Reconciliation of the U.S.-Canadian current account, 2001 and 2002.

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

ON a reconciled basis, the U.S. deficit, or Canadian surplus, is $39.1 billion for 2001 and $38.0 billion for 2002 (chart 1, table 1). (1) The U.S.-published current-account balance with Canada is a U.S. deficit of $28.1 billion for 2001 and a U.S. deficit of $30.4 billion for 2002; the corresponding Canadian-published balance is a Canadian surplus (U.S. deficit) of $37.0 billion for 2001 and a Canadian surplus (U.S. deficit) of $38.3 billion for 2002. (2)

This article presents the results of the reconciliation of the bilateral current-account estimates of Canada and the United States for 2001 and 2002. (3) The details of the current-account reconciliation for 2001 and 2002 are presented in the tables that follow this article. Tables 2.1 and 2.2 show the details of the major types of reconciliation adjustments--definitional, methodological, and statistical--that were made to the major current-account components. Tables 3.1 and 3.2 present the published estimates, the estimates on a common basis (after the estimates have been adjusted for definitional and methodological differences), the reconciled estimates, and the amounts of the adjustments for each major current-account component. Tables 4-7 present the reconciliation details for goods, services, and investment income. (4)

Reconciled Current-Account Balances

In the U.S. current account, the reconciliation adjustments result in an increase of $11.0 billion in the U.S. deficit for 2001 and an increase of $7.6 billion in the U.S. deficit for 2002. In both years, the increases reflect larger upward adjustments to the U.S. southbound estimates than to the U.S. northbound estimates (tables 2.1 and 2.2). (5) The largest increases in the U.S. southbound estimates result from the addition of Canadian reexports to U.S. goods imports (a definitional adjustment), from the valuation of U.S. natural gas imports to include inland freight (a definitional adjustment), from an increase for undercoverage of some southbound services (a statistical adjustment), and for 2001, from adjustments for statistical differences in direct investment income. The largest increases in the U.S. northbound estimates result from upward adjustments to investment income for undercoverage of income on U.S. holdings of Canadian bonds (definitional and statistical adjustments).

In the Canadian current account, the reconciliation adjustments result in an increase of $2.1 billion in the 2001 Canadian surplus and in a decrease of $0.3 billion in the 2002 Canadian surplus. In both years, the changes to the Canadian surplus reflect downward adjustments to both southbound estimates and northbound estimates. For 2001, the increase reflects a larger downward adjustment to the Canadian northbound estimate than to the Canadian southbound estimate, and for 2002, the decrease reflects a larger downward adjustment to the Canadian southbound estimate than to the Canadian northbound estimate. In both years, the Canadian southbound estimates were adjusted downward to account for definitional differences, mainly in unilateral transfers; to account for methodological differences, mainly the netting of Canadian bank claims and liabilities in "other" investment income; and downward adjustments to account for statistical differences, mainly in direct investment income. In the Canadian northbound estimates for both years, downward adjustments for definitional and methodological differences were mainly in "other" investment income, and downward adjustments for statistical differences were mainly in "other" services. Although the methodological adjustments explain part of the total adjustments to the northbound and the southbound estimates of "other" investment income, they do not affect the current-account balance because the northbound and the southbound methodological adjustments are offsetting.

Summary of Reconciliation Methodology

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

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

The methodological adjustments mainly reflect differences in classification. For example, parts of the U.S. estimates of film rentals and courier services are recorded in various services accounts; for reconciliation, they are reclassified to a single account. A few U.S. and Canadian accounts, mainly interest income, are adjusted to a net or gross basis for comparability.

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

Table 1. Major US Canadian Balances

[Billions of U.S. dollars]

 Published Reconciled
 estimates estimates

 United Canada United Canada
 States States

 2001
Goods and services -48.7 58.6 -59.5 59.5
 Goods -55.5 62.7 -63.7 63.7
 Services 6.8 -4.1 4.2 -4.2
Income 21.4 -23.8 21.4 -21.4
Current unilateral transfers -0.8 2.2 -0.9 0.9
Current account -28.1 37.0 -39.1 39.1

 2002
Goods and services -45.1 55.0 -56.0 56.0
 Goods -50.9 58.6 -59.1 59.1
 Services 5.8 -3.6 3.1 -3.1
Income 15.3 -18.9 18.5 -18.5
Current unilateral transers -0.6 2.2 -0.5 0.5
Current account -30.4 38.3 -38.0 38.0

NOTE: A U.S. surplus (+) is a Canadian deficit (-), and a Canadian
surplus (+) is a U.S. deficit (-).

Details may not add to totals because of rounding

Table 2.1. Summary of Reconciliation Adjustments, Northbound, 2001

[Millions of U.S. dollars]

 Definitional

 United
 States Canada

Goods, balance of payments basis 125 -198
 Valuation adjustments 125 -198
 Reclassification of equipment
 repairs from unaffiliated services
 Statistical adjustments
Services -27 -500
 Travel
 Reclassification of education from
 unaffiliated services
 Reclassification of medical
 services from unaffiliated services
 Statistical adjustments
 Passenger fares
 Statistical adjustments
 Other transportation -106
 Valuation adjustments -106
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services -27 -394
 Affiliated -94
 Valuation adjustments -94
 Reclassification of film rentals
 and courier services to
 unaffiliated services
 Statistical adjustments
 Unaffiliated 11 -300
 Valuation adjustments 11 -300
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. military sales -38
 Valuation adjustments -38
 Statistical adjustments
Income 2,253 -3,593
 Direct investment -94 -491
 Valuation adjustments -94 -491
 Reclassification of dividends
 to "other" income
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Other investment 2,347 -3,102
 Interest adjustment for coverage
 of U.S. holdings of Canadian bonds 1,583 -1,475
 Other valuation adjustments 764 -1,627
 Reclassification of dividends
 from direct investment
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Compensation of employees
Current unilateral transfers -202 -481
 Valuation adjustments -202 -481
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments
Total adjustments 2,149 -4,772

 Methodological

 Reclassification

 United
 States Canada

Goods, balance of payments basis 264
 Valuation adjustments
 Reclassification of equipment
 repairs from unaffiliated services 264
 Statistical adjustments
Services -264 -69
 Travel 790
 Reclassification of education from
 unaffiliated services 569
 Reclassification of medical services
 from unaffiliated services 221
 Statistical adjustments
 Passenger fares
 Statistical adjustments
 Other transportation 212
 Valuation adjustnents
 Reclassification of transportation
 services from unaffiliated services 212
 Statistical adjustments
 Other services -1,054 -281
 Affiliated -362
 Valuation adjustments
 Reclassification of film rentals
 and courier services to
 unaffiliated services -362
 Statistical adjustments
 Unaffiliated -692 -281
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts -692 -281
 Statistical adjustments
 U.S. military sales
 Valuation adjustments,
 Statistical adjustments
Income 69
 Direct investment -26
 Valuation adjustments
 Reclassification of dividends
 to "other" income -26
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Other investment 26
 Interest adjustment for coverage
 of U.S. holdings of Canadian bonds
 Other valuation adjustments
 Reclassification of dividends
 from direct investment 26
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Compensation of employees 69
Current unilateral transfers
 Valuation adjustments
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments
Total adjustments

 Methodological

 Gross or net

 United
 States Canada

Goods, balance of payments basis
 Valuation adjustments
 Reclassification of equipment
 repairs from unaffiliated services
 Statistical adjustments
Services
 Travel
 Reclassification of education from
 unaffiliated services
 Reclassification of medical services
 from unaffiliated services
 Statistical adjustments
 Passenger fares
 Statistical adjustments
 Other transportation
 Valuation adjustnents
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services
 Affiliated
 Valuation adjustments
 Reclassification of film rentals
 and courier services to
 unaffiliated services
 Statistical adjustments
 Unaffiliated
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. military sales
 Valuation adjustments,
 Statistical adjustments
Income -1,204 -2,186
 Direct investment -113
 Valuation adjustments
 Reclassification of dividends
 to "other" income
 Adjustment of interest income
 to a net basis -113
 Statistical adjustments
 Other investment -1,204 -2,073
 Interest adjustment for coverage
 of U.S. holdings of Canadian bonds
 Other valuation adjustments
 Reclassification of dividends
 from direct investment
 Adjustment of interest income
 to a net basis -1,204 -2,073
 Statistical adjustments
 Compensation of employees
Current unilateral transfers 297
 Valuation adjustments
 Adjustment of U.S. transfers
 to a gross basis 297
 Statistical adjustments
Total adjustments -907 -2,186

 Statistical

 United
 States Canada

Goods, balance of payments basis 229 -580
 Valuation adjustments
 Reclassification of equipment
 repairs from unaffiliated services
 Statistical adjustments 229 -580
Services 478 -333
 Travel -131 30
 Reclassification of education from
 unaffiliated services
 Reclassification of medical services
 from unaffiliated services
 Statistical adjustments -131 30
 Passenger fares -422
 Statistical adjustments -422
 Other transportation -61 91
 Valuation adjustnents
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments -61 91
 Other services 1,092 -454
 Affiliated 118 -1,925
 Valuation adjustments
 Reclassification of film rentals
 and courier services to
 unaffiliated services
 Statistical adjustments 118 -1,925
 Unaffiliated 974 1,412
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments 974 1,412
 U.S. military sales 59
 Valuation adjustments,
 Statistical adjustments 59
Income 265 906
 Direct investment -269 1,292
 Valuation adjustments
 Reclassification of dividends
 to "other" income
 Adjustment of interest income
 to a net basis
 Statistical adjustments -269 1,292
 Other investment 534 -398
 Interest adjustment for coverage
 of U.S. holdings of Canadian bonds
 Other valuation adjustments
 Reclassification of dividends
 from direct investment
 Adjustment of interest income
 to a net basis
 Statistical adjustments 534 -398
 Compensation of employees 12
Current unilateral transfers 49
 Valuation adjustments
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments 49
Total adjustments 1,021 -7

