Reconciliation of the U.S.-Canadian Current Account, 1996 and 1997.

DiLullo, Anthony J. ; Henderson, Hugh

ON THE reconciled basis, the U.S.-Canadian current account shows a larger U.S. deficit, or Canadian surplus, than on the U.S.-published basis for both 1996 and 1997. Compared with the Canadian published estimates, however, the reconciled current account shows a smaller U.S. deficit, or Canadian surplus. The U.S.-published current-account balance with Canada is a U.S. deficit of $7.0 billion for 1996 and a U.S. deficit of $0.8 billion for 1997.(1) The corresponding Canadian-published balance is a Canadian surplus (U.S. deficit) of $13.9 billion for 1996 and a Canadian surplus of $6.7 billion for 1997. On the reconciled basis, the U.S. deficit, or Canadian surplus, is $12.9 billion for 1996 and $4.4 billion for 1997 (chart 1, table 1).(2)

[Chart 1 OMITTED]

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

 Published
 estimates

 United
 States Canada

 1996
 Goods -24.2 30.9
 Services 7.1 -5.9
 Investment income 10.4 -12.5

Goods, services, and income -6.6 12.5
 Unilateral transfers, net -.3 1.4

Current account -7.0 13.9

 1997
 Goods -19.0 23.5
 Services 6.4 -4.5
 Investment income 12.2 -13.8

Goods, services, and income -.4 5.2
 Unilateral transfers, net -.4 1.5

Current account -.8 6.7

 Reconciled
 estimates

 United Canada
 States

 1996

 Goods -31.7 31.7
 Services 6.6 -6.1
 Investment income 12.6 -12.6

Goods, services, and income -12.5 12.5
 Unilateral transfers, net -.4 .4
Current account -12.9 12.9

 1997
 Goods -25.3 25.3
 Services 5.9 -5.9
 Investment income 15.5 -15.5

Goods, services, and income -4.0 4.0
 Unilateral transfers, net 0.4 -.4

Current account -4.4 4.4

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.

This article presents the results of the reconciliation of the bilateral current-account estimates of Canada and the United States for 1996 and 1997.(3) The details of the current-account reconciliation for 1996 and 1997 are presented in the tables that follow this article. Tables 2.1 and 2.2 show 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 reconciled estimates, and the amounts of the adjustments for each major component. Tables 4-8 present the reconciliation details for each current-account component.(4)

Table 2.1.--Summary of Reconciliation Adjustments, Northbound

[Millions of U.S. dollars]

 Definitional

 United Canada
 States


 1996
Goods ... -342
Services ... -91
 Transfers under U.S. military ... ...
 agency sales contracts
 Travel ... ...
 Passenger fares ... ...
 Other transportation ... ...
 Other services ... -91
 Affiliated ... -41
 Unaffiliated ... -50
 Government ... ...

Investment income ... -1,002
 Direct ... -279
 Other ... -723

Unilateral transfers ... -182
Total adjustments ... -1,617

 1997

Goods ... -249
Services ... -152
 Transfers under U.S. military ... ...
 agency sales contracts
 Travel ... ...
 Passenger fares ... ...
 Other transportation ... ...
 Other services ... -152
 Affiliated ... -79
 Unaffiliated ... -73
 Government ...

Investment income ... -1,137
 Direct ... -358
 Other ... -779

Unilateral transfers ... -223
Total adjustments ... -1,761

 Methodological
 Reclassification Gross or net

 United Canada United Canada
 Canada States

 1996
Goods 186 ... ... ...

Services -186 ... ... ...
 Transfers under U.S. military ... ... ... ...
 agency sales contracts
 Travel 554 ... ... ...
 Passenger fares ... ... ... ...
 Other transportation ... 174 ... ...
 Other services -740 -174 ... ...
 Affiliated -280 ... ... ...
 Unaffiliated -460 -174 ... ...
 Government ... ... ... ...

Investment income ... ... -543 -1,667
 Direct ... -74 ... -124
 Other ... 74 -543 -1,543

Unilateral transfers ... ... 319 ...
Total adjustments ... ... -224 -1,667

 1997

Goods 138 ... ... ...

Services -138 ... ... ...
 Transfers under U.S. military ... ... ... ...
 agency sales contracts
 Travel 575 ... ... ...
 Passenger fares ... ... ... ...
 Other transportation ... 180 ... ...
 Other services -713 -180 ... ...
 Affiliated -255 ... ... ...
 Unaffiliated -458 -180 ... ...
 Government ... ... ... ...

Investment income ... ... -766 -2,534
 Direct ... -65 ... -137
 Other ... 65 -766 -2,397

Unilateral transfers ... ... 318 ...
 Total adjustments ... ... -448 -2,534

 Statistical

 United
 States Canada
 1996

Goods -1,864 1,065
Services 542 -699
 Transfers under U.S. military ... 146
 agency sales contracts
 Travel -66 91
 Passenger fares -213 ...
 Other transportation 46 67
 Other services 775 -1,003
 Affiliated -226 -1,290
 Unaffiliated 990 271
 Government 11 16

Investment income 2,934 906
 Direct -362 1,792
 Other 3,296 -886

Unilateral transfers -50 ...
Total adjustments 1,562 1,272

 1997

Goods 26 190
Services 234 90
 Transfers under U.S. military ... 93
 agency sales contracts
 Travel -83 84
 Passenger fares -214 ...
 Other transportation 57 29
 Other services 474 -116
 Affiliated -228 -435
 Unaffiliated 694 323
 Government 8 -4

Investment income 3,551 2,082
 Direct -267 2,680
 Other 3,818 -598

Unilateral transfers -46 ...
 Total adjustments 3,765 2,362

 Total

 United
 States Canada

 1996

Goods -1,678 723
Services 356 -790
 Transfers under U.S. military ... 146
 agency sales contracts
 Travel 488 91
 Passenger fares -213 ...
 Other transportation 46 241
 Other services 35 -1,268
 Affiliated -506 -1,331
 Unaffiliated 530 47
 Government 11 16

Investment income 2,391 -1,763
 Direct -362 1,315
 Other 2,753 -3,078

Unilateral transfers 269 -182
Total adjustments 1,339 -2,011

 1997

Goods 164 -59
Services 96 -62
 Transfers under U.S. military ... 93
 agency sales contracts
 Travel 492 84
 Passenger fares -214 ...
 Other transportation 209
 Other services -239 -448
 Affiliated -483 -514
 Unaffiliated 236 70
 Government 8 -4

Investment income 2,785 -1,589
 Direct -267 2,120
 Other 3,052 -3,709

Unilateral transfers 271 -223
 Total adjustments 3,316 -1,932
Table 2.2--Summary of Reconciliation Adjustments, Southbound

 Definitional

 United
 Canada States

 1996

Goods -28 4,378
Services -143 ...
 Direct defense expenditures ... ...
 Travel ... ...
 Passenger fares ... ...
 Other transportation -80 ...
 Other services -63 ...
 Affiliated -6 ...
 Unaffiliated -57 ...
 Government ... ...

Investment income -130 ...
 Direct -46 ...
 Other -84 ...

Unilateral transfers -1,146 ...
Total adjustments -1,447 4,378

 1997

Goods 625 5,004
Services -142 ...
 Direct defense expenditures ... ...
 Travel ... ...
 Passenger fares ... ...
 Other transportation -84 ...
 Other services -58 ...
 Affiliated -1 ...
 Unaffiliated -57 ...
 Government ... ...

Investment income -1,165 ...
 Direct -1,073 ...
 Other -92 ...
Unilateral transfers -1,322 ...
 Total adjustments -2,004 5,004

 Methodological
 Reclassification Gross or net

 United United
 Canada States Canada States

 1996

Goods 307 20 ... ...
Services -307 -20 ... ...
 Direct defense expenditures 32 -20 ... ...
 Travel ... 10 ... ...
 Passenger fares ... ... ... ...
 Other transportation 97 ... ... ...
 Other services -436 -10 ... ...
 Affiliated ... -65 ... ...
 Unaffiliated -404 55 ... ...
 Government -32 ... ... ...

