Reconciliation of the U.S.-Canadian current account, 2000 and 2001.

DiLullo, Anthony ; Caron, Denis

ON a reconciled basis, the U.S. deficit, or Canadian surplus, is $40.4 billion for 2000 and $40.0 billion for 2001 (chart 1, table 1). (1) The U.S.-published current-account balance with Canada is a U.S. deficit of $30.5 billion for 2000 and a U.S. deficit of $26.5 billion for 2001; the corresponding Canadian-published balance is a Canadian surplus (U.S. deficit) of $42.8 billion for 2000 and a Canadian surplus (U.S. deficit) of $42.5 billion for 2001. (2)

[GRAPHIC OMITTED]

This article presents the results of the reconciliation of the bilateral current-account estimates of Canada and the United States for 2000 and 2001. (3) The details of the current-account reconciliation for 2000 and 2001 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 resulted in an increase of $9.9 billion in the U.S. deficit for 2000 and an increase of $13.5 billion in the U.S. deficit for 2001. In 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) 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 2001, from adjustments for statistical differences in direct investment income. 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 (definitional and statistical adjustments).

In the Canadian current account, the reconciliation adjustments resulted in a decrease of $2.4 billion in the 2000 Canadian surplus and in a decrease of $2.5 billion in the 2001 Canadian surplus. In both years, the decreases reflect larger downward adjustments to the Canadian southbound estimates than to the Canadian northbound estimates. In both years, the Canadian southbound estimates were adjusted downward to account for definitional differences, mainly in unilateral transfers; for methodological differences, mainly the netting of Canadian bank claims and liabilities in "other" investment income; and for statistical differences, mainly in "other" services and in direct investment income. In the Canadian northbound estimates, downward adjustments for definitional and methodological differences were mainly in investment income, and downward adjustments for statistical differences were mainly in "other" services. These downward adjustments were partly offset by upward adjustments for statistical differences in direct investment income.

The statistical adjustments to the U.S. and Canadian southbound direct investment income estimates for 2001 were unusually large. The U.S. published estimate shows net losses by U.S. affiliates of Canadian parents while the Canadian published estimate shows net profits. The difference between the U.S. and Canadian estimates partly reflects larger losses estimated by the U.S. Bureau of Economic Analysis (BEA) for U.S. manufacturing affiliates of Canadian parents than the losses estimated by Statistics Canada for these manufacturing affiliates. The estimates of income (losses) for affiliates in the manufacturing industry were arbitrarily reconciled by averaging the U.S. and Canadian estimates. The reconciliation of direct investment income is restricted by the confidentiality of the source data, by the preliminary nature of the reports on which the 2001 estimates are based, and by the different approaches used by BEA and by Statistics Canada in estimating earnings (losses).

Summary of Reconciliation Methodology

In reconciling the differences in the U.S.- and Canadian-published bilateral current-account estimates, the estimates are first restated on 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, 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 change) 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 the northbound estimates, most of the statistical differences are in the U.S. and Canadian estimates of "other" services and of investment income. For the southbound estimates, most of the statistical differences are in the U.S. and Canadian estimates of "other" services and of investment income.

Acknowledgments

The reconciliations were carried out under the direction of Denis Caron, Chief, Current Account, in Statistics Canada's Balance of Payments Division, and of Anthony DiLullo, former Assistant Chief of BEA's Balance of Payments Division and currently serving as a consultant to BEA. At Statistics Canada, Denis Caron, Christian Lajule, Eric Simard, and Robert Theberge participated in the reconciliation of the Canadian accounts, with the collaboration and assistance of Brian Andre, Jacqueline Dickie, and Karen Liu. Christian Wolfe was responsible for the production and coordination of the reconciliation tables. At BEA, Patricia Abaroa, under the direction of Christopher Gohrband and with the assistance of Elena Nguyen, was responsible for reconciling the U.S. portfolio income accounts; Mark New, for the accounts related to U.S. direct investment in Canada; Gregory Fouch, for the accounts related to Canadian direct investment in the United States; Kwok Lee, for goods; Michael Mann, for services, with the assistance of Mary Frances Styczynski for financial services; and Edward Dozier, for transportation.

Table 1. Major U.S.-Canadian Balances

[Billions of U.S. dollars]

 Published Reconciled
 estimates estimates

 United Canada United Canada
 2000 States States

 Goods and services -48.6 57.7 -58.6 58.6
 Goods -54.8 61.9 -63.0 63.0
 Services 6.2 -4.2 4.4 -4.4
 Income 18.8 -17.2 18.8 -18.8
 Current unilateral transfers -0.7 2.2 -0.6 0.6

Current account -30.5 42.8 -40.4 40.4

 2001
 Goods and services -49.4 57.6 -59.3 59.3
 Goods -55.4 61.9 -63.9 63.9
 Services 6.1 -4.3 4.6 -4.6
 Income 23.6 -17.4 19.9 -19.9
 Current unilateral transfers -0.7 2.3 -0.6 0.6

Current account -26.5 42.5 -40.0 40.0

NOTE. 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, 2000

[Millions of U S dollars]

 Methological

 Definitional Reclassification

 United United
 States Canada States Canada

Goods, balance of payments basis 140 -218 226
 Valuation adjustments 140 -218
 Reclassification of equipment
 repairs from unaffiliated
 services 226
 Statistical adjustments
Services 30 -436 -226 -69
 Travel 709
 Reclassification of education
 from unaffiliated services 511
 Reclassification of medical
 services from unaffiliated
 services 198
 Statistical adjustments
 Passenger fares
 Statistical adjustments
 Other transportation -109
 Valuation adjustments -109 202
 Reclassification of
 transportation services from
 unaffiliated services 202
 Statistical adjustments
 Other services 30 -327 -935 -271
 Affiliated -99 -310
 Valuation adjustments -99
 Reclassification of film
 rentals to unaffiliated
 services -223
 Reclassification of courier
 services to unaffiliated
 services -87
 Statistical adjustments
 Unaffiliated 89 -228 -625 -271
 Valuation adjustments 89 -228
 Reclassification of
 transactions to or from
 other accounts -625 -271
 Statistical adjustments
 U.S. military sales -59
 Valuation adjustments -59
 Statistical adjustments
Income 975 -2,624 69
 Direct investment -491 -28
 Valuation adjustments -491
 Reclassification of dividends
 to "other" income -28
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Other investment 975 -2,133 28
 Valuation adjustments 975 -2,133
 Reclassification of dividends
 from direct investment 28
 Adjustment of interest income
 to a gross or net basis
 Statistical adjustmentts
 Compensation of employees 69
Current unilateral transfers -302
 Valuation adjustments -302
 Adjustment of U.S. transfers to a
 gross basis
 Statistical adjustments

 Total adjustments 1,145 -3,580

 Methological Statistical

 Gross or net United
 States Canada
 United
 States Canada

Goods, balance of payments basis -820
 Valuation adjustments
 Reclassification of equipment
 repairs from unaffiliated
 services
 Statistical adjustments -820
Services 1,437 -1,262
 Travel 1 20
 Reclassification of education
 from unaffiliated services
 Reclassification of medical
 services from unaffiliated
 services
 Statistical adjustments 1 20
 Passenger fares -289
 Statistical adjustments -289
 Other transportation 13 -16
 Valuation adjustments
 Reclassification of
 transportation services from
 unaffiliated services
 Statistical adjustments 13 -16
 Other services 1,712 -1,266
 Affiliated 821 -2396
 Valuation adjustments
 Reclassification of film
 rentals to unaffiliated
 services
 Reclassification of courier
 services to unaffiliated
 services
 Statistical adjustments 821 -2,396
 Unaffiliated 891 1,086
 Valuation adjustments
 Reclassification of
 transactions to or from
 other accounts
 Statistical adjustments 891 1,086
 U.S. military sales 44
 Valuation adjustments
 Statistical adjustments 44
Income -1,722 -3,352 -232 3,370
 Direct investment -119 -858 3,117
 Valuation adjustments
 Reclassification of dividends
 to "other" income
 Adjustment of interest income
 to a net basis -119
 Statistical adjustments -858 3,117
 Other investment -1,722 -3,233 626 244
 Valuation adjustments
 Reclassification of dividends
 from direct investment
 Adjustment of interest income
 to a gross or net basis -1,722 -3,233
 Statistical adjustments 626 244
 Compensation of employees 9
Current unilateral transfers 180 114
 Valuation adjustments
 Adjustment of U.S. transfers to a
 gross basis 180
 Statistical adjustments 114

 Total adjustments -1,542 -3,352 1,319 1,288

 Total

 United
 States Canada

Goods, balance of payments basis 366 -1,038
 Valuation adjustments 140 -218
 Reclassification of equipment
 repairs from unaffiliated
 services 266
 Statistical adjustments -820
Services 1,241 -1,767
 Travel 710 20
 Reclassification of education
 from unaffiliated services 511
 Reclassification of medical
 services from unaffiliated
 services 198
 Statistical adjustments 1 20
 Passenger fares -289
 Statistical adjustments -289
 Other transportation 13 77
 Valuation adjustments -109
 Reclassification of
 transportation services from 202
 unaffiliated services
 Statistical adjustments 13 -16
 Other services 807 -1,864
 Affiliated 511 -2,495
 Valuation adjustments -99
 Reclassification of film
 rentals to unaffiliated
 services -233
 Reclassification of courier
 services to unaffiliated
 services -87
 Statistical adjustments 821 -2396
 Unaffiliated 355 587
 Valuation adjustments 89 -228
 Reclassification of
 transactions to or from
 other accounts -625 -271
 Statistical adjustments 891 1086
 U.S. military sales -59 44
 Valuation adjustments -59
 Statistical adjustments 44
Income -979 -2,537
 Direct investment -858 2,479
 Valuation adjustments -491
 Reclassification of dividends
 to "other" income -28
 Adjustment of interest income
 to a net basis -119
 Statistical adjustments -858 3,117
 Other investment -121 -5,094
 Valuation adjustments 975 -2,133
 Reclassification of dividends
 from direct investment 28
 Adjustment of interest income
 to a gross or net basis -1,722 -3,233
 Statistical adjustmentts 626 244
 Compensation of employees 78
Current unilateral transfers 294 -302
 Valuation adjustments -302
 Adjustment of U.S. transfers to a
 gross basis 180
 Statistical adjustments 114