 Total

 United
 States Canada

Goods, balance of payments basis 618 -779
 Valuation adjustments 125 -198
 Reclassification of equipment
 repairs from unaffiliated services 264
 Statistical adjustments 229 -580
Services 186 -901
 Travel 659 30
 Reclassification of education from
 unaffiliated services 569
 Reclassification of medical services
 from unaffiliated services 221
 Statistical adjustments -131 30
 Passenger fares -422
 Statistical adjustments -422
 Other transportation -61 198
 Valuation adjustnents -106
 Reclassification of transportation
 services from unaffiliated services 212
 Statistical adjustments -61 91
 Other services 10 -1,129
 Affiliated -244 -2,019
 Valuation adjustments -94
 Reclassification of film rentals
 and courier services to
 unaffiliated services -362
 Statistical adjustments 118 -1,925
 Unaffiliated 293 831
 Valuation adjustments 11 -300
 Reclassification of transactions
 to or from other accounts -692 -281
 Statistical adjustments 974 1,412
 U.S. military sales -38 59
 Valuation adjustments, 38
 Statistical adjustments 59
Income 1,314 -4,804
 Direct investment -363 662
 Valuation adjustments -94 -491
 Reclassification of dividends
 to "other" income -26
 Adjustment of interest income
 to a net basis -113
 Statistical adjustments -269 1,292
 Other investment 1,677 -5,547
 Interest adjustment for coverage
 of U.S. holdings of Canadian bonds 1,583 -1,475
 Other valuation adjustments 764 -1,627
 Reclassification of dividends
 from direct investment 26
 Adjustment of interest income
 to a net basis -1,204 -2,073
 Statistical adjustments 534 -398
 Compensation of employees 81
Current unilateral transfers 144 -481
 Valuation adjustments -202 -481
 Adjustment of U.S. transfers
 to a gross basis 297
 Statistical adjustments 49
Total adjustments 2,262 -6,965

Table 2.1. Summary of Reconciliation Adjustments, Northbound, 2002

[Millions of U.S. dollars]

 Definitional

 United
 States Canada

Goods, balance of payments basis -45 -409
 Valuation adjustments -45 -409
 Reclassification of equipment
 repairs from unaffiliated services
 Statistical adjustments
Services -44 -524
 Travel
 Reclassification of education from
 unaffiliated services
 Reclassification of medical
 services from unaffiliated services
 Statistical adjustments
 Passenger fares
 Statistical adjustments
 Other transportation -90
 Valuation adjustments -90
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services -44 -434
 Affiliated -85
 Valuation adjustments -85
 Reclassification of film rentals
 and courier services to
 unaffiliated services
 Statistical adjustments
 Unaffiliated -349
 Valuation adjustments -349
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. military sales -44
 Valuation adjustments -44
 Statistical adjustments
Income 2,295 -3,201
 Direct investment -115 -511
 Valuation adjustments -115 -511
 Reclassification of dividends
 to "other" income
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Other investment 2,410 -2,690
 Interest adjustment for coverage
 of U.S. holdings of Canadian bonds 1,725 -2,690
 Other valuation adjustments 685 -1,613
 Reclassification of dividends
 from direct investment
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Compensation of employees
Current unilateral transfers -22 -378
 Valuation adjustments -22 -378
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments
Total adjustments 2,184 -4,512

 Methodological

 Reclassification

 United
 States Canada

Goods, balance of payments basis 239
 Valuation adjustments
 Reclassification of equipment
 repairs from unaffiliated services 239
 Statistical adjustments
Services -239 -72
 Travel 874
 Reclassification of education from
 unaffiliated services 623
 Reclassification of medical services
 from unaffiliated services 251
 Statistical adjustments
 Passenger fares
 Statistical adjustments
 Other transportation 209
 Valuation adjustnents
 Reclassification of transportation
 services from unaffiliated services 209
 Statistical adjustments
 Other services -1,113 -281
 Affiliated -402
 Valuation adjustments
 Reclassification of film rentals
 and courier services to
 unaffiliated services -402
 Statistical adjustments
 Unaffiliated -711 -281
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts -711 -281
 Statistical adjustments
 U.S. military sales
 Valuation adjustments,
 Statistical adjustments
Income 72
 Direct investment -26
 Valuation adjustments
 Reclassification of dividends
 to "other" income -26
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Other investment 26
 Interest adjustment for coverage
 of U.S. holdings of Canadian bonds
 Other valuation adjustments
 Reclassification of dividends
 from direct investment 26
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Compensation of employees 72
Current unilateral transfers
 Valuation adjustments
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments
Total adjustments

 Methodological

 Gross or net

 United
 States Canada

Goods, balance of payments basis
 Valuation adjustments
 Reclassification of equipment
 repairs from unaffiliated services
 Statistical adjustments
Services
 Travel
 Reclassification of education from
 unaffiliated services
 Reclassification of medical services
 from unaffiliated services
 Statistical adjustments
 Passenger fares
 Statistical adjustments
 Other transportation
 Valuation adjustnents
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services
 Affiliated
 Valuation adjustments
 Reclassification of film rentals
 and courier services to
 unaffiliated services
 Statistical adjustments
 Unaffiliated
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. military sales
 Valuation adjustments,
 Statistical adjustments
Income -7,96 -1,041
 Direct investment -98
 Valuation adjustments
 Reclassification of dividends
 to "other" income
 Adjustment of interest income
 to a net basis -98
 Statistical adjustments
 Other investment -796 -943
 Interest adjustment for coverage
 of U.S. holdings of Canadian bonds
 Other valuation adjustments
 Reclassification of dividends
 from direct investment
 Adjustment of interest income
 to a net basis -796 -943
 Statistical adjustments
 Compensation of employees
Current unilateral transfers 258
 Valuation adjustments
 Adjustment of U.S. transfers
 to a gross basis 258
 Statistical adjustments
Total adjustments -538 -1,041

 Statistical

 United
 States Canada

Goods, balance of payments basis 216 -619
 Valuation adjustments
 Reclassification of equipment
 repairs from unaffiliated services
 Statistical adjustments 216 -619
Services 242 -281
 Travel -122 21
 Reclassification of education from
 unaffiliated services
 Reclassification of medical services
 from unaffiliated services
 Statistical adjustments -122 21
 Passenger fares -436
 Statistical adjustments -436
 Other transportation -53 180
 Valuation adjustnents
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments -53 180
 Other services 369 -482
 Affiliated -429 -1,445
 Valuation adjustments
 Reclassification of film rentals
 and courier services to
 unaffiliated services
 Statistical adjustments -429 -1,445
 Unaffiliated 798 920
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments 798 920
 U.S. military sales 43
 Valuation adjustments,
 Statistical adjustments 43
Income 1,537 1,785
 Direct investment -250 2,098
 Valuation adjustments
 Reclassification of dividends
 to "other" income
 Adjustment of interest income
 to a net basis
 Statistical adjustments -250 2,098
 Other investment 1,787 -324
 Interest adjustment for coverage
 of U.S. holdings of Canadian bonds
 Other valuation adjustments
 Reclassification of dividends
 from direct investment
 Adjustment of interest income
 to a net basis
 Statistical adjustments 1,787 -324
 Compensation of employees 11
Current unilateral transfers 50
 Valuation adjustments
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments 50
Total adjustments 1,561 885

 Total

 United
 States Canada

Goods, balance of payments basis 411 -1,028
 Valuation adjustments -45 -409
 Reclassification of equipment
 repairs from unaffiliated services 239
 Statistical adjustments 216 -619
Services -525 -877
 Travel 752 21
 Reclassification of education from
 unaffiliated services 623
 Reclassification of medical services
 from unaffiliated services 251
 Statistical adjustments -122 21
 Passenger fares -436
 Statistical adjustments -436
 Other transportation -53 299
 Valuation adjustnents -90
 Reclassification of transportation
 services from unaffiliated services 209
 Statistical adjustments -53 180
 Other services -788 -1,197
 Affiliated -831 -1,530
 Valuation adjustments -85
 Reclassification of film rentals
 and courier services to
 unaffiliated services -402
 Statistical adjustments -429 -1,445
 Unaffiliated 87 290
 Valuation adjustments -349
 Reclassification of transactions
 to or from other accounts -711 -281
 Statistical adjustments 798 920
 U.S. military sales -44 43
 Valuation adjustments, -44
 Statistical adjustments 43
Income 3,036 -2,385
 Direct investment -365 1,463
 Valuation adjustments -115 -511
 Reclassification of dividends
 to "other" income -26
 Adjustment of interest income
 to a net basis -98
 Statistical adjustments -250 2,098
 Other investment 3,401 -3,931
 Interest adjustment for coverage
 of U.S. holdings of Canadian bonds 1,725 -1,613
 Other valuation adjustments 685 -1,077
 Reclassification of dividends
 from direct investment 26
 Adjustment of interest income
 to a net basis -796 -943
 Statistical adjustments 1,787 -324
 Compensation of employees 83
Current unilateral transfers 286 -378
 Valuation adjustments -22 -378
 Adjustment of U.S. transfers
 to a gross basis 258
 Statistical adjustments 50
Total adjustments 3,208 -4,668

Table 2.2. Summary of Reconciliation Adjustments, Southbound, 2001

[Millions of U.S. dollars]