Investment income ... ... -1,667 -543
 Direct ... ... -124 ...
 Other ... ... -1,543 -543

Unilateral transfers ... ... ... 319
Total adjustments ... ... -1,667 -224

 1997

Goods 298 40 ...
Services -298 -40 ...
 Direct defense expenditures 41 -40 ... ...
 Travel ... 12 ... ...
 Passenger fares ... ... ... ...
 Other transportation 100 ... ... ...
 Other services -439 -12 ... ...
 Affiliated ... -73 ... ...
 Unaffiliated -398 61 ... ...
 Government -41 ... ... ...
Investment income ... ... -2,534 -765
 Direct ... ... -137 ...
 Other ... ... -2,397 -765
Unilateral transfers ... ... ... 318
 Total adjustments ... ... -2,534 -448

 Statistical
 United
 Canada States

 1996

Goods 1,250 1,480
Services -1,039 936
 Direct defense expenditures -5 ...
 Travel ... 76
 Passenger fares ... 1
 Other transportation 44 -164
 Other services -1,078 ...
 Affiliated -722 1,023
 Unaffiliated -324 1,010
 Government -32 13

Investment income -68 689
 Direct 191 -108
 Other -259 797

Unilateral transfers -15 ...
Total adjustments 128 3,105

 1997

Goods 822 1,465
Services -1,010 622
 Direct defense expenditures -24 ...
 Travel ... 72
 Passenger fares ... ...
 Other transportation 22 -217
 Other services -1,008 767
 Affiliated -769 ...
 Unaffiliated -228 754
 Government -11 13

Investment income 502 284
 Direct 304 -49
 Other 198 333

Unilateral transfers -4 ...
 Total adjustments 310 2,371

 Total

 United
 States Canada
 1996

Goods 1,529 5,878
Services -1,489 916
 Direct defense expenditures 27 -20
 Travel ... 86
 Passenger fares ... 1
 Other transportation 61 -164
 Other services -1,577 1,013
 Affiliated -728 -65
 Unaffiliated -785 1,065
 Government -64 13

Investment income -1,865 147
 Direct 21 -108
 Other -1,886 254

Unilateral transfers -1,161 319
Total adjustments -2,984 7,259

 1997

Goods 1,725 6,509
Services -1,450 581
 Direct defense expenditures 17 -40
 Travel ... 84
 Passenger fares ... ...
 Other transportation 38 -217
 Other services -1,505 755
 Affiliated -770 -73
 Unaffiliated -683 815
 Government -52 13

Investment income -3,197 -481
 Direct -906 -49
 Other -2,291 -432

Unilateral transfers -1,326 318
 Total adjustments -4,228 6,926
Table 3.1.--U.S.-Canadian Current-Account Reconciliation, Northbound

[Millions of U.S. dollars]

 U.S. Canadian Difference
 receipts payments

 1996

Goods and services 154,600 153,345 1,255
 Goods 134,516 132,115 2,401
 Services 20,084 21,230 -1,146
 Transfers under
 U.S. military agency
 sales contracts 146 (1) 146
 Travel 6,842 7,239 -397
 Passenger fares 1,331 1,118 213
 Other transportation 2,394 2,199 195
 Royalties and license fees 1,541 1,468 73
 Other services 7,830 9,206 -1,376
Investment income 18,119 22,273 -4,154
 Direct investment 9,024 7,347 1,677
 Other private
 assets/liabilities 9,095 14,926 -5,831
 U.S. Government assets ... (3) ...
Unilateral transfers, net ... ... ...
Unilateral transfers, gross ... 451 -451

 Current account, northbound 172,719 176,069 -3,350

 1997

Goods and services 172,692 173,073 -381
 Goods 152,047 152,270 -223
 Services 20,645 20,803 -158
 Transfers under U.S.
 military agency
 sales contracts 93 (1) 93
 Travel 6,824 7,232 -408
 Passenger fares 1,409 1,195 214
 Other transportation 2,384 2,232 152
 Royalties and license fees 1,561 1,574 -13
 Other services 8,374 8,570 -196
Investment income 20,540 24,914 -4,374
 Direct investment 10,692 8,305 2,387
 Other private
 assets/liabilities 9,848 16,609 -6,762
 U.S. Government assets ... (3) ...
Unilateral transfers, net ... ... ...
Unilateral transfers, gross ... 494 -494

 Current account, northbound 193,232 198,480 -5,248

 Reconciled estimates

 U.S. Canadian Remaining
 receipts payments difference

 1996

Goods and services 153,278 153,278 ...
 Goods 132,838 132,838 ...
 Services 20,440 20,440 ...
 Transfers under 146 146 ...
 U.S. military agency 7,330 7,330 ...
 sales contracts 1,118 1,118 ...
 Travel 2,440 2,440 ...
 Passenger fares (2) (2) ...
 Other transportation 9,406 9,406 ...
 Royalties and license fees 20,510 20,510 ...
 Other services 8,662 8,662 ...
Investment income 11,848 11,848 ...
 Direct investment
 Other private
 assets/liabilities (3) (3) ...
 U.S. Government assets ... ... ...
Unilateral transfers, net 269 269 ...
Unilateral transfers, gross 174,058 174,058 ...

Current account, northbound

 1997

Goods and services 172,952 172,952 ...
 Goods 152,211 152,211 ...
 Services 20,741 20,741 ...
 Transfers under U.S.
 military agency
 sales contracts 93 93 ...
 Travel 7,316 7,316 ...
 Passenger fares 1,195 1,195 ...
 Other transportation 2,441 2,441 ...
 Royalties and license fees (2) (2) ...
 Other services 9,696 9,696 ...
Investment income 23,325 23,325 ...
 Direct investment 10,425 10,425 ...
 Other private 12,900 12,900 ...
 assets/liabilities
 U.S. Government assets (3) (3) ...
Unilateral transfers, net ... ... ...
Unilateral transfers, gross 271 271 ...

 Current account, northbound 196,548 196,548 ...

 Adjustments to
 published estimates

 United Canada
 States

 1996

Goods and services -1,322 -67
 Goods -1,678 723
 Services 356 -790
 Transfers under ... 146
 U.S. military agency 488 91
 sales contracts -213 ...
 Travel 46 241
 Passenger fares -1,541 -1,468
 Other transportation 1,576 200
 Royalties and license fees 2,391 -1,763
 Other services -362 1,316
Investment income 2,753 -3,078
 Direct investment
 Other private
 assets/liabilities ... ...
 U.S. Government assets ... ...
Unilateral transfers, net 269 -182
Unilateral transfers, gross 1,339 -2,011

Current account, northbound

 1997

Goods and services 260 -121
 Goods 164 -59
 Services 96 -62
 Transfers under U.S.
 military agency
 sales contracts ... 93
 Travel 492 84
 Passenger fares -214 ...
 Other transportation 57 209
 Royalties and license fees -1,561 -1,574
 Other services 1,322 1,126
Investment income 2,785 -1,589
 Direct investment -267 2,120
 Other private 3,052 -3,709
 assets/liabilities
 U.S. Government assets ... ...
Unilateral transfers, net ... ...
Unilateral transfers, gross 271 -223

 Current account, northbound 3,316 -1,932

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

(2.) Royalties and license fees are included in "other" services for reconciliation.

(3.) Income U.S. Government assets is included in income on "other" private assets in the Canadian published accounts.

Table 3.2--U.S.-Canadian Current-Account Reconciliation, Southbound

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S. Difference
 receipts payments
 1996

Goods and services 178,365 171,611 6,754
 Goods 163,018 158,669 4,349
 Services 15,347 12,942 2,405
 Direct defense
 expenditures (1) 47 -47
 Travel 4,756 4,670 86
 Passenger fares 392 391 1
 Other transportation 2,565 2,790 -224
 Royalties and license
 fees 275 217 58
 Other services 7,359 4,827 2,532

Investment income 9,747 7,724 2,023
 Direct investment 3,166 3,295 -129
 Other private assets/
 liabilities 5,504 3,387 2,117
 U.S. Government
 liabilities 1,077 1,042 35

Unilateral transfer, net ... 348 -348
Unilateral transfer, gross 1,827 ... 1,827

Current account,
 southbound 189,938 179,683 10,255

 1997

Goods and services 192,080 185,285 6,795
 Goods 175,788 171,024 4,764
 Services 16,292 14,260 2,032
 Direct defense
 expenditures (1) 57 -57
 Travel 4,985 4,901 84
 Passenger fares 470 470 ...
 Other transportation 2,783 3,037 -255
 Royalties and license
 fees 250 317 -67
 Other services 7,805 5,478 2,327

Investment income 11,081 8,353 2,728
 Direct investment 4,072 3,215 857
 Other private assets/
 liabilities 5,950 4,083 1,867
 U.S. Government
 liabilities 1,059 1,055 4

Unilateral transfer, net ... 366 -366
Unilateral transfer, gross 2,010 ... 2,010

Current account, southbound 205,172 194,003 11,169

 Reconciled estimates

 Canadian U.S. Remaining
 receipts payments difference

 1996

Goods and services 178,405 178,405 ...
 Goods 164,547 164,547 ...
 Services 13,858 13,858 ...
 Direct defense
 expenditures 27 27 ...
 Travel 4,756 4,756 ...
 Passenger fares 392 392 ...
 Other transportation 2,626 2,626 ...
 Royalties and
 license fees (2) (2) ...
 Other services 6,057 6,057 ...

