Reconciliation of the U.S.-Canadian current account, 1999 and 2000.

DiLullo, Anthony ; Henderson, Hugh

ON a reconciled basis, the U.S. deficit, or Canadian surplus, is $19.1 billion for 1999 and $39.6 billion for 2000 (chart 1, table 1). (1) The U.S.-published current-account balance with Canada is a U.S. deficit of $14.7 billion for 1999 and a U.S. deficit of $30.7 billion for 2000. The corresponding Canadian-published balance is a Canadian surplus (U.S. deficit) of $22.0 billion for 1999 and a Canadian surplus (U.S. deficit) of $42.6 billion for 2000.

[GRAPHIC OMITTED]

This article presents the results of the reconciliation of the bilateral current-account estimates of Canada and the United States for 1999 and 2000. (2) The details of the current-account reconciliation for 1999 and 2000 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. (3)

Reconciled Current-Account Balances

In the U.S. current account, the reconciliation adjustments resulted in an increase of $4.4 billion in the U.S. deficit for 1999 and an increase of $8.9 billion in the U.S. deficit for 2000. In both years, the increases reflect larger adjustments to the U.S. southbound estimates than to the northbound estimates (tables 2.1 and 2.2). (4) 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), and from an increase for undercoverage of some southbound services (a statistical adjustment). 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 (a statistical adjustment).

In the Canadian current account, the reconciliation adjustments resulted in a decrease of $2.9 billion in the 1999 Canadian surplus and in a decrease of $3.0 billion in the 2000 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. These downward adjustments were partly offset by upward adjustments for statistical differences in direct investment income.

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--persist in the published estimates because of data limitations, difficulties in determining country attribution, and differences in classification.

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" private services and of "other" investment income. For the southbound estimates, most of the statistical differences are in the U.S. and Canadian estimates of "other" private services and of direct investment income.

Tables 2.2-7 follow.

Table 1.--Major U.S.-Canadian Balances

[Billions of U.S. dollars]

 Published Reconciled
 estimates estimates

 United United
 States Canada States Canada

 1999

 Goods and services -28.9 36.8 -36.9 36.9
 Goods -34.6 40.3 -40.8 40.8
 Services 5.6 -3.5 3.9 -3.9
 Income 14.9 -16.7 18.3 -18.3
 Current unilateral transfers -0.6 1.9 -0.5 0.5
Current account -14.7 22.0 -19.1 19.1

 2000

 Goods and services -47.9 57.4 -58.1 58.1
 Goods -54.7 61.9 -63.1 63.1
 Services 6.8 -4.4 5.0 -5.0
 Income 17.9 -17.0 19.2 -19.2
 Current unilateral transfers -0.7 2.2 -0.6 0.6
Current account -30.7 42.6 -39.6 39.6

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, 1999

[Millions of U.S. dollars]

 Definitional Methodological

 Gross
 Reclassifi- or net
 cation

 United United United
 States Canada States Canada States

Goods, balance of
 payments basis 92 -181 232 ... ...
 Valuation adjustments 92 -181 ... ... ...
 Reclassification of
 equipment repairs
 from unaffiliated
 services ... ... 232 ... ...
 Statistical adjustments ... ... ... ... ...

Services 121 -344 -232 -66 ...

 Travel ... ... 653 ... ...
 Reclassification of
 education from
 unaffiliated
 services ... ... 474 ... ...
 Reclassification of
 medical services
 from unaffiliated
 services ... ... 179 ... ...
 Statistical
 adjustments ... ... ... ... ...

 Passenger fares ... ... ... ... ...
 Statistical
 adjustments ... ... ... ... ...

 Other transportation ... -121 ... 171 ...
 Valuation adjustments ... -121 ... ... ...
 Reclassification of
 transportation
 services from
 unaffiliated
 services ... ... ... 171 ...
 Statistical
 adjustments ... ... ... ... ...

 Other services 121 -223 -885 -237 ...
 Affiliated ... -153 -229 ... ...
 Valuation
 adjustments ... -153 ... ... ...
 Reclassification of
 film rentals to
 unaffiliated
 services ... ... -157 ... ...
 Reclassification of
 courier services
 to unaffiliated
 services ... ... -72 ... ...
 Statistical
 adjustments ... ... ... ... ...

 Unaffiliated 121 -70 -656 -237 ...
 Valuation
 adjustments 121 -70 ... ... ...
 Reclassification of
 transactions to
 or from other
 accounts ... ... -656 -237 ...
 Statistical
 adjustments ... ... ... ... ...

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

Income 934 -2,406 ... 66 -1,293
 Direct investment ... -415 ... -28 ...
 Valuation adjustments ... -415 ... ... ...
 Reclassification of
 dividends to
 "other" income ... ... ... -28 ...
 Adjustment of
 interest income
 to a net basis ... ... ... ... ...
 Statistical
 adjustments ... ... ... ... ...

 Other investment 934 -1,991 ... 28 -1,293
 Valuation adjustments 934 -1,991 ... ... ...
 Reclassification of
 dividends from
 direct investment ... ... ... 28 ...
 Adjustment of
 interest income
 to a gross or
 net basis ... ... ... ... -1,293
 Statistical
 adjustments ... ... ... ... ...

 Compensation of
 employees ... ... ... 66 ...

Current unilateral
 transfers ... -253 ... ... 170
 Valuation adjustments ... -253 ... ... ...
 Adjustment of U.S.
 transfers to a
 gross basis ... ... ... ... 170
 Statistical adjustments ... ... ... ... ...

 Total adjustments 1,147 -3,184 ... ... -1,123

 Statistical Total

 Gross
 or net

 United United
 Canada States Canada States Canada

Goods, balance of
 payments basis ... ... -577 324 -758
 Valuation adjustments ... ... ... 92 -181
 Reclassification of
 equipment repairs
 from unaffiliated
 services ... ... ... 232 ...
 Statistical adjustments ... ... -577 ... -577

Services ... 742 -560 631 -970

 Travel ... -95 17 558 17
 Reclassification of
 education from
 unaffiliated
 services ... ... ... 474 ...
 Reclassification of
 medical services
 from unaffiliated
 services ... ... ... 179 ...
 Statistical
 adjustments ... -95 17 -95 17

 Passenger fares ... -215 ... -215 ...
 Statistical
 adjustments ... -215 ... -215 ...

 Other transportation ... -152 -44 -152 6
 Valuation adjustments ... ... ... ... -121
 Reclassification of
 transportation
 services from
 unaffiliated
 services ... ... ... ... 171
 Statistical
 adjustments ... -152 -44 -152 -44

 Other services ... 1,204 -533 440 -993
 Affiliated ... 256 -1,909 27 -2,062
 Valuation
 adjustments ... ... ... ... -153
 Reclassification of
 film rentals to
 unaffiliated
 services ... ... ... -157 ...
 Reclassification of
 courier services
 to unaffiliated
 services ... ... ... -72 ...
 Statistical
 adjustments ... 256 -1,909 256 -1,909

 Unaffiliated ... 948 1,267 413 960
 Valuation
 adjustments ... ... ... 121 -70
 Reclassification of
 transactions to
 or from other
 accounts ... ... ... -656 -237
 Statistical
 adjustments ... 948 1,267 948 1,267

 U.S. military sales ... ... 109 ... 109
 Statistical
 adjustments ... ... 109 ... 109

Income -2,922 2,022 2,159 1,663 -3,103
 Direct investment -121 160 2,101 160 1,537
 Valuation adjustments ... ... ... ... -415
 Reclassification of
 dividends to
 "other" income ... ... ... ... -28
 Adjustment of
 interest income
 to a net basis -121 ... ... ... -121
 Statistical
 adjustments ... 160 2,101 160 2,101

 Other investment -2,801 1,862 48 1,503 -4,716
 Valuation adjustments ... ... ... 934 -1,991
 Reclassification of
 dividends from
 direct investment ... ... ... ... 28
 Adjustment of
 interest income
 to a gross or
 net basis -2,801 ... ... -1,293 -2,801
 Statistical
 adjustments ... 1,862 48 1,862 48

 Compensation of
 employees ... ... 10 ... 76

Current unilateral
 transfers ... 110 ... 280 -253
 Valuation adjustments ... ... ... ... -253
 Adjustment of U.S.
 transfers to a
 gross basis ... ... ... 170 ...
 Statistical adjustments ... 110 ... 110 ...