 Definitional

 United
 Canada States

Goods, balance of payments basis 131 8,460
 Valuation adjustments -2,018 306
 Canadian reexports to the United States 6,005
 Inland freight adjustment 2,149 2,149
 Reclassification of equipment
 repairs from unaffiliated services
 Statistical adjustments
Services -266 -84
 Travel
 Reclassification of education from
 unaffiliated services
 Statistical adjustments
 Passenger fares
 Other transportation -96 -64
 Valuation adjustments -96 -64
 Reclassification of courier
 services from unaffiliated services
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services -170 -20
 Affiliated -27
 Valuation adjustments -27
 Reclassification of selected
 services to unaffiliated services
 Statistical adjustments
 Unaffiliated -143
 Valuation adjustments -143
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. defense expenditures -20
 Valuation adjustments -20
 Statistical adjustments
Income -523 -448
 Direct investment -205 -207
 Valuation adjustments -205 -207
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Other investment -318 -241
 Valuation adjustments -318 -241
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Compensation of employees
Current unilateral transfers -1,936 -92
 Valuation adjustments -1,936 -92
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments
Total adjustments -2,594 7,836

 Methodological

 Reclassification

 United
 Canada States

Goods, balance of payments basis 9
 Valuation adjustments
 Canadian reexports to the United States
 Inland freight adjustment
 Reclassification of equipment
 repairs from unaffiliated services 9
 Statistical adjustments
Services -212 -9
 Travel
 Reclassification of education from
 unaffiliated services 17
 Statistical adjustments 17
 Passenger fares
 Other transportation 91 -121
 Valuation adjustments
 Reclassification of courier
 services from unaffiliated services -121
 Reclassification of transportation
 services from unaffiliated services 91
 Statistical adjustments
 Other services -303 95
 Affiliated -28
 Valuation adjustments
 Reclassification of selected
 services to unaffiliated services -28
 Statistical adjustments
 Unaffliated -303 123
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts -303 123
 Statistical adjustments
 U.S. defense expenditures
 Valuation adjustments
 Statistical adjustments
Income 212
 Direct investment
 Valuation adjustments
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Other investment
 Valuation adjustments
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Compensation of employees 212
Current unilateral transfers
 Valuation adjustments
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments
Total adjustments

 Methodological

 Gross or net

 United
 Canada States

Goods, balance of payments basis
 Valuation adjustments
 Canadian reexports to the United States
 Inland freight adjustment
 Reclassification of equipment
 repairs from unaffiliated services
 Statistical adjustments
Services
 Travel
 Reclassification of education from
 unaffiliated services
 Statistical adjustments
 Passenger fares
 Other transportation
 Valuation adjustments
 Reclassification of courier
 services from unaffiliated services
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services
 Affiliated
 Valuation adjustments
 Reclassification of selected
 services to unaffiliated services
 Statistical adjustments
 Unaffliated
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. defense expenditures
 Valuation adjustments
 Statistical adjustments
Income -2,186 -1,204
 Direct investment -113
 Valuation adjustments -113
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Other investment -2,073 -1,204
 Valuation adjustments
 Adjustment of interest income
 to a net basis -2,073 -1,204
 Statistical adjustments
 Compensation of employees
Current unilateral transfers 297
 Valuation adjustments
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments 297
Total adjustments -2,186 -907

 Statistical

 United
 Canada States

Goods, balance of payments basis 78 387
 Valuation adjustments
 Canadian reexports to the United States
 Inland freight adjustment
 Reclassification of equipment
 repairs from unaffiliated services
 Statistical adjustments 78 387
Services -453 2,920
 Travel 62
 Reclassification of education from
 unaffiliated services
 Statistical adjustments 62
 Passenger fares
 Other transportation 153 -124
 Valuation adjustments
 Reclassification of courier
 services from unaffiliated services
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments 153 -124
 Other services -606 2,982
 Affiliated -1,080 587
 Valuation adjustments
 Reclassification of selected
 services to unaffiliated services
 Statistical adjustments -1,080 587
 Unaffliated 474 2,395
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments 474 2,395
 U.S. defense expenditures
 Valuation adjustments
 Statistical adjustments
Income 172 3,000
 Direct investment -581 2,871
 Valuation adjustments
 Adjustment of interest income
 to a net basis
 Statistical adjustments -581 2,871
 Other investment 668 129
 Valuation adjustments
 Adjustment of interest income
 to a net basis
 Statistical adjustments 668 129
 Compensation of employees
Current unilateral transfers 85
Current unilateral transfers 127
 Valuation adjustments
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments 127
Total adjustments -76 6,307

 Total

 United
 Canada States

Goods, balance of payments basis 208 8,855
 Valuation adjustments -2,018 306
 Canadian reexports to the United States 6,005
 Inland freight adjustment 2,149 2,149
 Reclassification of equipment
 repairs from unaffiliated services 9
 Statistical adjustments 78 387
Services -929 2,827
 Travel 79
 Reclassification of education from
 unaffiliated services 17
 Statistical adjustments 62
 Passenger fares
 Other transportation 148 -309
 Valuation adjustments -96 -64
 Reclassification of courier
 services from unaffiliated services -121
 Reclassification of transportation
 services from unaffiliated services 91
 Statistical adjustments 153 -124
 Other services -1,077 3,057
 Affiliated -1,107 559
 Valuation adjustments -27
 Reclassification of selected
 services to unaffiliated services -28
 Statistical adjustments -1,080 587
 Unaffliated 28 2,518
 Valuation adjustments -143
 Reclassification of transactions
 to or from other accounts -303 123
 Statistical adjustments 474 2,395
 U.S. defense expenditures -20
 Valuation adjustments -20
 Statistical adjustments
Income -2,325 1,348
 Direct investment -899 2,664
 Valuation adjustments -205 -207
 Adjustment of interest income
 to a net basis -113
 Statistical adjustments -581 2,871
 Other investment -1,723 -1,316
 Valuation adjustments -318 -241
 Adjustment of interest income
 to a net basis -2,073 -1,204
 Statistical adjustments 668 129
 Compensation of employees 297
Current unilateral transfers -1,809 205
 Valuation adjustments
 Adjustment of U.S. transfers -1,936 -92
 to a gross basis 297
 Statistical adjustments 127
Total adjustments -4,885 13,235

Table 2.2. Summary of Reconciliation Adjustments, Southbound, 2002

[Millions of U.S. dollars]

 Definitional

 United
 Canada States

Goods, balance of payments basis -694 8,296
 Valuation adjustments -2,209 247
 Canadian reexports to the United States 6,534
 Inland freight adjustment 1,515 1,515
 Reclassification of equipment
 repairs from unaffiliated services
 Statistical adjustments
Services -423 -83
 Travel
 Reclassification of education from
 unaffiliated services
 Statistical adjustments
 Passenger fares
 Other transportation -115 -66
 Valuation adjustments -115 -66
 Reclassification of courier
 services from unaffiliated services
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services -308 -17
 Affiliated -22
 Valuation adjustments -22
 Reclassification of selected
 services to unaffiliated services
 Statistical adjustments
 Unaffliated -286 3
 Valuation adjustments -286 3
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. defense expenditures -20
 Valuation adjustments -20
 Statistical adjustments
Income -1,726 -407
 Direct investment -1,519 -23
 Valuation adjustments -1,519 -23
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Other investment -207 -384
 Valuation adjustments -207 -384
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Compensation of employees
Current unilateral transfers -1,879 -106
 Valuation adjustments -1,879 -106
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments
Total adjustments -4,722 7,700

 Methodological

 Reclassification

 United
 Canada States

Goods, balance of payments basis 5
 Valuation adjustments
 Canadian reexports to the United States
 Inland freight adjustment
 Reclassification of equipment
 repairs from unaffiliated services 5
 Statistical adjustments
Services -220 -5
 Travel
 Reclassification of education from
 unaffiliated services 16
 Statistical adjustments 16
 Passenger fares
 Other transportation 90 -313
 Valuation adjustments
 Reclassification of courier
 services from unaffiliated services -313
 Reclassification of transportation
 services from unaffiliated services 90
 Statistical adjustments
 Other services -310 292
 Affiliated -28
 Valuation adjustments
 Reclassification of selected
 services to unaffiliated services -28
 Statistical adjustments
 Unaffiliated -310 320
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts -310 320
 Statistical adjustments
 U.S. defense expenditures
 Valuation adjustments
 Statistical adjustments
Income 220
 Direct investment
 Valuation adjustments
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Other investment
 Valuation adjustments
 Adjustment of interest income
 to a net basis
 Statistical adjustments
 Compensation of employees 220
Current unilateral transfers
 Valuation adjustments
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments
Total adjustments

 Methodological

 Gross or net

 United
 Canada States

Goods, balance of payments basis
 Valuation adjustments
 Canadian reexports to the United States
 Inland freight adjustment
 Reclassification of equipment
 repairs from unaffiliated services
 Statistical adjustments
Services
 Travel
 Reclassification of education from
 unaffiliated services
 Statistical adjustments
 Passenger fares
 Other transportation
 Valuation adjustments
 Reclassification of courier
 services from unaffiliated services
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments
 Other services
 Affiliated
 Valuation adjustments
 Reclassification of selected
 services to unaffiliated services
 Statistical adjustments
 Unaffliated
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments
 U.S. defense expenditures
 Valuation adjustments
 Statistical adjustments
Income -1,041 -796
 Direct investment -98
 Valuation adjustments
 Adjustment of interest income
 to a net basis -98
 Statistical adjustments
 Other investment -943 -796
 Valuation adjustments
 Adjustment of interest income
 to a net basis -943 -796
 Statistical adjustments
 Compensation of employees
Current unilateral transfers 258
 Valuation adjustments
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments 258
Total adjustments -1,041 -538