 Total adjustments 922 -5,644

Table 2.1. Summary of Reconciliation Adjustments, Northbound, 2001

[Millions of U.S. dollars]

 Definitional

 United Canada
 States

Goods, balance of payments basis 125 -199
 Valuation adjustments 125 -199
 Reclassification of equipment repairs from
 unaffiliated services
 Statistical adjustments
Services -1,006 -416
 Travel
 Reclassification of education from
 unaffiliated services
 Reclassification of medical services
 from unaffiliated services
 Statistical adjustments
 Passenger fares
 Statistical adjustments
 Other transportation -93
 Valuation adjustments -93
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services -1,006 -323
 Affiliated -1,057 -93
 Valuation adjustments -1,057 -93
 Reclassification of film rentals
 to unaffiliated services
 Reclassification of courier
 services to unaffiliated
 services
 Statistical adjustments
 Unaffiliated 90 -230
 Valuation adjustments 90 -230
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. military sales -39
 Valuation adjustments -39
 Statistical adjustments
Income 852 -2,835
 Direct investment -479
 Valuation adjustments -479
 Reclassification of dividends to
 "other" income
 Adjustment of interest income to a net
 basis
 Statistical adjustments
 Other investment 852 -2,356
 Valuation adjustments 852 -2,356
 Reclassification of dividends from
 direct investment
 Adjustment of interest income to a
 gross or net basis
 Statistical adjustments
 Compensation of employees
Current unilateral transters -333
 Valuation adjustments -333
 Adjustment of U.S. transfers to a gross
 basis
 Statistical adjustments
 Total adjustments -29 -3,783

 Methodological

 Reclassification

 United Canada
 States

Goods, balance of payments basis 264
 Valuation adjustments
 Reclassification of equipment repairs from
 unaffiliated services 264
 Statistical adjustments
Services -264 -69
 Travel 791
 Reclassification of education from
 unaffiliated services 570
 Reclassification of medical services
 from unaffiliated services 221
 Statistical adjustments
 Passenger fares
 Statistical adjustments
 Other transportation 212
 Valuation adjustments
 Reclassification of transportation
 services from unaffiliated services 212
 Statistical adjustments
 Other services -1,055 -281
 Affiliated -362
 Valuation adjustments
 Reclassification of film rentals
 to unaffiliated services -238
 Reclassification of courier
 services to unaffiliated
 services -124
 Statistical adjustments
 Unaffiliated -693 -281
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts -693 -281
 Statistical adjustments
 U.S. military sales
 Valuation adjustments
 Statistical adjustments
Income 69
 Direct investment -26
 Valuation adjustments
 Reclassification of dividends to
 "other" income -26
 Adjustment of interest income to a net
 basis
 Statistical adjustments
 Other investment 26
 Valuation adjustments
 Reclassification of dividends from
 direct investment 26
 Adjustment of interest income to a
 gross or net basis
 Statistical adjustments
 Compensation of employees 69
Current unilateral transters
 Valuation adjustments
 Adjustment of U.S. transfers to a gross
 basis
 Statistical adjustments
 Total adjustments

 Methodological

 Gross or Net

 United Canada
 States

Goods, balance of payments basis
 Valuation adjustments
 Reclassification of equipment repairs from
 unaffiliated services
 Statistical adjustments
Services
 Travel
 Reclassification of education from
 unaffiliated services
 Reclassification of medical services
 from unaffiliated services
 Statistical adjustments
 Passenger fares
 Statistical adjustments
 Other transportation
 Valuation adjustments
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services
 Affiliated
 Valuation adjustments
 Reclassification of film rentals
 to unaffiliated services
 Reclassification of courier
 services to unaffiliated
 services
 Statistical adjustments
 Unaffiliated
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. military sales
 Valuation adjustments
 Statistical adjustments
Income -1,250 -2,246
 Direct investment -170
 Valuation adjustments
 Reclassification of dividends to
 "other" income
 Adjustment of interest income to a net
 basis -170
 Statistical adjustments
 Other investment -1,250 -2,076
 Valuation adjustments
 Reclassification of dividends from
 direct investment
 Adjustment of interest income to a
 gross or net basis -1,250 -2,076
 Statistical adjustments
 Compensation of employees
Current unilateral transters 186
 Valuation adjustments
 Adjustment of U.S. transfers to a gross
 basis 186
 Statistical adjustments
 Total adjustments -1,064 -2,246

 Statistical

 United Canada
 States

Goods, balance of payments basis -807
 Valuation adjustments
 Reclassification of equipment repairs from
 unaffiliated services
 Statistical adjustments -807
Services 1,084 -362
 Travel -12 159
 Reclassification of education from
 unaffiliated services
 Reclassification of medical services
 from unaffiliated services
 Statistical adjustments -12 159
 Passenger fares -289
 Statistical adjustments -289
 Other transportation 166 -2
 Valuation adjustments
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments 166 -2
 Other services 1,219 -519
 Affiliated 368 -1,698
 Valuation adjustments
 Reclassification of film rentals
 to unaffiliated services
 Reclassification of courier
 services to unaffiliated
 services
 Statistical adjustments 368 -1,698
 Unaffiliated 851 1,119
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments 851 1,119
 U.S. military sales 60
 Valuation adjustments
 Statistical adjustments 60
Income 972 1,172
 Direct investment -680 1,915
 Valuation adjustments
 Reclassification of dividends to
 "other" income
 Adjustment of interest income to a net
 basis
 Statistical adjustments -680 1,915
 Other investment 1,652 -752
 Valuation adjustments
 Reclassification of dividends from
 direct investment
 Adjustment of interest income to a
 gross or net basis
 Statistical adjustments 1,652 -752
 Compensation of employees 9
Current unilateral transters 136
 Valuation adjustments
 Adjustment of U.S. transfers to a gross
 basis
 Statistical adjustments 136
 Total adjustments 2,192 3

 Total

 United Canada
 States

Goods, balance of payments basis 389 -1,006
 Valuation adjustments 125 -199
 Reclassification of equipment repairs from
 unaffiliated services 264
 Statistical adjustments -807
Services -186 -847
 Travel 779 159
 Reclassification of education from
 unaffiliated services 570
 Reclassification of medical services
 from unaffiliated services 221
 Statistical adjustments -12 159
 Passenger fares -289
 Statistical adjustments -289
 Other transportation 166 117
 Valuation adjustments -93
 Reclassification of transportation
 services from unaffiliated services 212
 Statistical adjustments 166 -2
 Other services -842 -1,123
 Affiliated -1,051 -1,791
 Valuation adjustments -1,057 -93
 Reclassification of film rentals
 to unaffiliated services -238
 Reclassification of courier
 services to unaffiliated
 services -124
 Statistical adjustments 368 -1,698
 Unaffiliated 248 608
 Valuation adjustments 90 -230
 Reclassification of transactions
 to or from other accounts -693 -281
 Statistical adjustments 851 1,119
 U.S. military sales -39 60
 Valuation adjustments -39
 Statistical adjustments 60
Income 574 -3,840
 Direct investment -680 1,240
 Valuation adjustments -479
 Reclassification of dividends to
 "other" income -26
 Adjustment of interest income to a net
 basis -170
 Statistical adjustments -680 1,915
 Other investment 1,254 -5,158
 Valuation adjustments 852 -2,356
 Reclassification of dividends from
 direct investment 26
 Adjustment of interest income to a
 gross or net basis -1,250 -2,076
 Statistical adjustments 1,652 -752
 Compensation of employees 78
Current unilateral transters 322 -333
 Valuation adjustments -333
 Adjustment of U.S. transfers to a gross
 basis 186
 Statistical adjustments 136
 Total adjustments 1,099 -6,026

Table 2.2. Summary of Reconciliation Adjustments, Southbound, 2000

[Millions of U.S. dollars]

 Definitional

 Canada United
 States

Goods, balance of payments basis 103 8,158
 Valuation adjustments -1,677 249
 Canadian re-exports to the United Sates 6,129
 Inland freight adjustment 1,780 1,780
 Reclassification of equipment repairs from
 unaffiliated services
 Statistical adjustments
Services -295 -44
 Travel
 Reclassification of education from
 unaffiliated services
 Statistical adjustments
 Passenger fares
 Other transportation -111 -104
 Valuation adjustments -111 -104
 Reclassification of courier services
 to unaffiliated services
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services -184 60
 Affiliated -28
 Valuation adjustments -28
 Reclassification of courier
 services to unaffiliated
 services
 Statistical adjustments
 Unaffiliated -156 80
 Valuation adjustments -156 80
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. defense expenditures -20
 Valuation adjustments -20
 Reclassification of defense
 expenditures from unaffiliated
 services
Income -467
 Direct investment -271
 Valuation adjustments -271
 Adjustment of interest income to a net
 basis
 Statistical adjustments
 Other investment -196
 Valuation adjustments -196
 Adjustment of interest income to a
 gross or net basis
 Statistical adjustments
 Compensation of employees
Current unilateral transfers -1,911
 Valuation adjustments -1,911
 Adjustment of U.S. transfers to a gross
 basis
 Statistical adjustments
 Total adjustments -2,570 8,114