 Total adjustments -2,922 2,874 1,022 2,898 -5,084
Table 2.1.--Summary of Reconciliation Adjustments, Northbound, 2000

[Millions of U.S. dollars]

 Definitional Methodological

 Reclassifi- Gross
 cation or net

 United United United
 States Canada States Canada States

Goods, balance of
 payments basis 116 -237 226 ... ...
 Valuation adjustments 116 -237 ... ... ...
 Reclassification of
 equipment repairs
 from unaffiliated
 services ... ... 226 ... ...
 Statistical adjustments ... ... ... ... ...

Services 141 -345 -226 -69 ...

 Travel ... ... 703 ... ...
 Reclassification of
 education from
 unaffiliated
 services ... ... 505 ... ...
 Reclassification of
 medical services
 from unaffiliated
 services ... ... 198 ... ...
 Statistical
 adjustments ... ... ... ... ...

 Passenger fares ... ... ... ... ...
 Statistical
 adjustments ... ... ... ... ...

 Other transportation ... -206 ... 179 ...
 Valuation adjustments ... -206 ... ... ...
 Reclassification of
 transportation
 services from
 unaffiliated
 services ... ... ... 179 ...
 Statistical
 adjustments ... ... ... ... ...

 Other services 141 -139 -929 -248 ...
 Affiliated ... -60 -304 ... ...
 Valuation
 adjustments ... -60 ... ... ...
 Reclassification of
 film rentals to
 unaffiliated
 services ... ... -217 ... ...
 Reclassification of
 courier services
 to unaffiliated
 services ... ... -87 ... ...
 Statistical
 adjustments ... ... ... ... ...

 Unaffiliated 141 -79 -625 -248 ...
 Valuation
 adjustments 141 -79 ... ... ...
 Reclassification of
 transactions to
 or from other
 accounts ... ... -625 -248 ...
 Statistical
 adjustments ... ... ... ... ...

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

Income 933 -4,565 ... 69 -1,723
 Direct investment ... -2,320 ... -28 ...
 Valuation adjustments ... -2,320 ... ... ...
 Reclassification of
 dividends to
 "other" income ... ... ... -28 ...
 Adjustment of
 interest income
 to a net basis ... ... ... ... ...
 Statistical
 adjustments ... ... ... ... ...

 Other investment 933 -2,245 ... 28 -1,723
 Valuation adjustments 933 -2,245 ... ... ...
 Reclassification of
 dividends from
 direct investment ... ... ... 28 ...
 Adjustment of
 interest income
 to a gross or
 net basis ... ... ... ... -1,723
 Statistical
 adjustments ... ... ... ... ...

 Compensation of
 employees ... ... ... 69 ...

Current unilateral
 transfers ... -303 ... ... 180
 Valuation adjustments ... -303 ... ... ...
 Adjustment of U.S.
 transfers to a
 gross basis ... ... ... ... 180
 Statistical adjustments ... ... ... ... ...

 Total adjustments 1,190 -5,450 ... ... -1,543

 Statistical Total

 Gross
 or net

 United United
 Canada States Canada States Canada

Goods, balance of
 payments basis ... ... -662 342 -899
 Valuation adjustments ... ... ... 116 -237
 Reclassification of
 equipment repairs
 from unaffiliated
 services ... ... ... 226 ...
 Statistical adjustments ... ... -662 ... -662

Services ... 516 -225 431 -639

 Travel ... -132 15 571 15
 Reclassification of
 education from
 unaffiliated
 services ... ... ... 505 ...
 Reclassification of
 medical services
 from unaffiliated
 services ... ... ... 198 ...
 Statistical
 adjustments ... -132 15 -132 15

 Passenger fares ... -286 ... -286 ...
 Statistical
 adjustments ... -286 ... -286 ...

 Other transportation ... -151 48 -151 21
 Valuation adjustments ... ... ... ... -206
 Reclassification of
 transportation
 services from
 unaffiliated
 services ... ... ... ... 179
 Statistical
 adjustments ... -151 48 -151 48

 Other services ... 1,085 -288 297 -675
 Affiliated ... 208 -2,088 -96 -2,148
 Valuation
 adjustments ... ... ... ... -60
 Reclassification of
 film rentals to
 unaffiliated
 services ... ... ... -217 ...
 Reclassification of
 courier services
 to unaffiliated
 services ... ... ... -87 ...
 Statistical
 adjustments ... 208 -2,088 208 -2,088

 Unaffiliated ... 877 1,657 393 1,330
 Valuation
 adjustments ... ... ... 141 -79
 Reclassification of
 transactions to
 or from other
 accounts ... ... ... -625 -248
 Statistical
 adjustments ... 877 1,657 877 1,657

 U.S. military sales ... ... 143 ... 143
 Statistical
 adjustments ... ... 143 ... 143

Income -3,421 75 3,841 -715 -4,076
 Direct investment -187 -1,122 3,514 -1,122 979
 Valuation adjustments ... ... ... ... -2,320
 Reclassification of
 dividends to
 "other" income ... ... ... ... -28
 Adjustment of
 interest income
 to a net basis -187 ... ... ... -187
 Statistical
 adjustments ... -1,122 3,514 -1,122 3,514

 Other investment -3,234 1,197 318 407 -5,133
 Valuation adjustments ... ... ... 933 -2,245
 Reclassification of
 dividends from
 direct investment ... ... ... ... 28
 Adjustment of
 interest income
 to a gross or net
 basis -3,234 ... ... 1,723 -3,234
 Statistical
 adjustments ... 1,197 318 1,197 318

 Compensation of
 employees ... ... 9 ... 78

Current unilateral
 transfers ... 114 ... 294 -303
 Valuation adjustments ... ... ... ... -303
 Adjustment of U.S.
 transfers to a
 gross basis ... ... ... 180 ...
 Statistical adjustments ... 114 ... 114 ...

 Total adjustments -3,421 705 2,954 352 -5,917
Table 2.2.--Summary of Reconciliation Adjustments, Southbound, 1999

[Millions of U.S. dollars]

 Definitional Methodological

 Reclassifi- Gross
 cation or net

 United United
 Canada States Canada States Canada

Goods, balance of
 payments basis -395 6,149 ... (*) ...
 Valuation adjustments -1,368 281 ... ... ...
 Canadian re-exports to
 the United States ... 4,895 ... ... ...
 Inland freight
 adjustment 973 973 ... ... ...
 Reclassification of
 equipment repairs
 from "other"
 services ... ... ... (*) ...
 Statistical adjustments ... ... ... ... ...

Services -214 -11 -171 ... ...

 Travel ... ... ... 13 ...
 Reclassification of
 education from
 "other" services ... ... ... 13 ...
 Statistical
 adjustments ... ... ... ... ...

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

 Other transportation -87 -85 102 -198 ...
 Valuation adjustments -87 -85 ... ... ...
 Reclassification of
 courier services
 to "other"
 services ... ... -198 ...
 Reclassification of
 transportation
 services from
 "other" services ... ... 102 ... ...
 Statistical
 adjustments ... ... ... ... ...

 Other services -127 74 -273 185 ...
 Affiliated -33 ... ... -26 ...
 Valuation
 adjustments -33 ... ... ... ...
 Reclassification of
 courier services
 to unaffiliated
 services ... ... ... -26 ...
 Statistical
 adjustments ... ... ... ... ...

 Unaffiliated -94 94 -325 211 ...
 Valuation
 adjustments -94 94 ... ... ...
 Reclassification of
 transactions to
 or from the goods
 and the other
 services accounts ... ... -325 211 ...
 Statistical
 adjustments ... ... ... ... ...

 U.S. defense
 expenditures ... -20 52 ... ...
 Valuation
 adjustments ... -20 ... ... ...
 Reclassification
 of defense
 expenditures from
 unaffiliated
 services ... ... 52 ... ...

Income -790 -100 171 ... -2,922
 Direct investment -664 ... ... ... -121
 Valuation adjustments -664 ... ... ... ...
 Adjustment of
 interest income
 to a net basis ... ... ... ... -121
 Statistical
 adjustments ... ... ... ... ...