 Statistical

 United
 Canada States

Goods, balance of payments basis 171 371
 Valuation adjustments
 Canadian reexports to the United States
 Inland freight adjustment
 Reclassification of equipment
 repairs from unaffiliated services
 Statistical adjustments 171 371
Services 332 2,299
 Travel 60
 Reclassification of education from
 unaffiliated services
 Statistical adjustments 60
 Passenger fares -1
 Other transportation 139 -82
 Valuation adjustments
 Reclassification of courier
 services from unaffiliated services
 Reclassification of transportation
 services from unaffiliated services
 Statistical adjustments 139 -82
 Other services 193 2,322
 Affiliated -596 388
 Valuation adjustments
 Reclassification of selected
 services to unaffiliated services
 Statistical adjustments -596 388
 Unaffliated 779 1,934
 Valuation adjustments
 Reclassification of transactions
 to or from other accounts
 Statistical adjustments 779 1,934
 U.S. defense expenditures 10
 Valuation adjustments
 Statistical adjustments 10
Income 612 1,011
 Direct investment -16 693
 Valuation adjustments
 Adjustment of interest income
 to a net basis
 Statistical adjustments -16 693
 Other investment 543 318
 Valuation adjustments
 Adjustment of interest income
 to a net basis
 Statistical adjustments 543 318
 Compensation of employees
Current unilateral transfers 85
Current unilateral transfers -236
 Valuation adjustments
 Adjustment of U.S. transfers
 to a gross basis
 Statistical adjustments -236
Total adjustments 879 3,681

 Total

 United
 Canada States

Goods, balance of payments basis -524 8,672
 Valuation adjustments -2,209 247
 Canadian reexports to the United States 6,534
 Inland freight adjustment 1,515 1,515
 Reclassification of equipment
 repairs from unaffiliated services 5
 Statistical adjustments 171 371
Services -310 2,211
 Travel 76
 Reclassification of education from
 unaffiliated services 16
 Statistical adjustments 60
 Passenger fares -1
 Other transportation 114 -461
 Valuation adjustments -115 -66
 Reclassification of courier
 services from unaffiliated services -313
 Reclassification of transportation
 services from unaffiliated services 90
 Statistical adjustments 139 -82
 Other services -424 2,597
 Affiliated -618 360
 Valuation adjustments -22
 Reclassification of selected
 services to unaffiliated services -28
 Statistical adjustments -596 388
 Unaffliated 183 2,257
 Valuation adjustments -286 3
 Reclassification of transactions
 to or from other accounts -310 320
 Statistical adjustments 779 1,934
 U.S. defense expenditures 10 -20
 Valuation adjustments -20
 Statistical adjustments 10
Income -1,935 -192
 Direct investment -1,633 670
 Valuation adjustments -1,519 -23
 Adjustment of interest income
 to a net basis -98
 Statistical adjustments -16 693
 Other investment -607 -862
 Valuation adjustments -207 -384
 Adjustment of interest income
 to a net basis -943 -796
 Statistical adjustments 543 318
 Compensation of employees 305
Current unilateral transfers -2,115 152
 Valuation adjustments
 Adjustment of U.S. transfers -1,879 -106
 to a gross basis 258
 Statistical adjustments -236
Total adjustments -4,884 10,843

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

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Difference
 receipts payments

 2001

Goods and services 187,972 190,456 -2,484
 Goods, balance of payments basis 163,259 164,656 -1,397
 Services 24,713 25,800 -1,087
 Travel 6,595 7,224 -629
 Passenger fares 1,768 1,346 422
 Other transportation 2,478 2,219 259
 Other services 13,872 15,011 -1,139
Income 21,880 27,998 -6,118
 Investment income 21,799 27,998 -6,199
 Direct investment 11,975 10,950 1,025
 Other investment 9,824 17,048 -7,224
 Compensation of employees 81 (1) 81
Current unilateral transfers (2) 625 -625
 Current account, northbound 209,852 219,079 -9,227

 2002

Goods and services 185,364 187,155 -1,791
 Goods, balance of payments basis 160,895 162,334 -1,439
 Services 24,469 24,821 -352
 Travel 6,268 6,999 -731
 Passenger fares 1,717 1,281 436
 Other transportation 2,624 2,272 352
 Other services 13,860 14,269 -409
Income, 19,368 24,789 -5,421
 Investment income 19,285 24,789 -5,504
 Direct investment 11,208 9,380 1,828
 Other investment 8,077 15,409 -7,332
 Compensation of employees 83 (1) 83
Current unilateral transfers (2) 664 -664
 Current account, northbound 204,732 212,608 -7,876

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian Difference
 receipts payments

 2001

Goods and services 188,070 189,689 -1,619
 Goods, balance of payments basis 163,648 164,457 -809
 Services 24,422 25,232 -810
 Travel 7,385 7,224 161
 Passenger fares 1,768 1,346 422
 Other transportation 2,478 2,325 153
 Other services 12,791 14,337 -1,546
Income 22,929 22,290 639
 Investment income 22,848 22,221 627
 Direct investment 11,881 10,321 1,560
 Other investment 10,967 11,900 -933
 Compensation of employees 81 69 12
Current unilateral transfers 95 144 -49
 Current account, northbound 211,094 212,123 -1,029

 2002

Goods and services 185,277 186,149 -872
 Goods, balance of payments basis 161,090 161,925 -835
 Services 24,187 24,224 -37
 Travel 7,142 6,999 143
 Passenger fares 1,717 1,281 436
 Other transportation 2,624 2,391 233
 Other services 12,704 13,553 -849
Income, 20,866 20,619 247
 Investment income 20,783 20,547 236
 Direct investment 11,093 8,745 2,348
 Other investment 9,690 11,802 -2,112
 Compensation of employees 83 72 11
Current unilateral transfers 236 286 -50
 Current account, northbound 206,379 207,054 -675

 Reconciled estimates,
 including statistical
 adjustments

 U.S. Canadian
 receipts payments

 2001

Goods and services 188,776 188,776
 Goods, balance of payments basis 163,877 163,877
 Services 24,899 24,899
 Travel 7,254 7,254
 Passenger fares 1,346 1,346
 Other transportation 2,417 2,417
 Other services 13,882 13,882
Income 23,194 23,194
 Investment income 23,113 23,113
 Direct investment 11,612 11,612
 Other investment 11,501 11,501
 Compensation of employees 81 81
Current unilateral transfers 144 144
 Current account, northbound 212,114 212,114

 2002

Goods and services 185,250 185,250
 Goods, balance of payments basis 161,306 161,306
 Services 23,944 23,944
 Travel 7,020 7,020
 Passenger fares 1,281 1,281
 Other transportation 2,571 2,571
 Other services 13,072 13,072
Income, 22,404 22,404
 Investment income 22,321 22,321
 Direct investment 10,843 10,843
 Other investment 11,478 11,478
 Compensation of employees 83 83
Current unilateral transfers 286 286
 Current account, northbound 207,940 207,940

 Total adjustments
 to published
 estimates

 United Canada
 States
 2001

Goods and services 804 -1,680
 Goods, balance of payments basis 618 -779
 Services 186 -901
 Travel 659 30
 Passenger fares -422
 Other transportation -61 198
 Other services 10 -1,129
Income 1,314 -4,804
 Investment income 1,314 -4,885
 Direct investment -363 662
 Other investment 1,677 -5,547
 Compensation of employees 81
Current unilateral transfers 144 -481
 Current account, northbound 2,262 -6,965

 2002

Goods and services -114 -1,905
 Goods, balance of payments basis 411 -1,028
 Services -525 -877
 Travel 752 21
 Passenger fares -436
 Other transportation -53 299
 Other services -788 -1,197
Income, 3,036 -2,385
 Investment income 3,036 -2,468
 Direct investment -365 1,463
 Other investment 3,401 -3,931
 Compensation of employees 83
Current unilateral transfers 286 -378
 Current account, northbound 3,208 -4,668

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

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

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

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S. Difference
 receipts payments

 2001

Goods and services 249,037 236,634 12,403
 Goods 227,384 218,737 8,647
 Services 21,653 17,897 3,756
 Travel 6,424 6,345 79
 Passenger fares, 685 685
 Other transportation 2,880 3,337 -457
 Other services 11,664 7,530 4,134
Income 4,137 464 3,673
 Investment income 4,137 167 3,970
 Direct investment -2,049 -5,612 3,563
 Other investment 6,186 5,779 407
 Other private investment 4,945 4,076 869
 U.S. Government liabilities 1,241 1,703 -462
 Compensation of employees (1) 297 -297
Current unilateral transfers
 Current account, southbound 2,857 843 2,014

 2002 256,031 237,941 18,090

Goods and services
 Goods 242,151 230,434 11,717
 Services 220,957 211,761 9,196
 Travel 21,194 18,673 2,521
 Passenger fares 6,565 6,489 76
 Other transportation 593 594 -1
 Other services 3,014 3,589 -575
Income 11,022 8,001 3,021
 Investment income 5,852 4,109 1,743
 Direct investment 5,852 3,804 2,048
 Other investment 1,090 -1,213 2,303
 Other private investment 4,762 5,017 -255
 U.S. Government liabilities 3,816 3,804 12
 Compensation of employees 946 1,213 -267
Current unilateral transfers (1) 305 -305
 Current account, southbound 2,857 590 2,267
 250,860 235,133 15,727

 Common-basis estimates
 after definitional and
 methodological adjustments

 Canadian U.S. Difference
 receipts payments
 2001

Goods and services 248,691 245,007 3,684
 Goods 227,515 227,205 310
 Services 21,176 17,802 3,374
 Travel 6,424 6,362 62
 Passenger fares, 685 685
 Other transportation 2,875 3,152 -277
 Other services 11,192 7,603 3,589
Income 1,638 -1,187 2,825
 Investment income 1,426 -1,484 2,910
 Direct investment -2,368 -5,819 3,451
 Other investment 3,794 4,335 -541
 Other private investment 2,728 2,873 -145
 U.S. Government liabilities 1,066 1,462 -396
 Compensation of employees 212 297 -85
Current unilateral transfers 921 1,048 -127
 Current account, southbound 251,250 244,868 6,382

 2002

Goods and services 240,815 238,647 2,168
 Goods 220,262 220,062 200
 Services 20,553 18,585 1,968
 Travel 6,565 6,505 60
 Passenger fares 593 594 -1
 Other transportation 2,989 3,210 -221
 Other services 10,406 8,276 2,130
Income 3,302 2,906 396
 Investment income 3,083 2,601 482
 Direct investment -528 -1,236 708
 Other investment 3,611 3,837 -226
 Other private investment 2,782 3,007 -225
 U.S. Government liabilities 829 830 -1
 Compensation of employees 219 305 -86
Current unilateral transfers 978 742 236
 Current account, southbound 245,095 242,295 2,800