 Methodological

 Reclassification

 Canada United
 States

Goods, balance of payments basis 3
 Valuation adjustments
 Canadian re-exports to the United Sates
 Inland freight adjustment
 Reclassification of equipment repairs from
 unaffiliated services 3
 Statistical adjustments
Services -205 -3
 Travel 30
 Reclassification of education from
 unaffiliated services 30
 Statistical adjustments
 Passenger fares
 Other transportation 105 -121
 Valuation adjustments
 Reclassification of courier services
 to unaffiliated services -121
 Reclassification of transportation
 services from unaffiliated services 105
 Statistical adjustments
 Other services -310 88
 Affiliated -29
 Valuation adjustments
 Reclassification of courier
 services to unaffiliated
 services -29
 Statistical adjustments
 Unaffiliated -360 117
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts -360 117
 Statistical adjustments
 U.S. defense expenditures 50
 Valuation adjustments
 Reclassification of defense
 expenditures from unaffiliated
 services 50
Income 205
 Direct investment
 Valuation adjustments
 Adjustment of interest income to a net
 basis
 Statistical adjustments
 Other investment
 Valuation adjustments
 Adjustment of interest income to a
 gross or net basis
 Statistical adjustments
 Compensation of employees 205
Current unilateral transfers
 Valuation adjustments
 Adjustment of U.S. transfers to a gross
 basis
 Statistical adjustments
 Total adjustments

 Methodological

 Gross or net

 Canada United
 States

Goods, balance of payments basis
 Valuation adjustments
 Canadian re-exports to the United Sates
 Inland freight adjustment
 Reclassification of equipment repairs from
 unaffiliated services
 Statistical adjustments
Services
 Travel
 Reclassification of education from
 unaffiliated services
 Statistical adjustments
 Passenger fares
 Other transportation
 Valuation adjustments
 Reclassification of courier services
 to unaffiliated services
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services
 Affiliated
 Valuation adjustments
 Reclassification of courier
 services to unaffiliated
 services
 Statistical adjustments
 Unaffiliated
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. defense expenditures
 Valuation adjustments
 Reclassification of defense
 expenditures from unaffiliated
 services
Income -3,352 -1,772
 Direct investment -119
 Valuation adjustments
 Adjustment of interest income to a net
 basis -119
 Statistical adjustments
 Other investment -3,233 -1,722
 Valuation adjustments
 Adjustment of interest income to a
 gross or net basis -3,233 -1,722
 Statistical adjustments
 Compensation of employees
Current unilateral transfers 180
 Valuation adjustments
 Adjustment of U.S. transfers to a gross
 basis 180
 Statistical adjustments
 Total adjustments -3,352 -1,542

 Statistical

 Canada United
 States

Goods, balance of payments basis -26 407
 Valuation adjustments
 Canadian re-exports to the United Sates
 Inland freight adjustment
 Reclassification of equipment repairs from
 unaffiliated services
 Statistical adjustments -26 407
Services -1,561 3,046
 Travel -60
 Reclassification of education from
 unaffiliated services -60
 Statistical adjustments
 Passenger fares
 Other transportation 29 -23
 Valuation adjustments
 Reclassification of courier services
 to unaffiliated services
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments 29 -23
 Other services -1,590 3,129
 Affiliated -2,024 978
 Valuation adjustments
 Reclassification of courier
 services to unaffiliated
 services
 Statistical adjustments -2,024 978
 Unaffiliated 434 2,151
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments 434 2,151
 U.S. defense expenditures
 Valuation adjustments
 Reclassification of defense
 expenditures from unaffiliated
 services
Income -486 814
 Direct investment 903
 Valuation adjustments
 Adjustment of interest income to a net
 basis
 Statistical adjustments -1,703 903
 Other investment 1,061 -89
 Valuation adjustments
 Adjustment of interest income to a
 gross or net basis
 Statistical adjustments 1,061 -89
 Compensation of employees 156
Current unilateral transfers -11
 Valuation adjustments
 Adjustment of U.S. transfers to a gross
 basis
 Statistical adjustments -11
 Total adjustments -2,084 4,267

 Total

 Canada United
 States

Goods, balance of payments basis 77 8,568
 Valuation adjustments -1,677 249
 Canadian re-exports to the United Sates 6,129
 Inland freight adjustment 1,780 1,780
 Reclassification of equipment repairs from
 unaffiliated services 3
 Statistical adjustments -26 407
Services -2,059 3,002
 Travel -30
 Reclassification of education from
 unaffiliated services 30
 Statistical adjustments -60
 Passenger fares
 Other transportation 24 -248
 Valuation adjustments -111 -104
 Reclassification of courier services
 to unaffiliated services -121
 Reclassification of transportation
 services from unaffiliated services 105
 Statistical adjustments 29 -23
 Other services -2,083 3,280
 Affiliated -2,052 949
 Valuation adjustments -28
 Reclassification of courier
 services to unaffiliated
 services -29
 Statistical adjustments -2,024 978
 Unaffiliated -84 2,346
 Valuation adjustments -156 80
 Reclassification of transactions
 to or from other accounts -360 117
 Statistical adjustments 434 2,151
 U.S. defense expenditures 50 -20
 Valuation adjustments -20
 Reclassification of defense
 expenditures from unaffiliated
 services 50
Income -4,101 -910
 Direct investment -2,094 902
 Valuation adjustments -271
 Adjustment of interest income to a net
 basis -119
 Statistical adjustments -1,703 903
 Other investment -2,368 -1,812
 Valuation adjustments -196
 Adjustment of interest income to a
 gross or net basis -3,233 -1,723
 Statistical adjustments 1,061 -89
 Compensation of employees 361
Current unilateral transfers -1,921 180
 Valuation adjustments -1,911
 Adjustment of U.S. transfers to a gross
 basis 180
 Statistical adjustments -11
 Total adjustments -8,004 10,841

Table 2.2. Summary of Reconciliation Adjustments, Southbound, 2001

[Millions of U.S. dollars]

 Definitional

 Canada United
 States

Goods, balance of payments basis 232 8,461
 Valuation adjustments -1,917 307
 Canadian re-exports to the United Sates 6,005
 Inland freight adjustment 2,149 2,149
 Reclassification of equipment repairs from
 unaffiliated services
 Statistical adjustments
Services -278 -739
 Travel
 Reclassification of education from
 unaffiliated services
 Statistical adjustments
 Passenger fares
 Other transportation -111 -109
 Valuation adjustments -111 -109
 Reclassification of courier services
 to unaffiliated services
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services -167 -630
 Affiliated -21 -692
 Valuation adjustments -21 -692
 Reclassification of courier
 services to unaffiliated
 services
 Statistical adjustments
 Unaffiliated -146 82
 Valuation adjustments -146 82
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. defense expenditures -20
 Valuation adjustments -20
 Reclassification of defense
 expenditures from unaffiliated
 services
Income -678
 Direct investment -207
 Valuation adjustments -207
 Adjustment of interest income to a net
 basis
 Statistical adjustments
 Other investment -471
 Valuation adjustments -471
 Adjustment of interest income to a
 gross or net basis
 Statistical adjustments
 Compensation of employees
Current unilateral transfers -1,990
 Valuation adjustments -1,990
 Adjustment of U.S. transfers to a gross
 basis
 Statistical adjustments
 Total adjustments -2,714 7,722

 Methodological

 Reclassification

 Canada United
 States

Goods, balance of payments basis 9
 Valuation adjustments
 Canadian re-exports to the United Sates
 Inland freight adjustment
 Reclassification of equipment repairs from
 unaffiliated services 9
 Statistical adjustments
Services -201 -9
 Travel 36
 Reclassification of education from 36
 unaffiliated services
 Statistical adjustments
 Passenger fares
 Other transportation 91 -144
 Valuation adjustments
 Reclassification of courier services
 to unaffiliated services -144
 Reclassification of transportation
 services from unaffiliated services 91
 Statistical adjustments
 Other services -292 99
 Affiliated -28
 Valuation adjustments
 Reclassification of courier
 services to unaffiliated
 services -28
 Statistical adjustments
 Unaffiliated -349 127
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts -349 127
 Statistical adjustments
 U.S. defense expenditures 57
 Valuation adjustments
 Reclassification of defense
 expenditures from unaffiliated
 services 57
Income 201
 Direct investment
 Valuation adjustments
 Adjustment of interest income to a net
 basis
 Statistical adjustments
 Other investment
 Valuation adjustments
 Adjustment of interest income to a

 gross or net basis
 Statistical adjustments
 Compensation of employees 201
Current unilateral transfers
 Valuation adjustments
 Adjustment of U.S. transfers to a gross
 basis
 Statistical adjustments
 Total adjustments

 Methodological

 Gross or net

 Canada United
 States

Goods, balance of payments basis
 Valuation adjustments
 Canadian re-exports to the United Sates
 Inland freight adjustment
 Reclassification of equipment repairs from
 unaffiliated services
 Statistical adjustments
Services
 Travel
 Reclassification of education from
 unaffiliated services
 Statistical adjustments
 Passenger fares
 Other transportation
 Valuation adjustments
 Reclassification of courier services
 to unaffiliated services
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services
 Affiliated
 Valuation adjustments
 Reclassification of courier
 services to unaffiliated
 services
 Statistical adjustments
 Unaffiliated
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. defense expenditures
 Valuation adjustments
 Reclassification of defense
 expenditures from unaffiliated
 services
Income -2,246 -1,250
 Direct investment -170
 Valuation adjustments
 Adjustment of interest income to a net
 basis -170
 Statistical adjustments
 Other investment -2,076 -1,250
 Valuation adjustments
 Adjustment of interest income to a
 gross or net basis -2,076 -1,250
 Statistical adjustments
 Compensation of employees
Current unilateral transfers 186
 Valuation adjustments
 Adjustment of U.S. transfers to a gross
 basis 186
 Statistical adjustments
 Total adjustments -2,246 -1,064