 Other investment -149 -100 ... ... -2,801
 Valuation adjustments -149 -100 ... ... ...
 Adjustment of
 interest income
 to a gross or
 net basis ... ... ... ... -2,801
 Statistical
 adjustments ... ... ... ... ...

 Compensation of
 employees 23 ... 171 ... ...

Current unilateral
 transfers -1,657 ... ... ... ...
 Valuation adjustments -1,657 ... ... ... ...
 Adjustment of U.S.
 transfers to a
 gross basis ... ... ... ... ...
 Statistical adjustments ... ... ... ... ...

 Total adjustments -3,056 6,038 ... ... -2,922

 Statistical Total

 Gross
 or net

 United United United
 States Canada States Canada States

Goods, balance of
 payments basis ... 124 391 -271 6,540
 Valuation adjustments ... ... ... -1,368 281
 Canadian re-exports to
 the United States ... ... ... ... 4,895
 Inland freight
 adjustment ... ... ... 973 973
 Reclassification of
 equipment repairs
 from "other"
 services ... ... ... ... ...
 Statistical adjustments ... 124 391 124 391

Services ... -1,027 2,382 -1,412 2,370

 Travel ... -35 45 -35 58
 Reclassification of
 education from
 "other" services ... ... ... ... 13
 Statistical
 adjustments ... -35 45 -35 45

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

 Other transportation ... 22 -28 37 -311
 Valuation adjustments ... ... ... -87 -85
 Reclassification of
 courier services
 to "other"
 services ... ... ... ... -198
 Reclassification of
 transportation
 services from
 "other" services ... ... ... 102 ...
 Statistical
 adjustments ... 22 -28 22 -28

 Other services ... -1,014 2,365 -1,414 2,624
 Affiliated ... -1,423 479 -1,456 453
 Valuation
 adjustments ... ... ... -33 ...
 Reclassification of
 courier services
 to unaffiliated
 services ... ... ... ... -26
 Statistical
 adjustments ... -1,423 479 -1,423 479

 Unaffiliated ... 409 1,886 -10 2,191
 Valuation
 adjustments ... ... ... -94 94
 Reclassification of
 transactions to
 or from the goods
 and the other
 services accounts ... ... ... -325 211
 Statistical
 adjustments ... 409 1,886 409 1,886

 U.S. defense
 expenditures ... ... ... 52 -20
 Valuation
 adjustments ... ... ... ... -20
 Reclassification
 of defense
 expenditures from
 unaffiliated
 services ... ... ... 52 ...

Income -1,293 -1,147 -370 -4,688 -1,764
 Direct investment ... -1,938 -10 -2,723 -10
 Valuation adjustments ... ... ... -664 ...
 Adjustment of
 interest income
 to a net basis ... ... ... -121 ...
 Statistical
 adjustments ... -1,938 -10 -1,938 -10

 Other investment -1,293 736 -360 -2,214 -1,754
 Valuation adjustments ... ... ... -149 -100
 Adjustment of
 interest income
 to a gross or
 net basis -1,293 ... ... -2,801 -1,293
 Statistical
 adjustments ... 736 -360 736 -360

 Compensation of
 employees ... 55 ... 249 ...

Current unilateral
 transfers 170 -14 ... -1,671 170
 Valuation adjustments ... ... ... -1,657 ...
 Adjustment of U.S.
 transfers to a
 gross basis 170 ... ... ... 170
 Statistical adjustments ... -14 ... -14 ...

 Total adjustments -1,123 -2,064 2,402 -8,042 7,316

* Less than ([+ or -]) $500,000.
Table 2.2.--Summary of Reconciliation Adjustments, Southbound, 2000

[Millions of U.S. dollars]

 Definitional Methodological

 Reclassifi- Gross
 cation or net

 United United
 Canada States Canada States Canada

Goods, balance of
 payments basis 107 8,352 ... 3 ...
 Valuation adjustments -1,673 249 ... ... ...
 Canadian re-exports to
 the United States ... 6,323 ... ... ...
 Inland freight
 adjustment 1,780 1,780 ... ... ...
 Reclassification of
 equipment repairs
 from unaffiliated
 services ... ... ... 3 ...
 Statistical adjustments ... ... ... ... ...

Services -104 -27 -204 -3 ...

 Travel ... ... ... 14 ...
 Reclassification of
 education from
 unaffiliated
 services ... ... ... 14 ...
 Statistical
 adjustments ... ... ... ... ...

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

 Other transportation -87 -102 105 -207 ...
 Valuation adjustments -87 -102 ... ... ...
 Reclassification of
 courier services
 to unaffiliated
 services ... ... ... -207 ...
 Reclassification of
 transportation
 services from
 unaffiliated
 services ... ... 105 ... ...
 Statistical
 adjustments ... ... ... ... ...

 Other services -17 75 -309 190 ...
 Affiliated -2 ... ... -29 ...
 Valuation
 adjustments -2 ... ... ... ...
 Reclassification of
 courier services
 to unaffiliated
 services ... ... ... -29 ...
 Statistical
 adjustments ... ... ... ... ...

 Unaffiliated -15 93 -361 219 ...
 Valuation
 adjustments -15 93 ... ... ...
 Reclassification of
 transactions to
 or from other
 accounts ... ... -361 219 ...
 Statistical
 adjustments ... ... ... ... ...

 U.S. defense
 expenditures ... -18 52 ... ...
 Valuation
 adjustments ... -18 ... ... ...
 Reclassification
 of defense
 expenditures from
 unaffiliated
 services ... ... 52 ... ...

Income -926 -299 204 ... -3,421
 Direct investment -732 ... ... ... -187
 Valuation adjustments -732 ... ... ... ...
 Adjustment of
 interest income
 to a net basis ... ... ... ... -187
 Statistical
 adjustments ... ... ... ... ...

 Other investment -194 -299 ... ... -3,234
 Valuation adjustments -194 -299 ... ... ...
 Adjustment of
 interest income
 to a gross or
 net basis ... ... ... ... -3,234
 Statistical
 adjustments ... ... ... ... ...

 Compensation of
 employees ... ... 204 ... ...

Current unilateral
 transfers -1,861 ... ... ... ...
 Valuation adjustments -1,861 ... ... ... ...
 Adjustment of U.S.
 transfers to a
 gross basis ... ... ... ... ...
 Statistical adjustments ... ... ... ... ...

 Total adjustments -2,784 8,026 ... ... -3,421

 Statistical Total

 Gross
 or net

 United United United
 States Canada States Canada States

Goods, balance of
 payments basis ... 245 408 352 8,763
 Valuation adjustments ... ... ... -1,673 249
 Canadian re-exports to
 the United States ... ... ... ... 6,323
 Inland freight
 adjustment ... ... ... 1,780 1,780
 Reclassification of
 equipment repairs
 from unaffiliated
 services ... ... ... ... 3
 Statistical adjustments ... 245 408 245 408

Services ... -886 2,317 -1,194 2,287

 Travel ... -41 54 -41 68
 Reclassification of
 education from
 unaffiliated
 services ... ... ... ... 14
 Statistical
 adjustments ... -41 54 -41 54

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

 Other transportation ... 41 -45 59 -354
 Valuation adjustments ... ... ... -87 -102
 Reclassification of
 courier services
 to unaffiliated
 services ... ... ... ... -207
 Reclassification of
 transportation
 services from
 unaffiliated
 services ... ... ... 105 ...
 Statistical
 adjustments ... 41 -45 41 -45

 Other services ... -886 2,308 -1,212 2,573
 Affiliated ... -1,203 275 -1,205 246
 Valuation
 adjustments ... ... ... -2 ...
 Reclassification of
 courier services
 to unaffiliated
 services ... ... ... ... -29
 Statistical
 adjustments ... -1,203 275 -1,203 275

 Unaffiliated ... 317 2,033 -59 2,345
 Valuation adjust-
 ments ... ... ... -15 93
 Reclassification of
 transactions to
 or from other
 accounts ... ... ... -361 219
 Statistical
 adjustments ... 317 2,033 317 2,033

 U.S. defense
 expenditures ... ... ... 52 -18
 Valuation
 adjustments ... ... ... ... -18
 Reclassification
 of defense
 expenditures from
 unaffiliated
 services ... ... ... 52 ...

