Reconciliation of the U.S.-Canadian current account, 2002 and 2003.

Abaroa, Patricia ; Dozier, Edward ; Caron, Denis 等

ON a reconciled basis, the U.S. deficit, or Canadian surplus, is $38.9 billion for 2002 and $41.7 billion for 2003 (chart 1, table 1). (1) The U.S.-published current-account balance with Canada is a U.S. deficit of $28.7 billion for 2002 and a U.S. deficit of $32.1 billion for 2003; the corresponding Canadian-published balance is a Canadian surplus of $39.5 billion for 2002 and a Canadian surplus of $44.7 billion for 2003. (2)

The results of the reconciliation of the bilateral current-account estimates of Canada and the United States for 2002 and 2003 are presented in this article. (3) The details of the current-account reconciliation for 2002 and 2003 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)

Reconciled Current-Account Balances

In the U.S. current account, the reconciliation adjustments result in an increase of $10.2 billion in the U.S. deficit for 2002 and an increase of $9.6 billion in the U.S. deficit for 2003. 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 the valuation of U.S. natural gas imports to include inland freight (a definitional adjustment), from an increase for undercoverage of some southbound services (a statistical adjustment), and for 2002, from adjustments for statistical differences in direct investment income. For both years, the largest increases in the U.S. northbound estimates result from upward adjustments to investment income for undercoverage of income on U.S. holdings of Canadian bonds (statistical adjustments), and for 2003, from adjustments for statistical differences in direct investment income and in "other" services.

In the Canadian current account, the reconciliation adjustments result in a decrease of $0.6 billion in the Canadian surplus for 2002 and in a decrease of $3.0 billion in the Canadian surplus for 2003. For both years, the decreases in the Canadian surplus reflect larger downward adjustments to the Canadian southbound estimates than to the Canadian northbound estimates. For both years, the largest downward adjustments to the Canadian southbound estimates are from valuation adjustments to goods (definitional), from revisions to the published estimates of direct investment income (definitional adjustment), from the elimination of the withholding tax in current unilateral transfers (definitional adjustment), and from methodological adjustments to net some income of Canadian banks in "other" investment income. In the Canadian northbound estimates, the largest downward adjustments are from "other" investment income to eliminate withholding tax (definitional adjustment), to net some income of Canadian banks (methodological adjustment), and to eliminate statistical differences in income on U.S. holdings of Canadian bonds. For 2003, the reconciled estimates also reflect a large statistical adjustment in "other" services. Though the methodological adjustments explain part of the total adjustments to the northbound and the southbound estimates of "other" investment income, they do not affect the current-account balance because the northbound and the southbound methodological adjustments are offsetting.

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.

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.

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 of investment income.

*- 1 2.1-7.1

(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 2002 is revised down from the previously published deficit of $30.4 billion used in last year's reconciliation, and the Canadian surplus for 2002 is revised up from the previously published surplus of $38.3 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 1979, June 1981, and each December of 1981-91. Complete details of the reconciliations for 1990 forward were published in the following issues of the SURVEY: November 1992, each October of 1993-95, and each November of 1996-2003.

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 1981-2003.

(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 2003 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.

Acknowledgments

The reconciliations were carried out under the direction of Denis Caron, Chief, Current Account, in Statistics Canada's Balance of Payments Division, and Patricia Abaroa and Edward Dozier, international economists in BEA's Balance of Payments Division. At Statistics Canada, Denis Caron was responsible for reconciling Canadian goods and services, Michael Marth for Canadian direct investment income, and Robert Theberge for Canadian portfolio investment income, with the collaboration and assistance of Brian Andre, Heather Collier, Jacqueline Dickie, Christian Lajule, Eric Simard, and Angela Yuan. At BEA, Mai-Chi Hoang was responsible for reconciling goods; Michael Mann, 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 Patricia Abaroa for the portfolio income accounts.

Table 1. Major U.S.-Canadian Balances

[Billions of U.S. dollars]

 Published Reconciled
 estimates estimates

 United United
 States Canada States Canada

 2002

 Goods and services -44.4 56.0 -55.3 55.3
 Goods -50.9 58.6 -58.8 58.8
 Services 6.4 -2.5 3.4 -3.4
 Income 16.1 -18.8 16.8 -16.8
 Current unilateral transfers -0.3 2.3 -0.3 0.3
Current account -28.7 39.5 -38.9 38.9

 2003

 Goods and services 46.8 59.9 -58.7 58.7
 Goods -54.3 64.6 -3.5 63.5
 Services 7.6 -4.7 4.8 -4.8
 Income 14.9 -17.5 17.2 -17.2
 Current unilateral transfers -0.2 2.4 -0.2 0.2
Current account -2.1 44.7 -41.7 41.7

None. 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, 2002

[Millions of U.S. dollars]

 Definitional Methodological

 United United
 States Canada States Canada

Goods, balance-of-payments basis -42 -467 239
 Definitional adjustments -42 -467
 Reclassification of equipment
 repairs from unaffiliated
 services 239
 Statistical adjustments
Services -44 -997 -239 -84
 Travel 868
 Reclassification of
 education from
 unaffiliated services 617
 Reclassification of medical
 services from
 unaffiliated services 251
 Statistical adjustments
 Passenger fares
 Other transportation -67 159
 Definitional adjustments -67
 Reclassification of
 transportation services
 from unaffiliated
 services 159
 Statistical adjustments
 Other services -44 -930 -1,107 -243
 Affiliated -513 -317
 Definitional adjustments -513
 Reclassification of film
 rentals and courier
 services to
 unaffiliated services -317
 Statistical adjustments
 Unaffiliated -417 -790 -243
 Definitional adjustments -417
 Reclassification of
 transactions to or
 from other accounts -790 -243
 Statistical adjustments
 U.S. military sales -44
 Definitional adjustments -44
 Statistical adjustments
Income 582 -1,725 -839 -968
 Direct investment -100 -432 -109
 Definitional adjustments -100 -432
 Adjustment of interest
 income to a net basis -109
 Statistical adjustments
 Other investment 682 -1,293 -839 -943
 Definitional adjustments 682 -1,293
 Adjustment of interest
 income to a net basis -839 -943
 Statistical adjustments
 Compensation of employees 84
 Reclassification from
 unaffiliated services 84
Current unilateral transfers -331 507
 Definitional adjustments -331
 Adjustment of U.S. transfers
 to a gross basis 507
 Statistical adjustments
 Total adjustments 496 -3,520 -332 -1,052

 Statistical Total

 United United
 States Canada States Canada

Goods, balance-of-payments basis 261 -619 458 -1,086
 Definitional adjustments -42 -467
 Reclassification of equipment
 repairs from unaffiliated
 services 239
 Statistical adjustments 261 -619 261 -619
Services 293 -101 11 -1,183
 Travel -123 103 745 103
 Reclassification of
 education from
 unaffiliated services 617
 Reclassification of medical
 services from
 unaffiliated services 251
 Statistical adjustments -123 103 -123 103
 Passenger fares -438 -438
 Other transportation -12 163 -12 255
 Definitional adjustments -67
 Reclassification of
 transportation services
 from unaffiliated
 services 159
 Statistical adjustments -12 163 -12 163
 Other services 866 -367 -284 -1,541
 Affiliated 17 -860 -300 -1,373
 Definitional adjustments -513
 Reclassification of film
 rentals and courier
 services to
 unaffiliated services -317
 Statistical adjustments 17 -860 17 -860
 Unaffiliated 849 450 59 -211
 Definitional adjustments -417
 Reclassification of
 transactions to or
 from other accounts -790 -243
 Statistical adjustments 849 450 849 450
 U.S. military sales 43 -44 43
 Definitional adjustments -44
 Statistical adjustments 43 43
Income 1,655 -491 1,398 -3,184
 Direct investment -865 2,781 -965 2,240
 Definitional adjustments -100 -432
 Adjustment of interest
 income to a net basis -109
 Statistical adjustments -865 2,781 -865 2,781
 Other investment 2,520 -3272 2,363 -5,508
 Definitional adjustments 682 -1293
 Adjustment of interest
 income to a net basis -839 -943
 Statistical adjustments 2,520 -3272 2,520 -3,272
 Compensation of employees 84
 Reclassification from
 unaffiliated services 84
Current unilateral transfers -25 198 482 -133
 Definitional adjustments -331
 Adjustment of U.S. transfers
 to a gross basis 507
 Statistical adjustments -25 198 -25 198
 Total adjustments 2,184 -1,013 2,349 -5,586

