2,487 2,487

Other transportation 2,964 2,964

 Freight 2,275 2,275
 Ocean 260 260
 Air 33 33
 Truck 1,534 1,534
 Other 448 448

 Port services 630 630
 Vessel operators 73 73
 Airline operators 358 358
 Other 199 199

Other 59 59

 Total adjustments to published estimates

 United Canada Type of adjustment
 States

 2004

Travel 801 -74
 Business and personal -140 ... Statistical
 Education 695 -74 Methodological and
 statistical
 Medical 246 ... Methodological

Passenger fares -666 ... Statistical

Other transportation -29 -14

 Freight -43 -201
 Ocean 32 -193 Definitional,
 methodological, and
 statistical
 Air -79 -6 Statistical
 Truck ... ...
 Other 4 -2 Statistical

 Port services -40 187
 Vessel operators -40 ... Statistical
 Airline operators ... -1 Statistical
 Other ... 188 Methodological and
 statistical

 Other 54 ... Methodological and
 statistical

 2005

Travel 1,161 -135
 Business and personal 158 ... Statistical
 Education 739 -136 Methodological and
 statistical
 Medical 264 1 Methodological and
 statistical

Passenger fares -147 ... Statistical

Other transportation -67 66

 Freight -9 -86
 Ocean 82 -130 Definitional,
 methodological, and
 statistical
 Air -103 -7 Statistical
 Truck ... 1 Statistical
 Other 12 50 Statistical

 Port services -117 143
 Vessel operators -27 31 Statistical
 Airline operators -89 -63 Statistical
 Other -1 175 Methodological and
 statistical

Other 59 9 Methodological and
 statistical

Table 5.2. Travel, Passenger Fares, and Other Transportation,
Southbound
[Millions of U.S. dollars]

 Published estimates

 Canadian U.S. Difference
 receipts payments

 2004

Travel 7,580 7,293 287
 Business and personal 7,361 7,293 68
 Education 155 ... 155
 Medical 64 ... 64

Passenger fares 442 464 -22

Other transportation 3,677 4,049 -372

 Freight 2,923 3,183 -260
 Ocean 221 414 -193
 Air 33 33 ...
 Truck 2,485 2,485 ...
 Other 184 251 -67

 Port services 609 866 -257
 Vessel operators 91 149 -58
 Airline operators 440 647 -207
 Other 178 70 8

 Other 145 ... 145

 2005
Travel 7,430 7,002 428
 Business and personal 7,160 7,002 158
 Education 201 ... 201
 Medical 69 ... 69

Passenger fares 358 348 10

Other transportation 4,204 4,387 -183

 Freight 3,272 3,438 -166
 Ocean 302 474 -172
 Air 26 27 -1
 Truck 2,672 2,673 -1
 Other 272 264 8

 Port services 741 949 -208
 Vessel operators 119 111 8
 Airline operators 538 757 -219
 Other 84 81 3

 Other 191 ... 191

 Common-basis estimates
 after definitional and
 methodological adjustments

 Canadian U.S. Difference
 receipts payments

 2004

Travel 7,580 7,435 145
 Business and personal 7,361 7,293 68
 Education 155 78 77
 Medical 64 64 ...

Passenger fares 442 464 -22

Other transportation 3,647 3,842 -195

 Freight 2,923 2,997 -74
 Ocean 221 372 -151
 Air 33 33 ...
 Truck 2,485 2,485 ...
 Other 184 107 77

 Port services 678 803 -125
 Vessel operators 95 149 -54
 Airline operators 440 440 ...
 Other 142 214 -72

 Other 46 42 4

 2005
Travel 7,430 7,163 267
 Business and personal 7,160 7,002 158
 Education 201 90 111
 Medical 69 71 -2

Passenger fares 358 348 10

Other transportation 4,197 4,168 29

 Freight 3,272 3,246 26
 Ocean 302 433 -131
 Air 26 27 -1
 Truck 2,672 2,673 -1
 Other 272 113 159

 Port services 862 881 -19
 Vessel operators 124 111 13
 Airline operators 538 538 ...
 Other 200 232 -32