Income -1,723 -2,108 34 -6,251 -1,988
 Direct investment ... -3,228 652 -4,147 652
 Valuation adjustments ... ... ... -732 ...
 Adjustment of
 interest income
 to a net basis ... ... ... -187 ...
 Statistical
 adjustments ... -3,228 652 -3,228 652

 Other investment -1,723 1,068 -618 -2,360 -2,640
 Valuation adjustments ... ... ... -194 -299
 Adjustment of
 interest income
 to a gross
 or net basis -1,723 ... ... -3,234 -1,723
 Statistical
 adjustments ... 1,068 -618 1,068 -618

 Compensation of
 employees ... 52 ... 256 ...

Current unilateral
 transfers 180 -20 ... -1,881 180
 Valuation adjustments ... ... ... -1,861 ...
 Adjustment of U.S.
 transfers to a
 gross basis 180 ... ... ... 180
 Statistical adjustments ... -20 ... -20 ...

 Total adjustments -1,543 -2,769 2,759 -8,974 9,242
Table 3.1 .--U.S.-Canadian Current-Account Reconciliation, Northbound

[Millions of U.S. dollars]

 Common-basis
 estimates, after
 definitional and
 methodological
 Published estimates adjustments

 Cana-
 U.S. dian U.S.
 re- pay- Diffe- re- Canadian
 ceipts ments rence ceipts payments
 1999

Goods and services 188,144 190,827 -2,683 188,357 190,234

 Goods, balance of
 payments basis 166,727 167,809 -1,082 167,051 167,628

 Services 21,417 23,018 -1,601 21,306 22,606
 Travel 6,670 7,211 -541 7,323 7,211
 Passenger fares 1,540 1,325 215 1,540 1,325
 Other
 transportation 2,484 2,326 158 2,484 2,374
 Other services 10,614 12,156 -1,542 9,850 11,696
 U.S. military
 sales 109 (1) 109 109 (1)

Income 23,115 27,881 -4,766 22,757 22,620
 Investment income 23,039 27,881 -4,842 22,681 22,554
 Direct investment 11,986 10,609 1,377 11,986 10,045
 Other investment 11,053 17,272 -6,219 10,696 12,509
 Compensation of
 employees 76 (2) 76 76 66

Current unilateral
 transfers (3) 533 -533 170 280

 Current account,
 northbound 211,259 219,240 -7,982 211,284 213,134

 2000

Goods and services 202,409 204,720 -2,311 202,663 204,069

 Goods, balance of
 payments basis 178,987 180,228 -1,241 179,329 179,991

 Services 23,422 24,492 -1,070 23,334 24,078
 Travel 7,055 7,611 -556 7,758 7,611
 Passenger fares 1,713 1,427 286 1,713 1,427
 Other
 transportation 2,703 2,531 172 2,702 2,504
 Other services 11,808 12,923 -1,115 11,018 12,536
 U.S. Military
 sales 143 (1) 143 143 (1)

Income 27,225 30,586 -3,361 26,437 22,669
 Investment income 27,147 30,586 -3,439 26,359 22,600
 Direct investment 14,518 12,417 2,101 14,518 9,882
 Other investment 12,629 18,169 -5,540 11,841 12,718
 Compensation of
 employees 78 (2) 78 78 69

Current unilateral
 transfers (3) 597 -597 180 294

 Current account,
 northbound 229,634 235,903 -6,269 229,280 227,033

 Common-
 basis
 esti-
 mates,
 after
 defini-
 tional
 and me-
 thodo- Reconciled Total
 logical estimates in- adjustments to
 adjust- cluding statistical published
 ments adjustments estimates

 Re-
 main- Cana-
 ing U.S. dian
 Diffe- re- pay- United
 rence ceipts ments States Canada
 1999

Goods and services -1,877 189,099 189,099 955 -1,728

 Goods, balance of
 payments basis -577 167,051 167,051 324 -758

 Services -1,300 22,048 22,048 631 -970
 Travel 112 7,228 7,228 558 17
 Passenger fares 215 1,325 1,325 -215 ...
 Other
 transportation 110 2,332 2,332 -152 6
 Other services -1,846 11,054 11,054 440 -1,102
 U.S. military
 sales 109 109 109 ... 109

Income 137 24,778 24,778 1,663 -3,103
 Investment income 127 24,702 24,702 1,663 -3,179
 Direct investment 1,941 12,146 12,146 160 1,537
 Other investment -1,814 12,556 12,556 1,503 -4,716
 Compensation of
 employees 10 76 76 ... 76

Current unilateral
 transfers -110 280 280 280 -253

 Current account,
 northbound -1,850 214,156 214,156 2,898 -5,084

 2000

Goods and services -1,406 203,182 203,182 773 -1,538

 Goods, balance of
 payments basis -662 179,329 179,329 342 -899

 Services -744 23,853 23,853 431 -639
 Travel 147 7,626 7,626 571 15
 Passenger fares 286 1,427 1,427 -286 ...
 Other
 transportation 198 2,552 2,552 -151 21
 Other services -1,518 12,105 12,105 297 -818
 U.S. Military
 sales 143 143 143 ... 143

Income 3,768 26,510 26,510 -715 -4,076
 Investment income 3,759 26,432 26,432 -715 -4,154
 Direct investment 4,636 13,396 13,396 -1,122 979
 Other investment -877 13,036 13,036 407 -5,133
 Compensation of
 employees 9 78 78 ... 78

Current unilateral
 transfers -114 294 294 294 -303

 Current account,
 northbound 2,247 229,986 229,986 352 -5,917

(1.) In the Canadian published accounts transactions of US military
agencies are not shown separately.

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

(3.) 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

 1999

Goods and services 227,652 217,059 10,593

 Goods 208,099 201,288 6,811

 Services 19,553 15,771 3,782
 Travel 6,228 6,135 93
 Passenger fares 712 712 ...
 Other transportation 2,878 3,226 -348
 Other services 9,735 5,626 4,109
 U.S. defense
 expenditures (1) 72 -72

Income 11,157 8,233 2,924
 Investment income 11,157 7,984 3,173
 Direct investment 4,712 1,999 2,713
 Other investment 6,445 5,985 460
 Other private
 investment 5,525 4,841 684
 U.S. Government
 liabilities 920 1,144 -224
 Compensation of
 employees (2) 249 -249

Current unilateral
 transfers 2,479 638 1,841

 Current account,
 southbound 241,289 225,930 15,358

 2000

Goods and services 262,160 250,268 11,892

 Goods 242,089 233,678 8,411

 Services 20,071 16,590 3,481
 Travel 6,476 6,367 109
 Passenger fares 827 827 ...
 Other transportation 3,165 3,578 -413
 Other services 9,603 5,748 3,855
 U.S. defense
 expenditures (1) 70 -70

Income 13,607 9,344 4,263
 Investment income 13,607 9,088 4,519
 Direct investment 5,710 911 4,799
 Other investment 7,897 8,177 -280
 Other private
 investment 6,727 6,214 513
 U.S. Government
 liabilities 1,170 1,963 -793
 Compensation of
 employees (2) 256 -256

Current unilateral
 transfers 2,785 724 2,061

 Current account,
 southbound 278,553 260,336 18,216

 Common-basis estimates,
 after definitional and
 methodological adjustments

 Canadian U.S. Remaining
 receipts payments difference

 1999

Goods and services 226,874 223,195 3,679

 Goods 207,705 207,437 268

 Services 19,169 15,758 3,411
 Travel 6,228 6,148 80
 Passenger fares 712 712 ...
 Other transportation 2,893 2,943 -50
 Other services 9,284 5,903 3,381
 U.S. defense
 expenditures 52 52 ...

Income 7,617 6,841 776
 Investment income 7,423 6,592 831
 Direct investment 3,927 1,999 1,928
 Other investment 3,496 4,593 -1,097
 Other private
 investment 2,536 3,549 -1,013
 U.S. Government
 liabilities 960 1,044 -84
 Compensation of
 employees 194 249 -55

Current unilateral
 transfers 822 808 14

 Current account,
 southbound 235,312 230,844 4,469

 2000

Goods and services 261,959 258,596 3,363

 Goods 242,196 242,033 163

 Services 19,763 16,563 3,200
 Travel 6,476 6,381 95
 Passenger fares 827 827 ...
 Other transportation 3,183 3,269 -86
 Other services 9,225 6,034 3,191
 U.S. defense
 expenditures 52 52 ...