Table 2.1. Summary of Reconciliation Adjustments, Northbound, 2003

[Millions of U.S. dollars]

 Definitional Methodological

 United United
 States Canada States Canada

Goods, balance-of-payments basis -15 -437 223
 Definitional adjustments -15 -437
 Reclassification of equipment
 repairs from unaffiliated
 services 223
 Statistical adjustments
Services -147 -988 -223 -98
 Travel 932
 Reclassification of
 education from
 unaffiliated services 648
 Reclassification of medical
 services from
 unaffiliated services 284
 Statistical adjustments
 Passenger fares
 Other transportation -51 161
 Definitional adjustments -51
 Reclassification of
 transportation services
 from unaffiliated
 services 161
 Statistical adjustments
 Other services -147 -937 -1,155 -259
 Affiliated -549 -288
 Definitional adjustments -549
 Reclassification of film
 rentals and courier
 services to
 unaffiliated services -288
 Statistical adjustments
 Unaffiliated -388 -867 -259
 Definitional adjustments -388
 Reclassification of
 transactions to or
 from other accounts -867 -259
 Statistical adjustments
 U.S. military sales -147
 Definitional adjustments -147
 Statistical adjustments
Income 443 -2,008 -598 -663
 Direct investment -76 -533 -119
 Definitional adjustments -76 -533
 Adjustment of interest
 income to a net basis -119
 Statistical adjustments
 Other investment 519 -1,475 -598 -642
 Definitional adjustments 519 -1,475
 Adjustment of interest
 income to a net basis -598 -642
 Statistical adjustments
 Compensation of employees 98
 Reclassification from
 unaffiliated services 98
Current unilateral transfers -411 607
 Definitional adjustments -411
 Adjustment of U.S. transfers
 to a gross basis 607
 Statistical adjustments
 Total adjustments 281 -3844 9 -761

 Statistical Total

 United United
 States Canada States Canada

Goods, balance-of-payments basis 13 -590 221 -1,027
 Definitional adjustments -15 -437
 Reclassification of equipment
 repairs from unaffiliated
 services 223
 Statistical adjustments 13 -590 13 -590
Services 605 -681 235 -1,767
 Travel -129 59 803 59
 Reclassification of
 education from
 unaffiliated services 648
 Reclassification of medical
 services from
 unaffiliated services 284
 Statistical adjustments -129 59 -129 59
 Passenger fares -583 -583
 Other transportation 5 58 5 168
 Definitional adjustments -51
 Reclassification of
 transportation services
 from unaffiliated
 services 161
 Statistical adjustments 5 58 5 58
 Other services 1,312 -798 10 -1,994
 Affiliated 245 -1,143 -43 -1,692
 Definitional adjustments -549
 Reclassification of film
 rentals and courier
 services to
 unaffiliated services -288
 Statistical adjustments 245 -1,143 245 -1,143
 Unaffiliated 1,067 292 200 -355
 Definitional adjustments -388
 Reclassification of
 transactions to or
 from other accounts -867 -259
 Statistical adjustments 1,067 292 10,671 292
 U.S. military sales -147 53
 Definitional adjustments -147
 Statistical adjustments 53 53
Income 1,368 1,155 1,213 -1,516
 Direct investment -3,002 4,045 -3,078 3,393
 Definitional adjustments -76 -533
 Adjustment of interest
 income to a net basis -119
 Statistical adjustments -3,002 4,045 -3,002 4,045
 Other investment 4,370 -2,890 4,291 -5,007
 Definitional adjustments 519 -1,475
 Adjustment of interest
 income to a net basis -598 -642
 Statistical adjustments 4,370 -2,890 4,370 -2,890
 Compensation of employees 98
 Reclassification from
 unaffiliated services 98
Current unilateral transfers -21 255 586 -156
 Definitional adjustments 411
 Adjustment of U.S. transfers
 to a gross basis 607
 Statistical adjustments -21 255 -21 255
 Total adjustments 1,965 139 2,255 -4,466

Table 2.2. Summary of Reconciliation Adjustments, Southbound, 2002

[Millions of U.S. dollars]

 Definitional Methodological

 United United
 Canada States Canada States

Goods, balance-of-payments basis -1,055 8,281 5
 Canadian reexports to the
 United States 6,501
 Inland freight adjustment 1,243 1,528
 Other definitional adjustments -2,298 252
 Reclassification of equipment
 repairs from unaffiliated
 services 5
 Statistical adjustments
Services -1,170 -86 -261 -5
 Travel 28
 Reclassification of 28
 education from
 unaffiliated services
 Statistical adjustments
 Passenger fares
 Other transportation -100 -66 81 -163
Definitional adjustments -100 -66
 Reclassification of courier
 services to unaffiliated
 services -163
 Reclassification of
 transportation services
 from unaffiliated
 services 81
 Statistical adjustments
 Other services -1,070 -20 -342 130
 Affiliated -805 -30
 Definitional adjustments -805
 Reclassification of
 selected services to
 unaffiliated services -30
 Statistical adjustments
 Unaffiliated -265 -342 160
 Definitional adjustments -265
 Reclassification of
 transactions to or
 from other accounts -342 160
 Statistical adjustments
 U.S. defense expenditures -20
 Definitional adjustments -20
 Statistical adjustments
Income -1,534 -75 -842 -839
 Direct investment -1,320 -75 -109
 Definitional adjustments -1,320 -75
 Adjustment of interest
 income to a net basis -109
 Statistical adjustments
 Other investment -214 -943 -839
 Definitional adjustments -214
 Adjustment of interest
 income to a net basis -943 -839
 Statistical adjustments
 Compensation of employees 210
 Reclassification from
 unaffiliated services 210
 Statistical adjustments
Current unilateral transfers -1,913 51 507
 Definitional adjustments -1,913
 Reclassification from
 unaffiliated services 51
 Adjustment of U.S. transfers
 to a gross basis 507
 Statistical adjustments
 Total adjustments -5,672 8,120 -1,052 -332

 Statistical Total

 United United
 Canada States Canada States

Goods, balance-of-payments basis 176 86 -879 8,372
 Canadian reexports to the
 United States 6,501
 Inland freight adjustment 1,243 1,528
 Other definitional adjustments -2,298 252
 Reclassification of equipment
 repairs from unaffiliated
 services 5
 Statistical adjustments 176 86 176 86
Services -672 3,099 -2,103 3,007
 Travel 64 92
 Reclassification of 28
 education from
 unaffiliated services
 Statistical adjustments 64 64
 Passenger fares 3 3
 Other transportation 72 -72 53 -301
Definitional adjustments -100 -66
 Reclassification of courier
 services to unaffiliated
 services -163
 Reclassification of
 transportation services
 from unaffiliated
 services 81
 Statistical adjustments 72 -72 72 -72
 Other services -744 3,104 -2,156 3,213
 Affiliated -754 653 -1,559 623
 Definitional adjustments -805
 Reclassification of
 selected services to
 unaffiliated services -30
 Statistical adjustments -754 653 -754 653
 Unaffiliated 10 2,451 -597 2,611
 Definitional adjustments -265
 Reclassification of
 transactions to or
 from other accounts -342 160
 Statistical adjustments 10 2,451 10 2,451
 U.S. defense expenditures -20
 Definitional adjustments -20
 Statistical adjustments
Income 1,259 1,594 -1,117 680
 Direct investment 531 2,040 -898 1,965
 Definitional adjustments -1,320 -75
 Adjustment of interest
 income to a net basis -109
 Statistical adjustments 531 2,040 531 2,040
 Other investment 633 -446 -524 -1,285
 Definitional adjustments -214
 Adjustment of interest
 income to a net basis -943 -839
 Statistical adjustments 633 -446 633 -446
 Compensation of employees 95 305
 Reclassification from
 unaffiliated services 210
 Statistical adjustments 95 95
Current unilateral transfers -193 -26 -2,055 481
 Definitional adjustments -1,913
 Reclassification from
 unaffiliated services 51
 Adjustment of U.S. transfers
 to a gross basis 507
 Statistical adjustments -193 -26 -193 -26
 Total adjustments 570 4,753 -6,154 12,540