Investment income 7,882 7,870 12
 Direct investment 3,187 3,187 ...
 Other private assets/
 liabilities 3,636 3,624 12
 U.S. Government
 liabilities 1,059 1,059 ...

Unilateral transfer, net ... ... ...
Unilateral transfer, gross 666 666 ...

Current account,
 southbound 186,954 186,942 12

 1997

Goods and services 192,375 192,375 ...
 Goods 177,533 177,533 ...
 Services 14,842 14,842 ...
 Direct defense
 expenditures 17 17 ...
 Travel 4,985 4,985 ...
 Passenger fares 470 470 ...
 Other transportation 2,821 2,821 ...
 Royalties and
 license fees (2) (2) ...
 Other services 6,550 6,550 ...

Investment income 7,884 7,872 12
 Direct investment 3,166 3,166 ...
 Other private assets/
 liabilities 3,658 3,651 8
 U.S. Government
 liabilities 1,059 1,055 4

Unilateral transfer, net ... ... ...
Unilateral transfer, gross 684 684 ...

Current account, southbound 200,944 200,932 12

 Adjustments to
 published estimates

 Canada United States
 1996

Goods and services 40 6,794
 Goods 1,529 5,878
 Services -1,489 916
 Direct defense expenditures 27 -20
 Travel ... 86
 Passenger fares ... 1
 Other transportation 61 -164
 Royalties and license fees -275 -217
 Other services -1,302 1,230

Investment income -1,865 147
 Direct investment 21 -108
 Other private assets/
 liabilities -1,868 237
 U.S. Government liabilities -18 17

Unilateral transfer, net ... -348
Unilateral transfer, gross -1,161 666

Current account, southbound -2,984 7,259

 1997

Goods and services 295 7,090
 Goods 1,745 6,509
 Services -1,450 581
 Direct defense expenditures 17 -40
 Travel ... 84
 Passenger fares ... ...
 Other transportation 38 -217
 Royalties and license fees -250 -317
 Other services -1,255 1,072

Investment income -3,197 -481
 Direct investment -906 -49
 Other private assets/
 liabilities -2,291 -432
 U.S. Government liabilities ... ...

Unilateral transfer, net ... -366
Unilateral transfer, gross -1,326 684

Current account, southbound -4,228 6,926

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

(2.) Royalties and license fees are included in "other" services for reconciliation.

Table 4.1.--Trade in Goods, Northbound

[Millions of U.S. dollars]

 U.S. Canadian
 receipts payments
 1996

Balance of payments basis, published 134,516 132,115

Reconciliation adjustments:
 Inland freight -1,867 436
 Repair of equipment 186 ...
 Other balance of payments adjustments 4 -342
 Statistical adjustments ... 630

Reconciled 132,838 132,838

 1997

Balance of payments basis, published 152,047 152,270

Reconciliation adjustments:
 Inland freight ... 522
 Repair of equipment 138 ...
 Other balance of payments adjustments 26 -249
 Statistical adjustments ... -331

Reconciled 152,211 152,211

 Type of adjustment

 1996

Balance of payments basis, published

Reconciliation adjustments:
 Inland freight Statistical
 Repair of equipment Reclassification
 Other balance of payments adjustments Definitional
 Statistical adjustments Statistical

Reconciled

 1997

Balance of payments basis, published

Reconciliation adjustments:
 Inland freight Statistical
 Repair of equipment Reclassification
 Other balance of payments adjustments Definitional
 Statistical adjustments Statistical

Reconciled
Table 4.2.--Trade in Goods, Southbound

[Millions of U.S. dollars]

 Canadian U.S.
 receipts payments

 1996

Balance of payments basis, published 163,018 158,669

Reconciliation adjustments: ... 4,314
 Canadian reexports 978 1,341
 Inland freight 139 223
 Other balance of payments adjustments 412 ...
 Statistical adjustments

Reconciled 164,547 164,547

 1997

Balance of payments basis, published 175,788 171,024

Reconciliation adjustments:
 Canadian reexports ... 4,945
 Inland freight 913 1,264
 Other balance of payments adjustments 789 300
 Statistical adjustments 43 ...

Reconciled 177,533 177,533

 Type of adjustment

 1996

Balance of payments basis, published

Reconciliation adjustments:
 Canadian reexports Definitional
 Inland freight Statistical
 Other balance of payments adjustments Definitional and
 reclassification
 Statistical adjustments Statistical

Reconciled

 1997

Balance of payments basis, published

Reconciliation adjustments:
 Canadian reexports Definitional
 Inland freight Statistical
 Other balance of payments adjustments Definitional and
 reclassification
 Statistical adjustments Statistical

Reconciled
Table 5.1--Travel, Passenger Fares, and Other Transportation,
Northbound

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Difference
 receipts payments
 1996

Travel 6,842 7,239 -397
Business and personal 6,842 6,776 66
Education ... 402 -402
Medical ... -61 61

Passenger fares 1,331 1,118 213

Other transportation 2,394 2,199 195

Freight 1,816 1,793 23
Ocean 32 191 -159
Air (D) (D) (D)
Land 1,393 1,193 200
Other (D) (D) (D)

Port services 579 389 190
Vessel operators 61 29 32
Airline operators 358 357 1
Other 160 3 157

Other ... 17 -17

 1997

Travel 6,824 7,232 -408
Business and personal 6,824 6,741 83
Education ... 427 -427
Medical ... 64 -64

Passenger fares 1,409 1,195 214

Other transportation 2,384 2,232 152

Freight 1,880 1,894 -14
Ocean 54 208 -154
Air (D) (D) (D)
Land 1,435 1,272 163
Other (D) (D) (D)

Port services 504 320 184
Vessel operators 64 29 35
Airline operators 287 287 0
Other 153 4 149

Other ... 18 -18

 Reconciled estimates

 U.S. Canadian Remaining
 receipts payments difference

 1996

Travel 7,330 7,330 ...
Business and personal 6,776 6,776 ...
Education 425 425 ...
Medical 129 129 ...

Passenger fares 1,118 1,118 ...

Other transportation 2,440 2,440 ...

Freight 1,837 1,837 ...
Ocean 139 139 ...
Air (D) (D) ...
Land 1,258 1,258 ...
Other (D) (D) ...

Port services 587 587 ...
Vessel operators 29 29 ...
Airline operators 358 358 ...
Other 200 200 ...

Other 17 17 ...

 1997

Travel 7,316 7,316 ...
Business and personal 6,741 6,741 ...
Education 443 443 ...
Medical 132 132 ...

Passenger fares 1,195 1,195 ...

Other transportation 2,441 2,441 ...

Freight 1,912 1,912 ...
Ocean 155 155 ...
Air (D) (D) ...
Land 1,310 1,310 ...
Other (D) (D) ...

Port services 511 511 ...
Vessel operators 29 29 ...
Airline operators 287 287 ...
Other 195 195 ...

Other 18 18 ...

 Adjustments to published estimates

 United
 States Canada
 1996

Travel 488 91
Business and personal -66 ...
Education 425 23
Medical 129 68

Passenger fares -213 ...

Other transportation 46 241

Freight 21 44
Ocean 107 -52
Air (D) (D)
Land -135 65
Other (D) (D)

Port services 8 198
Vessel operators -32 ...
Airline operators ... 1
Other 40 197

Other 17 ...

 1997

Travel 492 84
Business and personal -83 ...
Education 443 16
Medical 132 68

Passenger fares -214 ...

Other transportation 57 209

Freight 32 18
Ocean 101 -53
Air (D) (D)
Land -125 38
Other (D) (D)

Port services 7 191
Vessel operators -35 ...
Airline operators ... ...
Other 42 191

Other 18 ...

 Adjustments to published estimates

 Type of adjustment
 1996

Travel
Business and personal Statistical
Education Reclassification and statistical
Medical Reclassification and statistical

Passenger fares Statistical

Other transportation

Freight
Ocean Statistical
Air Statistical
Land Statistical
Other Statistical

Port services
Vessel operators Statistical
Airline operators Statistical
Other Reclassification and statistical

Other Statistical
 1997
Travel
Business and personal Statistical
Education Reclassification and statistical
Medical Reclassification and statistical

Passenger fares Statistical

Other transportation

Freight
Ocean Statistical
Air Statistical
Land Statistical
Other Statistical

Port services
Vessel operators Statistical
Airline operators Statistical
Other Reclassification and statistical

Other Statistical

(D) Data suppressed to avoid disclosure of data of individual companies.