 Other 63 41 22

 Reconciled estimates,
 including statistical Total adjustments to
 adjustments published estimates

 Canadian U.S. Canada United
 receipts payments States

 2004

Travel 7,580 7,580 ... 287
 Business and personal 7,361 7,361 ... 68
 Education 155 155 ... 155
 Medical 64 64 ... 64

Passenger fares 442 442 ... -22

Other transportation 3,754 3,754 77 -295

 Freight 2,999 2,999 76 -184
 Ocean 297 297 76 -117
 Air 33 33 ... ...
 Truck 2,485 2,485 ... ...
 Other 184 184 ... -67

 Port services 713 713 104 -153
 Vessel operators 95 95 4 -54
 Airline operators 440 440 ... -207
 Other 178 178 100 108

 Other 42 42 -103 42

 2005
Travel 7,430 7,430 ... 428
 Business and personal 7,160 7,160 ... 158
 Education 201 201 ... 201
 Medical 69 69 ... 69

Passenger fares 358 358 ... 10

Other transportation 4,159 4,159 -45 -228

 Freight 3,283 3,283 11 -155
 Ocean 341 341 39 -133
 Air 27 271 1 ...
 Truck 2,673 2,673 1 ...
 Other 242 242 -30 -22

 Port services 835 835 94 -114
 Vessel operators 118 118 -1 7
 Airline operators 502 502 -36 -255
 Other 215 215 131 134

 Other 41 41 -150 41

 Total adjustments to
 published estimates

 Type of adjustment

 2004

Travel
 Business and personal Statistical
 Education Methodological and statistical
 Medical Methodological

Passenger fares Statistical

Other transportation

 Freight
 Ocean Methodological and statistical
 Air
 Truck
 Other Methodological and statistical

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

 Other Definitional, methodological, and
 statistical

 2005
Travel
 Business and personal Statistical
 Education Methodological and statistical
 Medical Methodological and statistical

Passenger fares Statistical

Other transportation

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

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

 Other Definitional, methodological, and
 statistical

Table 6.1. Other Services, Northbound
[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Difference
 receipts payments

 2004

 Total 16,419 20,086 -3,667

Affiliated 7,781 11,314 -3,533

 Royalties and license fees 3,083 3,698 -615
 Other services 4,698 7,616 -2,918

Unaffiliated 8,508 8,772 -264

 Royalties, license fees, and
 selected services 1,482 2,175 -693
 Insurance 858 564 294
 Financial services 1,363 923 440
 Education and training 726 7 719
 Communications 758 588 170
 Computer services 842 1,166 -324
 Business services 1,646 1,328 318
 Sports and entertainment 606 1,519 -913
 Other private ... 228 -228
 Government:
 United States (nonmilitary) 96 84 12
 Canada 131 190 -59

U.S. military sales 130 ... 130

 2005

 Total 18,155 20,605 -2,450

Affiliated 9,229 11,611 -2,382

 Royalties and license fees 3,676 3,648 28
 Other services 5,553 7,963 -2,410

Unaffiliated 8,764 8,994 -230

 Royalties, license fees, and
 selected services 1,764 2,174 -410
 Insurance 982 523 459
 Financial services 1,590 985 605
 Education and training 772 8 764
 Communications 588 577 11
 Computer services 664 1,281 -617
 Business services 1,630 1,443 187
 Sports and entertainment 539 1,492 -953
 Other private ... 220 -220
 Government:
 United States (nonmilitary) 103 81 22
 Canada 132 210 -78

U.S. military sales 162 ... 162

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian Difference
 receipts payments

 2004

 Total 15,237 19,030 -3,793

Affiliated 7,431 10,890 -3,459

 Royalties and license fees 3,083 3,696 -613
 Other services 4,348 7,194 -2,846

Unaffiliated 7,765 8,140 -375

 Royalties, license fees, and
 selected services 1,476 2,099 -623
 Insurance 858 481 377
 Financial services 1,363 817 546
 Education and training 31 12 19
 Communications 758 540 218
 Computer services 842 1,170 -328
 Business services 1,418 1,514 -96
 Sports and entertainment 792 1,311 -519
 Other private ... ... ...
 Government:
 United States (nonmilitary) 96 84 12
 Canada 131 112 19