Table 2.2. Summary of Reconciliation Adjustments, Southbound, 2003

[Millions of U.S. dollars]

 Definitional Methodological

Canada United United
 Canada States Canada States

Goods, balance-of-payments basis 9,261 23
 Canadian reexports to the
 United States 6,537
 Inland freight adjustment 2,247 2,419
 Other definitional adjustments -4,836 305
 Reclassification of equipment
 repairs from unaffiliated
 services 23
 Statistical adjustments
Services -995 -73 -300 -23
 Travel 56
 Reclassification of
 education from
 unaffiliated services 56
 Statistical adjustments
 Passenger fares
 Other transportation -88 -53 100 -184
Definitional adjustments -88 -53
 Reclassification of courier
 services to unaffiliated
 services -184
 Reclassification of
 transportation services
 from unaffiliated
 services 100
 Statistical adjustments
 Other services -907 -20 -400 105
 Affiliated -771 -41
 Definitional adjustments -771
 Reclassification of
 selected services to
 unaffiliated services -41
 Statistical adjustments
 Unaffiliated -136 -400 146
 Definitional adjustments -136
 Reclassification of
 transactions to or
 from other accounts -400 146
 Statistical adjustments
 U.S. defense expenditures -20
 Definitional adjustments -20
 Statistical adjustments
Income -2,256 -67 -516 -598
 Direct investment -1,966 -67 -119
 Definitional adjustments -1,966 -67
 Adjustment of interest
 income to a net basis -119
 Statistical adjustments
 Other investment -290 -642 -598
 Definitional adjustments -290
 Adjustment of interest
 income to a net basis -642 -598
 Statistical adjustments
 Compensation of employees 245
 Reclassification from
 unaffiliated services 245
 Statistical adjustments
Current unilateral transfers -2,108 55 607
 Definitional adjustments -2,108
 Reclassification from
 unaffiliated services 55
 Adjustment of U.S. transfers
 to a gross basis 607
 Statistical adjustments
 Total adjustments -7,948 9,121 -761 9

 Statistical Total

 United United
 Canada States Canada States

Goods, balance-of-payments basis 468 76 -2,121 9,360
 Canadian reexports to the
 United States 6,537
 Inland freight adjustment 2,247 2,419
 Other definitional adjustments -4,836 305
 Reclassification of equipment
 repairs from unaffiliated
 services 23
 Statistical adjustments 468 76 468 76
Services -539 3,127 -1,835 3,030
 Travel 51 107
 Reclassification of
 education from
 unaffiliated services 56
 Statistical adjustments 51 51
 Passenger fares -1 -1
 Other transportation 90 -24 102 -261
Definitional adjustments -88 -53
 Reclassification of courier
 services to unaffiliated
 services -184
 Reclassification of
 transportation services
 from unaffiliated
 services 100
 Statistical adjustments 90 -24 90 -24
 Other services -629 3,101 -1,937 3,185
 Affiliated -800 379 -1,571 338
 Definitional adjustments -771
 Reclassification of
 selected services to
 unaffiliated services -41
 Statistical adjustments -800 379 -800 379
 Unaffiliated 157 2,722 -379 2,868
 Definitional adjustments -136
 Reclassification of
 transactions to or
 from other accounts -400 146
 Statistical adjustments 157 2,722 157 2,722
 U.S. defense expenditures 14 14 -20
 Definitional adjustments -20
 Statistical adjustments 14 14
Income 1,566 -443 -1,206 -1,108
 Direct investment 872 26 -1,213 -41
 Definitional adjustments -1,966 -67
 Adjustment of interest
 income to a net basis -119
 Statistical adjustments 872 26 8721 26
 Other investment 603 -459 -329 -1,057
 Definitional adjustments -290
 Adjustment of interest
 income to a net basis -642 -598
 Statistical adjustments 603 -459 603 -459
 Compensation of employees 91 -10 336 -10
 Reclassification from
 unaffiliated services 245
 Statistical adjustments 91 -10 91 -10
Current unilateral transfers -300 -10 -2,353 597
 Definitional adjustments -2,108
 Reclassification from
 unaffiliated services 55
 Adjustment of U.S. transfers
 to a gross basis 607
 Statistical adjustments -300 -10 -300 -10
 Total adjustments 1,195 2,750 -7,515 11,879

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

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Diffe-
 receipts payments rence
 2002

Goods and services 185,743 188,481 -2,738
 Goods, balance-of-payments basis 160,894 162,438 -1,544
 Services 24,849 26,043 -1,194
 Travel 6,268 6,910 -642
 Passenger fares 1,717 1,279 438
 Other transportation 2,544 2,277 267
 Other services 14,320 15,577 -1,257
Income 21,111 25,693 -4,582
 Investment income 21,027 25,693 -4,666
 Direct investment 12,796 9,591 3,205
 Other investment 8,231 16,102 -7,871
 Compensation of employees 84 (1) 84
Current unilateral transfers (2) 615 -6185
 Current account, northbound 206,854 214,789 -7,935

 2003

Goods and services 196,914 200,164 -3,250
 Goods, balance-of-payments basis 169,905 171,153 -1,248
 Services 27,009 29,011 -2,002
 Travel 6,844 7,588 -744
 Passenger fares 2,114 1,531 583
 Other transportation 2,614 2,451 163
 Other services 15,437 17,441 -2,004
Income 24,482 27,211 2,729
 Investment income 24,384 27,211 -2,827
 Direct investment 17,430 10,959 6,471
 Other investment 6,954 162,521 -9,298
 Compensation of employees 98 (1) 98
Current unilateral transfers (2) 742 742
 Current account, northbound 221,396 228,117 -6,721

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian Diffe-
 receipts payments rence

 2002

Goods and services 185,658 186,932 -1,274
 Goods, balance-of-payments basis 161,091 161,971 -880
 Services 24,567 24,961 -394
 Travel 7,136 6,910 226
 Passenger fares 1,717 1,279 438
 Other transportation 2,544 2,369 175
 Other services 13,170 14,403 -1,233
Income 20,854 23,000 -2,146
 Investment income 20,770 22,916 -2,146
 Direct investment 12,696 9,050 3,646
 Other investment 18,074 13,866 -5,792
 Compensation of employees 84 84
Current unilateral transfers 507 284 223
 Current account, northbound 207,019 210,216 -3,197

 2003

Goods and services 196,752 198,641 -1,889
 Goods, balance-of-payments basis 170,113 170,716 -603
 Services 26,639 27,925 -1,286
 Travel 7,776 7,588 188
 Passenger fares 2,114 1,531 583
 Other transportation 2,614 2,561 53
 Other services 14,135 16,245 -2,110
Income 24,327 24,540 -213
 Investment income 24,229 24,442 -213
 Direct investment 17,354 10,307 7,047
 Other investment 6,875 14,135 -7,260
 Compensation of employees 98 98
Current unilateral transfers 607 331 276
 Current account, northbound 221,686 223,512 -1,826

 Total
 adjust-
 ments
 to
 Reconciled estimates, pub-
 including statistical lished
 adjustments estimates

 U.S. Canadian United
 receipts payments States

 2002

Goods and services 186,212 186,212 4691
 Goods, balance-of-payments basis 161,352 161,352 458
 Services 24,860 24,860 11
 Travel 7,013 7,013 745
 Passenger fares 1,279 1,279 -438
 Other transportation 2,532 2,532 -12
 Other services 14,036 14,036 -284
Income 22,509 22,509 1,398
 Investment income 22,425 22,425 1,398
 Direct investment 11,831 11,831 -965
 Other investment 10,594 10,594 2,363
 Compensation of employees 84 84
Current unilateral transfers 482 482 482
 Current account, northbound 209,203 209,203 2,349

 2003

Goods and services 197,370 197,370 456
 Goods, balance-of-payments basis 170,126 170,126 221
 Services 27,244 27,244 235
 Travel 7,647 7,647 803
 Passenger fares 1,531 1,531 -583
 Other transportation 2,619 2,619 5
 Other services 15,447 15,447 10
Income 25,695 25,695 1,213
 Investment income 25,597 25,597 1,213
 Direct investment 14,352 14,352 -3,078
 Other investment 11,245 11,245 4,291
 Compensation of employees 98 98
Current unilateral transfers 586 586 586
 Current account, northbound 223,651 223,651 2,255