 Statistical

 Canada United
 States

Goods, balance of payments basis 734 387
 Valuation adjustments
 Canadian re-exports to the United Sates
 Inland freight adjustment
 Reclassification of equipment repairs from
 unaffiliated services
 Statistical adjustments 734 387
Services -663 1,997
 Travel -59
 Reclassification of education from
 unaffiliated services
 Statistical adjustments -59
 Passenger fares
 Other transportation 79 -67
 Valuation adjustments
 Reclassification of courier services
 to unaffiliated services
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments 79 -67
 Other services -742 2,123
 Affiliated -1,182 314
 Valuation adjustments
 Reclassification of courier
 services to unaffiliated
 services
 Statistical adjustments -1,182 314
 Unaffiliated 440 1,809
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments 440 1,809
 U.S. defense expenditures
 Valuation adjustments
 Reclassification of defense
 expenditures from unaffiliated
 services
Income -3,603 5,535
 Direct investment -4,772 5,330
 Valuation adjustments
 Adjustment of interest income to a net
 basis
 Statistical adjustments -4,772 5,330
 Other investment 994 205
 Valuation adjustments
 Adjustment of interest income to a
 gross or net basis
 Statistical adjustments 994 205
 Compensation of employees 175
Current unilateral transfers -13
 Valuation adjustments
 Adjustment of U.S. transfers to a gross
 basis
 Statistical adjustments -13
 Total adjustments -3,545 7,919

 Total

 Canada United
 States

Goods, balance of payments basis 966 8,857
 Valuation adjustments -1,917 307
 Canadian re-exports to the United Sates 6,005
 Inland freight adjustment 2,149 2,149
 Reclassification of equipment repairs from
 unaffiliated services 9
 Statistical adjustments 734 387
Services -1,142 1,247
 Travel -23
 Reclassification of education from
 unaffiliated services 36
 Statistical adjustments -59
 Passenger fares
 Other transportation 59 -320
 Valuation adjustments -111 -109
 Reclassification of courier services
 to unaffiliated services -144
 Reclassification of transportation
 services from unaffiliated services 91
 Statistical adjustments 79 -67
 Other services -1,201 1,590
 Affiliated -1,203 -406
 Valuation adjustments -21 -692
 Reclassification of courier
 services to unaffiliated
 services -28
 Statistical adjustments -1,182 314
 Unaffiliated -55 2,018
 Valuation adjustments -146 82
 Reclassification of transactions
 to or from other accounts -349 127
 Statistical adjustments 440 1,809
 U.S. defense expenditures 57 -20
 Valuation adjustments -20
 Reclassification of defense
 expenditures from unaffiliated
 services
Income -6,324 4,285
 Direct investment -5,148 5,330
 Valuation adjustments -207
 Adjustment of interest income to a net
 basis -170
 Statistical adjustments -4,772 5,330
 Other investment -1,552 -1,045
 Valuation adjustments -471
 Adjustment of interest income to a
 gross or net basis -2,076 -1,250
 Statistical adjustments 994 205
 Compensation of employees 376
Current unilateral transfers -2,003 186
 Valuation adjustments -1,990
 Adjustment of U.S. transfers to a gross
 basis 0 186
 Statistical adjustments -13
 Total adjustments -8,503 14,574

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

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Difference
 receipts payments

 2000

Goods and services 202,518 206,930 -4,412
 Goods, balance of payments basis 178,877 180,281 -1,404
 Services 23,641 26,649 -3,008
 Travel 7,055 7,745 -690
 Passenger fares 1,713 1,424 289
 Other transportation 2,571 2,507 64
 Other services 12,302 14,973 -2,671
Income 27,667 29,225 -1,558
 Investment income 27,589 29,225 -1,636
 Direct investment 14,688 11,351 3,337
 Other investment 12,901 17,874 -4,973
 Compensation of employees 78 (1) 78
Current unilateral transfers (2) 596 -596
 Current account, northbound 230,185 236,751 -6,566

 2001

Goods and services 187,757 189,813 -2,056
 Goods, balance of payments basis 163,309 164,704 -1,395
 Services 24,448 25,109 -661
 Travel 6,484 7,104 -620
 Passenger fares 1,668 1,379 289
 Other transportation 2,212 2,261 -49
 Other services 14,084 14,365 -281
Income 21,919 26,333 -4,414
 Investment income 21,841 26,333 -4,492
 Direct investment 11,773 9,853 1,920
 Other investment 10,068 16,480 -6,412
 Compensation of employees 78 (1) 78
Current unilateral transfers (2) 655 -655
 Current account, northbound 209,676 216,801 -7,125

 Common-basis estimates,
 after definitional and
 methodological adjustments

 U.S. Canadian Difference
 receipts payments

 2000

Goods and services 202,690 206,202 -3,512
 Goods, balance of payments basis 179,243 180,063 -820
 Services 23,447 26,139 -2,692
 Travel 7,764 7,745 19
 Passenger fares 1,713 1,424 289
 Other transportation 2,571 2,599 -28
 Other services 11,399 14,371 -2,972
Income 26,919 23,320 3,599
 Investment income 26,841 23,251 3,590
 Direct investment 14,687 10,715 3,972
 Other investment 12,154 12,536 -382
 Compensation of employees 78 69 9
Current unilateral transfers 180 294 -114
 Current account, northbound 229,789 229,816 -27

 2001

Goods and services 186,874 189,130 -2,256
 Goods, balance of payments basis 163,698 164,506 -808
 Services 23,176 24,624 -1,448
 Travel 7,275 7,104 171
 Passenger fares 1,668 1,379 289
 Other transportation 2,212 2,380 -168
 Other services 12,021 13,761 -1,740
Income 21,521 21,321 200
 Investment income 21,443 21,252 191
 Direct investment 11,773 9,176 2,597
 Other investment 9,670 12,076 -2,406
 Compensation of employees 78 69 9
Current unilateral transfers 186 322 -136
 Current account, northbound 208,581 210,773 -2,192

 Reconciled estimates,
 including statistical
 adjustments

 U.S. Canadian
 receipts payments

 2000

Goods and services 204,125 204,125
 Goods, balance of payments basis 179,243 179,243
 Services 24,882 24,882
 Travel 7,765 7,765
 Passenger fares 1,424 1,424
 Other transportation 2,584 2,584
 Other services 13,109 13,109
Income 26,688 26,688
 Investment income 26,610 26,610
 Direct investment 13,830 13,830
 Other investment 12,780 12,780
 Compensation of employees 78 78
Current unilateral transfers 294 294
 Current account, northbound 231,107 231,107

 2001

Goods and services 187,960 187,960
 Goods, balance of payments basis 163,698 163,698
 Services 24,262 24,262
 Travel 7,263 7,263
 Passenger fares 1,379 1,379
 Other transportation 2,378 2,378
 Other services 13,242 13,242
Income 22,493 22,493
 Investment income 22,415 22,415
 Direct investment 11,093 11,093
 Other investment 11,322 11,322
 Compensation of employees 78 78
Current unilateral transfers 322 322
 Current account, northbound 210,775 210,775

 Total
 adjustments
 to published
 estimates

 United Canada
 States

 2002

Goods and services 1,607 -2,805
 Goods, balance of payments basis 366 -1,038
 Services 1,241 -1,767
 Travel 710 20
 Passenger fares -289
 Other transportation 13 77
 Other services 807 -1,864
Income -979 -2,537
 Investment income -979 -2,615
 Direct investment -858 2,479
 Other investment -121 -5,094
 Compensation of employees 78
Current unilateral transfers 294 -302
 Current account, northbound 922 -5,644

 2001

Goods and services 203 -1,853
 Goods, balance of payments basis 389 -1,006
 Services -186 -847
 Travel 779 159
 Passenger fares -289
 Other transportation 166 117
 Other services -842 -1,123
Income 574 -3,640
 Investment income 574 -3,918
 Direct investment -680 1,240
 Other investment 1,254 -5,158
 Compensation of employees 78
Current unilateral transfers 322 -333
 Current account, northbound 1,099 -6,026

(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. Difference
 receipts payments

 2000

Goods and services 264,664 251,112 13,552
 Goods 242,170 233,679 8,491
 Services 22,494 17,433 5,061
 Travel 6,337 6,367 -30
 Passenger fares 827 827
 Other transportation 3,309 3,581 -272
 Other services 12,021 6,658 5,363
Income 12,014 8,823 3,191
 Investment income 12,014 8,462 3,552
 Direct investment 4,053 1,057 2,996
 Other investment 7,961 7,405 556
 Other private investment 6,789 5,672 1,117
 U.S. Government liabilities 1,172 1,733 -561
 Compensation of employees (1) 361 -361
Current unilateral transfers 2,826 724 2,102
 Current account, northbound 279,504 260,659 18,045

 2001

Goods and services 247,446 237,168 10,280
 Goods 226,626 218,735 7,891
 Services 20,820 18,431 2,389
 Travel 6,454 6,477 -23
 Passenger fares 684 684
 Other transportation 2,919 3,298 -379
 Other services 10,763 7,972 2,791
Income 8,885 -1,724 10,609
 Investment income 8,885 -2,100 10,985
 Direct investment 2,741 -7,737 10,478
 Other investment 6,144 5,637 507
 Other private investment 4,903 3,974 929
 U.S. Government liabilities 1,241 1,663 -422
 Compensation of employees (1) 376 -376
Current unilateral transfers 2,932 744 2,188
 Current account, southbound 259,263 236,186 23,077