U.S. military sales 41 ... 41

 2005

 Total 16,839 19,461 -2,622

Affiliated 8,795 11,141 -2,346

 Royalties and license fees 3,676 3,646 30
 Other services 5,119 7,495 -2,376

Unaffiliated 7,998 8,320 -322

 Royalties, license fees, and
 selected services 1,756 2,108 -352
 Insurance 982 434 548
 Financial services 1,590 779 811
 Education and training 33 12 21
 Communications 588 538 50
 Computer services 664 1,285 -621
 Business services 1,380 1,650 -270
 Sports and entertainment 770 1,306 -536
 Other private ... ... ...
 Government:
 United States (nonmilitary) 103 81 22
 Canada 132 127 5

U.S. military sales 46 ... 46

 Reconciled estimates,
 including statistical
 adjustments

 U.S. Canadian
 receipts payments

 2004

 Total 17,469 17,469

Affiliated 8,683 8,683

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

Unaffiliated 8,745 8,745

 Royalties, license fees, and
 selected services 1,476 1,476
 Insurance 858 858
 Financial services 1,449 1,449
 Education and training 31 31
 Communications 758 758
 Computer services 842 842
 Business services 1,785 1,785
 Sports and entertainment 1,338 1,338
 Other private ... ...
 Government:
 United States (nonmilitary) 96 96
 Canada 112 112

U.S. military sales 41 41

 2005

 Total 18,590 18,590

Affiliated 9,517 9,517

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

Unaffiliated 9,027 9,027

 Royalties, license fees, and
 selected services 1,756 1,756
 Insurance 982 982
 Financial services 1,561 1,561
 Education and training 33 33
 Communications 588 588
 Computer services 664 664
 Business services 1,882 1,882
 Sports and entertainment 1,331 1,331
 Other private ... ...
 Government:
 United States (nonmilitary) 103 103
 Canada 127 127

U.S. military sales 46 46

 Total adjustments to
 published estimates

 U.S. Canadian
 receipts

 2004

 Total 1,050 -2,617

Affiliated 902 -2,631

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

Unaffiliated 237 -27

 Royalties, license fees, and
 selected services -6 -699
 Insurance ... 294
 Financial services 86 526
 Education and training -695 24
 Communications ... 170
 Computer services ... -324
 Business services 139 457
 Sports and entertainment 732 -181
 Other private ... -228
 Government:
 United States (nonmilitary) ... 12
 Canada -19 -78

U.S. military sales -89 41

 2005

 Total 435 -2,015

Affiliated 288 -2,094

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

Unaffiliated 263 33

 Royalties, license fees, and
 selected services -8 -418
 Insurance ... 459
 Financial services -29 576
 Education and training -739 25
 Communications ... 11
 Computer services ... -617
 Business services 252 439
 Sports and entertainment 792 -161
 Other private ... -220
 Government:
 United States (nonmilitary) ... 22
 Canada -5 -83

U.S. military sales -116 461

 Total adjustments to
 published estimates

 Type of adjustment

 2004

 Total

Affiliated Definitional, methodological, and
 statistical

 Royalties and license fees
 Other services

Unaffiliated

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

U.S. military sales Definitional and statistical

 2005

 Total

Affiliated Definitional, methodological, and
 statistical

 Royalties and license fees
 Other services

Unaffiliated

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

U.S. military sales Definitional and statistical

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

Table 6.2. Other Services, Southbound
[Millions of U.S. dollars]

 Published estimates

 Canadian U.S. Difference
 receipts payments

 2004

 Total 14,939 9,265 5,674

Affiliated 6,820 3,947 2,873

 Royalties and license fees 780 542 238
 Other services 6,040 3,405 2,635

Unaffiliated 8,004 5,182 2,822

 Royalties, license fees, and
 selected services 2,392 955 1,437
 Insurance 152 677 -525
 Financial services 414 214 200
 Education and training 54 138 -84
 Communications 856 328 528
 Computer services 1,293 1,252 41
 Business services 1,390 1,246 144
 Sports and entertainment 971 61 910
 Other private 132 ... 132
 Government:
 Canada 44 ... 44
 United States (nondefense) 306 311 -5