 Reconciled estimates,
 including statistical
 adjustments

 Canadian U.S.
 receipts payments

 2001

Goods and services 248,316 248,316
 Goods 227,592 227,592
 Services 20,724 20,724
 Travel 6,424 6,424
 Passenger fares, 685 685
 Other transportation 3,028 3,028
 Other services 10,587 10,587
Income 1,812 1,812
 Investment income 1,515 1,515
 Direct investment -2,948 -2,948
 Other investment 4,463 4,463
 Other private investment 3,199 3,199
 U.S. Government liabilities 1,264 1,264
 Compensation of employees 297 297
Current unilateral transfers 1,048 1,048
 Current account, southbound 251,176 251,176

 2002

Goods and services 241,317 241,317
 Goods 220,433 220,433
 Services 20,884 20,884
 Travel 6,565 6,565
 Passenger fares 593 593
 Other transportation 3,128 3,128
 Other services 10,598 10,598
Income 3,917 3,917
 Investment income 3,612 3,612
 Direct investment -543 -543
 Other investment 4,155 4,155
 Other private investment 3,326 3,326
 U.S. Government liabilities 829 829
 Compensation of employees 305 305
Current unilateral transfers 742 742
 Current account, southbound 245,976 245,976

 Total adjustments
 to published
 estimates

 United
 Canada States

 2001

Goods and services -721 11,682
 Goods 208 8,855
 Services -929 2,827
 Travel 79
 Passenger fares,
 Other transportation 148 -309
 Other services -1,077 3,057
Income -2,325 1,348
 Investment income -2,622 1,348
 Direct investment -899 2,664
 Other investment -1,723 -1,316
 Other private investment -1,746 -877
 U.S. Government liabilities 23 -439
 Compensation of employees 297
Current unilateral transfers -1,809 205
 Current account, southbound -4,855 13,235

 2002

Goods and services -834 10,883
 Goods -524 8,672
 Services -310 2,211
 Travel 76
 Passenger fares -1
 Other transportation 114 -461
 Other services -424 2,597
Income -1,935 -192
 Investment income -2,240 -192
 Direct investment -1,633 670
 Other investment -607 -862
 Other private investment 190 478
 U.S. Government liabilities -117 -384
 Compensation of employees 305
Current unilateral transfers -2,115 152
 Current account, southbound 4,884 10,843

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

Table 4.1. Trade in Goods, Northbound

[Millions of U.S. dollars]

 U.S. Canadian
 receipts payments

 2001

Balance of payments basis, published 163,259 164,656
 Definitional and methodological adjustments:
 Valuation adjustments 125 -199
 Reclassification of equipment repairs
 from unaffiliated services 264
 Common basis after definitional and methodo-
 logical adjustments 163,648 164,457
 Statistical adjustments 229 -580
Reconciled, including statistical adjustments 163,877 163,877

 2002

Balance of payments basis, published 160,895 162,334
 Definitional and methodological adjustments:
 Valuation adjustments -45 -409
 Reclassification of equipment repairs
 from unaffiliated services 239
 Common basis after definitional and methodo-
 logical adjustments 161,090 161,925
 Statistical adjustments 216 -619
Reconciled, including statistical adjustments 161,306 161,306

Table 4.2. Trade in Goods, Southbound

[Millions of U.S. dollars]

 Canadian U.S.
 receipts payments

 2001

Balance of payments basis, published 227,384 218,737
 Definitional and methodological adjustments:
 Valuation adjustments -2,018 306
 Canadian reexports to the United States 6,005
 Inland freight adjustment 2,149 2,149
 Reclassification of equipment repairs
 from unaffiliated services 9
 Common basis after definitional and methodo-
 logical adjustments 227,515 227,205
 Statistical adjustments 78 387
Reconciled, including statistical adjustments 227,592 227,592

 2002

Balance of payments basis, published 220,957 211,761
 Definitional and methodological adjustments:
 Valuation adjustments -2,210 247
 Canadian reexports to the United States 6,534
 Inland freight adjustment 1,515 1,515
 Reclassification of equipment repairs
 from unaffiliated services 5
 Common basis after definitional and methodo-
 logical adjustments 220,262 220,062
 Statistical adjustments 171 371
Reconciled, including statistical adjustments 220,433 220,433

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

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian
 receipts payments Difference

 2001

Travel 6,595 7,224 -629
 Business and personal 6,595 6,464 131
 Education 549 -549
 Medical 211 -211
Passenger fares 1,768 1,346 422
Other transportation 2,478 2,219 259
 Freight 1,858 1,877 -19
 Ocean 162 246 -84
 Air 81 19 62
 Truck 1,243 1,243
 Other 372 369 3
 Port services 620 299 321
 Vessel operators 81 20 61
 Airline operators 274 260 14
 Other 265 19 246
 Other 43 -43


 2002

Travel 6,268 6,999 -731
 Business and personal 6,268 6,146 122
 Education 607 -607
 Medical 245 -245
Passenger fares 1,717 1,281 436
Other transportation 2,624 2,272 352
 Freight 1,937 1,940 -3
 Ocean 136 242 -106
 Air 87 15 72
 Truck 1,306 1,308 -2
 Other 408 375 33
 Port services 687 293 394
 Vessel operators 74 19 55
 Airline operators 343 255 88
 Other 270 19 251
 Other 39 -39

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian
 receipts payments Difference

 2001

Travel 7,385 7,224 161
 Business and personal 6,595 6,464 131
 Education 569 549 20
 Medical 221 211 10
Passenger fares 1,768 1,346 422
Other transportation 2,478 2,325 153
 Freight 1,850 1,771 79
 Ocean 154 116 38
 Air 81 43 38
 Truck 1,243 1,243
 Other 372 369 3
 Port services 620 511 109
 Vessel operators 81 20 61
 Airline operators 274 260 14
 Other 265 231 34
 Other 8 43 -35

 2002

Travel 7,142 6,999 143
 Business and personal 6,268 6,146 122
 Education 623 607 16
 Medical 251 245 6
Passenger fares 1,717 1,281 436
Other transportation 2,624 2,391 233
 Freight 1,929 1,848 81
 Ocean 128 126 2
 Air 87 39 48
 Truck 1,306 1,308 -2
 Other 408 375 33
 Port services 687 504 183
 Vessel operators 74 22 52
 Airline operators 343 255 88
 Other 270 228 42
 Other 8 39 -31

 Reconciled estimates, Total adjustments
 including statistical to published
 adjustments estimates

 U.S. Canadian United
 receipts payments States
 2001

Travel 7,254 7,254 659
 Business and personal 6,464 6,464 -131
 Education 569 569 569
 Medical 221 221 221
Passenger fares 1,346 1,346 422
Other transportation 2,417 2,417 -61
 Freight 1,844 1,844 -14
 Ocean 177 177 15
 Air 43 43 -38
 Truck 1,243 1,243
 Other 381 381 9
 Port services 530 530 -90
 Vessel operators 20 20 -61
 Airline operators 274 274
 Other 236 236 -29
 Other 43 43 43

 2002

Travel 7,020 7,020 752
 Business and personal 6,146 6,146 -122
 Education 623 623 623
 Medical 251 251 251
Passenger fares 1,281 1,281 -436
Other transportation 2,571 2,571 -53
 Freight 1,934 1,934 -3
 Ocean 173 173 37
 Air 39 39 -48
 Truck 1,306 1,306
 Other 416 416 8
 Port services 598 598 -89
 Vessel operators 22 22 -52
 Airline operators 343 343
 Other 233 233 -37
 Other 39 39 39

 Total adjustments to published estimates

 Canada Type of adjustment
 2001

Travel 30
 Business and personal Statistical
 Education 20 Reclassification and statistical
 Medical 10 Reclassification and statistical
Passenger fares Statistical
Other transportation 198
 Freight -33
 Ocean -69 Definitional, reclassification,
 and statistical
 Air 24 Definitional and statistical
 Truck
 Other 12 Statistical
 Port services 231
 Vessel operators Statistical
 Airline operators 14 Statistical
 Other 217 Reclassification and statistical
 Other Reclassification and statistical

 2002

Travel 21
 Business and personal Statistical
 Education 16 Reclassification and statistical
 Medical 6 Reclassification and statistical
Passenger fares Statistical
Other transportation 299
 Freight -6
 Ocean -69 Definitional, reclassification,
 and statistical
 Air 24 Definitional and statistical
 Truck -2 Statistical
 Other 41 Statistical
 Port services 305
 Vessel operators 3 Definitional and statistical
 Airline operators 88 Statistical
 Other 214 Reclassification and statistical
 Other Reclassification and statistical

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

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S.
 receipts payments Difference

 2001

Travel 6,424 6,345 79
 Business and personal 6,305 6,345 -40
 Education 70 70
 Medical 49 49
Passenger fares 685 685
Other transportation 2,880 3,337 -457
 Freight 2,270 2,590 -320
 Ocean 92 275 -183
 Air 45 45
 Truck 2,028 2,028
 Other 105 242 -137
 Port services 499 747 -248
 Vessel operators 47 129 -82
 Airline operators 390 511 -121
 Other 62 107 -45
 Other 110 110

 2002

Travel 6,565 6,489 76
 Business and personal 6,436 6,489 -53
 Education 78 78
 Medical 52 52
Passenger fares 593 594 -1
Other transportation 3,014 3,589 -575
 Freight 2,437 2,705 -268
 Ocean 107 238 -131
 Air 48 51 -3
 Truck 2,157 2,171 -14
 Other 126 245 -119
 Port services 446 884 -438
 Vessel operators 52 132 -80
 Airline operators 329 642 -313
 Other 65 110 -45
 Other 131 131