 Common-basis estimates,
 after definitional and
 methodological adjustments

 Canadian U.S. Difference
 receipts payments

 2000

Goods and services 264,267 259,229 5,038
 Goods 242,274 241,840 434
 Services 21,993 17,389 4,604
 Travel 6,337 6,397 -60
 Passenger fares 827 827
 Other transportation 3,304 3,356 -52
 Other services 11,524 6,809 4,716
Income 8,402 7,101 1,301
 Investment income 8,196 6,740 1,456
 Direct investment 3,664 1,057 2,607
 Other investment 4,532 5,683 -1,151
 Other private investment 3,254 3,950 -696
 U.S. Government liabilities 1,278 1,733 -455
 Compensation of employees 206 361 -155
Current unilateral transfers 915 905 10
 Current account, northbound 273,584 267,235 6,349

 2001

Goods and services 247,199 244,886 2,313
 Goods 226,858 227,205 -347
 Services 20,341 17,681 2,660
 Travel 6,454 6,513 -59
 Passenger fares 684 684
 Other transportation 2,899 3,045 -146
 Other services 10,304 7,439 2,865
Income 6,162 -2,975 9,137
 Investment income 5,957 -3,351 9,308
 Direct investment 2,364 -7,737 10,101
 Other investment 3,593 4,386 -793
 Other private investment 2,528 2,723 -195
 U.S. Government liabilities 1,065 1,663 -598
 Compensation of employees 205 376 -171
Current unilateral transfers 942 929 13
 Current account, southbound 254,363 242,840 11,463

 Reconciled estimates,
 including statistical
 adjustments

 Canadian U.S.
 receipts payments

 2000

Goods and services 262,682 262,682
 Goods 242,247 242,247
 Services 20,435 20,435
 Travel 6,337 6,337
 Passenger fares 827 827
 Other transportation 3,333 3,333
 Other services 9,938 9,938
Income 7,913 7,913
 Investment income 7,552 7,552
 Direct investment 1,959 1,959
 Other investment 5,593 5,593
 Other private investment 3,975 3,975
 U.S. Government liabilities 1,618 1,618
 Compensation of employees 361 361
Current unilateral transfers 905 905
 Current account, northbound 271,500 271,500

 2001

Goods and services 247,270 247,270
 Goods 227,592 227,592
 Services 19,678 19,678
 Travel 6,454 6,454
 Passenger fares 684 684
 Other transportation 2,978 2,978
 Other services 9,562 9,562
Income 2,561 2,561
 Investment income 2,185 2,185
 Direct investment -2,407 -2,407
 Other investment 4,592 4,592
 Other private investment 3,078 3,078
 U.S. Government liabilities 1,514 1,514
 Compensation of employees 376 376
Current unilateral transfers 929 929
 Current account, southbound 250,760 250,760

 Total
 adjustments
 to published
 estimates

 Canada United
 States

 2000

Goods and services -1,982 11,570
 Goods 77 8,568
 Services -2,059 3,002
 Travel -30
 Passenger fares
 Other transportation 24 -248
 Other services -2,083 3,280
Income -4,101 -910
 Investment income -4,462 -910
 Direct investment -2,094 902
 Other investment -2,368 -1,812
 Other private investment -2,814 -1,697
 U.S. Government liabilities 446 -115
 Compensation of employees 361
Current unilateral transfers -1,921 180
 Current account, northbound -8,004 10,841

 2001

Goods and services -176 10,104
 Goods 966 8,857
 Services -1,142 1,247
 Travel -23
 Passenger fares
 Other transportation 59 -320
 Other services -1,201 1,590
Income -6,324 4,285
 Investment income -6,700 4,285
 Direct investment -5,148 5,330
 Other investment -1,552 -1,045
 Other private investment -1,825 -896
 U.S. Government liabilities 273 -149
 Compensation of employees 376
Current unilateral transfers -2,003 186
 Current account, southbound -8,503 14,574

(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]
 US Canadian
 receipts payments

 2000

Balance of payments basis, published 178,677 180,281
 Definitional and methodological
 adjustments:
 Valuation adjustments 140 -218
 Reclassification of equipment repairs
 from unaffiliated services 226
 Common basis, after definitional and
 methodological adjustments 179,243 180,063
 Statistical adjustments -820
Reconciled, including statistical adjustments 179,243 179,243

 2001

Balance of payments basis, published 163,309 164,704
 Definitional and methodological
 adjustments:
 Valuation adjustments 125 -199
 Reclassification of equipment repairs
 from unaffiliated services 264
 Common basis, after definitional and
 methodological adjustments 163,698 164,505
 Statistical adjustments -807
Reconciled, including statistical adjustments 163,698 163,698

 Type of
 adjustment

 2000

Balance of payments basis, published
 Definitional and methodological
 adjustments:
 Valuation adjustments Definitional
 Reclassification of equipment repairs
 from unaffiliated services Reclassification
 Common basis, after definitional and
 methodological adjustments
 Statistical adjustments Statistical
Reconciled, including statistical adjustments

 2001

Balance of payments basis, published
 Definitional and methodological
 adjustments:
 Valuation adjustments Definitional
 Reclassification of equipment repairs
 from unaffiliated services Reclassification
 Common basis, after definitional and
 methodological adjustments
 Statistical adjustments Statistical
Reconciled, including statistical adjustments

Table 4.2. Trade in Goods, Southbound

[Millions of US dollars]
 Canadian Type of
 receipts adjustment

 2000

Balance of payments basis, published 242,170 233,679
 Definitional and methodological
 adjustments:
 Valuation adjustments -1,677 249
 Canadian reexports to United States 6,129
 Inland freight adjustment 1,780 1,780
 Reclassification of equipment
 repairs from unaffiliated services 3
 Common basis, after definitional and
 methodological adjustments 242,247 241,840
 Statistical adjustments -26 407
Reconciled, including statistical adjustments 242,247 242,247

 2001

Balance of payments basis, published 226,626 218,735
 Definitional and methodological
 adjustments:
 Valuation adjustments -1,917 307
 Canadian reexports to the United States 6,005
 Inland freight adjustment 2,149 2,149
 Reclassification of equipment repairs
 from unaffiliated services 9
 Common basis, after definitional and
 methodological adjustments 226,858 227,205
 Statistical adjustments 734 387
Reconciled, including statistical adjustments 227,592 227,592

 Type of
 adjustment

 2000

Balance of payments basis, published
 Definitional and methodological
 adjustments:
 Valuation adjustments Definitional
 Canadian reexports to the United States Definitional
 Inland freight adjustment Definitional
 Reclassification of equipment
 repairs from unaffiliated services Reclassification
 Common basis, after definitional and
 methodological adjustments
 Statistical adjustments Statistical
Reconciled, including statistical adjustments

 2001

Balance ef payments basis, published
 Definitional and methodological
 adjustments:
 Valuation adjustments Definitional
 Canadian reexports to the United States Definitional
 Inland freight adjustment Definitional
 Reclassification of equipment repairs
 from unaffiliated services Reclassification
 Common basis, after definitional and
 methodological adjustments
 Statistical adjustments Statistical
Reconciled, including statistical adjustments

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

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian
 receipts payments Difference

 2000

Travel 7,055 7,745 -690
 Business and personal 7,055 7,056 -1
 Education 491 -491
 Medical 198 -198
Passenger fares 1,713 1,424 289
Other transportation 2,571 2,507 64
 Freight 2,007 2,106 -99
 Ocean 138 276 -138
 Air 86 33 53
 Truck 1,404 1,404
 Other 379 393 -14
 Port services 564 361 203
 Vessel operators 65 42 23
 Marine operators 319 319
 Other 180 180
 Other 39 -39

 2001

Travel 6,484 7,104 -620
 Business and personal 6,484 6,472 12
 Education 421 -421
 Medical 211 -211
Passenger fares 1,668 1,379 289
Other transportation 2,212 2,261 -49
 Freight 1,837 1,892 -55
 Ocean 146 248 -102
 Air 80 28 52
 Truck 1,243 1,244 -1
 Other 368 372 -4
 Port services 375 333 42
 Vessel operators 45 21 24
 Airline operators 127 297 -170
 Other 203 15 188
 Other 35 -35

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian
 receipts payments Difference

 2000

Travel 7,764 7,745 19
 Business and personal 7,055 7,056 -1
 Education 511 491 20
 Medical 198 198
Passenger fares 1,713 1,424 289
Other transportation 2,571 2,599 -28
 Freight 1,999 1,997 2
 Ocean 130 142 -12
 Air 86 58 28
 Truck 1,404 1,404
 Other 379 393 -14
 Port services 564 563 1
 Vessel operators 65 42 23
 Marine operators 319 319
 Other 180 202 -22
 Other 8 39 -31

 2001

Travel 7,275 7,104 171
 Business and personal 6,484 6,472 12
 Education 570 421 149
 Medical 221 211 10
Passenger fares 1,668 1,379 289
Other transportation 2,212 2,380 -168
 Freight 1,829 1,799 30
 Ocean 138 138
 Air 80 45 35
 Truck 1,243 1,244 -1
 Other 368 372 -4
 Port services 375 545 -170
 Vessel operators 45 21 24
 Airline operators 127 297 -170
 Other 203 227 -24
 Other 8 35 -27

 Reconciled estimates, Total adjustments
 including statistical to published
 adjustments estimates

 U.S. Canadian United
 receipts payments States Canada

 2000

Travel 7,765 7,765 710 20
 Business and personal 7,056 7,056 1
 Education 511 511 511 20
 Medical 198 198 198
Passenger fares 1,424 1,424 -289
Other transportation 2,584 2,584 13 77
 Freight 1,993 1,993 -14 -113
 Ocean 136 136 -2 -140
 Air 58 58 -28 25
 Truck 1,404 1,404
 Other 395 395 16 2
 Port services 552 552 -12 191
 Vessel operators 42 42 -23
 Marine operators 319 319
 Other 191 191 11 191
 Other 39 39 39