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

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S.
 receipts payments

 1996

Travel 4,756 4,670
Business and personal 4,651 4,670
Education 61 ...
Medical 43 ...

Passenger fares 392 391

Other transportation 2,565 2,790

Freight 2,125 2,249
Ocean 101 113
Air (D) (D)
Land 1,896 2,054
Other (D) (D)
Port services 346 541
Vessel operators 28 131
Airline operators 262 328
Other 56 82
Other 95 ...
 1997

Travel 4,985 4,901
Business and personal 48,831 4,901
Education 57 ...
Medical 44 ...

Passenger fares 470 470

Other transportation 2,783 3,037

Freight 2,325 2,415
Ocean 100 131
Air (D) (D)
Land 2,074 2,178
Other (D) (D)
Port services 359 623
Vessel operators 27 165
Airline operators 275 373
Other 57 85
Other 99 ...

 Published Reconciled
 estimates estimates

 Difference Canadian
 receipts

 1996

Travel 86 4,756
Business and personal -19 4,651
Education 61 61
Medical 43 43

Passenger fares 1 392

Other transportation -224 2,626

Freight -124 2,136
Ocean -12 113
Air (D) (D)
Land -158 1,896
Other (D) (1)
Port services -195 480
Vessel operators -103 65
Airline operators -66 262
Other -26 153
Other 95 11

 1997

Travel 84 4,985
Business and personal -18 4,883
Education 57 57
Medical 44 44

Passenger fares ... 470

Other transportation -255 2,821

Freight -90 2,298
Ocean -31 131
Air (D) (D)
Land -104 2,016
Other (D) (D)
Port services -264 512
Vessel operators -138 80
Airline operators -98 275
Other -28 157
Other 99 11

 Reconciled estimates

 U.S. Remaining
 payments difference

Travel 4,756 ...
Business and personal 4,651 ...
Education 61 ...
Medical 43 ...
Passenger fares 392 ...
Other transportation 2,626 ...
Freight 2,136 ...
Ocean 113 ...
Air (D) ...
Land 1,896 ...
Other (D) ...
Port services 480 ...
Vessel operators 65 ...
Airline operators 262 ...
Other 153 ...
Other 11 ...

 1997

Travel 4,985 ...
Business and personal 4,883 ...
Education 57 ...
Medical 44 ...
Passenger fares 470 ...
Other transportation 2,821 ...
Freight 2,298 ...
Ocean 131 ...
Air (D) ...
Land 2,016 ...
Other (D) ...
Port services 512 ...
Vessel operators 80 ...
Airline operators 275 ...
Other 157 ...
Other 11 ...

 Adjustments to published estimates

Type of adjustment
 Canada United
 States
 1996

Travel ... 86
Business and personal ... -19
Education ... 61
Medical ... 43

Passenger fares ... 1

Other transportation 61 -164

Freight 11 -113
Ocean 12 ...
Air (D) (D)
Land ... -158
Other (D) (D)

Port services 134 -61
Vessel operators 37 -66
Airline operators ... -66
Other 97 71

Other -84 11

 1997

Travel ... 84

Business and personal ... -18
Education ... 57
Medical ... 44

Passenger fares ... ...

Other transportation 38 -216
Freight -27 -117
Ocean 31 ...
Air (D) (D)
Land -58 -162
Other (D) (D)

Port services 153 -111
Vessel operators 53 -85
Airline operators ... -98
Other 100 72

Other -88 11

 Adjustments to published estimates

 Type of
 adjustment
 1996

Travel
Business and personal Statistical
Education Reclassification and statistical
Medical Reclassification and statistical

Passenger fares Statistical

Other transportation

Freight
Ocean Statistical
Air Statistical
Land Statistical
Other Statistical

Port services
Vessel operators Statistical
Airline operators Statistical
Other Reclassification and statistical

Other Definitional and statistical

 1997

Travel

Business and personal Statistical
Education Reclassification and statistical
Medical Reclassification and statistical

Passenger fares

Other transportation
Freight
Ocean Statistical
Air Statistical
Land Statistical
Other Statistical

Port services
Vessel operators Statistical
Airline operators Statistical
Other Reclassification and statistical

Other Definitional and statistical

(D) Data suppressed to avoid disclosure of data of individual companies.

Table 6.1--Other Services, Northbound

[Millions of U.S. dollars]

 Published estimates
 U.S. Canadian
 receipts payments

 1996

Total 9,371 10,675

Private:

Affiliated 5,371 6,196

Royalties and license fees 1,279 1,277
Other services 4,092 4,919

Unaffiliated 3,846 4,330

Royalties, license fees, and
 selected services 659 506
Insurance 343 519
Financial services 599 555
Education 443 19
Communications 295 637
Business services 1,309 1,107
Sports and entertainment 198 788
Other ... 199
Commissions ... 25
Railway port services ... 174

Government:

United States 63 47
Canada 91 102
 1997
 9,935 10,145
Private:

Affiliated 5,647 5,678

Royalties and license fees 1,332 1,369
Other services 4,315 4,309
Unaffiliated 4,145 4,312

Royalties, license fees, and
 selected services 994 605
Insurance 353 590
Financial services 571 533
Education 461 17
Communications 272 539
Business services 1,311 1,083
Sports and entertainment 183 738
Other ... 207
Commissions ... 27
Railway port services ... 180

Government:

United States 51 55
Canada 92 100

 Published Reconciled
 estimates estimates

 Difference U.S.
 receipts

 1996

Total -1,304 9,406

Private:

Affiliated -825 4,865

Royalties and license fees 2 (1)
Other services -827 (1)

Unaffiliated -484 4,377

Royalties, license fees, and
 selected services 153 659
Insurance -176 408
Financial services 44 599
Education 424 18
Communications -342 349
Business services 202 1,576
Sports and entertainment -590 768
Other -199 ...
Commissions -25 ...
Railway port services -174 ...

Government:

United States 16 63
Canada -11 102
 1997
 -210 9,696
Private:

Affiliated -31 5,164

Royalties and license fees -37 (1)
Other services 6 (1)
Unaffiliated -167 4,382

Royalties, license fees, and
 selected services 389 886
Insurance -237 400
Financial services 38 571
Education 444 21
Communications -267 296
Business services 228 1,506
Sports and entertainment -555 702
Other -207 ...
Commissions -27 ...
Railway port services -180 ...

Government:

United States -4 51
Canada -8 100

 Reconciled Adjustments to
 estimates published
 estimates

 Canadian Remaining
 payments difference

 1996

Total 9,406 ...

Private:

Affiliated 4,865 ...

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

Unaffiliated 4,377 ...

Royalties, license fees, and
 selected services 659 ...
Insurance 408 ...
Financial services 599 ...
Education 18 ...
Communications 349 ...
Business services 1,576 ...
Sports and entertainment 768 ...
Other ... ...
Commissions ... ...
Railway port services ... ...

Government:

United States 63 ...
Canada 102 ...
 1997
 9,696 ...
Private:

Affiliated 5,164 ...

Royalties and license fees (1) ...
Other services (1) ...
Unaffiliated 4,382 ...

Royalties, license fees, and
 selected services 886 ...
Insurance 400 ...
Financial services 571 ...
Education 21 ...
Communications 296 ...
Business services 1,506 ...
Sports and entertainment 702 ...
Other ... ...
Commissions ... ...
Railway port services ... ...

Government:

United States 51 ...
Canada 100 ...

 Adjustments to
 published estimates

 United Canada
 States

 1996

Total

Private: 35 -1,268

Affiliated
 -506 -1,331
Royalties and license fees
Other services (1) (1)

Unaffiliated (1) (1)
 531 47
Royalties, license fees, and
 selected service ... 153
Insurance 65 -111
Financial services ... 44
Education -425 -1
Communications 54 -288
Business services 267 469
Sports and entertainment 570 -20
Other ... -199
Commissions ... -25
Railway port services ... -174

Government:

United States ... 16
Canada 11 ...
 1997

Private: -239 -448

Affiliated -483 -514

Royalties and license fees (1) (1)
Other services (1) (1)
Unaffiliated 237 (70)

Royalties, license fees, and
 selected services -108 281
Insurance 47 -190
Financial services ... 38
Education -440 4
Communications 24 -243
Business services 195 423
Sports and entertainment 519 -36
Other ... -207
Commissions ... -27
Railway port services ... -180

Government:

United States ... -4
Canada 8 ...