Income 9,466 7,322 2,144
 Investment income 9,261 7,066 2,195
 Direct investment 4,791 911 3,880
 Other investment 4,470 6,155 -1,685
 Other private
 investment 3,192 4,491 -1,299
 U.S. Government
 liabilities 1,278 1,664 -386
 Compensation of
 employees 205 256 -51

Current unilateral
 transfers 924 904 20

 Current account,
 southbound 272,349 266,822 5,527

 Reconciled
 estimates, Total
 including adjustments
 statistical to published
 adjustments estimates

 Canadian U.S. Canada United
 receipts payments States

 1999

Goods and services 225,969 225,969 -1,683 8,910

 Goods 207,828 207,828 -271 6,540

 Services 18,141 18,141 -1,412 2,370
 Travel 6,193 6,193 -35 58
 Passenger fares 712 712 ... ...
 Other transportation 2,915 2,915 37 -311
 Other services 8,269 8,269 -1,466 2,643
 U.S. defense
 expenditures 52 52 52 -20

Income 6,469 6,469 -4,688 -1,764
 Investment income 6,220 6,220 -4,937 -1,764
 Direct investment 1,989 1,989 -2,723 -10
 Other investment 4,231 4,231 -2,214 -1,754
 Other private
 investment 3,229 3,229 -2,296 -1,612
 U.S. Government
 liabilities 1,002 1,002 82 -142
 Compensation of
 employees 249 249 249 ...

Current unilateral
 transfers 808 808 -1,671 170

 Current account,
 southbound 233,246 233,246 -8,042 7,316

 2000

Goods and services 261,318 261,318 -842 11,050

 Goods 242,441 242,441 352 8,763

 Services 18,877 18,877 -1,194 2,287
 Travel 6,435 6,435 -41 68
 Passenger fares 827 827 ... ...
 Other transportation 3,224 3,224 59 -354
 Other services 8,339 8,339 -1,264 2,591
 U.S. defense
 expenditures 52 52 52 -18

Income 7,356 7,356 -6,251 -1,988
 Investment income 7,100 7,100 -6,507 -1,988
 Direct investment 1,563 1,563 -4,147 652
 Other investment 5,537 5,537 -2,360 -2,640
 Other private
 investment 3,970 3,970 -2,757 -2,244
 U.S. Government
 liabilities 1,567 1,567 397 -396
 Compensation of
 employees 256 256 256 ...

Current unilateral
 transfers 904 904 -1,881 180

 Current account,
 southbound 269,578 269,578 -8,974 9,242

(1.) In the Canadian published accounts, transactions of U.S.
military agencies are not shown separately.

(2.) 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 Type of
 receipts payments adjustment
 1999

Balance of payments basis,
 published 166,727 167,809

 Definitional and
 methodological
 adjustments:
 Valuation adjustments 92 -181 Definitional
 Reclassification of
 equipment from
 unaffiliated services 232 ... Reclassification

 Common basis, after
 definitional and method-
 ological adjustments 167,051 167,628

 Statistical adjustments ... -577 Statistical

Reconciled, including
 statistical adjustments 167,051 167,051

 2000

Balance of payments basis,
 published 178,897 180,228

 Definitional and method-
 ological adjustments:
 Valuation adjustments 116 -237 Definitional
 Reclassification of
 equipment from
 unaffiliated services 226 ... Reclassification

 Common basis, after
 definitional and method-
 ological adjustments 179,239 179,991

 Statistical adjustments ... -662 Statistical

Reconciled, including
 statistical adjustments 179,239 179,329
Table 4.2.--Trade in Goods, Southbound

[Millions of U.S. dollars]

 Canadian U.S. Type of
 receipts payments adjustment

 1999

Balance of payments basis,
 published 208,099 201,288

 Definitional and
 methodological
 adjustments:
 Valuation adjustments -1,368 281 Definitional
 Canadian reexports to the
 United States ... 4,895 Definitional
 Inland freight adjustment 973 973 Definitional
 Reclassification of
 equipment from ... (*) Reclassification
 unaffiliated services

 Common basis, after
 definitional and method-
 ological adjustments 207,705 207,437

 Statistical adjustments 124 391 Statistical

Reconciled, including
 statistical adjustments 207,828 207,828

 2000

Balance of payments basis,
 published 242,089 233,678

 Definitional and method-
 ological adjustments:
 Valuation adjustments -1,674 249 Definitional
 Canadian reexports to the
 United States ... 6,323 Definitional
 Inland freight adjustment 1,780 1,780 Definitional
 Reclassification of
 equipment from
 unaffiliated services ... 3 Reclassification

 Common basis, after
 definitional and method-
 ological adjustments 242,196 242,033

 Statistical adjustments 246 408 Statistical

Reconciled, including
 statistical adjustments 242,441 242,441

* Less than ([+ or -]) $500,000.
Table 5.1--Travel, Passenger Fares, and Other Transportation,
Northbound

[Millions of U.S. dollars]

 Common-basis
 estimates,
 after defini-
 Published estimates tional and
 methodological
 adjustments

 U.S. Canadian Diffe- U.S.
 receipts payments rence receipts

 1999

Travel 6,670 7,211 -541 7,323

 Business and personal 6,670 6,575 95 6,670
 Education ... 457 -457 474
 Medical ... 179 -179 179

Passenger fares 1,540 1,325 215 1,540

Other transportation 2,484 2,326 158 2,484

 Freight 1,977 1,979 -2 1,811
 Ocean 65 237 -172 51
 Air 76 43 33 76
 Truck 1,302 1,304 -2 1,302
 Other 534 395 139 382

 Port services 507 322 185 659
 Vessel operators 64 22 42 64
 Airline operators 276 281 -5 276
 Other 167 19 148 319

 Other ... 23 -23 14

 2000

Travel 7,055 7,611 -556 7,758

 Business and personal 7,055 6,923 132 7,055
 Education ... 490 -490 505
 Medical ... 198 -198 198

Passenger fares 1,713 1,427 286 1,713

Other transportation 2,703 2,531 172 2,702

 Freight 2,167 2,139 28 1,998
 Ocean 138 291 -153 130
 Air 86 54 32 86
 Truck 1,404 1,404 ... 1,404
 Other 539 390 149 378

 Port services 536 346 190 696
 Vessel operators 49 26 23 49
 Airline operators 319 301 18 319
 Other 168 19 149 328

 Other ... 46 -46 8

 Common-basis Reconciled
 estimates, after estimates, including
 definitional and statistical
 methodological adjustments
 adjustments

 Canadian Remaining U.S. Canadian
 payments difference receipts payments

 1999

Travel 7,211 112 7,228 7,228

 Business and personal 6,575 95 6,575 6,575
 Education 457 17 474 474
 Medical 179 ... 179 179

Passenger fares 1,325 215 1,325 1,325

Other transportation 2,374 110 2,332 2,332

 Freight 1,858 -47 1,821 1,821
 Ocean 116 -65 78 78
s 43 33 43 43
 Truck 1,304 -2 1,302 1,302
 Other 395 -13 398 398

 Port services 492 167 487 487
 Vessel operators 21 43 21 21
 Airline operators 281 -5 276 276
 Other 190 129 190 190

 Other 23 -9 23 23

 2000

Travel 7,611 147 7,826 7,626

 Business and personal 6,923 132 6,923 6,923
 Education 490 15 505 505
 Medical 198 ... 198 198

Passenger fares 1,427 286 1,427 1,427

Other transportation 2,504 198 2,552 2,552

 Freight 1,927 71 1,961 1,961
 Ocean 82 48 107 107
 Air 54 32 54 54
 Truck 1,404 ... 1,404 1,404
 Other 387 -9 396 396

 Port services 524 172 539 539
 Vessel operators 25 24 25 25
 Airline operators 301 18 319 319
 Other 198 130 195 195

 Other 52 -44 52 52

 Total adjustments to published estimates

 United Canada Type of adjustment
 States

 1999

Travel 558 17

 Business and personal -95 ... Statistical
 Education 474 17 Reclassification and
 statistical
 Medical 179 ... Reclassification