 Common-basis estimates
 after defnitional and
 methodological adjustments

 Canadian U.S.
 receipts payments Difference

 2001

Travel 6,424 6,362 62
 Business and personal 6,305 6,345 -40
 Education 70 17 53
 Medical 49 49
Passenger fares 685 685
Other transportation 2,875 3,152 -277
 Freight 2,270 2,428 -158
 Ocean 92 247 -155
 Air 45 45
 Truck 2,028 2,028
 Other 105 108 -3
 Port services 594 696 -102
 Vessel operators 50 65 -15
 Airline operators 390 390
 Other 153 241 -88
 Other 11 28 -17

 2002

Travel 6,565 6,505 60
 Business and personal 6,436 6,489 -53
 Education 78 16 62
 Medical 52 52
Passenger fares 593 594 -1
Other transportation 2,989 3,210 -221
 Freight 2,437 2,543 -106
 Ocean 107 212 -105
 Air 48 51 -3
 Truck 2,157 2,171 -14
 Other 126 109 17
 Port services 539 641 -102
 Vessel operators 55 66 -11
 Airline operators 329 329
 Other 155 246 -91
 Other 13 26 -13

 Reconciled estimates, Total
 including statistical adjustments to
 adjustments published estimates

 Canadian U.S.
 receipts payments Canada

 2001

Travel 6,424 6,424
 Business and personal 6,305 6,305
 Education 70 70
 Medical 49 49
Passenger fares 685 685
Other transportation 3,028 3,028 148
 Freight 2,348 2,348 78
 Ocean 170 170 78
 Air 45 45
 Truck 2,028 2,028
 Other 105 105
 Port services 652 652 153
 Vessel operators 65 65 18
 Airline operators 390 390
 Other 197 197 135
 Other 28 28 42

 2002

Travel 6,565 6,565
 Business and personal 6,436 6,436
 Education 78 78
 Medical 52 52
Passenger fares 593 593
Other transportation 3,128 3,128 114
 Freight 2,508 2,508 71
 Ocean 160 160 53
 Air 51 51 3
 Truck 2,171 2,171 14
 Other 126 126
 Port services 594 594 148
 Vessel operators 66 66 14
 Airline operators 329 329
 Other 199 199 134
 Other 26 26 -105

 Total adjustments to published estimates

 United Type of adjustment
 States

 2001

Travel 79
 Business and personal -40 Statistical
 Education 70 Reclassificafion and statistical
 Medical 49 Statistical
Passenger fares
Other transportation -309
 Freight -242
 Ocean -105 Definitional, reclassification,
 and statistical
 Air
 Truck
 Other -137 Reclassification and statistical
 Port services -95
 Vessel operators -64 Definitional and statistical
 Airline operators -121 Reclassification
 Other 90 Reclassification and statistical
 Other 28 Definitional, reclassification,
 and statistical

 2002

Travel 76
 Business and personal -53 Statistical
 Education 78 Reclassification and statistical
 Medical 52 Statistical
Passenger fares -1 Statistical
Other transportation -461
 Freight -197
 Ocean -78 Definitional, reclassification,
 and statistical
 Air Statistical
 Truck Statistical
 Other -119 Reclassification and statistical
 Port services -290
 Vessel operators -66 Definitional and statistical
 Airline operators -313 Reclassification
 Other 89 Reclassification and statistical
 Other 26 Definitional, reclassification,
 and statistical

Table 6.1. Other Services, Northbound

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Difference
 receipts payments

 2001

 Total 13,872 15,011 -1,139
Affiliated 6,813 8,588 -1,775
 Royalties and license fees 2,156 2,103 53
 Other services 4,657 6,485 -1,828
Unaffiliated 6,962 6,423 539
 Royalties, license fees, and
 selected services 1,631 1,361 270
 Insurance 367 414 -47
 Financial services 1,081 932 149
 Education and training 595 19 576
 Communications 519 695 -176
 Computer services 584 531 53
 Business services 1,541 850 691
 Sports and entertainment 465 1,179 -714
 Other private 246 -246
 Government:
 United States (nonmilitary) 72 64 8
 Canada 107 131 -24
U.S. military sales 97 97

 2002

 Total 13,860 14,269 -409
Affiliated 7,094 7,793 -699
 Royalties and license fees 2,388 2,084 304
 Other services 4,706 5,708 -1,002
Unafiliated 6,679 6,478 203
 Royalties, license fees, and
 selected services 1,491 1,352 139
 Insurance 301 431 -130
 Financial services 873 990 -117
 Education and training 652 14 638
 Communications 391 661 -270
 Computer services 772 523 249
 Business services 1,513 757 756
 Sports and entertainment 493 1,314 -821
 Other private 242 -242
 Government:
 United States (nonmilitary) 86 61 25
 Canada 107 132 -25
U.S. military sales 87 87

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian Difference
 receipts payments
 2001

 Total 12,791 14,337 -1,546
Affiliated 6,451 8,494 -2,043
 Royalties and license fees 2,156 2,072 84
 Other services 4,295 6,422 -2,127
Unafliliated 6,281 5,843 438
 Royalties, license fees, and
 selected services 1,612 1,341 271
 Insurance 367 386 -19
 Financial services 1,081 929 152
 Education and training 26 19 7
 Communications 519 333 186
 Computer services 584 531 53
 Business services 1,203 1,112 91
 Sports and entertainment 710 1,023 -313
 Other private
 Government:
 United States (nonmilitary) 72 64 8
 Canada 107 105 2
U.S. military sales 59 59

 2002

 Total 12,704 13,553 -849
Affiliated 6,692 7,708 -1,016
 Royalties and license fees 2,388 2,052 336
 Other services 4,304 5,655 -1,351
Unafiliated 5,969 5,845 124
 Royalties, license fees, and
 selected services 1,471 1,330 141
 Insurance 301 435 -134
 Financial services 873 896 -23
 Education and training 29 14 15
 Communications 391 304 87
 Computer services 772 523 249
 Business services 1,174 1,012 162
 Sports and entertainment 765 1,163 -398
 Other private
 Government:
 United States (nonmilitary) 86 61 25
 Canada 107 106 1
U.S. military sales 43 43

 Reconciled estimates,
 including statistical
 adjustments

 U.S. Canadian
 receipts payments
 2001

 Total 13,882 13,882
Affiliated 6,568 6,568
 Royalties and license fees (1) (1)
 Other services (1) (1)
Unaffiliated 7,255 7,255
 Royalties, license fees, and
 selected services 1,612 1,612
 Insurance 367 367
 Financial services 1,307 1,307
 Education and training 26 26
 Communications 519 519
 Computer services 584 584
 Business services 1,603 1,603
 Sports and entertainment 1,060 1,060
 Other private
 Government:
 United States (nonmilitary) 72 72
 Canada 105 105
U.S. military sales 59 59

 2002

 Total 13,072 13,072
Affiliated 6,263 6,263
 Royalties and license fees (1) (1)
 Other services (1) (1)
Unaffiliated 6,766 6,766
 Royalties, license fees, and
 selected services 1,471 1,471
 Insurance 301 301
 Financial services 963 963
 Education and training 29 29
 Communications 391 391
 Computer services 772 772
 Business services 1,469 1,469
 Sports and entertainment 1,178 1,178
 Other private
 Government:
 United States (nonmilitary) 86 86
 Canada 106 106
U.S. military sales 43 43

 Total adjustments to published
 estimates

 United Canada
 States
 2001

 Total 10 -1,129
Affiliated -245 -2,020
 Royalties and license fees (1) (1)
 Other services (1) (1)
Unafiliated 293 832
 Royalties, license fees, and
 selected services -19 251
 Insurance -47
 Financial services 226 375
 Education and training -569 7
 Communications -176
 Computer services 53
 Business services 62 753
 Sports and entertainment 595 -119
 Other private -246
 Government:
 United States (nonmilitary) 8
 Canada -2 -26
U.S. military sales -38 59

 2002

 Total -788 -1,197
Affiliated -831 -1,530
 Royalties and license fees (1) (1)
 Other services (1) (1)
Unafiliated 87 290
 Royalties, license fees, and
 selected services -20 119
 Insurance -130
 Financial services 90 -27
 Education and training -623 15
 Communications -270
 Computer services 249
 Business services -44 712
 Sports and entertainment 685 -136
 Other private -242
 Government:
 United States (nonmilitary) 25
 Canada -1 -26
U.S. military sales -44 43

 Total adjustments to published
 estimates

 Type of adjustment

 2001

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

 2002

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

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

Table 6.2. Other Services, Southbound

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S.
 receipts payments Difference

 2001

 Total 11,664 7,530 4,134
Affiliated 5,390 3,724 1,666
 Royalties and license fees 433 968 -535
 Other services 4,957 2,756 2,201
Unaffiliated 6,274 3,727 2,547
 Royalties, license fees, and
 selected services 1,646 565 1,081
 Insurance 48 257 -209
 Financial services 294 183 111
 Education and training 54 30 24
 Communications 747 230 517
 Computer services 1,094 1,025 69
 Business services 967 1,179 -212
 Sports and entertainment 959 37 922
 Other private 207 207
 Government:
 Canada 36 36
 United States (nondefense) 221 221
U.S. defense expenditures 77 -77

 2002

 Total 11,022 8,001 3,021
Affiliated 4,778 3,800 978
 Royalties and license fees 438 849 -411
 Other services 4,340 2,951 1,389
Unaffiliated 6,244 4,118 2,126
 Royalties, license fees, and
 selected services 1,740 753 987
 Insurance 145 438 -293
 Financial services 321 164 157
 Education and training 53 28 25
 Communications 685 342 343
 Computer services 963 781 182
 Business services 917 1,399 -482
 Sports and entertainment 993 36 957
 Other private 200 200
 Government:
 Canada 34 34
 United States (nondefense) 193 177 16
U.S. defense expenditures 83 -83