U.S. defense expenditures. 115 136 -21

 2005

 Total 16,466 10,812 5,654

Affiliated 7,327 5,035 2,292

 Royalties, and license fees 966 591 375
 Other services 6,361 4,444 1,917

Unaffiliated 8,972 5,591 3,381

 Royalties, license fees, and
 selected services 2,564 893 1,671
 Insurance 156 668 -512
 Financial services 626 342 284
 Education and training 54 119 -65
 Communications 960 337 623
 Computer services 1,442 1,362 80
 Business services 1,593 1,357 236
 Sports and entertainment 921 173 748
 Other private 192 ... 192
 Government:
 Canada 51 ... 51
 United States (nondefense) 413 340 73

U.S. defense expenditures 167 186 -19

 Common-basis estimates
 after definitional and
 methodological adjustments

 Canadian U.S. Difference
 receipts payments

 2004

 Total 14,084 9,278 4,806

Affiliated 6,912 3,891 3,021

 Royalties and license fees 780 542 238
 Other services 6,132 3,349 2,783

Unaffiliated 7,057 5,271 1,786

 Royalties, license fees, and
 selected services 2,086 954 1,132
 Insurance 150 677 -527
 Financial services 417 214 203
 Education and training 24 60 -36
 Communications 660 328 332
 Computer services 1,293 1,252 41
 Business services 1,533 1,034 499
 Sports and entertainment 544 441 103
 Other private ... ... ...
 Government:
 Canada 44 ... 44
 United States (nondefense) 306 311 -5

U.S. defense expenditures. 115 116 -1

 2005

 Total 15,398 10,830 4,568

Affiliated 7,405 4,958 2,447

 Royalties, and license fees 966 591 375
 Other services 6,439 4,367 2,072

Unaffiliated 7,826 5,706 2,120

 Royalties, license fees, and
 selected services 2,217 889 1,328
 Insurance 155 668 -513
 Financial services 544 342 202
 Education and training 27 29 -2
 Communications 747 337 410
 Computer services 1,442 1,362 80
 Business services 1,727 1,207 520
 Sports and entertainment 503 532 -29
 Other private ... ... ...
 Government:
 Canada 51 ... 51
 United States (nondefense) 413 340 73

U.S. defense expenditures 167 166 1

 Reconciled estimates,
 including statistical
 adjustments

 Canadian U.S.
 receipts payments

 2004

 Total 12,795 12,795

Affiliated 5,348 5,348

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

Unaffiliated 7,331 7,331

 Royalties, license fees, and
 selected services 2,179 2,179
 Insurance 677 677
 Financial services 254 254
 Education and training 60 60
 Communications 494 494
 Computer services 1,227 1,227
 Business services 1,465 1,465
 Sports and entertainment 620 620
 Other private ... ...
 Government:
 Canada 44 44
 United States (nondefense) 311 311

U.S. defense expenditures. 116 116

 2005

 Total 14,527 14,527

Affiliated 6,201 6,201

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

Unaffiliated 8,160 8,160

 Royalties, license fees, and
 selected services 2,335 2,335
 Insurance 668 668
 Financial services 400 400
 Education and training 29 29
 Communications 542 542
 Computer services 1,367 1,367
 Business services 1,695 1,695
 Sports and entertainment 733 733
 Other private ... ...
 Government:
 Canada 51 51
 United States (nondefense) 340 340

U.S. defense expenditures 166 166

 Total adjustments to
 published estimates

 Canadian United
 States

 2004

 Total -2,144 3,530

Affiliated -1,472 1,401

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

Unaffiliated -673 2,149

 Royalties, license fees, and
 selected services -213 1,224
 Insurance 525 ...
 Financial services -160 40
 Education and training 6 -78
 Communications -362 166
 Computer services -66 -25
 Business services 75 219
 Sports and entertainment -351 559
 Other private -132 ...
 Government:
 Canada ... 44
 United States (nondefense) 5 ...