 Total adjustments to
 published estimates

 Canada

 2002

Goods and services -2,269
 Goods, balance-of-payments basis -1,086
 Services -1,183
 Travel 103
 Passenger fares
 Other transportation 255
 Other services -1,541
Income -3,184
 Investment income -3,268
 Direct investment 2,240
 Other investment -5,508
 Compensation of employees 84
Current unilateral transfers -133
 Current account, northbound -5,586

 2003

Goods and services -2,794
 Goods, balance-of-payments basis -1,027
 Services -1,767
 Travel 59
 Passenger fares
 Other transportation 168
 Other services -1,994
Income -1,516
 Investment income -1,614
 Direct investment 3,393
 Other investment -5,007
 Compensation of employees 98
Current unilateral transfers -156
 Current account, northbound -4,466

(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

 Canadian U.S. Diffe-
 receipts payments rence

 2002

Goods and services 244,528 230,167 14,361
 Goods, balance-of-payments basis 221,007 211,756 9,251
 Services 23,521 18,411 5,110
 Travel 6,581 6,489 92
 Passenger fares 597 594 3
 Other transportation 3,117 3,471 -354
 Other services 13,226 7,857 5,369
Income 6,855 5,058 1,797
 Investment income 6,855 4,753 2,102
 Direct investment 2,030 -833 2,863
 Other investment 4,825 5,586 -761
 Other private investment 3,879 4,722 -843
 U.S. Government liabilities 946 864 82
 Compensation of employees (1) 305 -305
Current unilateral transfers 2,876 340 2,536
 Current account, southbound 254,259 235,565 18,694

 2003

Goods and services 260,016 243,670 16,346
 Goods, balance-of-payments basis 235,730 224,249 11,481
 Services 24,286 19,421 4,865
 Travel 6,483 6,376 107
 Passenger fares 405 406 -1
 Other transportation 3,271 3,634 -363
 Other services 14,127 9,005 5,122
Income 9,697 9,599 98
 Investment income 9,697 9,253 444
 Direct investment 4,700 3,528 1,172
 Other investment 4,997 5,725 -728
 Other private investment 4,103 4,678 -575
 U.S. Government liabilities 894 1,047 -153
 Compensation of employees (1) 346 -346
Current unilateral transfers 3,140 190 2,950
 Current account, southbound 272,853 253,459 19,394

 Common-basis estimates
 after definitional and
 methodological adjustments

 Canadian U.S. Diffe-
 receipts payments rence

 2002

Goods and services 242,042 238,361 3,681
 Goods, balance-of-payments basis 219,952 220,042 -90
 Services 22,090 18,319 3,771
 Travel 6,581 6,517 64
 Passenger fares 597 594 3
 Other transportation 3,098 3,242 -144
 Other services 11,814 7,966 3,848
Income 4,479 4,144 335
 Investment income 4,269 3,839 430
 Direct investment 601 -908 1,509
 Other investment 3,668 4,747 -1,079
 Other private investment 2,839 3,883 -1,044
 U.S. Government liabilities 829 864 -35
 Compensation of employees 210 305 -95
Current unilateral transfers 1,014 847 167
 Current account, southbound 247,535 243,352 4,183

 2003

Goods and services 256,131 252,857 3,274
 Goods, balance-of-payments basis 233,141 233,533 -392
 Services 22,990 19,324 3,666
 Travel 6,483 6,432 51
 Passenger fares 405 406 -1
 Other transportation 3,283 3,397 -114
 Other services 12,819 9,089 3,730
Income 6,925 8,934 -2,009
 Investment income 6,680 8,588 -1,908
 Direct investment 2,615 3,461 -846
 Other investment 4,065 5,127 -1,062
 Other private investment 3,295 4,080 -785
 U.S. Government liabilities 770 1,047 -277
 Compensation of employees 2451 346 -101
Current unilateral transfers 1,087 797 290
 Current account, southbound 264,143 262,588 1,555

 Total
 adjust-
 ments
 to
 Reconciled estimates, pub-
 including statistical lished
 adjustments estimates

 Canadian U.S.
 receipts payments Canada

 2002

Goods and services 241,546 241,546 -2,982
 Goods, balance-of-payments basis 220,128 220,128 -879
 Services 21,418 21,418 -2,103
 Travel 6,581 6,581
 Passenger fares 597 597
 Other transportation 3,170 3,170 53
 Other services 11,070 11,070 -2,156
Income 5,738 5,738 -1,117
 Investment income 5,433 5,433 -1,422
 Direct investment 1,132 1,132 -898
 Other investment 4,301 4,301 -524
 Other private investment 3,455 3,455 -424
 U.S. Government liabilities 846 846 -100
 Compensation of employees 305 305 305
Current unilateral transfers 821 821 -2,055
 Current account, southbound 248,105 248,105 -6154

 2003

Goods and services 256,060 256,060 -3,956
 Goods, balance-of-payments basis 233,609 233,609 -2,121
 Services 22,451 22,451 -1,835
 Travel 6,483 6,483
 Passenger fares 405 405
 Other transportation 3,373 3,373 102
 Other services 12,190 12,190 -1,937
Income 8,491 8,491 -1,206
 Investment income 8,155 8,155 -1,542
 Direct investment 3,487 3,487 -1,213
 Other investment 4,668 4,668 -329
 Other private investment 3,759 3,759 -344
 U.S. Government liabilities 909 909 15
 Compensation of employees 336 336 336
Current unilateral transfers 787 787 -2,353
 Current account, southbound 265,338 265,338 -7,515

 Total adjustments to
 published estimates

 United
 States

 2002

Goods and services 11,379
 Goods, balance-of-payments basis 8,372
 Services 3,007
 Travel 92
 Passenger fares 3
 Other transportation -301
 Other services 3,213
Income 680
 Investment income 680
 Direct investment 1,965
 Other investment -1,285
 Other private investment -1,267
 U.S. Government liabilities -18
 Compensation of employees
Current unilateral transfers 481
 Current account, southbound 12,540

 2003

Goods and services 12,390
 Goods, balance-of-payments basis 9,360
 Services 3,030
 Travel 107
 Passenger fares -1
 Other transportation -261
 Other services 3,185
Income -1,108
 Investment income -1,098
 Direct investment -41
 Other investment -1,057
 Other private investment -919
 U.S. Government liabilities -138
 Compensation of employees -10
Current unilateral transfers 597
 Current account, southbound 11,879

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

Table 4.1. Trade in Goods, Northbound

[Millions of U.S. dollars]
 U.S. Canadian
 receipts payments
2002
Balance-of-payments basis, published 160,894 162,438
 Definitional and methodological adjustments:
 Definitional adjustments -42 -467
 Reclassification of equipment repairs from
 unaffiliated services 239
 Common basis after definitional and
 methodological adjustments 161,091 161,971
 Statistical adjustments 261 -619
Reconciled, including statistical adjustments 161,352 161,352

2003
Balance-of-payments basis, published 169,905 171,153
 Definitional and methodological adjustments:
 Definitional adjustments -15 -437
 Reclassification of equipment repairs from
 unaffiliated services 223
 Common basis after definitional and
 methodological adjustments 170,113 170,716
 Statistical adjustments 13 -590
Reconciled, including statistical adjustments 170,126 170,126

Table 4.2. Trade in Goods, Southbound

[Millions of U.S. dollars]
 Canadian U.S.
 receipts payments
2002
Balance-of-payments basis, published 221,007 211,756
 Definitional and methodological adjustments:
 Canadian reexports to the United States 6,501
 Inland freight adjustment 1,243 1,528
 Other definitional adjustments -2,298 252
 Reclassification of equipment repairs from
 unaffiliated services 5
 Common basis after definitional and
 methodological adjustments 219,952 220,042
 Statistical adjustments 176 86
Reconciled, including statistical adjustments 220,128 220,128

2003
Balance-of-payments basis, published 235,730 224,249
 Definitional and methodological adjustments: 6,537
 Canadian reexports to the United States
 Inland freight adjustment 2,247 2,419
 Other definitional adjustments -4,836 305
 Reclassification of equipment repairs from
 unaffiliated services 23
 Common basis after definitional and
 methodological adjustments 233,141 233,533
 Statistical adjustments 468 76
Reconciled, including statistical adjustments 233,609 233,609