Passenger fares -215 ... Statistical

Other transportation -152 6

 Freight -156 -158
 Ocean 13 -159 Definitional,
 reclassification,
 and statistical
 Air -33 ... Statistical
 Truck ... -2 Statistical
 Other -136 3 Reclassification and
 statistical

 Port services -20 165
 Vessel operators -43 -1 Definitional and
 statistical
 Airline operators ... -5 Statistical
 Other 23 171 Reclassification and
 statistical

 Other 23 ... Reclassification and
 statistical

 2000

Travel 571 15

 Business and personal -132 ... Statistical
 Education 505 15 Reclassification and
 statistical
 Medical 198 ... Reclassification

Passenger fares -286 ... Statistical

Other transportation -151 21

 Freight -206 -178
 Ocean -31 -184 Definitional,
 reclassification, and
 statistical
 Air -32 ... Statistical
 Truck ... ...
 Other -143 6 Reclassification and
 statistical

 Port services 3 193
 Vessel operators -24 ... Definitional and
 statistical
 Airline operators ... 18 Statistical
 Other 27 176 Reclassification and
 statistical

 Other 52 6 Reclassification and
 statistical
Table 5.2.--Travel, Passenger Fares,
and Other Transportation, Southbound

[Millions of U.S. dollars]

 Common-basis
 estimates,
 after defini-
 Published estimates tional and
 methodological
 adjustments

 Canadian U.S. Diffe- Canadian
 receipts payments rence receipts

 1999

Travel 6,228 6,135 93 6,228

 Business and personal 6,097 6,135 -38 6,097
 Education 84 ... 84 84
 Medical 48 ... 48 48

Passenger fares 712 712 ... 712

Other transportation 2,878 3,226 -348 2,893

 Freight 2,387 2,512 -125 2,387
 Ocean 110 103 7 110
 Air 62 62 ... 62
 Land 2,115 2,112 3 2,115
 Other 100 235 -135 100

 Port services 394 714 -320 500
 Vessel operators 51 170 -119 55
 Airline operators 248 446 -198 248
 Other 95 98 -3 197

 Other 97 ... 97 6

 2000

Travel 6,476 6,367 109 6,476

 Business and personal 6,332 6,367 -35 6,332
 Education 96 ... 96 96
 Medical 47 ... 47 47

Passenger fares 827 827 ... 827

Other transportation 3,165 3,578 -413 3,183

 Freight 2,622 2,763 -141 2,622
 Ocean 128 132 -4 128
 Air 57 57 ... 57
 Land 2,335 2,335 ... 2,335
 Other 102 239 -137 102

 Port services 439 815 -376 552
 Vessel operators 50 205 -155 50
 Airline operators 290 505 -215 298
 Other 99 105 -6 204

 Other 104 ... 104 8

 Common-basis Reconciled
 estimates, after estimates, including
 definitional and statistical
 methodological adjustments
 adjustments

 U.S. Remaining Canadian U.S.
 payments difference receipts payments

 1999

Travel 6,148 80 6,193 6,193

 Business and personal 6,135 -38 6,097 6,097
 Education 13 71 48 48
 Medical ... 48 48 48

Passenger fares 712 ... 712 712

Other transportation 2,943 -50 2,915 2,915

 Freight 2,382 5 2,380 2,380
 Ocean 101 9 106 106
 Air 62 ... 62 62
 Land 2,112 3 2,112 2,112
 Other 107 -7 100 100

 Port services 559 -59 530 530
 Vessel operators 85 -30 70 70
 Airline operators 248 ... 248 248
 Other 226 -29 212 212

 Other 2 4 6 6

 2000

Travel 6,381 95 6,435 6,435

 Business and personal 6,367 -35 6,332 6,332
 Education 14 82 55 55
 Medical ... 47 47 47

Passenger fares 827 ... 827 827

Other transportation 3,269 -86 3,224 3,224

 Freight 2,623 -1 2,620 2,620
 Ocean 124 4 126 126
 Air 57 ... 57 57
 Land 2,335 ... 2,335 2,335
 Other 107 -5 102 102

 Port services 638 -86 595 595
 Vessel operators 103 -53 75 75
 Airline operators 298 ... 298 298
 Other 237 -33 222 222

 Other 8 ... 8 8

 Total adjustments to published estimates

 Canada United Type of adjustment
 States

 1999

Travel -35 58

 Business and personal ... -38 Statistical
 Education -35 48 Reclassification and
 statistical
 Medical ... 48 Statistical

Passenger fares ... ...

Other transportation 37 -311

 Freight -7 -132
 Ocean -4 3 Reclassification and
 statistical
 Air ... ...
 Land -3 ... Statistical
 Other ... -135 Reclassification and
 statistical

 Port services 136 -184
 Vessel operators 19 -100 Definitional and
 statistical
 Airline operators 0 -198 Reclassification and
 statistical
 Other 117 114 Reclassification and
 statistical

 Other -91 6 Definitional,
 reclassification, and
 statistical
 2000

Travel -41 68

 Business and personal ... -35 Statistical
 Education -41 55 Reclassification and
 statistical
 Medical ... 47 Statistical

Passenger fares ... ...

Other transportation 59 -354

 Freight -2 -143
 Ocean -2 -6 Reclassification and
 statistical
 Air ... ...
 Land ... ...
 Other ... -137 Reclassification and
 statistical

 Port services 156 -220
 Vessel operators 25 -130 Definitional and
 statistical
 Airline operators 8 -207 Reclassification and
 statistical
 Other 123 117 Reclassification and
 statistical

 Other -96 8 Definitional,
 reclassification, and
 statistical
Table 6.1--Other Services, Northbound

[Millions of U.S. dollars]

 Common-basis
 estimates,
 after defini-
 Published estimates tional and
 methodological
 adjustments

 U.S. Canadian Diffe- U.S.
 receipts payments rence receipts

 1999

 Total 10,723 12,156 -1,433 9,959

Affiliated 5,262 7,351 -2,089 5,030

 Royalties and license
 fees 1,300 1,697 -397 1,298
 Other services 3,962 5,654 -1,692 3,732

Unaffiliated 5,352 4,806 546 4,818
 Royalties, license
 fees, and selec-
 ted services 1,255 1,022 233 1,242
 Insurance 207 190 17 328
 Financial services 1,030 659 371 1,030
 Education and
 training 488 21 467 14
 Communications 243 514 -271 243
 Computer services 536 278 258 536
 Business services 1,142 721 421 803
 Sports and
 entertainment 270 1,004 -734 441
 Other private ... 202 -202 ...
 Government:
 United States
 (nonmilitary) 91 82 9 91
 Canada 90 113 -23 90

U.S. military sales 109 ... 109 109

 2000

 Total 11,951 12,923 -972 11,161

Affiliated 5,643 7,695 -2,052 5,339

 Royalties and license
 fees 1,543 1,869 -326 1,543
 Other services 4,100 5,826 -1,726 3,796

Unaffiliated 6,165 5,228 937 5,678
 Royalties, license
 fees, and selec-
 ted services 1,503 1,092 411 1,490
 Insurance 338 224 114 466
 Financial services 1,101 873 228 1,101
 Education and
 training 520 22 498 15
 Communications 352 543 -191 352
 Computer services 538 286 252 538
 Business services 1,226 754 472 899
 Sports and
 entertainment 425 1,040 -615 655
 Other ... 223 -223 ...
 Government:
 United States
 (nonmilitary) 74 62 12 74
 Canada 88 109 -21 88

U.S. military sales 143 ... 143 143

 Common-basis Reconciled
 estimates, after estimates, including
 definitional and statistical
 methodological adjustments
 adjustments

 Canadian Remaining U.S. Canadian
 payments difference receipts payments

 1999

 Total 11,696 -1,737 11,163 11,163

Affiliated 7,198 -2,168 5,289 5,289

 Royalties and license
 fees 1,641 -343 1,427 1,427
 Other services 5,557 -1,825 3,862 3,862