U.S. defense expenditures. 1 -20

 2005

 Total -1,939 3,715

Affiliated -1,126 1,166

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

Unaffiliated -812 2,569

 Royalties, license fees, and
 selected services -229 1,442
 Insurance 512 ...
 Financial services -226 58
 Education and training -25 -90
 Communications -418 205
 Computer services -75 5
 Business services 102 338
 Sports and entertainment -188 560
 Other private -192 ...
 Government:
 Canada ... 51
 United States (nondefense) -73 ...

U.S. defense expenditures -1 -20

 Total adjustments to
 published estimates

 Type of adjustment

 2004

 Total

Affiliated Definitional, methodological,
 and statistical

 Royalties and license fees
 Other services

Unaffiliated

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

U.S. defense expenditures. Definitional and statistical

 2005

 Total

Affiliated Definitional, methodological,
 and statistical

 Royalties, and license fees
 Other services

Unaffiliated

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

U.S. defense expenditures Definitional and statistical

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

Table 7.1. Investment Income, Northbound
[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Difference
 receipts payments

 2004

Investment Income 32,248 31,960 288

 Direct investment income 22,127 14,650 7,477
 Earnings of incorporated
 affiliates 20,681 12,606 8,075
 Dividends 3,184 4,318 -1,134
 Reinvested earnings 17,497 8,288 9,209
 Earnings of unincorporated
 affiliates 663 1,012 -349
 Interest 783 1,032 -249

 Other investment income 10,121 17,310 -7,189
 Securities 8,228 14,409 -6,181
 Dividends 3,305 2,899 406
 Interest 4,923 11,510 -6,587
 U.S. claims/Canadian
 liabilities 1,893 2,901 -1,008
 U.S. bank claims 1,226 961 265
 Other private U.S. claims 667 1,940 -1,273

 2005

Investment Income 35,765 35,309 456

 Direct investment income 22,564 16,560 6,004
 Earnings of incorporated
 affiliates 21,000 14,521 6,479
 Dividends 16,322 7,781 8,541
 Reinvested earnings 4,678 6,740 -2,062
 Earnings of unincorporated
 affiliates 711 907 -196
 Interest 853 1,132 -279

 Other investment income 13,201 18,749 -5,548
 Securities 9,522 14,604 -5,082
 Dividends 3,750 3,033 717
 Interest 5,772 11,571 -5,799
 U.S. claims/Canadian
 liabilities 3,679 4,145 -466
 U.S. bank claims 2,217 1,699 518
 Other private U.S. claims 1,462 2,446 -984

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian Difference
 receipts payments

 2004

Investment Income 32,319 29,859 2,460

 Direct investment income 21,981 14,117 7,864
 Earnings of incorporated
 affiliates 20,582 12,557 8,025
 Dividends 3,085 3,935 -850
 Reinvested earnings 17,497 8,622 8,875
 Earnings of unincorporated
 affiliates 663 999 -336
 Interest 736 561 175

 Other investment income 10,338 15,742 -5,404
 Securities 8,964 14,774 -5,810
 Dividends 3,305 3,264 41
 Interest 5,659 11,510 -5,851
 U.S. claims/Canadian
 liabilities 1,374 968 406
 U.S. bank claims 719 376 343
 Other private U.S. claims 655 592 63

 2005

Investment Income 35,306 31,419 3,887

 Direct investment income 22,259 15,011 7,248
 Earnings of incorporated
 affiliates 20,749 13,581 7,168
 Dividends 16,071 7,199 8,872
 Reinvested earnings 4,678 6,382 -1,704
 Earnings of unincorporated
 affiliates 711 893 -182
 Interest 799 537 262

 Other investment income 13,047 16,408 -3,361
 Securities 10,384 15,013 -4,629
 Dividends 3,750 3,442 308
 Interest 6,634 11,571 -4,937
 U.S. claims/Canadian
 liabilities 2,663 1,395 1,268
 U.S. bank claims 1,218 573 645
 Other private U.S. claims 1,445 822 623

 Reconciled estimates,
 including statistical
 adjustments

 U.S. Canadian
 receipts payments

 2004

Investment Income 32,463 32,463

 Direct investment income 19,072 19,072
 Earnings of incorporated
 affiliates 17,504 17,504
 Dividends 3,831 3,831
 Reinvested earnings 13,673 13,673
 Earnings of unincorporated
 affiliates 832 832
 Interest 736 736