 Adjustment to
 published estimates

 Type of adjustment

 1996

Total

Private:

Affiliated Definitional, reclassification,
 and statistical
Royalties and license fees
Other services

Unaffiliated

Royalties, license fees, and
 selected services Statistical
Insurance Statistical
Financial services Statistical
Education Reclassification and statistical
Communications Reclassification and statistical
Business services Reclassification and statistical
Sports and entertainment Reclassification and statistical
Other
Commissions Definitional
Railway port services Reclassification

Government:

United States
Canada Statistical
 1997 Statistical

Private:

Affiliated Definitional, reclassification,
 and statistical

Royalties and license fees
Other services
Unaffiliated

Royalties, license fees,
 and selected services Statistical
Insurance Statistical
Financial services Statistical
Education Reclassification and statistical
Communications Reclassification and statistical
Business services Reclassification and statistical
Sports and entertainment Reclassification and statistical
Other
Commissions Definitional
Railway port services Reclassification

Government:

United States Statistical
Canada 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
 receipts

 1996

 Total 7,634

Private:

 Affiliated 3,377

 Royalties and license fees 185
 Other services 3,192
 Unaffiliated 4,109
 Royalties, license fees, and
 selected services 690
 Insurance 287
 Financial services 316
 Education 22
 Communications 737
 Business services 1,270
 Sports and entertainment 611
 Other 176
 Commissions 47
 Railway port services 97
 U.S. defense expenditures 32
Government:
 Canada 13
 United States 133

 1997

 Total 8,055

Private:

 Affiliated 3,692

 Royalties and license fees 169
 Other services 3,523
 Unaffiliated 4,200
 Royalties, license fees, and
 selected services 741
 Insurance 309
 Financial services 389
 Education 24
 Communications 643
 Business services 1298
 Sports and entertainment 601
 Other 195
 Commissions 54
 Railway port services 100
 U.S. defense expenditures 41
Government:
 Canada 13
 United States 150

 Published estimates

 U.S.
 payments

 1996
 Total 5091

Private:

 Affiliated 2714

 Royalties and license fees
 Other services 128
 Unaffiliated 2586
 Royalties, license fees, and 2230
 selected services 351
 Insurance
 Financial services 459
 Education 178
 Communications 31
 Business services 350
 Sports and entertainment 735
 Other 126
 Commissions ...
 Railway port services ...
 U.S. defense expenditures ...
Government: ...
 Canada ...
 United States 148

 1997

 Total

Private: 5,852

 Affiliated 2995

 Royalties and license fees 200
 Other services 2795
 Unaffiliated 2658
 Royalties, license fees, and
 selected services 389
 Insurance
 Financial services 534
 Education 244
 Communications 34
 Business services 352
 Sports and entertainment 939
 Other 166
 Commissions ...
 Railway port services ...
 U.S. defense expenditures ...
Government: ...
 Canada 197
 United States

 Published estimates

 Difference
 1996
 Total 2543

Private:

 Affiliated 663

 Royalties and license fees 57
 Other services 606
 Unaffiliated 1879
 Royalties, license fees, and
 selected services 339
 Insurance -172
 Financial services 138
 Education -9
 Communications 387
 Business services 535
 Sports and entertainment 485
 Other 176
 Commissions 47
 Railway port services 97
 U.S. defense expenditures 32
Government:
 Canada 13
 United States -15

 1997

 Total 2,203

Private:

 Affiliated 697

 Royalties and license fees -31
 Other services 728
 Unaffiliated 1542
 Royalties, license fees, and
 selected services 352
 Insurance -225
 Financial services 145
 Education -10
 Communications 291
 Business services 359
 Sports and entertainment 435
 Other 195
 Commissions 54
 Railway port services 100
 U.S. defense expenditures 41
Government:
 Canada 13
 United States -47

 Reconciled estimates

 Canadian
 receipts
 1996

 Total 6,084

Private:

 Affiliated 2,649

 Royalties and license fees (1)
 Other services (1)
 Unaffiliated 3,293
 Royalties, license fees, and
 selected services 681
 Insurance 400
 Financial services 178
 Education 22
 Communications 360
 Business services 1,151
 Sports and entertainment 501
 Other ...
 Commissions ...
 Railway port services ...
 U.S. defense expenditures ...
Government:
 Canada 13
 United States 128

 1997

 Total 6,567

Private:

 Affiliated 2,922

 Royalties and license fees (1)
 Other services (1)
 Unaffiliated 3,475
 Royalties, license fees, and
 selected services 739
 Insurance 317
 Financial services 244
 Education 24
 Communications 352
 Business services 1,298
 Sports and entertainment 501
 Other ...
 Commissions ...
 Railway port services ...
 U.S. defense expenditures ...
Government:
 Canada 13
 United States 157

 Reconciled estimates

 U.S.
 payments

 1996

 Total 6084

Private:

 Affiliated 2649

 Royalties and license fees (1)
 Other services (1)
 Unaffiliated 3293
 Royalties, license fees, and
 selected services 681
 Insurance 400
 Financial services 178
 Education 22
 Communications 360
 Business services 1151
 Sports and entertainment 501
 Other ...
 Commissions ...
 Railway port services ...
 U.S. defense expenditures ...
Government:
 Canada 13
 United States 128

 1997

 Total 6,567

Private:

 Affiliated 2922

 Royalties and license fees (1)
 Other services (1)
 Unaffiliated 3475
 Royalties, license fees, and
 selected services 739
 Insurance 317
 Financial services 244
 Education 24
 Communications 352
 Business services 1298
 Sports and entertainment 501
 Other ...
 Commissions ...
 Railway port services ...
 U.S. defense expenditures ...
Government:
 Canada 13
 United States 157

 Reconciled estimates

 Remaining
 difference

 1996

 Total ...

Private:

 Affiliated ...

 Royalties and license fees
 Other services ...
 Unaffiliated ...
 Royalties, license fees, and ...
 selected services ...
 Insurance
 Financial services ...
 Education ...
 Communications ...
 Business services ...
 Sports and entertainment ...
 Other ...
 Commissions ...
 Railway port services ...
 U.S. defense expenditures ...
Government: ...
 Canada ...
 United States ...

 1997

 Total ...

Private:
 Affiliated ...

 Royalties and license fees ...
 Other services ...
 Unaffiliated ...
 Royalties, license fees, and
 selected services ...
 Insurance ...
 Financial services ...
 Education ...
 Communications ...
 Business services ...
 Sports and entertainment ...
 Other ...
 Commissions ...
 Railway port services ...
 U.S. defense expenditures ...
Government:
 Canada
 United States ...
 ...

 Adjustments to
 published estimates

 Canada
 1996

 Total -1,550

Private:
 Affiliated -728

 Royalties and license fees (1)
 Other services (1)
 Unaffiliated -816
 Royalties, license fees, and
 selected services -9
 Insurance 113
 Financial services -138
 Education -9
 Communications -377
 Business services -119
 Sports and entertainment -110
 Other -176
 Commissions -47
 Railway port services -97
 U.S. defense expenditures -32
Government:
 Canada ...
 United States -5

 1997

 Total -1,488

Private:

 Affiliated -770

 Royalties and license fees (1)
 Other services (1)
 Unaffiliated -725
 Royalties, license fees, and
 selected services -2
 Insurance 8
 Financial services -145
 Education
 Communications -291
 Business services
 Sports and entertainment -100
 Other -195
 Commissions -54
 Railway port services -100
 U.S. defense expenditures -41
Government:
 Canada ...
 United States 7

 Adjustments to
 published estimates

 United
 States
 1996
Total 993

Private:

Affiliated -65

 Royalties and license fees (1)
 Other services (1)
 Unaffiliated 1063
 Royalties, license fees, and
 selected services 330
 Insurance -59
 Financial services ...
 Education ...
 Communications 10
 Business services 416
 Sports and entertainment 375
 Other ...
 Commissions ...
 Railway port services ...
 U.S. defense expenditures ...
Government:
 Canada 13
 United States -20

 1997
 Total 715

Private:

 Affiliated -73

 Royalties and license fees (1)
 Other services (1)
 Unaffiliated 817
 Royalties, license fees, and
 selected services 350
 Insurance -217
 Financial services
 Education -10
 Communications
 Business services 359
 Sports and entertainment 335
 Other ...
 Commissions ...
 Railway port services ...
 U.S. defense expenditures ...
Government:
 Canada 13
 United States -40

 Adjustments to
 published estimates

 Type of adjustment

 1996

Total

Private:

Affiliated Definitional,
 reclassification,
 and statistical
 Royalties and license fees
 Other services
 Unaffiliated
 Royalties, license fees, and
 selected services Statistical
 Insurance Statistical
 Financial services Statistical
 Education Reclassification
 and statistical
 Communications Reclassification
 and statistical
 Business services Reclassification
 and statistical
 Sports and entertainment Statistical
 Other
 Commissions Definitional
 Railway port services Reclassification
 U.S. defense expenditures Reclassification
Government:
 Canada
 United States Statistical