Unaffiliated 4,498 320 5,766 5,766
 Royalties, license
 fees, and selec-
 ted services 1,016 226 1,243 1,243
 Insurance 190 138 332 332
 Financial services 710 320 1,074 1,074
 Education and
 training 21 -7 21 21
 Communications 189 54 243 243
 Computer services 278 258 536 536
 Business services 990 -187 1,307 1,307
 Sports and
 entertainment 909 -468 806 806
 Other private ... ... ... ...
 Government:
 United States
 (nonmilitary) 82 9 91 91
 Canada 113 -23 113 113

U.S. military sales ... 109 109 109

 2000

 Total 12,536 1,375 12,248 12,248

Affiliated 7,636 -2,297 5,547 5,547

 Royalties and license
 fees 1,810 -267 1,634 1,634
 Other services 5,826 -2,030 3,913 3,913

Unaffiliated 4,900 778 6,558 6,558
 Royalties, license
 fees, and selec-
 ted services 1,086 404 1,490 1,490
 Insurance 224 242 430 430
 Financial services 926 175 1,151 1,151
 Education and
 training 22 -7 22 22
 Communications 187 165 352 352
 Computer services 286 252 538 538
 Business services 1,052 -153 1,452 1,452
 Sports and
 entertainment 946 -291 940 940
 Other ... ... ... ...
 Government:
 United States
 (nonmilitary) 62 12 74 74
 Canada 109 -21 109 109

U.S. military sales ... 143 143 143

 Total adjustments to published estimates

 United Canada Type of adjustment
 States

 1999

 Total 440 -993

Affiliated 27 -2,062 Definitional,
 reclassification, and
 statistical
 Royalties and license
 fees 127 -270 Definitional and
 statistical
 Other services -100 -1,792 Definitional,
 reclassification, and
 statistical

Unaffiliated 414 960
 Royalties, license
 fees, and selec-
 ted services -12 221 Reclassification and
 statistical
 Insurance 125 142 Definitional and
 statistical
 Financial services 44 415 Statistical
 Education and
 training -467 ... Reclassification and
 statistical
 Communications ... -271 Reclassification and
 statistical
 Computer services ... 258 Statistical
 Business services 165 586 Reclassification and
 statistical
 Sports and
 entertainment 536 -198 Reclassification and
 statistical
 Other private ... -202 Definitional and
 reclassification
 Government:
 United States
 (nonmilitary) ... 9 Statistical
 Canada 23 ... Statistical

U.S. military sales ... 109 Statistical

 2000

 Total 297 -675

Affiliated -96 -2,148 Definitional,
 reclassification, and
 statistical
 Royalties and license
 fees 91 -235 Definitional and
 statistical
 Other services -187 -1,913 Definitional,
 reclassification, and
 statistical

Unaffiliated 393 1,330
 Royalties, license
 fees, and selec-
 ted services -13 398 Reclassification and
 statistical
 Insurance 92 206 Definitional and
 statistical
 Financial services 50 278 Statistical
 Education and
 training -498 ... Reclassification and
 statistical
 Communications ... -191 Reclassification and
 statistical
 Computer services ... 252 Statistical
 Business services 226 698 Reclassification and
 statistical
 Sports and
 entertainment 515 -100 Reclassification and
 statistical
 Other ... -223 Definitional and
 reclassification
 Government:
 United States
 (nonmilitary) ... 12 Statistical
 Canada 21 ... Statistical

U.S. military sales ... 143 Statistical
Table 6.2.--Other Services, Southbound

[Millions of U.S. dollars]

 Common-basis
 estimates,
 after defini-
 Published estimates tional and
 methodological
 adjustments

 Canadian U.S. Diffe- Canadian
 receipts payments rence receipts

 1999

 Total 9,735 5,698 4,037 9,336

Affiliated 4,509 2,600 1,909 4,475

 Royalties and license
 fees 415 350 65 412
 Other services 4,094 2,250 1,844 4,063

Unaffiliated 5,228 3,026 2,202 4,809
 Royalties, license
 fees, and selec-
 ted services 1,596 623 973 1,583
 Insurance 180 292 -112 180
 Financial services 323 193 130 324
 Education and
 training 16 20 -4 16
 Communications 432 223 209 139
 Computer services 530 506 24 530
 Business services 905 806 99 1,049
 Sports and
 entertainment 763 128 635 721
 Other private 216 ... 216 ...
 Government:
 Canada 32 ... 32 32
 United States
 (nondefense
 agencies) 235 235 ... 235

U.S. defense agencies ... 72 -72 52

 2000

 Total 9,603 5,818 3,785 9,277

Affiliated 4,359 2,907 1,452 4,356

 Royalties and license
 fees 383 742 -359 380
 Other services 3,976 2,165 1,811 3,976

Unaffiliated 5,243 2,841 2,402 4,869
 Royalties, license
 fees, and selec-
 ted services 1,525 649 876 1,512
 Insurance 163 216 -53 263
 Financial services 410 227 183 411
 Education and
 training 40 24 16 16
 Communications 395 222 173 73
 Computer services 535 547 -12 535
 Business services 929 678 251 1,093
 Sports and
 entertainment 769 72 697 724
 Other 235 ... 235 ...
 Government:
 Canada 36 ... 36 36
 United States
 (non-defense
 agencies) 206 206 ... 206

U.S. defense agencies ... 70 -70 52

 Common-basis Reconciled
 estimates, after estimates, including
 definitional and statistical
 methodological adjustments
 adjustments

 U.S. Remaining Canadian U.S.
 payments difference receipts payments

 1999

 Total 5,955 3,381 8,321 8,321

Affiliated 2,574 1,901 3,053 3,053

 Royalties and license
 fees 350 62 (1) (1)
 Other services 2,224 1,839 (1) (1)

Unaffiliated 3,330 1,479 5,216 5,216
 Royalties, license
 fees, and selec-
 ted services 615 968 1,714 1,714
 Insurance 386 -206 220 220
 Financial services 193 131 293 293
 Education and
 training 7 9 16 16
 Communications 223 -84 223 223
 Computer services 506 24 530 530
 Business services 781 268 1,182 1,182
 Sports and
 entertainment 384 337 771 771
 Other private ... ... ... ...
 Government:
 Canada ... 32 32 32
 United States
 (nondefense
 agencies) 235 ... 235 235

U.S. defense agencies 52 ... 52 52

 2000

 Total 6,086 3,191 8,391 8,391

Affiliated 2,877 1,479 3,153 3,153

 Royalties and license
 fees 741 -361 (1) (1)
 Other services 2,136 1,840 (1) (1)

Unaffiliated 3,157 1,712 5,186 5,186
 Royalties, license
 fees, and selec-
 ted services 634 878 1,605 1,605
 Insurance 312 -49 256 256
 Financial services 227 184 380 380
 Education and
 training 10 6 16 16
 Communications 222 -149 222 222
 Computer services 547 -12 535 535
 Business services 789 304 1,266 1,266
 Sports and
 entertainment 210 514 664 664
 Other ... ... ... ...
 Government:
 Canada ... 36 36 36
 United States
 (non-defense
 agencies) 206 ... 206 206

U.S. defense agencies 52 ... 52 52

 Total adjustments to published estimates

 Canada United Type of adjustment
 States

 1999

 Total -1,414 2,623

Affiliated -1,456 453 Definitional,
 reclassification,
 and statistical
 Royalties and license
 fees (1) (1)
 Other services (1) (1)

Unaffiliated -12 2,190
 Royalties, license
 fees, and selec-
 ted services 118 1,091 Statistical
 Insurance 40 -72 Definitional and
 statistical
 Financial services -30 100 Statistical
 Education and
 training ... -4 Reclassification and
 statistical
 Communications -209 ... Reclassification and
 statistical
 Computer services ... 24 Statistical
 Business services 277 376 Reclassification and
 statistical
 Sports and
 entertainment 8 643 Reclassification and
 statistical
 Other private -216 ... Definitional and
 reclassification
 Government:
 Canada ... 32 Statistical
 United States
 (nondefense
 agencies) ... ...