 2001

Travel 7,263 7,263 779 159
 Business and personal 6,472 6,472 -12
 Education 570 570 570 149
 Medical 221 221 221 10
Passenger fares 1,379 1,379 -289
Other transportation 2,373 2,373 166 117
 Freight 1,810 1,810 -27 -82
 Ocean 138 138 -8 -110
 Air 45 45 -35 17
 Truck 1,243 1,243 -1
 Other 384 384 16 12
 Port services 533 533 158 200
 Vessel operators 21 21 -24
 Airline operators 297 297 170
 Other 215 215 12 200
 Other 35 35 35

 Total adjustments to published estimates

 Type of adjustment

 2000

Travel
 Business and personal Statistical
 Education Reclassification and statistical
 Medical Reclassification
Passenger fares Statistical
Other transportation
 Freight
 Ocean Definitional, reclassification, and
 statistical
 Air Definitional and statistical
 Truck
 Other Statistical
 Port services
 Vessel operators Statistical
 Marine operators
 Other Reclassification and statistical
 Other Reclassification and statistical

 2001

Travel
 Business and personal Statistical
 Education Reclassification and statistical
 Medical Reclassification
Passenger fares Statistical
Other transportation
 Freight
 Ocean Definitional, reclassification, and
 statistical
 Air Definitional and statistical
 Truck Statistical
 Other Statistical
 Port services
 Vessel operators Statistical
 Airline operators Statistical
 Other Reclassification and statistical
 Other Reclassification 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

 2000

Travel 6,337 6,367 -30
 Business and personal 6,209 6,367 -158
 Education 79 79
 Medical 49 49
Passenger fares 827 827
Other transportation 3,309 3,581 -272
 Freight 2,671 2,763 -92
 Ocean 171 132 39
 Air 57 57
 Land 2,335 2,335
 Other 108 239 -131
 Port services 541 818 -277
 Vessel operators 53 208 -155
 Airline operators 384 505 -121
 Other 104 105 -1
 Other 98 98

 2001

Travel 6,454 6,477 -23
 Business and personal 6,316 6,477 -161
 Education 89 89
 Medical 49 49
Passenger fares 684 684
Other transportation 2,919 3,298 -379
 Freight 2,325 2,461 -136
 Ocean 158 146 12
 Air 44 45 -1
 Land 2,028 2,028
 Other 95 242 -147
 Port services 505 837 -332
 Vessel operators 38 219 -181
 Airline operators 367 511 -144
 Other 100 107 -7
 Other 89 89

 Common-basis estimates,
 after definition and
 methodological adjustments

 Canadian U.S.
 receipts payments Difference

 2000

Travel 6,337 6,397 -60
 Business and personal 6,209 6,367 -158
 Education 79 30 49
 Medical 49 49
Passenger fares 827 827
Other transportation 3,304 3,356 -52
 Freight 2,650 2,623 27
 Ocean 150 124 26
 Air 57 57
 Land 2,335 2,335
 Other 108 107 1
 Port services 650 725 -75
 Vessel operators 57 104 -47
 Airline operators 384 384
 Other 209 237 -28
 Other 4 8 -4

 2001

Travel 6,454 6,513 -59
 Business and personal 6,316 6,477 -161
 Education 89 36 53
 Medical 49 49
Passenger fares 684 684
Other transportation 2,899 3,045 -146
 Freight 2,297 2,299 -2
 Ocean 130 118 12
 Air 44 45 -1
 Land 2,028 2,028
 Other 95 108 -13
 Port services 599 718 -119
 Vessel operators 41 110 -69
 Airline operators 367 367
 Other 191 241 -50
 Other 3 28 -25

 Reconciled estimates, Total adjustments
 including statistical to published
 adjustments estimates

 Canadian U.S. United
 receipts payments Canada States

 2000

Travel 6,337 6,337 -30
 Business and personal 6,209 6,209 -158
 Education 79 79 79
 Medical 49 49 49
Passenger fares 827 827
Other transportation 3,333 3,333 24 -248
 Freight 2637 2,637 -34 -126
 Ocean 137 137 -34 5
 Air 57 57
 Land 2,335 2,335
 Other 108 108 -131
 Port services 688 688 147 -130
 Vessel operators 81 81 28 -127
 Airline operators 384 384 -121
 Other 223 223 119 118
 Other 8 8 -90 8

 2001

Travel 6,454 6,454 -23
 Business and personal 6,316 6,316 -161
 Education 89 89 89
 Medical 49 49 49
Passenger fares 684 684
Other transportation 2,978 2,978 59 -320
 Freight 2,292 2,292 -33 -169
 Ocean 124 124 -34 -22
 Air 45 45 1
 Land 2,028 2,028
 Other 95 95 -147
 Port services 658 658 153 -179
 Vessel operators 76 76 38 -143
 Airline operators 367 367 -144
 Other 215 215 115 108
 Other 28 28 -61 28

 Total adjustments to published estimates

 Type of adjustment

 2000

Travel
 Business and personal Statistical
 Education Reclassification and statistical
 Medical Statistical
Passenger fares
Other transportation
 Freight
 Ocean Definitional, reclassification, and
 statistical
 Air
 Land
 Other Reclassification and statistical
 Port services
 Vessel operators Definitional and statistical
 Airline operators Reclassification
 Other Reclassification and statistical
 Other Definitional, reclassification, and
 statistical

2001

Travel
 Business and personal Statistical
 Education Reclassification and statistical
 Medical Statistical
Passenger fares
Other transportation
 Freight
 Ocean Definitional, reclassification, and
 statistical
 Air Statistical
 Land
 Other Reclassification and statistical
 Port services
 Vessel operators Definitional and statistical
 Airline operators Reclassification
 Other Reclassification and statistical
 Other Definitional, reclassification, and
 statistical

Table 6.1. Other Services, Northbound

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Diffe-
 receipts payments rence

 2000

 Total 12,302 14,973 -2,671
Affiliated 5,732 8,738 -3,006
 Royalties and license fees 1,569 2,053 -484
 Other services 4,163 6,685 -2,522
Unaffiliated 6,469 6,234 235
 Royalties, license fees,
 and selected services 1,730 1,273 457
 Insurance 258 347 -89
 Financial services 1,007 873 134
 Education and training 527 21 506
 Communications 501 751 -250
 Computer services 539 525 14
 Business services 1,353 848 505
 Sports and entertainment 392 1,166 -774
 Other private 238 -238
 Government:
 United States (nonmilitary) 74 62 12
 Canada 88 130 -42
U.S. military sales 103 103

 2001

 Total 14,084 14,385 -281
Affiliated 7,348 8,088 -740
 Royalties and license fees 1,561 1,983 -422
 Other services 5,787 6,105 -318
Unaffiliated 6,635 6,279 356
 Royalties, license fees,
 and selected services 1,852 1,329 523
 Insurance 212 366 -154
 Financial services 1,001 892 109
 Education and training 595 19 576
 Communications 512 786 -274
 Computer services 488 520 -32
 Business services 1,275 778 497
 Sports and entertainment 504 1,151 -647
 Other private 246 -246
 Government:
 United States (nonmilitary) 72 67 5
 Canada 124 125 -1
U.S. military sales 99 99

 Common-basis estimates,
 after definitional and
 methodological adjustments

 U.S. Canadian Diffe-
 receipts payments rence

 2000

 Total 11,399 14,371 -2,972
Affiliated 5,422 8,636 -3,214
 Royalties and license fees 1,569 2,022 -453
 Other srvices 3,853 6,614 -2,761
Unaffiliated 5,933 5,733 200
 Royalties, license fees,
 and selected services 1,698 1,258 440
 Insurance 347 321 26
 Financial services 1,007 932 75
 Education and training 16 22 -6
 Communications 501 394 107
 Computer services 539 526 13
 Business services 1,016 1,104 -88
 Sports and entertainment 647 1,006 -359
 Other private
 Government:
 United States (nonmilitary) 74 62 12
 Canada 88 108 -20
 U.S. military sales 44 44

 2001

 Total 12,021 13,761 -1,740
Affiliated 5,929 7,993 -2,064
 Royalties and license fees 1,561 1,950 -389
 Other services 4,368 6,043 -1,675
Unaffiliated 6,032 5,768 264
 Royalties, license fees,
 and selected services 1,811 1,309 502
 Insurance 302 341 -39
 Financial services 1,001 956 45
 Education and training 25 20 5
 Communications 512 424 88
 Computer services 488 522 -34
 Business services 914 1,041 -127
 Sports and entertainment 783 984 -201
 Other private
 Government:
 United States (nonmilitary) 72 67 5
 Canada 124 104 20
U.S. military sales 60 60

 Reconciled
 estimates,
 including Total adjustments
 statistical to published
 adjustments estimates

 Cana- United
 U.S. dian States Canada
 re- pay-
 ceipts ments

 2000

 Total 13,109 13,109 807 -1,864
Affiliated 6,243 6,243 511 -2,495
 Royalties and license fees (1) (1) (1) (1)
 Other srvices (1) (1) (1) (1)
Unaffiliated 6,822 6,822 355 589
 Royalties, license fees,
 and selected services 1,698 1,698 -32 425
 Insurance 347 347 89
 Financial services 1,061 1,061 54 188
 Education and training 22 22 -505 1
 Communications 501 501 -250
 Computer services 539 539 14
 Business services 1,492 1,492 139 844
 Sports and entertainment 980 980 588 -186
 Other private -238
 Government:
 United States (nonmilitary) 74 74 12
 Canada 108 108 20 -22
 U.S. military sales 44 44 -59 44