 1997

 Total

Private:

 Affiliated

 Royalties and license fees Definitional,
 reclassification,
 Other services and statistical
 Unaffiliated
 Royalties, license fees, and
 selected services Statistical
 Insurance Statistical
 Financial services Statistical
 Education Reclassification
 and statistical
 Communications Reclassification
 and statistical
 Business services Reclassification
 and statistical
 Sports and entertainment Statistical
 Other
 Commissions Definitional
 Railway port services Reclassification
 U.S. defense expenditures Reclassification
Government:
 Canada Statistical
 United States Statistics

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

Table 7.1.--Direct Investment Income, Northbound

[Millions of U.S. dollars]

 Published estimates

 U.S.
 receipts
 1996

Direct investment income 9,024
 Earnings of incorporated affiliates 8,117
 Dividends 2,218
 Reinvested earnings 5,899
 Earnings of unincorporated affiliates 507
 Net interest 400

 1997

Direct investment income 10,692
 Earnings of incorporated affiliates 9,868
 Dividends 4,536
 Reinvested earnings 5,332
 Earnings of unincorporated affiliates 521
 Net interest 303

 Published estimates

 Canadian
 payments
 1996

Direct investment income 7,347
 Earnings of incorporated affiliates 6,367
 Dividends 2,805
 Reinvested earnings 3,562
 Earnings of unincorporated affiliates 245
 Net interest 735

 1997

Direct investment income 8,305
 Earnings of incorporated affiliates 7,349
 Dividends 3,784
 Reinvested earnings 3,565
 Earnings of unincorporated affiliates 263
 Net interest 693

 Published estimates

 Difference
 1996

Direct investment income 1,677
 Earnings of incorporated affiliates 1,750
 Dividends -587
 Reinvested earnings 2,337
 Earnings of unincorporated affiliates 262
 Net interest -335

 1997

Direct investment income 2,387
 Earnings of incorporated affiliates 2,519
 Dividends 752
 Reinvested earnings 1,767
 Earnings of unincorporated affiliates 258
 Net interest -390

 Reconciled estimates

 U.S.
 1996 receipts

Direct investment income 8,662
 Earnings of incorporated affiliates 7,632
 Dividends 2,307
 Reinvested earnings 5,325
 Earnings of unincorporated affiliates 507
 Net interest 523

 1997

Direct investment income 10,425
 Earnings of incorporated affiliates 9,435
 Dividends 4,536
 Reinvested earnings 4,899
 Earnings of unincorporated affiliates 521
 Net interest 469

 Reconciled estimates

 Canadian
 payments

 1996

Direct investment income 8,662
 Earnings of incorporated affiliates 7,632
 Dividends 2,307
 Reinvested earnings 5,325
 Earnings of unincorporated affiliates 507
 Net interest 523

 1997

Direct investment income 10,425
 Earnings of incorporated affiliates 9,435
 Dividends 4,536
 Reinvested earnings 4,899
 Earnings of unincorporated affiliates 521
 Net interest 469

 Reconciled estimates

 Remaining
 difference
 1996

Direct investment income ...
 Earnings of incorporated affiliates ...
 Dividends ...
 Reinvested earnings ...
 Earnings of unincorporated affiliates ...
 Net interest ...

 1997

Direct investment income ...
 Earnings of incorporated affiliates ...
 Dividends ...
 Reinvested earnings ...
 Earnings of unincorporated affiliates ...
 Net interest ...

 Adjustments to
 published estimates

 United
 States
 1996

Direct investment income -362
 Earnings of incorporated affiliates -485
 Dividends 89
 Reinvested earnings -574
 Earnings of unincorporated affiliates
 Net interest 123

 1997

Direct investment income -267
 Earnings of incorporated affiliates -433
 Dividends ...
 Reinvested earnings -433
 Earnings of unincorporated affiliates ...
 Net interest 166

 Adjustments to
 published estimates

 Canada
 1996

Direct investment income 1,315
 Earnings of incorporated affiliates 1,265
 Dividends -498
 Reinvested earnings 1,763
 Earnings of unincorporated affiliates 262
 Net interest -212

 1997

Direct investment income 2,120
 Earnings of incorporated affiliates 2,086
 Dividends 752
 Reinvested earnings 1,334
 Earnings of unincorporated affiliates 258
 Net interest -224

 Adjustments to
 published estimates

 Type of adjustment
 1996

Direct investment income
 Earnings of incorporated affiliates
 Dividends Definitional,
 reclassification, and
 statistical
 Reinvested earnings Statistical
 Earnings of unincorporated affiliates Definitional,
 reclassification,
 and statistical
 Net interest Reclassification, net
 to gross, and
 statistical

 1997

Direct investment income
 Earnings of incorporated affiliates
 Dividends Definitional,
 reclassification,
 and statistical
 Reinvested earnings Statistical
 Earnings of unincorporated affiliates Definitional,
 reclassification,
 and statistical
 Net interest Reclassification,
 net to gross, and
 statistical
Table 7.2.--Direct Investment Income, Southbound

[Millions of U.S. dollars]

 Published estimates

 Canadian
 receipts

 1996

Direct investment income 3,166
 Earnings of incorporated affiliates 1,943
 Dividends 422
 Reinvested earnings 1,521
 Earnings of unincorporated affiliates 974
 Net interest 248

 1997

Direct investment income 4,072
 Earnings of incorporated affiliates 2,939
 Dividends 1,323
 Reinvested earnings 1,616
 Earnings of unincorporated affiliates 913
 Net interest 221

 Published estimates

 U.S.
 1996 payments

Direct investment income 3,295
 Earnings of incorporated affiliates 2,612
 Dividends 308
 Reinvested earnings 2,304
 Earnings of unincorporated affiliates 534
 Net interest 148

 1997

Direct investment income 3,215

 Earnings of incorporated affiliates 3,012
 Dividends 539
 Reinvested earnings 2,473
 Earnings of unincorporated affiliates -80
 Net interest 283

 Published estimates

 Difference
 1996

Direct investment income -129
 Earnings of incorporated affiliates -669
 Dividends 114
 Reinvested earnings -783
 Earnings of unincorporated affiliates 440
 Net interest 100

 1997

Direct investment income 857

 Earnings of incorporated affiliates -73
 Dividends 784
 Reinvested earnings -857
 Earnings of unincorporated affiliates 993
 Net interest -82

 Reconcile estimates

 Canadian
 1996 receipts

Direct investment income 3,187
 Earnings of incorporated affiliates 2,399
 Dividends 347
 Reinvested earnings 2,052
 Earnings of unincorporated affiliates 640
 Net interest 148

 1997

Direct investment income 3,166

 Earnings of incorporated affiliates 2,571
 Dividends 399
 Reinvested earnings 2,172
 Earnings of unincorporated affiliates 312
 Net interest 283

 Reconcile estimates

 U.S.
 1996 payments

Direct investment income 3,187
 Earnings of incorporated affiliates 2,399
 Dividends 347
 Reinvested earnings 2,052
 Earnings of unincorporated affiliates 640
 Net interest 148

 1997

Direct investment income 3,166

 Earnings of incorporated affiliates 2,571
 Dividends 399
 Reinvested earnings 2,172
 Earnings of unincorporated affiliates 312
 Net interest 283

 1996
 Remaining
 difference

Direct investment income ...
 Earnings of incorporated affiliates ...
 Dividends ...
 Reinvested earnings ...
 Earnings of unincorporated affiliates ...
 Net interest ...

 1997

Direct investment income ...

 Earnings of incorporated affiliates ...
 Dividends ...
 Reinvested earnings ...
 Earnings of unincorporated affiliates ...
 Net interest ...

 Adjustments to
 published estimates
 Canada

Direct investment income 21
 Earnings of incorporated affiliates 456
 Dividends -75
 Reinvested earnings 531
 Earnings of unincorporated affiliates -334
 Net interest -100

 1997

Direct investment income -906

 Earnings of incorporated affiliates -368
 Dividends -924
 Reinvested earnings 556
 Earnings of unincorporated affiliates -801
 Net interest 62

 Adjustments to
 published estimates

 United
 States

Direct investment income -107
 Earnings of incorporated affiliates -213
 Dividends 39
 Reinvested earnings -252
 Earnings of unincorporated affiliates 106
 Net interest

 1997

Direct investment income -49

 Earnings of incorporated affiliates -441
 Dividends -140
 Reinvested earnings -301
 Earnings of unincorporated affiliates 392
 Net interest ...