U.S. defense agencies 52 -20 Definitional and
 reclassification

 2000

 Total -1,211 2,573

Affiliated -1,206 246 Definitional,
 reclassification,
 and statistical

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

Unaffiliated -57 2,345
 Royalties, license
 fees, and selec-
 ted services 80 956 Statistical
 Insurance 93 40 Definitional and
 statistical
 Financial services -30 153 Statistical
 Education and
 training -24 -8 Reclassification and
 statistical
 Communications -173 ... Reclassification and
 statistical
 Computer services ... -12 Statistical
 Business services 337 588 Reclassification and
 statistical
 Sports and
 entertainment -105 592 Reclassification and
 statistical
 Other -235 ... Definitional and
 reclassification
 Government:
 Canada ... 36 Statistical
 United States
 (non-defense
 agencies) ... ...

U.S. defense agencies 52 -18 Definitional and
 reclassification

(1.) Royalties and license fees are combined with
other services for reconcilliation.
Table 7.2--Investment Income, Southbound

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S.
 receipts payments Difference

 1999

Investment income 11,157 7,984 3,173

 Direct investment income 4,712 1,999 2,713
 Earnings of incorporated
 affiliates 3,414 1,799 1,615
 Dividends 1,148 1,459 -311
 Reinvested earnings 2,266 340 1,926
 Earnings of unincorporated
 affiliates 1,192 -108 1,300
 Interest 107 308 -201

 Other investment income 6,445 5,985 460

 Securities 1,702 2,810 -1,108
 Dividends 1,165 1,434 -269
 Interest on bonds 537 1,376 -839

 Canadian claims/U.S.
 liabilities 3,823 2,031 1,792
 Canadian bank claims 3,387 1,599 1,788

 Other private Canadian
 claims 436 432 4

 U.S. Government liabilities 920 1,144 -224

 2000

Investment income 13,607 9,088 4,519

 Direct investment income 5,710 911 4,799
 Earnings of incorporated
 affiliates 4,340 347 3,993
 Dividends 1,700 1,302 398
 Reinvested earnings 2,640 -955 3,595
 Earnings of unincorporated
 affiliates 1,268 285 983
 Interest 102 279 -177

 Other investment income 7,897 8,177 -280

 Securities 1,930 3,244 -1,314
 Dividends 1,371 1,560 -189
 Interest on bonds 559 1,684 -1,125

 Canadian claims/U.S.
 liabilities 4,798 2,970 1,828
 Canadian bank claims 4,293 2,206 2,087

 Other private Canadian
 claims 505 764 -259

 U.S. Government liabilities 1,170 1,963 -793

 Common-basis estimates, after
 definitional and methodological
 adjustments

 Canadian U.S. Remaining
 receipts payments difference

 1999

Investment income 7,423 6,592 831

 Direct investment income 3,927 1,999 1,928
 Earnings of incorporated
 affiliates 2,957 1,799 1,158
 Dividends 825 1,459 -634
 Reinvested earnings 2,132 340 1,792
 Earnings of unincorporated
 affiliates 990 -108 1,098
 Interest -20 308 -328

 Other Investment income 3,496 4,593 -1,097

 Securities 1,636 2,810 -1,174
 Dividends 1,099 1,434 -335
 Interest on bonds 537 1,376 -839

 Canadian claims/U.S.
 liabilities 899 739 160
 Canadian bank claims 471 675 -204

 Other private Canadian
 claims 428 64 364

 U.S. Government liabilities 960 1,044 -84

 2000

Investment income 9,261 7,066 2,195

 Direct investment income 4,791 911 3,880
 Earnings of incorporated
 affiliates 3,959 347 3,612
 Dividends 1,357 1,302 55
 Reinvested earnings 2,602 -955 3,557
 Earnings of unincorporated
 affiliates 923 285 638
 Interest -90 279 -369

 Other investment income 4,470 6,155 -1,685

 Securities 1,852 3,245 -1,393
 Dividends 1,293 1,560 -267
 Interest on bonds 559 1,685 -1,126

 Canadian claims/U.S.
 liabilities 1,341 1,246 95
 Canadian bank claims 843 1,152 -309

 Other private Canadian
 claims 498 94 404

 U.S. Government liabilities 1,278 1,664 -386

 Reconciled Total
 estimates, adjustments
 including to
 statistical published
 adjustments estimates

 Canadian U.S.
 receipts payments Canada

 1999

Investment income 6,220 6,220 -4,937

 Direct investment income 1,989 1,989 -2,723
 Earnings of incorporated
 affiliates 1,523 1,523 -1,891
 Dividends 1,183 1,183 35
 Reinvested earnings 340 340 -1,926
 Earnings of unincorporated
 affiliates 158 158 -1,034
 Interest 308 308 201

 Other Investment income 4,231 4,231 -2,214

 Securities 2,330 2,330 628
 Dividends 1,434 1,434 269
 Interest on bonds 896 896 359

 Canadian claims/U.S.
 liabilities 899 899 -2,924
 Canadian bank claims 591 591 -2,796

 Other private Canadian
 claims 308 308 -128

 U.S. Government liabilities 1,002 1,002 82

 2000

Investment income 7,100 7,100 -6,507

 Direct investment income 1,563 1,563 -4,147
 Earnings of incorporated
 affiliates 975 975 -3,365
 Dividends 1,330 1,330 -370
 Reinvested earnings -355 -355 -2,995
 Earnings of unincorporated
 affiliates 309 309 -959
 Interest 279 279 177

 Other investment income 5,537 5,537 -2,360

 Securities 2,547 2,547 617
 Dividends 1,560 1,560 189
 Interest on bonds 987 987 428

 Canadian claims/U.S.
 liabilities 1,423 1,423 -3,375
 Canadian bank claims 1,018 1,018 -3,275

 Other private Canadian
 claims 405 405 -100

 U.S. Government liabilities 1,567 1,567 397

 Total adjustments to published
 estimates

 United
 States Type of adjustment

 1999

Investment income -1,764

 Direct investment income -10
 Earnings of incorporated
 affiliates -276
 Dividends -276 Definitional and statistical
 Reinvested earnings ... Definitional and statistical
 Earnings of unincorporated
 affiliates 266 Definitional and statistical
 Interest ... Definitional, gross to net
 and statistical
 Other Investment income -1,754

 Securities -480
 Dividends ... Definitional and statistical
 Interest on bonds -480 Definitional and statistical

 Canadian claims/U.S.
 liabilities -1,132
 Canadian bank claims -1,008 Net to gross, gross to net,
 and statistical
 Other private Canadian
 claims -124 Net to gross and statistical

 U.S. Government liabilities -142 Definitional and statistical

 2000

Investment income -1,988

 Direct investment income 652
 Earnings of incorporated
 affiliates 628
 Dividends 28 Definitional and statistical
 Reinvested earnings 600 Definitional and statistical
 Earnings of unincorporated
 affiliates 24 Definitional and statistical
 Interest ... Definitional, gross to net,
 and statistical
 Other investment income -2,640

 Securities -697
 Dividends ... Definitional and statistical
 Interest on bonds -697 Definitional and statistical

 Canadian claims/U.S.
 liabilities -1,547
 Canadian bank claims -1,188 Net to gross, gross to net,
 and statistical
 Other private Canadian
 claims -359 Net to gross and statistical

 U.S. Government liabilities -396 Definitional and statistical

Acknowledgments

The reconciliations were carried out under the direction of Hugh Henderson, Chief, Current Account, in Statistics Canada's Balance of Payments Division, and Anthony DiLullo, former Assistant Chief of BEA's Balance of Payments Division and currently serving as a consultant to the Division. At Statistics Canada, Denis Caron and Robert Theberge participated in the reconciliation of the Canadian accounts, with the collaboration and assistance of Brian Andre, Allison Collier, Laura Petts, and Eric Simard. Denis Caron was responsible for the production and coordination of the reconciliation tables. At BEA, Christopher Gohrband and Harlan King, with the assistance of Patricia Abaroa and Elena Nguyen, were 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.

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 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 2000 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 sharing. 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. The exchange of data was expanded in 2000, when BEA began using the Statistics Canada estimates of southbound (U.S. payments) computer services in the U.S.-published estimates of services. The Statistics Canada estimates, which are derived from surveys, are believed to have more complete coverage of those services than BEA's 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.

(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.) 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 1996-2000. 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 1981-2000.

(3.) 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 BEA and by Statistics Canada.

(4.) 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.

This is article will also be published in Canada's Balance of International Payments, Third Quarter 2001.