 2001

 Total 13,242 13,242 -842 -1,123
Affiliated 6,297 6,297 -1,051 -1,791
 Royalties and license fees (1) (1) (1) (1)
 Other services (1) (1) (1) (1)
Unaffiliated 6,884 6,884 253 606
 Royalties, license fees,
 and selected services 1,811 1,811 -41 482
 Insurance 302 302 90 -64
 Financial services 1,216 1,216 215 324
 Education and training 25 25 -570 6
 Communications 512 512 -274
 Computer services 468 488 -32
 Business services 1,335 1,335 60 557
 Sports and entertainment 1,019 1,019 515 -132
 Other private
 Government:
 United States (nonmilitary) 72 72 5
 Canada 104 104 -20 -21
U.S. military sales 60 60 -39 60

 Total adjustments to published
 estimates

 Type of adjustments

 2000

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

 2001

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

 2000

 Total 12,021 6,658 5,363
Affiliated 5,994 2,993 3,001
 Royalties and license fees 469 730 -261
 Other services 5,525 2,263 3,262
Unaffiliated 6,028 3,598 2,430
 Royalties, license fees,
 and selected services 1,724 666 1,058
 Insurance 180 302 -122
 Financial services 412 243 169
 Education and training 47 30 17
 Communications 682 227 455
 Computer services 655 569 86
 Business services 976 1,270 -294
 Sports and entertainment 891 57 834
 Other private 219 219
 Government:
 United States (nondefense) 36 36
 Canada 206 234 -28
U.S. defense expenditures 70 -70

 2001

 Total 10,763 7,972 2,791
Affiliated 5,113 4,316 797
 Royalties and licence fees 447 990 -543
 Other services 4,666 3,326 1,340
Unaffiliated 5,650 3,577 2,073
 Royalties, license fees,
 and selected services 1,653 600 1,053
 Insurance 165 370 -205
 Financial services 343 193 150
 Education and training 46 36 10
 Communications 630 184 446
 Computer services 562 562
 Business services 863 1,350 -487
 Sports and entertainment 891 61 830
 Other private 207 207
 Government:
 United States (nondefense) 35 35
 Canada 255 221 34
U.S. defense expenditures 77 -77

 Common-basis estimates,
 after definitional and
 methodological adjustments

 Canadian U.S. Difference
 receipts payments

 2000

 Total 11,524 6,809 4,716
Affiliated 5,966 2,964 3,002
 Royalties and license fees 464 730 -266
 Other services 5,502 2,234 3,268
Unaffiliated 5,512 3,791 1,721
 Royalties, license fees,
 and selected services 1,724 651 1,072
 Insurance 180 382 -202
 Financial services 412 243 169
 Education and training 21 21
 Communications 361 227 134
 Computer services 655 569 86
 Business services 1,071 1,172 -101
 Sports and entertainment 847 313 534
 Other private
 Government:
 United States (nondefense) 36 36
 Canada 206 234 -28
U.S. defense expenditures 50 50

 2001

 Total 10,304 7,439 2,865
Affiliated 5,092 3,598 1,496
 Royalties and licence fees 446 990 -544
 Other services 4,646 2,606 2,040
Unaffiliated 5,156 3,781 1,375
 Royalties, license fees,
 and selected services 1,653 587 1,066
 Insurance 164 452 -288
 Financial services 349 193 156
 Education and training 18 18
 Communications 297 184 113
 Computer services 562 562
 Business services 980 1,234 -254
 Sports and entertainment 843 348 495
 Other private
 Government:
 United States (nondefense) 35 35
 Canada 255 221 34
U.S. defense expenditures 57 57

 Total
 Reconciled estimate, adjustments
 including statistical to published
 adjustments estimates

 Canadian U.S. Canada
 receipts payments

 2000

 Total 9,938 9,938 -2,083
Affiliated 3,942 3,942 -2,052
 Royalties and license fees (1) (1) (1)
 Other services (1) (1) (1)
Unaffiliated 5,944 5,944 -84
 Royalties, license fees,
 and selected services 1,724 1,724
 Insurance 263 263 83
 Financial services 353 353 -59
 Education and training 21 21 -26
 Communications 294 294 -388
 Computer services 612 612 -43
 Business services 1,561 1,561 585
 Sports and entertainment 847 847 -44
 Other private -219
 Government:
 United States (nondefense) 36 36
 Canada 234 234 28
U.S. defense expenditures 50 50 50

 2001

 Total 9,562 9,562 -1,201
Affiliated 3,910 3,910 -1,203
 Royalties and licence fees (1) (1) (1)
 Other services (1) (1) (1)
Unaffiliated 5,595 5,595 -55
 Royalties, license fees,
 and selected services 1,653 1,653
 Insurance 271 271 106
 Financial services 269 269 -74
 Education and training 18 18 -28
 Communications 241 241 -389
 Computer services 524 524 -38
 Business services 1,520 1,520 657
 Sports and entertainment 843 843 -48
 Other private -207
 Government:
 United States (nondefense) 35 35
 Canada 221 221 -34
U.S. defense expenditures 57 57 57

 Total adjustments to
 published estimates

 United Type of adjustment
 States

 2000

 Total 3,280
Affiliated 949 Definitional, reclassifi-
 cation, and statistical
 Royalties and license fees (1)
 Other services (1)
Unaffiliated 2,346
 Royalties, license fees,
 and selected services 1,057 Definitional and statistical
 Insurance -39 Definitional and statistical
 Financial services 110 Statistical
 Education and training -9 Reclassification and
 statistical
 Communications 67 Reclassification and
 statistical
 Computer services 43 Statistical
 Business services 291 Reclassification and
 statistical
 Sports and entertainment 790 Reclassification and
 statistical
 Other private Definitional and
 reclassification
 Government:
 United States (nondefense) 36 Statistical
 Canada Statistical
U.S. defense expenditures -20 Reclassification and
 statistical

 2001

 Total 1,590
Affiliated -406 Definitional, reclassifi-
 cation, and statistical
 Royalties and licence fees (1)
 Other services (1)
Unaffiliated 2,018
 Royalties, license fees,
 and selected services 1,053 Definitional and statistical
 Insurance -99 Definitional and statistical
 Financial services 76 Statistical
 Education and training -18 Reclassification and
 statistical
 Communications 57 Reclassification and
 statistical
 Computer services -38 Statistical
 Business services 170 Reclassification and
 statistical
 Sports and entertainment 782 Reclassification and
 statistical
 Other private Definitional and
 reclassification
 Government:
 United States (nondefense) 35 Statistical
 Canada Statistical
U.S. defense expenditures -20 Reclassification 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

 2000

Investment income 27,589 29,225 -1,636
 Direct investment income 14,688 11,351 3,337
 Earnings of incorporated
 affiliates 13,649 10,065 3,584
 Dividends 3,171 3,419 -248
 Reinvested earnings 10,478 6,646 3,832
 Earnings of unincorporated
 affiliates 428 607 -179
 Interest 611 679 -68
 Other investment income 12,901 17,874 4,973
 Securities 8,013 10,636 -2,623
 Dividends 1,512 1,119 393
 Interest on bonds 6,501 9,517 -3,016
 U.S. claims/Canadian 4,888 7,238 -2,350
 liabilities
 U.S. bank claims 3,946 4,064 -118
 Other private U.S. claims 942 3,174 -2,232

 2001

Investment income 21,841 26,333 -4,492
 Direct investment income 11,773 9,853 1,920
 Earnings of incorporated
 affiliates 11,103 9,024 2,079
 Dividends 3,076 4,329 -1,253
 Reinvested earnings 8,027 4,695 3,332
 Earnings of unincorporated
 affiliates 103 276 -173
 Interest 567 553 14
 Other investment income 10,068 16,480 -6,412
 Securities 6,757 11,285 -4,528
 Dividends 1,077 1,288 -211
 Interest on bonds 5,680 9,997 -4,317
 U.S. claims/Canadian
 liabilities 3,311 5,195 -1,884
 U.S. bank claims 2,668 2,576 92
 Other private U.S.
 claims 643 2,619 -1,976

 Common-basis estimates,
 after definitional and
 methodological adjustments

 U.S. Canadian Difference
 receipts payments

 2000

Investment income 26,841 23,251 3,590
 Direct investment income 14,687 10,715 3,972
 Earnings of incorporated
 affiliates 13,649 9,627 4,022
 Dividends 3,171 2,895 276
 Reinvested earnings 10,478 6,732 3,746
 Earnings of unincorporated
 affiliates 428 607 -179
 Interest 611 482 129
 Other investment income 12,154 12,536 -382
 Securities 8,988 9,646 -658
 Dividends 1,512 1,081 431
 Interest on bonds 7,476 8,565 -1,089
 U.S. claims/Canadian 3,166 2,892 274
 liabilities
 U.S. bank claims 1,213 832 381
 Other private U.S. claims 1,953 2,060 -107

 2001

Investment income 21,443 21,252 191
 Direct investment income 11,773 9,176 2,597
 Earnings of incorporated
 affiliates 11,103 8,580 2,523
 Dividends 3,076 3,875 -799
 Reinvested earnings 8,027 4,705 3,322
 Earnings of unincorporated
 affiliates 103 276 -173
 Interest 567 320 247
 Other investment income 8,670 12,076 -2,406
 Securities 7,609 10,200 -2,591
 Dividends 1,077 1,202 -125
 Interest on bonds 6,532 8,998 -2,466
 U.S. claims/Canadian
 liabilities 2,061 1,876 185
 U.S. bank claims 789 500 289
 Other private U.S.
 claims 1,272 1,376 -104

 Total
 Reconciled estimate, adjustments
 including statistical to published
 adjustments estimates

 U.S. Canadian United
 receipts payments States

 2000

Investment income 26,610 26,610 -979
 Direct investment income 13,830 13,830 -858
 Earnings of incorporated
 affiliates 12,574 12,574 -1,075
 Dividends 3,033 3,033 -138
 Reinvested earnings 9,541 9,541 -937
 Earnings of unincorporated
 affiliates 623 623 195
 Interest 633 633 22
 Other investment income 12,780 12,780 -121
 Securities 9,754 9,754 1,741
 Dividends 1,189 1,189 -323
 Interest on bonds 8,565 8,565 2,064
 U.S. claims/Canadian 3,026 3,026 -1,862
 liabilities
 U.S. bank claims 1,084 1,084 -2,862
 Other private U.S. claims 1,942 1,942 1,000