 Other investment income 13,391 13,391
 Securities 12,234 12,234
 Dividends 3,285 3,285
 Interest 8,949 8,949
 U.S. claims/Canadian
 liabilities 1,157 1,157
 U.S. bank claims 547 547
 Other private U.S. claims 610 610

 2005

Investment Income 35,862 35,862

 Direct investment income 21,158 21,158
 Earnings of incorporated
 affiliates 19,556 19,556
 Dividends 14,417 14,417
 Reinvested earnings 5,139 5,139
 Earnings of unincorporated
 affiliates 803 803
 Interest 799 799

 Other investment income 14,704 14,704
 Securities 12,808 12,808
 Dividends 3,596 3,596
 Interest 9,212 9,212
 U.S. claims/Canadian
 liabilities 1,896 1,896
 U.S. bank claims 933 933
 Other private U.S. claims 963 963

 Total adjustments to
 published estimates

 United Canada
 States

 2004

Investment Income 215 503

 Direct investment income -3,055 4,422
 Earnings of incorporated
 affiliates -3,177 4,898
 Dividends 647 -487
 Reinvested earnings -3,824 5,385
 Earnings of unincorporated
 affiliates 169 -180
 Interest -47 -296

 Other investment income 3,270 -3,919
 Securities 4,006 -2,175
 Dividends -20 386
 Interest 4,026 -2,561
 U.S. claims/Canadian
 liabilities -736 -1,744
 U.S. bank claims -679 -414
 Other private U.S. claims -57 -1,330

 2005

Investment Income 97 553

 Direct investment income -1,406 4,598
 Earnings of incorporated
 affiliates -1,444 5,035
 Dividends -1,905 6,636
 Reinvested earnings 461 -1,601
 Earnings of unincorporated
 affiliates 92 -104
 Interest -54 -333

 Other investment income 1,503 -4,045
 Securities 3,286 -1,796
 Dividends -154 563
 Interest 3,440 -2,359
 U.S. claims/Canadian
 liabilities -1,783 -2,249
 U.S. bank claims -1,284 -766
 Other private U.S. claims -499 -1,483

 Total adjustments to
 published estimates

 Type of adjustment

 2004

Investment Income

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

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

 2005

Investment Income

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

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

Table 7.2. Investment Income, Southbound
[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Difference
 receipts payments

 2004

Investment Income 10,495 14,207 -3,712

 Direct investment income 4,942 6,871 -1,929
 Earnings of incorporated
 affiliates 4,489 6,076 -1,587
 Dividends 1,205 1,582 -377
 Reinvested earnings 3,284 4,494 -1,210
 Earnings of unincorporated
 affiliates 370 620 -250
 Interest 83 175 -92

 Other investment income 5,553 7,336 -1,783
 Securities 3,216 5,466 -2,250
 Dividends 2,621 3,555 -934
 Interest 595 1,911 -1,316
 Canadian claims/U.S.
 liabilities 1,365 853 512
 Canadian bank claims 747 329 418
 Other private Canadian claims 618 524 94
 U.S. Government liabilities 972 1,017 -45

 2005

Investment Income 17,325 16,067 1,258

 Direct investment income 8,759 7,290 1,469
 Earnings of incorporated
 affiliates 6,687 8,881 -2,194
 Dividends 2,153 1,201 952
 Reinvested earnings 4,534 7,680 -3,146
 Earnings of unincorporated
 affiliates 1,709 -2,008 3,717
 Interest 363 417 -54

Other investment income 8,566 8,777 -211
 Securities 4,968 6,019 -1,051
 Dividends 3,089 3,548 -459
 Interest 1,879 2,471 -592
 Canadian claims/U.S.liabilities 2,171 1,599 572
 Canadian bank claims 1,459 801 658
 Other private Canadian claims 712 798 -86
 U.S. Government liabilities 1,427 1,159 268

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian Difference
 receipts payments