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

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian
 receipts payments Difference

 2002
Travel 6,268 6,910 -642
 Business and personal 6,268 6,145 123
 Education 519 -519
 Medical 245 -245
Passenger fares 1,717 1,279 438
Other transportation 2,544 2,277 267
 Freight 1,937 1,934 3
 Ocean 136 236 -100
 Air 87 25 62
 Truck 1,306 1,308 -2
 Other 408 365 43
 Port services 607 309 298
 Vessel operators 74 22 52
 Airline operators 343 255 88
 Other 190 32 158
 Other 34 -34

 2003
Travel 6,844 7,588 -744
 Business and personal 6,844 6,715 129
 Education 563 -563
 Medical 311 -311
Passenger fares 2,114 1,531 583
Other transportation 2,614 2,451 163
 Freight 1,959 1,976 -17
 Ocean 169 264 -95
 Air 104 25 79
 Truck 1,304 1,299 5
 Other 382 388 -6
 Port services 655 440 215
 Vessel operators 68 24 44
 Airline operators 395 380 15
 Other 192 36 156
 Other 36 -36

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian
 receipts payments Difference

 2002
Travel 7,136 6,910 226
 Business and personal 6,268 6,145 123
 Education 617 519 98
 Medical 251 245 6
Passenger fares 1,717 1,279 438
Other transportation 2,544 2,369 175
 Freight 1,929 1,867 62
 Ocean 128 145 -17
 Air 87 49 38
 Truck 1,306 1,308 -2
 Other 408 365 43
 Port services 607 468 139
 Vessel operators 74 22 52
 Airline operators 343 255 88
 Other 190 191 -1
 Other 8 34 -26

 2003
Travel 7,776 7,588 188
 Business and personal 6,844 6,715 129
 Education 648 563 85
 Medical 284 311 -27
Passenger fares 2,114 1,531 583
Other transportation 2,614 2,561 53
 Freight 1,952 1,913 39
 Ocean 162 165 -3
 Air 104 59 45
 Truck 1,304 1,302 2
 Other 382 388 -6
 Port services 655 612 43
 Vessel operators 68 35 33
 Airline operators 395 380 15
 Other 192 197 -5
 Other 7 37 -30

 Reconciled Total
 estimates, including adjustments
 statistical to published
 adjustments estimates

 U.S. Canadian United
 receipts payments States

 2002
Travel 7,013 7,013 745
 Business and personal 6,145 6,145 -123
 Education 617 617 617
 Medical 251 251 251
Passenger fares 1,279 1,279 -438
Other transportation 2,532 2,532 -12
 Freight 1,944 1,944 7
 Ocean 171 171 35
 Air 49 49 -38
 Truck 1,306 1,306
 Other 418 418 10
 Port services 554 554 -53
 Vessel operators 22 22 -52
 Airline operators 343 343
 Other 189 189 -1
 Other 34 34 34

 2003
Travel 7,647 7,647 803
 Business and personal 6,715 6,715 -129
 Education 648 648 648
 Medical 284 284 284
Passenger fares 1,531 1,531 -583
Other transportation 2,619 2,619 5
 Freight 1,963 1,963 4
 Ocean 207 207 38
 Air 59 59 -45
 Truck 1,304 1,304
 Other 393 393 11
 Port services 619 619 -36
 Vessel operators 35 35 -33
 Airline operators 395 395
 Other 189 189 -3
 Other 37 37 37

 Total adjustments to published estimates

 Canada Type of adjustment

 2002
Travel 103
 Business and personal Statistical
 Education 98 Methodological and statistical
 Medical 6 Methodological and statistical
Passenger fares Statistical
Other transportation 255
 Freight 10
 Ocean -65 Definitional, methodological, and
 statistical
 Air 24 Definitional and statistical
 Truck -2 Statistical
 Other 53 Statistical
 Port services 245
 Vessel operators Statistical
 Airline operators 88 Statistical
 Other 157 Methodological and statistical
 Other Methodological and statistical

 2003
Travel 59
 Business and personal Statistical
 Education 85 Methodological and statistical
 Medical -27 Methodological and statistical
Passenger fares Statistical
Other transportation 168
 Freight -13
 Ocean -57 Definitional, methodological, and
 statistical
 Air 34 Definitional and statistical
 Truck 5 Definitional and statistical
 Other 5 Statistical
 Port services 179
 Vessel operators 11 Definitional and statistical
 Airline operators 15 Statistical
 Other 153 Methodological and statistical
 Other 1 Definitional, methodological, and
 statistical

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

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S.
 receipts payments Difference

 2002
Travel 6,581 6,489 92
 Business and personal 6,435 6,489 -54
 Education 94 94
 Medical 52 52
Passenger fares 597 594 3
Other transportation 3,117 3,471 -354
 Freight 2,438 2,705 -267
 Ocean 125 238 -113
 Air 51 51
 Truck 2,157 2,171 -14
 Other 106 245 -139
 Port services 563 766 -203
 Vessel operators 661 132 -66
 Airline operators 384 524 -140
 Other 113 110 3
 Other 116 116

 2003
Travel 6,483 6,376 107
 Business and personal 16,296 6,376 -80
 Education 127 127
 Medical 60 60
Passenger fares 405 406 -1
Other transportation 3,271 3,634 -363
 Freight 2,618 2,851 -233
 Ocean 149 291 -142
 Air 51 59 -8
 Truck 2,239 2,260 -21
 Other 179 241 -62
 Port services 526 783 -257
 Vessel operators 78 107 -29
 Airline operators 381 565 -184
 Other 67 111 -44
 Other 126 126

 Common-basis estimates after
 definitional and methodological
 adjustments

 Canadian U.S.
 receipts payments Difference

 2002
Travel 6,581 6,517 64
 Business and personal 6,435 6,489 -54
 Education 94 28 66
 Medical 52 52
Passenger fares 597 594 3
Other transportation 3,098 3,242 -144
 Freight 2,448 2,543 -95
 Ocean 125 212 -87
 Air 51 51
 Truck 2,167 2,171 -4
 Other 106 109 -3
 Port services 624 673 -49
 Vessel operators 69 66 3
 Airline operators 361 361
 Other 194 246 -52
 Other 26 26

 2003
Travel 6,483 6,432 51
 Business and personal 6,296 6,376 -80
 Education 137 56 71
 Medical 60 60
Passenger fares 405 406 1
Other transportation 3,283 3,397 -114
 Freight 2,621 2,672 -51
 Ocean 135 251 -116
 Air 51 59 -8
 Truck 2,256 2,260 -4
 Other 179 102 77
 Port services 630 685 -55
 Vessel operators 82 54 28
 Airline operators 381 381
 Other 167 250 -83
 Other 31 40 -9

 Reconciled Total
 estimates, including adjustments
 statistical to published
 adjustments estimates

 Canadian U.S.
 receipts payments Canada

 2002
Travel 6,581 6,581
 Business and personal 6,435 6,435
 Education 94 94
 Medical 52 52
Passenger fares 597 597
Other transportation 3,170 3,170 53
 Freight 2,497 2,497 59
 Ocean 169 169 44
 Air 51 51
 Truck 2,171 2,171 14
 Other 106 106
 Port services 647 647 84
 Vessel operators 66 66
 Airline operators 361 361 -23
 Other 220 220 107
 Other 26 26 -90

 2003
Travel 6,483 6,483
 Business and personal 6,296 6,296
 Education 127 127
 Medical 60 60
Passenger fares 405 405
Other transportation 3,373 3,373 102
 Freight 2,691 2,691 73
 Ocean 193 193 44
 Air 59 59 8
 Truck 2,260 2,260 21
 Other 179 179
 Port services 642 642 116
 Vessel operators 54 54 -24
 Airline operators 381 381
 Other 207 207 140
 Other 40 40 -86

 Total adjustments to published estimates

 United
 States Type of adjustment

 2002
Travel 92
 Business and personal -54 Statistical
 Education 94 Methodological and statistical
 Medical 52 Statistical
Passenger fares 3 Statistical
Other transportation -301
 Freight -208
 Ocean -69 Methodological and statistical
 Air
 Truck Definitional and statistical
 Other -139 Methodological and statistical
 Port services -119
 Vessel operators -66 Definitional and statistical
 Airline operators -163 Definitional and methodological
 Other 110 Methodological and statistical
 Other 26 Definitional, methodological, and
 statistical