 Adjustments to
 published estimates

 Type of adjustment

Direct investment income
 Earnings of incorporated affiliates
 Dividends Statistical
 Reinvested earnings Statistical
 Earnings of unincorporated affiliates Definitional and
 statistical
 Net interest Gross to net and
 statistical

 1997

Direct investment income

 Earnings of incorporated affiliates
 Dividends Statistical
 Reinvested earnings Statistical
 Earnings of unincorporated affiliates Definitional and
 statistical
 Net interest Gross to net and
 statistical
Table 8.1--Other Investment Income, Northbound

[Millions of U.S. dollars]

 Published estimates

 U.S.
 receipts
 1996

Other investment income 9,095

 Securities 6,147
 Dividends 1,051
 Interest on bonds 5,096

 U.S. claims/Canadian liabilities 2,948
 U.S. bank claims 1,213
 Other private U.S. claims 1,735

 1997

Other investment income 9,847

 Securities 6,115
 Dividends 1,222
 Interest on bonds 4,893

 U.S. claims/Canadian liabilities 3,732
 U.S. bank claims 3,055
 Other private U.S. claims 677

 Published estimates

 Canadian
 payments

 1996

Other investment income 14,926

 Securities 9,886
 Dividends 805
 Interest on bonds 9,081

 U.S. claims/Canadian liabilities 5,039
 U.S. bank claims 2,690
 Other private U.S. claims 2,349

 1997

Other investment income 16,609

 Securities 10,554
 Dividends 846
 Interest on bonds 9,708

 U.S. claims/Canadian liabilities 6,055
 U.S. bank claims 3,544
 Other private U.S. claims 2,511

 Published estimates
 1996

Other investment income Difference

 Securities -5,831
 Dividends
 Interest on bonds -3,739
 246
 U.S. claims/Canadian liabilities -3,985
 U.S. bank claims
 Other private U.S. claims -2,091
 -1,477
 1997 -614

Other investment income

 Securities -6,762
 Dividends
 Interest on bonds -4,439
 376
 U.S. claims/Canadian liabilities -4,815
 U.S. bank claims
 Other private U.S. claims -2,323
 -489
 -1,834

 Reconciled estimates

 U.S.
 receipts
 1996

Other investment income 11,848

 Securities 9,114
 Dividends 1,051
 Interest on bonds 8,063

 U.S. claims/Canadian liabilities 2,734
 U.S. bank claims 1,023
 Other private U.S. claims 1,711

 1997

Other investment income 12,900

 Securities 9,725
 Dividends 1,222
 Interest on bonds 8,503

 U.S. claims/Canadian liabilities 3,175
 U.S. bank claims 1,255
 Other private U.S. claims 1,920

 Reconciled estimates

 Canadian
 payments
 1996

Other investment income 11,848

 Securities 9,114
 Dividends 1,051
 Interest on bonds 8,063

 U.S. claims/Canadian liabilities 2,734
 U.S. bank claims 1,023
 Other private U.S. claims 1,711

 1997

Other investment income 12,900

 Securities 9,725
 Dividends 1,222
 Interest on bonds 8,503

 U.S. claims/Canadian liabilities 3,175
 U.S. bank claims 1,255
 Other private U.S. claims 1,920

 Reconciled estimates

 Remaining
 difference
 1996

Other investment income ...
 ...
 Securities ...
 Dividends ...
 Interest on bonds ...

 U.S. claims/Canadian liabilities ...
 U.S. bank claims ...
 Other private U.S. claims ...

 1997

Other investment income ...

 Securities ...
 Dividends ...
 Interest on bonds ...

 U.S. claims/Canadian liabilities ...
 U.S. bank claims ...
 Other private U.S. claims ...

 Adjustments to
 published estimates

 United
 States
 1996

Other investment income 2,753

 Securities 2,967
 Dividends
 Interest on bonds 2,967

 U.S. claims/Canadian liabilities -214
 U.S. bank claims -190
 Other private U.S. claims -24

 1997

Other investment income 3,052

 Securities 3,610
 Dividends
 Interest on bonds 3,610

 U.S. claims/Canadian liabilities -557
 U.S. bank claims -1,800
 Other private U.S. claims 1,243

 Adjustments to
 published estimates

 Canada

 1996

Other investment income -3,078

 Securities -772
 Dividends 246
 Interest on bonds -1,018

 U.S. claims/Canadian liabilities -2,305
 U.S. bank claims -1,687
 Other private U.S. claims -638

 1997

Other investment income -3,709

 Securities -829
 Dividends 376
 Interest on bonds -1,205

 U.S. claims/Canadian liabilities -2,880
 U.S. bank claims -2,289
 Other private U.S. claims -591

 Adjustments to
 published estimates

 Type of adjustment

 1996

Other investment income

 Securities
 Dividends Definitional,
 reclassification,
 and statistical
 Interest on bonds Definitional and
 statistical

 U.S. claims/Canadian liabilities
 U.S. bank claims Net to gross, gross
 to net, and
 statistical
 Other private U.S. claims Net to gross
 and statistical

 1997

Other investment income

 Securities
 Dividends Definitional,
 reclassification,
 and statistical
 Interest on bonds Definitional and statistical

 U.S. claims/Canadian liabilities
 U.S. bank claims Net to gross, gross to net,
 and statistical
 Other private U.S. claims Net to gross and statistical
Table 8.2.--Other Investment Income, Southbound

[Millions of U.S. dollars]

 Published estimates

 Canadian
 receipts
 1996

Other investment income 6,581
 Securities 1,624
 Dividends 1,220
 Interest on bonds 404
 Canadian claims/U.S, liabilities 3,879
 Canadian bank claims 3,490
 Other Canadian claims 389
 U.S. Government liabilities 1,077

 1997

Other investment income 7,009
 Securities 1,823
 Dividends 1,192
 Interest on bonds 631
 Canadian claims/U.S, liabilities 4,127
 Canadian bank claims 3,712
 Other Canadian claims 415

U.S. Government liabilities 1,059

 Published estimates

 U.S.
 payments
 1996

Other investment income 4,429
 Securities 1,737
 Dividends 1,268
 Interest on bonds 469
 Canadian claims/U.S, liabilities 1,650
 Canadian bank claims 1,428
 Other Canadian claims 222
 U.S. Government liabilities 1,042

 1997

Other investment income 5,138
 Securities 2,101
 Dividends 1,320
 Interest on bonds 781
 Canadian claims/U.S, liabilities 1,982
 Canadian bank claims 1,704
 Other Canadian claims 278

U.S. Government liabilities 1,055

 Published estimates

 Difference

 1996

Other investment income 2,152
 Securities -113
 Dividends -48
 Interest on bonds -65
 Canadian claims/U.S, liabilities 2,229
 Canadian bank claims 2,062
 Other Canadian claims 167
 U.S. Government liabilities 35

 1997

Other investment income 1,871
 Securities -278
 Dividends -128
 Interest on bonds -150
 Canadian claims/U.S, liabilities 2,145
 Canadian bank claims 2,008
 Other Canadian claims 137

U.S. Government liabilities 4

 Adjustments to
 published estimates

 Reconcile
 estimates

 Canadian
 receipts

 1996

Other investment income 4,695
 Securities 1,703
 Dividends 1,268
 Interest on bonds 435
 Canadian claims/U.S, liabilities 1,933
 Canadian bank claims 1,716
 Other Canadian claims 217
 U.S. Government liabilities 1,059

 1997

Other investment income 4,717
 Securities 2,028
 Dividends 1,320
 Interest on bonds 708
 Canadian claims/U.S, liabilities 1,630
 Canadian bank claims 1,397
 Other Canadian claims 233

U.S. Government liabilities 1,059

 Reconcile
 estimates

 U.S.
 payment

 1996

Other investment income 4,683
 Securities 1,703
 Dividends 1,268
 Interest on bonds 435
 Canadian claims/U.S, liabilities 1,921
 Canadian bank claims 1,704
 Other Canadian claims 217
 U.S. Government liabilities 1,059

 1997

Other investment income 4,706
 Securities 2,028
 Dividends 1,320
 Interest on bonds 708
 Canadian claims/U.S, liabilities 1,623
 Canadian bank claims 1,390
 Other Canadian claims 233

U.S. Government liabilities 1,055

 Reconcile
 estimates

 Remaining
 difference
 1996

Other investment income 12
 Securities ...
 Dividends ...
 Interest on bonds ...
 Canadian claims/U.S, liabilities 12
 Canadian bank claims 12
 Other Canadian claims ...
 U.S. Government liabilities ...