 2004

Investment Income 9,589 13,536 -3,947

 Direct investment income 4,728 6,719 -1,991
 Earnings of incorporated
 affiliates 4,887 5,917 -1,030
 Dividends 1,495 1,423 72
 Reinvested earnings 3,392 4,494 -1,102
 Earnings of unincorporated
 affiliates -110 620 -730
 Interest -49 182 -231

 Other investment income 4,861 6,817 -1,956
 Securities 3,308 5,593 -2,285
 Dividends 2,409 3,555 -1,146
 Interest 899 2,038 -1,139
 Canadian claims/U.S.
 liabilities 620 207 413
 Canadian bank claims 7 88 -81
 Other private Canadian claims 613 119 494
 U.S. Government liabilities 933 1,017 -84

 2005

Investment Income 15,274 14,972 302

 Direct investment income 8,363 7,211 1,152
 Earnings of incorporated
 affiliates 8,233 8,795 -562
 Dividends 3,227 1,115 2,112
 Reinvested earnings 5,006 7,680 -2,674
 Earnings of unincorporated
 affiliates -11 -2,008 1,997
 Interest 141 424 -283

Other investment income 6,911 7,761 -850
 Securities 4,635 6,286 -1,651
 Dividends 2,858 3,548 -690
 Interest 1,777 2,738 -961
 Canadian claims/U.S.liabilities 931 316 615
 Canadian bank claims 219 -107 326
 Other private Canadian claims 712 423 289
 U.S. Government liabilities 1,345 1,159 186

 Reconciled estimates,
 including statistical
 adjustments

 U.S. Canadian
 receipts payments

 2004

Investment Income 12,302 12,302

 Direct investment income 6,207 6,207
 Earnings of incorporated
 affiliates 5,770 5,770
 Dividends 1,420 1,420
 Reinvested earnings 4,350 4,350
 Earnings of unincorporated
 affiliates 255 255
 Interest 182 182

 Other investment income 6,095 6,095
 Securities 4,450 4,450
 Dividends 2,982 2,982
 Interest 1,468 1,468
 Canadian claims/U.S.
 liabilities 669 669
 Canadian bank claims 67 67
 Other private Canadian claims 602 602
 U.S. Government liabilities 976 976

 2005

Investment Income 16,949 16,949

 Direct investment income 9,349 9,349
 Earnings of incorporated
 affiliates 9,043 9,043
 Dividends 1,656 1,656
 Reinvested earnings 7,387 7,387
 Earnings of unincorporated
 affiliates -118 -118
 Interest 424 424

Other investment income 7,600 7,600
 Securities 5,460 5,460
 Dividends 3,203 3,203
 Interest 2,257 2,257
 Canadian claims/U.S.liabilities 888 888
 Canadian bank claims -2 -2
 Other private Canadian claims 890 890
 U.S. Government liabilities 1,252 1,252

 Total adjustments to
 published estimates

 United Canada
 States

 2004

Investment Income 1,807 -1,905

 Direct investment income 1,265 -664
 Earnings of incorporated
 affiliates 1,281 -306
 Dividends 215 -162
 Reinvested earnings 1,066 -144
 Earnings of unincorporated
 affiliates -115 -365
 Interest 99 7

 Other investment income 542 -1,241
 Securities 1,234 -1,016
 Dividends 361 -573
 Interest 873 -443
 Canadian claims/U.S.
 liabilities -696 -184
 Canadian bank claims -680 -262
 Other private Canadian claims -16 78
 U.S. Government liabilities 4 -41

 2005

Investment Income -376 882

 Direct investment income 590 2,059
 Earnings of incorporated
 affiliates 2,356 162
 Dividends -497 455
 Reinvested earnings 2,853 -293
 Earnings of unincorporated
 affiliates -1,827 1,890
 Interest 61 7

Other investment income -966 -1,177
 Securities 492 -559
 Dividends 114 -345
 Interest 378 -214
 Canadian claims/U.S.liabilities -1,283 -711
 Canadian bank claims -1,467 -803
 Other private Canadian claims 178 92
 U.S. Government liabilities -175 93

 Total adjustments to
 published estimates

 Type of adjustment

 2004

Investment Income

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

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

 2005

Investment Income

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

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