 2001

Investment income 22,415 22,415 574
 Direct investment income 11,933 11,093 -680
 Earnings of incorporated
 affiliates 10,333 10,333 -770
 Dividends 3,136 3,136 60
 Reinvested earnings 7,197 7,197 -830
 Earnings of unincorporated
 affiliates 195 195 92
 Interest 567 567
 Other investment income 11,322 11,322 1,254
 Securities 9,360 9,360 2,603
 Dividends 1,140 1,140 63
 Interest on bonds 8,220 8,220 2,540
 U.S. claims/Canadian
 liabilities 1,963 1,983 -1,348
 U.S. bank claims 703 703 -1,985
 Other private U.S.
 claims 1,260 1,260 617

 Total adjustments to
 published estimates

 Canada Type of adjustment

 2000

Investment income -2615
 Direct investment income 2479
 Earnings of incorporated
 affiliates 2509
 Dividends -386 Definitional, reclassifi-
 cation, and statistical
 Reinvested earnings 2895 Definitional and statistical
 Earnings of unincorporated
 affiliates 16 Statistical
 Interest -46 Definitional, gross to net,
 and statistical
 Other investment income -5,094
 Securities -882
 Dividends 70 Definitional, reclassifi-
 cation, and statistical
 Interest on bonds -952 Definitional and statistical
 U.S. claims/Canadian -4,212
 liabilities
 U.S. bank claims -2,980 Net to gross, gross to net,
 and statistical
 Other private U.S. claims -1,232 Net to gross and statistical

 2001

Investment income -3,918
 Direct investment income 1,240
 Earnings of incorporated
 affiliates 1,309
 Dividends -1,193 Definitional, reclassifi-
 cation, and statistical
 Reinvested earnings 2,502 Definitional and statistical
 Earnings of unincorporated
 affiliates -81 Statistical
 Interest 14 Definitional, gross to net,
 and statistical
 Other investment income -5,158
 Securities -1,925
 Dividends -148 Definitional, reclassifi-
 cation, and statistical
 Interest on bonds -1,777 Definitional and statistical
 U.S. claims/Canadian
 liabilities -3,232
 U.S. bank claims -1,873 Net to gross, gross to net,
 and statistical
 Other private U.S.
 claims -1,359 Net to gross and statistical

Table 7.2. Investment Income, Southbound

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S. Difference
 receipts payments

 2000

Investment Income 12,014 8,462 3,552
 Direct investment income 4,053 1,057 2,996
 Earnings of incorporated
 affiliates 2,762 422 2,340
 Dividends 1,486 1,494 -8
 Reinvested earnings 1,276 -1,072 2,348
 Earnings of unincorporated
 affiliates 1,155 296 859
 Interest 136 339 -203
 Other Investment Income 7,961 7,405 556
 Securities 2,046 2,713 -667
 Dividends 1,435 1,742 -307
 Interest on bonds 611 971 -360
 Canadian claims/U.S.
 liabilities 4,743 2,959 1,784
 Canadian bank claims 4,238 2,203 2,035
 Other private Canadian
 claims 505 756 -251
 U.S. Government
 liabilities 1,172 1,733 -561

 2001

Investment income 8,885 -2,100 10,985
 Direct investment income 2,741 -7,737 10,478
 Earnings of incorporated
 affiliates 2,809 -8,298 11,107
 Dividends 1,544 602 942
 Reinvested earnings 1,265 -8,900 10,165
 Earnings of unincorporated
 affiliates -190 189 -379
 Interest 123 372 -249
 Other Investment Income 6,144 5,637 507
 Securities 2,158 2,815 -657
 Dividends 1,686 1,806 -120
 Interest on bonds 472 1,009 -537
 Canadian claims/U.S.
 liabilities 2,746 1,159 1,587
 Canadian bank claims 2,215 933 1,282
 Other private Canadian
 claims 531 226 305
 U.S. Government
 liabilities 1,241 1,663 -422

 Common-basis estimates,
 after definitional and
 methodological adjustments

 Canadian U.S. Difference
 receipts payments

 2000

Investment Income 8,196 6,740 1,456
 Direct investment income 3,664 1,057 2,607
 Earnings of incorporated
 affiliates 2,843 422 2,421
 Dividends 1,218 1,494 -276
 Reinvested earnings 1,625 -1,072 2,697
 Earnings of unincorporated
 affiliates 810 296 514
 Interest 12 339 -327
 Other Investment Income 4,532 5,683 -1,151
 Securities 1,917 2,713 -796
 Dividends 1,358 1,742 -384
 Interest on bonds 559 971 -412
 Canadian claims/U.S.
 liabilities 1,339 1,237 102
 Canadian bank claims 841 1,143 -302
 Other private Canadian
 claims 498 94 404
 U.S. Government
 liabilities 1,278 1,733 -455

 2001

Investment income 5,957 -3,351 9,308
 Direct investment income 2,364 -7,737 10,101
 Earnings of incorporated
 affiliates 2,646 -8,298 10,944
 Dividends 1,344 602 742
 Reinvested earnings 1,302 -8,900 10,202
 Earnings of unincorporated
 affiliates -228 189 -417
 Interest -53 372 -425
 Other Investment Income 3,593 4,386 -793
 Securities 1,978 2,815 -837
 Dividends 1,547 1,806 -259
 Interest on bonds 431 1,009 -578
 Canadian claims/U.S.
 liabilities 550 -92 642
 Canadian bank claims 26 -148 174
 Other private Canadian
 claims 524 56 468
 U.S. Government
 liabilities 1,065 1,663 -598

 Total
 Reconciled estimate, adjustments
 including statistical to published
 adjustments estimates

 Canadian U.S. Canada
 receipts payments

 2000

Investment Income 7,552 7,552 -4,462
 Direct investment income 1,959 1,959 -2,094
 Earnings of incorporated
 affiliates 1,312 1,312 -1,450
 Dividends 1,632 1,632 146
 Reinvested earnings -320 -320 -1,596
 Earnings of unincorporated
 affiliates 309 309 -846
 Interest 339 339 203
 Other Investment Income 5,593 5,593 -2,368
 Securities 2,563 2,563 517
 Dividends 1,742 1,742 307
 Interest on bonds 821 821 210
 Canadian claims/U.S.
 liabilities 1,412 1,412 -3,331
 Canadian bank claims 1,010 1,010 -3,228
 Other private Canadian
 claims 402 402 -103
 U.S. Government
 liabilities 1,618 1,618 446

 2001

Investment income 2,185 2,185 -6,700
 Direct investment income -2,407 -2,407 -5,148
 Earnings of incorporated
 affiliates -2,828 -2,828 -5,637
 Dividends 1,044 1,044 -500
 Reinvested earnings -3,872 -3,872 -5,137
 Earnings of unincorporated
 affiliates 49 49 239
 Interest 372 372 249
 Other Investment Income 4,592 4,592 -1,552
 Securities 2,596 2,596 438
 Dividends 1,806 1,806 120
 Interest on bonds 790 790 318
 Canadian claims/U.S.
 liabilities 481 481 -2,265
 Canadian bank claims 15 15 -2,200
 Other private Canadian
 claims 466 466 -65
 U.S. Government
 liabilities 1,514 1,514 273

 Total adjustments to
 published estimates

 United Type of adjustment
 States

 2000

Investment Income -910
 Direct investment income 902
 Earnings of incorporated
 affiliates 890
 Dividends 138 Definitional and statistical
 Reinvested earnings 752 Definitional and statistical
 Earnings of unincorporated
 affiliates 13 Definitional and statistical
 Interest Definitional, gross to net,
 and statistical
 Other Investment Income -1,812
 Securities -150
 Dividends Definitional and statistical
 Interest on bonds -150 Definitional and statistical
 Canadian claims/U.S.
 liabilities -1,547
 Canadian bank claims -1,193 Net to gross, gross to net,
 and statistical
 Other private Canadian
 claims -354 Net to gross and statistical
 U.S. Government
 liabilities -115 Definitional and statistical

 2001

Investment income 4,285
 Direct investment income 5,330
 Earnings of incorporated
 affiliates 5,470
 Dividends 442 Definitional and statistical
 Reinvested earnings 5,028 Definitional and statistical
 Earnings of unincorporated
 affiliates -140 Definitional and statistical
 Interest Definitional, gross to net,
 and statistical
 Other Investment Income -1,045
 Securities -219
 Dividends Definitional and statistical
 Interest on bonds -219 Definitional and statistical
 Canadian claims/U.S.
 liabilities -678
 Canadian bank claims -918 Net to gross, gross to net,
 and statistical
 Other private Canadian
 claims 240 Net to gross and statistical
 U.S. Government
 liabilities -149 Definitional and statistical

(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 2000 is revised from the previously published deficit of $30.7 billion used in last year's reconciliation, and the Canadian surplus for 2000 is revised from the previously published surplus of $42.6 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 1996-2001. 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 1981-2001.

(4.) For reconciliation, some of the details presented in the tables in this article differ from those presented in 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.

RELATED ARTICLE: 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 agency. Some of the differences for 2001 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 result of the reconciliation process and the exchange of data, the accuracy of the published estimates of transactions between Canada and the United States and the efficiency in producing the estimates have increased. 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 more than 80 percent 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.

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

(1.) A detailed article on the methodology was published by BEA in "Reconciliation of the U.S.-Canadian Current Account" in the November 1992 SURVEY and by Statistics Canada in Reconciliation of the Canadian-United States Current Account, 1990-91. 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.