 2003
Travel 107
 Business and personal -80 Statistical
 Education 127 Methodological and statistical
 Medical 60 Statistical
Passenger fares -1 Statistical
Other transportation -261
 Freight -160
 Ocean -98 Definitional, methodological, and
 statistical
 Air Statistical
 Truck Definitional and statistical
 Other -62 Methodological and statistical
 Port services -141
 Vessel operators -53 Definitional and statistical
 Airline operators -184 Methodological
 Other 96 Methodological and statistical
 Other 40 Definitional, methodological, and
 statistical

Table 6.1. Other Services, Northbound

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian
 receipts payments Difference

 2002
Total 143,201 15,577 -12,571
Affiliated 7,191 8,264 -1,073
 Royalties and license
 fees 2,395 2,142 253
 Other services 4,796 6,122 -1,326
Unaffiliated 7,043 7,313 -270
 Royalties, license fees,
 and selected services 1,468 1,619 -151
 Insurance 459 565 -106
 Financial services 934 1,019 -85
 Education and training 645 13 632
 Communications 585 897 -312
 Computer services 771 540 231
 Business services 1,487 1,032 455
 Sports and entertainment 492 1,222 -730
 Other private 193 -193
 Government:
 United States
 (nonmilitary) 86 731 13
 Canada 116 139 -23
US military sales 87 87

 2003
Total 15,437 17,441 -2,004
Affiliated 7,561 9,210 -1,649
 Royalties and license
 fees 2,685 2,701 -16
 Other services 4,876 6,509 -1,633
Unaffiliated 7,676 8,231 -555
 Royalties, license fees,
 and selected services 1,552 1,830 -278
 Insurance 660 814 -154
 Financial services 1,035 947 88
 Education and training 672 14 658
 Communications 681 1,046 -365
 Computer services 781 550 231
 Business services 1,478 1,144 334
 Sports and entertainment 601 1,454 -853
 Other private 196 -196
 Government:
 United States
 (nonmilitary) 84 77 7
 Canada 132 158 -26
US military sales 200 200

 Common-basis estimates after
 definitional and methodological
 adjustments

 U.S. Canadian
 receipts payments Difference

 2002
Total 13,170 14,403 -1,233
Affiliated 6,874 7,751 -877
 Royalties and license
 fees 2,395 2,119 276
 Other services 4,479 5,632 -1,153
Unaffiliated 6,253 6,652 -399
 Royalties, license fees,
 and selected services 1,447 1,553 -106
 Insurance 459 540 -81
 Financial services 934 931 3
 Education and training 28 14 14
 Communications 585 540 45
 Computer services 771 542 229
 Business services 1,147 1,287 -140
 Sports and entertainment 680 1,066 -386
 Other private
 Government:
 United States
 (nonmilitary) 86 73 13
 Canada 116 106 10
US military sales 43 43

 2003
Total 14,135 16,245 -2,110
Affiliated 7,273 8,660 -1,387
 Royalties and license
 fees 2,685 2,686 -1
 Other services 4,588 5,974 -1,386
Unaffiliated 6,809 7,584 -775
 Royalties, license fees,
 and selected services 1,533 1,791 -258
 Insurance 660 787 -127
 Financial services 1,035 859 176
 Education and training 24 15 9
 Communications 681 646 35
 Computer services 781 553 228
 Business services 1,128 1,427 -299
 Sports and entertainment 751 1,307 -556
 Other private
 Government:
 United States
 (nonmilitary) 84 77 7
 Canada 132 120 12
US military sales 53 53

 Reconciled Total
 estimates, including adjustments
 statistical to published
 adjustments estimates

 U.S. Canadian United
 receipts payments States

 2002
Total 14,036 14,036 -284
Affiliated 6,891 6,891 -300
 Royalties and license
 fees (1) (1) (1)
 Other services (1) (1) (1)
Unaffiliated 7,102 7,102 59
 Royalties, license fees,
 and selected services 1,447 1,447 -21
 Insurance 459 459
 Financial services 1,021 1,021 87
 Education and training 28 28 -617
 Communications 585 585
 Computer services 771 771
 Business services 1,573 1,573 86
 Sports and entertainment 1,026 1,026 534
 Other private
 Government:
 United States
 (nonmilitary) 86 86
 Canada 106 106 -10
US military sales 43 43 -44

 2003
Total 15,447 15,447 10
Affiliated 7,518 7,518 -43
 Royalties and license
 fees (1) (1) (1)
 Other services (1) (1) (1)
Unaffiliated 7,876 7,876 200
 Royalties, license fees,
 and selected services 1,533 1,533 -19
 Insurance 660 660
 Financial services 1,151 1,151 116
 Education and training 24 24 -648
 Communications 681 681
 Computer services 781 781
 Business services 1,651 1,651 173
 Sports and entertainment 1,191 1,191 590
 Other private
 Government:
 United States
 (nonmilitary) 84 84
 Canada 120 120 -12
US military sales 53 53 -147

 Total adjustments to published estimates

 Canada Type of adjustment

 2002
Total -1,541
Affiliated -1,373 Definitional, methodological,
 and statistical
 Royalties and license
 fees (1)
 Other services (1)
Unaffiliated -211
 Royalties, license fees,
 and selected services -172 Definitional, methodological,
 and statistical
 Insurance -106 Definitional and statistical
 Financial services 2 Definitional and statistical
 Education and training 15 Methodological and statistical
 Communications -312 Methodological and statistical
 Computer services 231 Methodological and statistical
 Business services 541 Methodological and statistical
 Sports and entertainment -196 Definitional, methodological,
 and statistical
 Other private -193 Definitional and methodological
 Government:
 United States
 (nonmilitary) 13 Statistical
 Canada -33 Definitional, methodological,
 and statistical
US military sales 43 Definitional and statistical

 2003
Total -1,994
Affiliated -1,692 Definitional, methodological,
 and statistical
 Royalties and license
 fees (1)
 Other services (1)
Unaffiliated -355
 Royalties, license fees,
 and selected services -297 Definitional, methodological,
 and statistical
 Insurance -154 Definitional and statistical
 Financial services 204 Definitional and statistical
 Education and training 10 Methodological and statistical
 Communications -365 Methodological and statistical
 Computer services 231 Methodological and statistical
 Business services 507 Methodological and statistical
 Sports and entertainment -263 Definitional, methodological,
 and statistical
 Other private -196 Definitional and methodological
 Government:
 United States
 (nonmilitary) 7 Statistical
 Canada -38 Definitional, methodological,
 and statistical
US military sales 53 Definitional and statistical1

(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

 2002
Total 13,226 7,857 5,369
Affiliated 6,149 3,967 2,182
 Royalties and license
 fees 1,000 881 119
 Other services 5,148 3,086 2,062
Unaffiliated 7,014 3,806 3,208
 Royalties, license fees,
 and selected services 2,043 510 1,533
 Insurance 226 554 -328
 Financial services 281 154 127
 Education and training 46 42 4
 Communications 989 256 733
 Computer services 1,091 1,083 8
 Business services 1,015 978 37
 Sports and entertainment 973 52 921
 Other private 138 138
 Government:
 Canada 36 36
 United States
 (nondefense) 176 177 -1
US defense expenditures 63 83 -20

 2003
Total 14,127 9,005 5,122
Affiliated 6,376 4,467 1,909
 Royalties and license
 fees 1,040 577 463
 Other services 5,336 3,890 1,446
Unaffiliated 7,689 4,442 3,247
 Royalties, license fees,
 and selected services 2,234 867 1,367
 Insurance 11 525 -514
 Financial services 342 161 181
 Education and training 64 73 9
 Communications 1,107 281 826
 Computer services 1,168 1,004 164
 Business services 1,139 129,754 -158
 Sports and entertainment 1,248 54 1,194
 Other private 161 161
 Government:
 Canada 34 34
 United States
 (nondefense) 181 180 1
US defense expenditures 61 95 -34