 Common-basis estimates
 after definitional and
 methodological adjustments

 Canadian U.S.
 receipts payments Difference

 2001

 Total 11,192 7,603 3,589
Affiliated 5,363 3,696 1,667
 Royalties and license fees 429 968 -539
 Other services 4,934 2,728 2,206
Unaffiliated 5,772 3,850 1,922
 Royalties, license fees, and
 selected services 1,646 564 1,082
 Insurance 48 257 -209
 Financial services 297 183 114
 Education and training 22 13 9
 Communications 414 230 184
 Computer services 1,094 1,025 69
 Business services 1,078 1,087 -9
 Sports and entertainment 917 270 647
 Other private
 Government:
 Canada 36 36
 United States (nondefense) 221 221
U.S. defense expenditures 57 57

 2002

 Total 10,406 8,276 2,130
Affiliated 4,756 3,772 984
 Royalties and license fees 436 849 -413
 Other services 4,320 2,923 1,397
Unaffiliated 5,596 4,441 1,155
 Royalties, license fees, and
 selected services 1,740 749 991
 Insurance 18 438 -420
 Financial services 303 164 139
 Education and training 20 12 8
 Communications 357 342 15
 Computer services 963 781 182
 Business services 1,018 1,440 -422
 Sports and entertainment 951 338 613
 Other private
 Government:
 Canada 34 34
 United States (nondefense) 193 177 16
U.S. defense expenditures 53 63 -10

 Reconciled estimates,
 including statistical
 adjustments

 Canadian U.S.
 receipts payments

 2001

 Total 10,587 10,587
Affiliated 4,285 4,285
 Royalties and license fees (1) (1)
 Other services (1) (1)
Unaffiliated 6,244 6,244
 Royalties, license fees, and
 selected services 1,646 1,646
 Insurance 386 386
 Financial services 196 196
 Education and training 22 22
 Communications 322 322
 Computer services 1,060 1,060
 Business services 1,438 1,438
 Sports and entertainment 917 917
 Other private
 Government:
 Canada 36 36
 United States (nondefense) 221 221
U.S. defense expenditures 57 57

 2002

 Total 10,598 10,598
Affiliated 4,160 4,160
 Royalties and license fees (1) (1)
 Other services (1) (1)
Unaffiliated 6,373 6,373
 Royalties, license fees, and
 selected services 1,740 1,740
 Insurance 438 438
 Financial services 186 186
 Education and training 20 20
 Communications 349 349
 Computer services 943 943
 Business services 1,535 1,535
 Sports and entertainment 951 951
 Other private
 Government:
 Canada 34 34
 United States (nondefense) 177 177
U.S. defense expenditures 63 63

 Total adjustments to published
 estimates

 United
 Canada States

 2001

 Total -1,077 3,057
Affiliated -1,105 561
 Royalties and license fees (1) (1)
 Other services (1) (1)
Unaffiliated -30 2,517
 Royalties, license fees, and
 selected services 1,081
 Insurance 338 129
 Financial services -98 13
 Education and training -32 -8
 Communications -425 92
 Computer services -34 35
 Business services 471 259
 Sports and entertainment -42 880
 Other private -207
 Government:
 Canada 36
 United States (nondefense)
U.S. defense expenditures 57 -20

 2002

 Total -424 2,597
Affiliated -618 360
 Royalties and license fees (1) (1)
 Other services (1) (1)
Unaffiliated 129 2,255
 Royalties, license fees, and
 selected services 987
 Insurance 293
 Financial services -135 22
 Education and training -33 -8
 Communications -336 7
 Computer services -20 162
 Business services 618 136
 Sports and entertainment -42 915
 Other private -200
 Government:
 Canada 34
 United States (nondefense) -16
U.S. defense expenditures 63 -20

 Total adjustments to published
 estimates

 Type of adjustment

 2001

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

 2002

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

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

Table 7.1. Investment Income, Northbound

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian
 receipts payments Difference

 2001

Investment Income 21,799 27,998 -6,199
 Direct investment income 11,975 10,950 1,025
 Earnings of incorporated
 affiliates 11,236 9,896 1,340
 Dividends 3,286 4,048 -762
 Reinvested earnings 7,950 5,848 2,102
 Earnings of unincorporated
 affiliates 60 169 -109
 Interest 679 885 -206
 Other investment income 9,824 17,048 -7,224
 Securities 6,706 11,466 -4,760
 Dividends 1,615 1,292 323
 Interest 5,091 10,175 -5,094
 U.S. claims/Canadian
 liabilities 3,118 5,581 -2,463
 U.S. bank claims 2,597 3,123 -526
 Other private U.S.
 claims 521 2,459 -1,938

 2002

Investment Income 19,285 24,789 -5,504
 Direct investment income 11,208 9,380 1,828
 Earnings of incorporated
 affiliates 10,454 8,348 2,106
 Dividends 3,451 4,531 -1,080
 Reinvested earnings 7,003 3,817 3,187
 Earnings of unincorporated
 affiliates 193 460 -267
 Interest 561 572 -11
 Other investment income 8,077 15,409 -7,332
 Securities 6,282 12,161 -5,879
 Dividends 1,716 1,046 671
 Interest 4,566 11,116 -6,550
 U.S. claims/Canadian
 liabilities 1,795 3,248 -1,453
 U.S. bank claims 1,561 1,504 57
 Other private U.S.
 claims 234 1,744 -1,510

 Common-basis estimates
 after definitional and
 methodological adjustments

 U.S. Canadian
 receipts payments Difference

 2001

Investment Income 22,848 22,221 627
 Direct investment income 11,881 10,321 1,560
 Earnings of incorporated
 affiliates 11,182 9,479 1,703
 Dividends 3,232 3,631 -399
 Reinvested earnings 7,950 5,848 2,102
 Earnings of unincorporated
 affiliates 60 169 -109
 Interest 639 673 -34
 Other investment income 10,967 11,900 -932
 Securities 9,053 9,854 -801
 Dividends 1,615 1,155 460
 Interest 7,438 8,699 -1,261
 U.S. claims/Canadian
 liabilities 1,914 2,045 -131
 U.S. bank claims 765 772 -7
 Other private U.S.
 claims 1,149 1,273 -124

 2002

Investment Income 20,783 20,547 236
 Direct investment income 11,093 8,745 2,348
 Earnings of incorporated
 affiliates 10,382 7,874 2,508
 Dividends 3,379 4,058 -679
 Reinvested earnings 7,003 3,816 3,187
 Earnings of unincorporated
 affiliates 193 460 -267
 Interest 518 410 108
 Other investment income 9,690 11,802 -2,112
 Securities 8,692 10,443 -1,751
 Dividends 1,716 940 776
 Interest 6,976 9,503 -2,527
 U.S. claims/Canadian
 liabilities 998 1,359 361
 U.S. bank claims 452 556 -104
 Other private U.S.
 claims 546 804 -258

 Reconciled estimates,
 including statistical
 adjustments

 U.S. Canadian
 receipts payments

 2001

Investment Income 23,113 23,113
 Direct investment income 11,612 11,612
 Earnings of incorporated
 affiliates 10,856 10,856
 Dividends 3,431 3,431
 Reinvested earnings 7,424 7,424
 Earnings of unincorporated
 affiliates 117 117
 Interest 639 639
 Other investment income 11,501 11,501
 Securities 9,454 9,454
 Dividends 1,385 1,385
 Interest 8,069 8,069
 U.S. claims/Canadian
 liabilities 2,047 2,047
 U.S. bank claims 832 832
 Other private U.S.
 claims 1,215 1,215

 2002

Investment Income 22,321 22,321
 Direct investment income 10,843 10,843
 Earnings of incorporated
 affiliates 9,925 9,925
 Dividends 3,718 3,718
 Reinvested earnings 6,206 6,206
 Earnings of unincorporated
 affiliates 401 401
 Interest 518 518
 Other investment income 11,478 11,478
 Securities 10,199 10,199
 Dividends 1,328 1,328
 Interest 8,871 8,871
 U.S. claims/Canadian
 liabilities 1,278 1,278
 U.S. bank claims 591 591
 Other private U.S.
 claims 687 687

 Total adjustments to published
 estimates

 United Canada
 States

 2001

Investment Income 1,314 -4,885
 Direct investment income -363 662
 Earnings of incorporated
 affiliates -380 960
 Dividends 145 -616
 Reinvested earnings -526 1,576
 Earnings of unincorporated
 affiliates 57 -52
 Interest -40 -246
 Other investment income 1,677 -5,547
 Securities 2,748 -2,012
 Dividends -230 94
 Interest 2,978 -2,106
 U.S. claims/Canadian
 liabilities -1,071 -3,534
 U.S. bank claims -1,765 -2,291
 Other private U.S.
 claims 694 -1,244

 2002

Investment Income 3,036 -2,468
 Direct investment income -365 1,463
 Earnings of incorporated
 affiliates -529 1,577
 Dividends 267 -813
 Reinvested earnings -797 2,390
 Earnings of unincorporated
 affiliates 208 -60
 Interest -43 -54
 Other investment income 3,401 -3,931
 Securities 3,917 -1,962
 Dividends -388 282
 Interest 4,305 -2,244
 U.S. claims/Canadian
 liabilities -517 -1,969
 U.S. bank claims -970 -912
 Other private U.S.
 claims 453 -1,057

 Total adjustments to published
 estimates

 Type of adjustment

 2001

Investment Income
 Direct investment income
 Earnings of incorporated
 affiliates
 Dividends Definitional, reclassification, and
 statistical
 Reinvested earnings Statistical
 Earnings of unincorporated
 affiliates Statistical
 Interest Definitional, gross to net, and
 statistical
 Other investment income
 Securities
 Dividends Definitional, reclassification, and
 statistical
 Interest Definitional and statistical
 U.S. claims/Canadian
 liabilities
 U.S. bank claims Gross to net and statistical
 Other private U.S.
 claims Statistical