 1997

Other investment income 11
 Securities ...
 Dividends ...
 Interest on bonds ...
 Canadian claims/U.S, liabilities 7
 Canadian bank claims 7
 Other Canadian claims ...

U.S. Government liabilities 4

 Adjustments to
 published estimates

 Canada
 1996

Other investment income -1,886
 Securities 79
 Dividends 48
 Interest on bonds 31
 Canadian claims/U.S, liabilities -1,946
 Canadian bank claims -1,774
 Other Canadian claims -172
 U.S. Government liabilities -18

 1997

Other investment income -2,291
 Securities 205
 Dividends 128
 Interest on bonds 77
 Canadian claims/U.S, liabilities -2,497
 Canadian bank claims -2,315
 Other Canadian claims -182

U.S. Government liabilities

 Adjustments to
 published estimates

 United
 States
 1996

Other investment income 254
 Securities -34
 Dividends
 Interest on bonds -34
 Canadian claims/U.S, liabilities 271
 Canadian bank claims 276
 Other Canadian claims -5
 U.S. Government liabilities 17

 1997

Other investment income -432
 Securities -73
 Dividends ...
 Interest on bonds -73
 Canadian claims/U.S, liabilities -359
 Canadian bank claims -314
 Other Canadian claims -45

U.S. Government liabilities ...

 1996

Other investment income
 Securities
 Dividends Definitional and
 statistical
 Interest on bonds Definitional and
 statistical
 Canadian claims/U.S, liabilities
 Canadian bank claims Net to gross, gross to
 net, and statistical
 Other Canadian claims Net to gross and statistical
 U.S. Government liabilities Statistical

 1997

Other investment income
 Securities
 Dividends Definitional and statistical
 Interest on bonds Definitional and statistical
 Canadian claims/U.S, liabilities
 Canadian bank claims Net to gross, gross to net,
 and statistical
 Other Canadian claims Net to gross and statistical

U.S. Government liabilities Statistical

Reconciled Current-Account Balances for 1996 and 1997

In the U.S. current account, the reconciliation adjustments resulted in increases of $5.9 billion in the 1996 U.S. deficit and $3.6 billion in the 1997 U.S. deficit. In both years, the changes reflect larger adjustments to the U.S. southbound estimates (U.S. payments) than to the northbound estimates (U.S. receipts) (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 an increase for undercoverage in the U.S. inland freight adjustment to U.S. goods imports (a statistical adjustment), and from an increase for undercoverage of some services payments (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 decreases of $1.0 billion in the 1996 Canadian surplus and $2.3 billion in the 1997 Canadian surplus. In both years, the changes reflect larger downward adjustments to the Canadian southbound estimates (Canadian receipts) than to the Canadian northbound estimates (Canadian payments). The Canadian southbound estimates were adjusted downward to account for definitional differences, mainly in unilateral transfers; for methodological differences, mainly in investment income; and for statistical differences, mainly in "other" services. In the Canadian northbound estimates, downward adjustments for definitional and methodological differences, mainly in "other" investment income, were partly offset by upward adjustments for statistical differences, mainly in direct investment income.

Effect of Annual Revisions on the Reconciliation

Once each year, BEA and Statistics Canada revise their published estimates of international transactions to incorporate methodological and statistical revisions. Some of the revisions eliminate or reduce differences in the U.S.- and Canadian-published estimates and thus have a direct impact on the reconciliation process. For example, changes in the Canadian-published estimates last year to make them conform more closely to the International Monetary Fund's Balance of Payment Manual (fifth edition) resulted in the elimination of four major reconciliation adjustments.(6) This year, several of the revisions to the U.S.-published estimates have further reduced the number of adjustments needed for reconciliation.

First, one of the major statistical adjustments to U.S. southbound estimates of U.S. Government income payments was virtually eliminated, as a result of the incorporation of the results of the U.S. Treasury Department's 1994 benchmark survey of foreign investment in U.S. long-term securities and a new methodology for estimating interest payments on U.S. Government agency securities. Last year, this adjustment accounted for $1.3 billion of the reconciliation adjustments for 1996; this year, the adjustment was only $35 million for 1996 and $4 million for 1997.

Second, in the U.S. accounts, the need for the methodological adjustment (reclassification) required to reconcile operational leasing was eliminated. More complete coverage of operational leasing and the reclassification of leasing of transportation equipment without crew to the "other" private services account from the "other" transportation account have brought the U.S. treatment of operational leasing closer to the current Canadian treatment.

Finally, revisions in 1997 to the Canadian methodology for compiling data on inland freight for northbound shipments of goods, which are the source data for the U.S.-published estimates, resulted in a reduction in the U.S.-published estimates. These revisions reduced the amount of statistical adjustment needed to reconcile the northbound goods account. Last year, the Canadian estimate of northbound inland freight for 1996 was adjusted upward $1.3 billion to reconcile with the U.S. estimate. This year, the upward adjustment was $0.4 billion for 1996 and $0.5 billion for 1997.

Tables 2.1 through 8.2 follow.

Acknowledgments

The reconciliations were carried out under the direction of Hugh Henderson, Chief, Current Account, in Statistics Canada's Balance of Payments and Financial Flows Division, and Anthony DiLullo, assistant chief of BEA's Balance of Payments Division. At Statistics Canada, Lucie Laliberte, Robert Theberge, Denis Caron, Rick Murat, and Linda Tasse participated in the reconciliation of the Canadian accounts; Denis Caron was responsible for the production and coordination of the reconciliation tables. At BEA, Russell Scholl, assisted by Jane Newstedt, was responsible for reconciling the U.S. portfolio income accounts; Mark New, for the accounts related to U.S. direct investment in Canada; Gregory M. Fouch, for the accounts related to Canadian direct investment in the United States; Kwok Lee, for goods; and Michael Mann, for services.

(1.) In this article, all values are expressed in U.S. dollars.

(2.) 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. The reconciliation of the U.S.-Canadian current account does not necessarily result in revisions to the published accounts.

(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 December 1981 through 1991. Complete details of the reconciliations for 1990 forward were published in the following issues of the SURVEY: November 1992, October 1993 through 1995, and November 1996 and 1997. In Canada, the results were published in the following issues of Canada's Balance of International Payments (catalogue 67-000, a publication of Statistics Canada: Fourth Quarter 1973, Second Quarter 1976 and 1977, Third Quarter 1978 and 1979, First Quarter 1981, and Third Quarter 1981 through 1997.

(4.) For reconciliation purposes, some of the details in the tables in this article differ from those in balance-of-payments tables regularly published by BEA and Statistics Canada.

(5.) In this article, the term "northbound" refers to U.S. receipts, or Canadian payments; the term "southbound" refers to U.S. payments, or Canadian receipts.

(6.) See Anthony J. DiLullo and Lucie Laliberte, "Reconciliation of the U.S.-Canadian Current Account, 1995 and 1996," in SURVEY 77 (November 1997): 87 and in Canada's Balance of International Payments, Third Quarter 1997: 22-23.

RELATED ARTICLE: Note on the U.S.-Canadian Current-Account Reconciliation

The U.S.-Canadian current-account reconciliation is undertaken because of the extensive economic links between the two countries and the need to explain differences in the published Canadian and U.S. estimates of the bilateral current account. In principle, the bilateral current account of one country should mirror the bilateral current account of the other country.

Differences occur in the bilateral U.S. and Canadian current accounts as published by the Bureau of Economic Analysis (BEA) and by Statistics Canada because of differences in the definitions, methodologies, and statistical sources used by each agency. In addition, some of the differences for 1997 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 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)

The longstanding Canadian-U.S. current-account reconciliation is among the leading examples of the benefits that can be derived from international data sharing. The reconciliation process and the exchange of data have resulted in greater accuracy of the published estimates of transactions between Canada and the United States and in increased efficiency in producing the estimates. 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 transportation transactions cover more than 80 percent of the value of the Canadian and U.S. current account and has led to the elimination of some differences in the Canadian- and U.S.-published estimates. Wider opportunities for international data sharing may result from the 1997 yearend coordinated benchmark survey of international portfolio investment that was undertaken by more than 30 countries, including Canada and the United States, under the auspices of the International Monetary Fund.

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, protection of the confidentiality of source data bars the exchange of data. Finally, some requirements, such as valuation adjustments, differ when integrating the international and national (domestic) accounts in each country.

(1.) A detailed article on the methodology used to reconcile the U.S.-Canadian current account 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.

Anthony DiLullo is the assistant chief of BEA's Balance of Payments Division. Hugh Henderson is Chief, Current Account, in Statistics Canada's Balance of Payments and Financial Flows Division. This article will also be published in Canada's Balance of International Payments, Third Quarter 1998.