 Common-basis estimates after
 definitional and methodological
 adjustments

 Canadian U.S. Difference
 receipts payments

 2002
Total 11,814 7,966 3,848
Affiliated 5,344 3,937 1,407
 Royalties and license
 fees 997 881 116
 Other services 4,346 3,056 1,290
Unaffiliated 6,407 3,966 2,441
 Royalties, license fees,
 and selected services 1,963 506 1,457
 Insurance 224 554 -330
 Financial services 287 154 133
 Education and training 24 14 10
 Communications 660 256 404
 Computer services 1,091 1,083 8
 Business services 1,115 769 346
 Sports and entertainment 833 453 380
 Other private
 Government:
 Canada 36 36
 United States
 (nondefense) 176 177 -1
US defense expenditures 63 63

 2003
Total 12,819 9,089 3,730
Affiliated 5,605 4,426 1,179
 Royalties and license
 fees 1,040 577 463
 Other services 4,565 3,849 716
Unaffiliated 7,153 4,588 2,565
 Royalties, license fees,
 and selected services 2,233 864 1,369
 Insurance 12 525 -513
 Financial services 358 161 197
 Education and training 30 17 13
 Communications 739 281 458
 Computer services 1,168 1,004 164
 Business services 1,250 975 275
 Sports and entertainment 1,147 581 566
 Other private
 Government:
 Canada 34 34
 United States
 (nondefense) 181 180 1
US defense expenditures 61 75 -14

 Reconciled Total
 estimates, including adjustments
 statistical to published
 adjustments estimates

 Canadian U.S. Canada
 receipts payments

 2002
Total 11,070 11,070 -2,156
Affiliated 4,590 4,590 -1,559
 Royalties and license
 fees (1) (1) (1)
 Other services (1) (1) (1)
Unaffiliated 6,417 6,417 -597
 Royalties, license fees,
 and selected services 1,963 1,963 -80
 Insurance 554 554 328
 Financial services 178 178 -103
 Education and training 24 24 -22
 Communications 458 458 -531
 Computer services 1,055 1,055 -36
 Business services 1,141 1,141 126
 Sports and entertainment 833 833 -140
 Other private -138
 Government:
 Canada 36 36
 United States
 (nondefense) 177 177 1
US defense expenditures 63 63

 2003
Total 12,190 12,190 -1,937
Affiliated 4,805 4,805 -1,571
 Royalties and license
 fees (1) (1) (1)
 Other services (1) (1) (1)
Unaffiliated 7,310 7,310 -379
 Royalties, license fees,
 and selected services 2,233 2,233 -1
 Insurance 525 525 514
 Financial services 215 215 -127
 Education and training 30 30 -34
 Communications 510 510 -597
 Computer services 1,121 1,121 -47
 Business services 1,315 1,315 176
 Sports and entertainment 1,147 1,147 -101
 Other private -161
 Government:
 Canada 34 34
 United States
 (nondefense) 180 180 -1
US defense expenditures 75 75 14

 Total adjustments to published estimates

 United Type of adjustment
 States

 2002
Total 3,213
Affiliated 623 Definitional, methodological,
 and statistical
 Royalties and license
 fees (1)
 Other services (1)
Unaffiliated 2,611
 Royalties, license fees,
 and selected services 1,453 Definitional and statistical
 Insurance Definitional and statistical
 Financial services 24 Definitional and statistical
 Education and training -18 Methodological and statistical
 Communications 202 Methodological and statistical
 Computer services -28 Statistical
 Business services 163 Methodological and statistical
 Sports and entertainment 781 Definitional, methodological,
 and statistical
 Other private Definitional and methodological
 Government:
 Canada 36 Statistical
 United States
 (nondefense) Statistical
US defense expenditures -20 Definitional

 2003
Total 3,185
Affiliated 338 Definitional, methodological,
 and statistical
 Royalties and license
 fees (1)
 Other services (1)
Unaffiliated 2,868
 Royalties, license fees,
 and selected services 1,366 Definitional and statistical
 Insurance Definitional and statistical
 Financial services 54 Definitional and statistical
 Education and training -43 Methodological and statistical
 Communications 229 Methodological and statistical
 Computer services 117 Statistical
 Business services 18 Methodological and statistical
 Sports and entertainment 1,093 Definitional, methodological,
 and statistical
 Other private Definitional and methodological
 Government:
 Canada 34 Statistical
 United States
 (nondefense) Statistical
US defense expenditures -20 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
 receipts payments Difference

 2002

Investment Income 21,027 25,693 -4,666
 Direct investment income 12,796 9,591 3,205
 Earnings of incorporated
 affiliates 12,140 8,881 3,259
 Dividends 4,329 4,319 10
 Reinvested earnings 7,811 4,562 3,249
 Earnings of unincorporated
 affiliates 213 141 72
 Interest 443 569 -126
 Other investment income 8,231 16,102 -7,871
 Securities 6,282 12,723 -6,441
 Dividends 1,716 1,636 80
 Interest 4,566 11,087 -6,521
 U.S. claims/Canadian liabilities 1,949 3,378 -1,429
 U.S. bank claims 1,528 1,503 25
 Other private U.S. claims 421 1,875 -1,454

 2003

Investment Income 24,384 27,211 -2,827
 Direct investment income 17,430 10,959 6,471
 Earnings of incorporated
 affiliates 16,685 10,038 6,647
 Dividends 3,020 4,033 -1,013
 Reinvested earnings 13,665 6,005 7,660
 Earnings of unincorporated
 affiliates 240 136 104
 Interest 505 785 -280
 Other investment income 6,954 16,252 -9,298
 Securities 5,282 13,293 -8,011
 Dividends 1,818 1,917 -99
 Interest 3,464 11,376 -7,912
 U.S. claims/Canadian liabilities 1,672 2,958 -1,286
 U.S. bank claims 1,238 1,120 118
 Other private U.S. claims 434 1,838 -1,404

 Common-basis estimates after
 definitional and methodological
 adjustments

 U.S. Canadian
 receipts payments Difference

 2002

Investment Income 20,770 22,916 -2,146
 Direct investment income 12,696 9,050 3,646
 Earnings of incorporated
 affiliates 12,075 8,457 3,618
 Dividends 4,265 3,920 345
 Reinvested earnings 7,810 4,537 3,273
 Earnings of unincorporated
 affiliates 213 130 83
 Interest 408 463 -55
 Other investment income 8,074 13,866 -5,792
 Securities 6,964 12,517 -5,553
 Dividends 1,716 1,430 286
 Interest 5,248 11,087 -5,839
 U.S. claims/Canadian liabilities 1,110 1,349 -239
 U.S. bank claims. 423 560 -137
 Other private U.S. claims 687 789 -102

 2003

Investment Income 24,229 24,442 -213
 Direct investment income 17,354 10,307 7,047
 Earnings of incorporated
 affiliates 16,647 9,662 6,985
 Dividends 2,981 3,662 -681
 Reinvested earnings 13,666 6,000 7,666
 Earnings of unincorporated
 affiliates 240 124 116
 Interest 467 521 -54
 Other investment income 6,875 14,135 -7,260
 Securities 5,800 13,052 -7,252
 Dividends 1,818 1,676 142
 Interest 3,982 11,376 -7,394
 U.S. claims/Canadian liabilities 1,075 1,083 -8
 U.S. bank claims 505 478 27
 Other private U.S. claims 570 605 -35

 Total
 Reconciled adjust-
 estimates, including ments to
 statistical published
 adjustments estimates

 U.S. Canadian United
 receipts payments States

 2002

Investment Income 22,425 22,425 1,398
 Direct investment income 11,831 11,831 -965
 Earnings of incorporated
 affiliates 11,251 11,251 -889
 Dividends 4,093 4,093 -236
 Reinvested earnings 7,158 7,158 -653
 Earnings of unincorporated
 affiliates 172 172 -41
 Interest 408 408 -35
 Other investment income 10,594 10,594 2,363
 Securities 9,420 9,420 3,138
 Dividends 1,573 1,573 -143
 Interest 7,847 7,847 3,281
 U.S. claims/Canadian liabilities 1,174 1,174 -775
 U.S. bank claims. 492 492 -1,036
 Other private U.S. claims 682 682 261

 2003

Investment Income 25,597 25,597 1,213
 Direct investment income 14,352 14,352 -3,078
 Earnings of incorporated
 affiliates 13,703 13,703 -2,982
 Dividends 3,170 3,170 150
 Reinvested earnings 10,533 10,533 -3,132
 Earnings of unincorporated
 affiliates 182 182 -58
 Interest 467 467 -38
 Other investment income 11,245 11,245 4,291
 Securities 10,189 10,189 4,907
 Dividends 1,747 1,747 -71
 Interest 8,442 8,442 4,978
 U.S. claims/Canadian liabilities 1,056 1,056 -616
 U.S. bank claims 492 492 -746
 Other private U.S. claims 564 564 130