 2002

Investment Income
 Direct investment income
 Earnings of incorporated
 affiliates
 Dividends Definitional, reclassification, and
 statistical
 Reinvested earnings Statistical
 Earnings of unincorporated
 affiliates Statistical
 Interest Definitional, gross to net, and
 statistical
 Other investment income
 Securities
 Dividends Definitional, reclassification, and
 statistical
 Interest Definitional and statistical
 U.S. claims/Canadian
 liabilities
 U.S. bank claims Gross to net and statistical
 Other private U.S.
 claims Statistical

Table 7.2. Investment Income, Southbound

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S.
 receipts payments Difference

 2001

Investment Income 4,137 167 3,970
 Direct investment income -2,049 -5,612 3,563
 Earnings of incorporated
 affiliates -1,989 -6,242 4,253
 Dividends 1,292 1,766 -474
 Reinvested earnings -3,281 -8,008 4,727
 Earnings of unincorporated
 affiliates -188 212 -400
 Interest 128 418 -290
 Other investment income 6,186 5,779 407
 Securities 2,197 2,815 -618
 Dividends 1,725 1,806 -81
 Interest 472 1,009 -537
 Canadian claims/U.S.
 liabilities 2,748 1,261 1,487
 Canadian bank claims 2,217 1,044 1,173
 Other private Canadian
 claims 531 217 314
 U.S. Government liabilities 1,241 1,703 -462

 2002

Investment Income 5,852 3,804 2,048
 Direct investment income 1,090 -1,213 2,303
 Earnings of incorporated
 affiliates 3,057 -1,780 4,837
 Dividends 2,797 521 2,276
 Reinvested earnings 260 -2,301 2,561
 Earnings of unincorporated
 affiliates -2,178 20 -2,198
 Interest 211 547 -336
 Other investment income 4,762 5,017 -255
 Securities 2,335 3,117 -782
 Dividends 1,926 2,026 -100
 Interest 408 1,091 -683
 Canadian claims/U.S.
 liabilities 1,481 687 794
 Canadian bank claims 968 507 461
 Other private Canadian
 claims 513 180 333
 U.S. Government liabilities 946 1,213 -267

 Common-basis estimates
 after definitional and
 methodological adjustments

 Canadian U.S.
 receipts payments Difference

 2001

Investment Income 1,426 -1,484 2,910
 Direct investment income -2,368 -5,819 3,451
 Earnings of incorporated
 affiliates -2,406 -6,454 4,048
 Dividends 876 1,554 679
 Reinvested earnings -3,282 -8,008 4,727
 Earnings of unincorporated
 affiliates 31 212 -181
 Interest 8 423 -416
 Other investment income 3,794 4,335 541
 Securities 2,170 2,815 -645
 Dividends 1,583 1,806 -223
 Interest 587 1,009 -422
 Canadian claims/U.S.
 liabilities 558 58 500
 Canadian bank claims 31 8 23
 Other private Canadian
 claims 527 50 477
 U.S. Government liabilities 1,066 1,462 -396

 2002

Investment Income 3,083 2,601 482
 Direct investment income -528 -1,236 708
 Earnings of incorporated
 affiliates 304 -1,805 2,109
 Dividends 807 496 311
 Reinvested earnings -502 -2,301 1,799
 Earnings of unincorporated
 affiliates -933 20 -953
 Interest 101 549 -448
 Other investment income 3,611 3,937 -226
 Securities 2,364 3,117 -753
 Dividends 1,767 2,026 -259
 Interest 597 1,091 -494
 Canadian claims/U.S.
 liabilities 418 -110 528
 Canadian bank claims -91 -136 45
 Other private Canadian
 claims 509 26 483
 U.S. Government liabilities 829 830 -1

 Reconciled estimates,
 including statistical
 adjustments

 Canadian U.S.
 receipts payments

 2001

Investment Income 1,515 1,515
 Direct investment income -2,948 -2,948
 Earnings of incorporated
 affiliates -3,554 -3,554
 Dividends -1,833 1,833
 Reinvested earnings -5,387 -5,387
 Earnings of unincorporated
 affiliates 183 183
 Interest 423 423
 Other investment income 4,463 4,463
 Securities 2,604 2,604
 Dividends 1,806 1,806
 Interest 798 798
 Canadian claims/U.S.
 liabilities 595 595
 Canadian bank claims 127 127
 Other private Canadian
 claims 468 468
 U.S. Government liabilities 1,264 1,264

 2002

Investment Income 3,612 3,612
 Direct investment income -543 -543
 Earnings of incorporated
 affiliates -1,050 -1,050
 Dividends 651 651
 Reinvested earnings -1,702 -1,702
 Earnings of unincorporated
 affiliates -42 -42
 Interest 549 549
 Other investment income 4,155 4,155
 Securities 2,870 2,870
 Dividends 2,026 2,026
 Interest 844 844
 Canadian claims/U.S.
 liabilities 456 456
 Canadian bank claims -10 -10
 Other private Canadian
 claims 466 466
 U.S. Government liabilities 829 829

 Total adjustments to published
 estimates

 Canada United
 States

 2001

Investment Income -2,622 1,348
 Direct investment income -899 2,664
 Earnings of incorporated
 affiliates -1,565 2,688
 Dividends 541 67
 Reinvested earnings -2,106 2,621
 Earnings of unincorporated
 affiliates 371 -29
 Interest 295 5
 Other investment income -1,723 -1,316
 Securities 407 -211
 Dividends 81
 Interest 326 -211
 Canadian claims/U.S.
 liabilities -2,153 -666
 Canadian bank claims -2,090 -917
 Other private Canadian
 claims -62 251
 U.S. Government liabilities 23 -439

 2002

Investment Income -2,240 -192
 Direct investment income -1,633 670
 Earnings of incorporated
 affiliates -4,107 730
 Dividends -2,145 130
 Reinvested earnings -1,962 599
 Earnings of unincorporated
 affiliates 2,136 -62
 Interest 338 2
 Other investment income -607 -862
 Securities 535 -247
 Dividends 100
 Interest 435 -247
 Canadian claims/U.S.
 liabilities -1,025 -231
 Canadian bank claims -978 -517
 Other private Canadian
 claims -47 286
 U.S. Government liabilities -117 -384

 Total adjustments to published
 estimates

 Type of adjustment

 2001

Investment Income
 Direct investment income
 Earnings of incorporated
 affiliates
 Dividends Definitional and statistical
 Reinvested earnings Statistical
 Earnings of unincorporated
 affiliates Definitional and statistical
 Interest Definitional, gross to net, and
 statistical
 Other investment income
 Securities
 Dividends Definitional and statistical
 Interest Definitional and statistical
 Canadian claims/U.S.
 liabilities
 Canadian bank claims Gross to net and statistical
 Other private Canadian
 claims Statistical
 U.S. Government liabilities Definitional and statistical

 2002

Investment Income
 Direct investment income
 Earnings of incorporated
 affiliates
 Dividends Definitional and statistical
 Reinvested earnings Statistical
 Earnings of unincorporated
 affiliates Definitional and statistical
 Interest Definitional, gross to net, and
 statistical
 Other investment income
 Securities
 Dividends Definitional and statistical
 Interest Definitional and statistical
 Canadian claims/U.S.
 liabilities
 Canadian bank claims Gross to net and statistical
 Other private Canadian
 claims Statistical
 U.S. Government liabilities Definitional and statistical

Acknowledgments

The reconciliations were carried out under the direction of Denis Caron, Chief, Current Account, in Statistics Canada's Balance of Payments Division; Patricia Abaroa and Edward Dozier, international economists in BEA'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 BEA. At Statistics Canada, Denis Caron was responsible for reconciling Canadian goods and services, Eric Simard for Canadian direct investment income, and Robert Theberge for Canadian portfolio investment income, with the collaboration and assistance of Brian Andr6, Heather Collier, and Jacqueline Dickie. At BEA, Patricia Abaroa was responsible for reconciling the U.S. portfolio income accounts; Mark New, for the accounts related to U.S. direct investment in Canada; Gregory Fouch, for the accounts related to Canadian direct investment in the United States; Mai-Chi Hoang, for goods; and Michael Mann and Edward Dozier, for services, with the assistance of Mary-Frances Styczynski for financial services.

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

(2.) For this year's reconciliation, the U.S. deficit for 2001 is revised from the previously published deficit of $26.5 billion used in last year's reconciliation, and the Canadian surplus for 2001 is revised from the previously published surplus of $42.5 billion used in last year's reconciliation.

(3.) The reconciliation of the current account has been undertaken each year since 1970. Summary results of the reconciliations were published in the United States in the following issues of the SURVEY ON 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 1996-2002. In Canada, the results were published in the following issues of Canada's Balance of International Payments (catalogue 67-001), a publication of Statistics Canada: Fourth Quarter 1973, Second Quarter 1976 and 1977, Third Quarter 1978 and 1979, First Quarter 1981, and each Third Quarter of 1981-2002.

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

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

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

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

In principle, the bilateral current account of one country should mirror the bilateral current account of the other country. Differences occur in the published estimates of the U.S. and Canadian current accounts because of variations in the definitions, methodologies, and statistical sources that are used by each country. Some of the differences for 2002 are in components of the current account for which data are still preliminary and subject to revision; these differences may be eliminated when final data for these components become available.

The longstanding Canadian-U.S. current-account reconciliation is among the leading examples of the benefits of international data exchanges. As a result of the reconciliation process and the exchange of data, the accuracy of the published estimates of transactions between Canada and the United States and the efficiency in producing the estimates have increased. The exchange of data between Canada and the United States-for transactions such as trade in goods, travel, passenger fares, Canadian and U.S. Government transactions, and some large transportation transactions--covers more than 80 percent of the value of the Canadian and U.S. current account and has eliminated some of the differences in the Canadian- and U.S.-published estimates.

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

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