 Total adjustments to published
 estimates

 Canada Type of adjustment

 2002

Investment Income -3,268
 Direct investment income 2,240
 Earnings of incorporated
 affiliates 2,370
 Dividends -226 Definitional and sta-
 tistical
 Reinvested earnings 2,596 Definitional and sta-
 tistical
 Earnings of unincorporated
 affiliates 31 Definitional and sta-
 tistical
 Interest -161 Definitional, methodo-
 logical, and statis-
 tical
 Other investment income -5,508
 Securities -3,303
 Dividends -63 Definitional and sta-
 tistical
 Interest -3,240 Definitional and sta-
 tistical
 U.S. claims/Canadian liabilities -2,204
 U.S. bank claims. -1,011 Methodological and sta-
 tistical
 Other private U.S. claims -1,193 Definitional and sta-
 tistical

 2003

Investment Income -1,614
 Direct investment income 3,393
 Earnings of incorporated
 affiliates 3,665
 Dividends -863 Definitional and sta-
 tistical
 Reinvested earnings 4,528 Definitional and sta-
 tistical
 Earnings of unincorporated
 affiliates 46 Definitional and sta-
 tistical
 Interest -318 Definitional, methodo-
 logical, and statis-
 tical
 Other investment income -5,007
 Securities -3,104
 Dividends -170 Definitional and sta-
 tistical
 Interest -2,934 Definitional and sta-
 tistical
 U.S. claims/Canadian liabilities -1,902
 U.S. bank claims -628 Methodological and sta-
 tistical
 Other private U.S. claims -1,274 Definitional, methodo-
 logical, and statis-
 tical

Table 7.2. Investment Income, Southbound

[Millions of US dollars]

 Published estimates

 Canadian U.S.
 receipts payments Difference

 2002

Investment Income 6,855 4,753 2,102
 Direct investment income 2,030 -833 2,863
 Earnings of incorporated
 affiliates 2,076 -1,441 3,517
 Dividends 1,526 960 566
 Reinvested earnings 550 -2,401 2,951
 Earnings of unincorporated
 affiliates -218 90 -308
 Interest 172 518 -346
 Other investment income 4,825 5,586 -761
 Securities 2,397 3,839 -1,442
 Dividends 1,989 2,283 -294
 Interest 408 1,556 -1,148
 Canadian bank claims/U.S.
 liabilities 1,482 883 599
 Canadian bank claims 969 533 436
 Other private Canadian claims 513 350 163
 U.S. Government liabilities 946 864 82

 2003

Investment Income 9,697 9,253 444
 Direct investment income 4,700 3,528 1,172
 Earnings of incorporated
 affiliates 3,637 2,720 917
 Dividends 1,746 330 1,416
 Reinvested earnings 1,891 2,390 -499
 Earnings of unincorporated
 affiliates 721 248 473
 Interest 342 560 -218
 Other investment income 4,997 5,725 -728
 Securities 2,718 3,822 -1,104
 Dividends 2,309 2,399 -90
 Interest 409 1,423 -1,014
 Canadian bank claims/U.S.
 liabilities 1,385 856 529
 Canadian bank claims 785 358 427
 Other private Canadian claims 600 498 102
 U.S. Government liabilities 894 1,047 -153

 Common-basis estimates after
 definitional and methodological
 adjustments

 Canadian U.S.
 receipts payments Difference

 2002

Investment Income 4,269 3,839 430
 Direct investment income 601 -908 1,509
 Earnings of incorporated
 affiliates 1,455 -1,523 2,978
 Dividends 1,602 878 724
 Reinvested earnings -147 -2,401 2,254
 Earnings of unincorporated
 affiliates -893 90 -983
 Interest 39 525 -486
 Other investment income 3,668 4,747 -1,079
 Securities 2,420 3,839 -1,419
 Dividends 1,825 2,283 -458
 Interest 595 1,556 -961
 Canadian bank claims 419 44 375
 U.S. bank claims. -90 18 -108
 Other private U.S. claims 509 26 483
 U.S. Government liabilities 829 864 -35

 2003

Investment Income 6,680 8,588 -1,908
 Direct investment income 2,615 3,461 -846
 Earnings of incorporated
 affiliates 2,146 2,702 -556
 Dividends 1,392 312 1,080
 Reinvested earnings 754 2,390 -1,636
 Earnings of unincorporated
 affiliates 264 190 74
 Interest 205 569 -364
 Other investment income 4,065 5,127 -1,062
 Securities 2,742 3,822 -1,080
 Dividends 2,119 2,399 -280
 Interest 623 1,423 -800
 Canadian bank claims 553 258 295
 Canadian bank claims -43 180 -223
 Other private Canadian claims 596 78 518
 U.S. Government liabilities 770 1,047 -277

 Total
 Reconciled adjust-
 estimates, including ments to
 statistical published
 adjustments estimates

 Canadian U.S.
 receipts payments Canada

 2002

Investment Income 5,433 5,433 -1,422
 Direct investment income 1,132 1,132 -898
 Earnings of incorporated
 affiliates 626 626 -1,450
 Dividends 1,438 1,438 -88
 Reinvested earnings -812 -812 -1,362
 Earnings of unincorporated
 affiliates -19 -19 199
 Interest 525 525 353
 Other investment income 4,301 4,301 -524
 Securities 3,003 3,003 606
 Dividends 2,168 2,168 179
 Interest 835 835 427
 Canadian bank claims 452 452 -1,030
 U.S. bank claims. -14 -14 -983
 Other private U.S. claims 466 466 -47
 U.S. Government liabilities 846 846 -100

 2003

Investment Income 8,155 8,155 -1,542
 Direct investment income 3,487 3,487 -1,213
 Earnings of incorporated
 affiliates 2,786 2,786 -851
 Dividends 517 517 -1,229
 Reinvested earnings 2,269 2,269 378
 Earnings of unincorporated
 affiliates 132 132 -589
 Interest 569 569 227
 Other investment income 4,668 4,668 -329
 Securities 3,153 3,153 435
 Dividends 2,329 2,329 20
 Interest 824 824 415
 Canadian bank claims 606 606 -779
 Canadian bank claims 44 44 -741
 Other private Canadian claims 562 562 -38
 U.S. Government liabilities 909 909 15

 Total adjustments to published
 estimates

 United
 States Type of adjustment

 2002

Investment Income 680
 Direct investment income 1,965
 Earnings of incorporated
 affiliates 2,067
 Dividends 478 Definitional, methodo-
 logical, and statis-
 tical
 Reinvested earnings 1,589 Definitional, methodo-
 logical, and statis-
 tical
 Earnings of unincorporated
 affiliates -109 Methodological and sta-
 tistical
 Interest 7 Definitional, methodo-
 logical, and statis-
 tical
 Other investment income -1,285
 Securities -836
 Dividends -115 Definitional and sta-
 tistical
 Interest -721 Definitional and sta-
 Canadian bank claims -431 tistical
 U.S. bank claims. -547 Definitional, methodo-
 logical, and statis-
 tical
 Other private U.S. claims 116 Definitional, methodo-
 logical, and statis-
 tical
 U.S. Government liabilities -18 Definitional and sta-
 tistical

 2003

Investment Income -1,098
 Direct investment income -41
 Earnings of incorporated
 affiliates 66
 Dividends 187 Definitional, methodo-
 logical, and statis-
 tical
 Reinvested earnings -121 Definitional, methodo-
 logical, and statis-
 tical
 Earnings of unincorporated
 affiliates -116 Methodological and sta-
 tistical
 Interest 9 Definitional, methodo-
 logical, and statis-
 tical
 Other investment income -1,057
 Securities -669
 Dividends -70 Definitional and sta-
 tistical
 Interest -599 Definitional and sta-
 tistical
 Canadian bank claims -250
 Canadian bank claims -314 Definitional, methodo-
 logical, and statis-
 tical
 Other private Canadian claims 64 Definitional, methodo-
 logical, and statis-
 tical
 U.S. Government liabilities -138 Definitional and sta-
 tistical

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