Reconciliation of the U.S.-Canadian Current Account, 1998 and 1999.

DiLullo, Anthony ; Henderson, Hugh

ON a reconciled basis, the U.S. deficit, or Canadian surplus, is $9.6 billion for 1998 and $19.5 billion for 1999 (chart 1, table 1).(1) The U.S.-published current-account balance with Canada is a U.S. deficit of $4.4 billion for 1998 and a U.S. deficit of $15.1 billion for 1999. The corresponding Canadian-published balance is a Canadian surplus (U.S. deficit) of $7.7 billion for 1998 and a Canadian surplus (U.S. deficit) of $21.8 billion for 1999.

[Chart 1 OMITTED]

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

[Billions of U.S. dollars]

 Published Reconcile
 estimate estimates

 United United
 States Canada States Canada
 1998

 Goods and services -15.6 20.0 -22.2 22.2
 Goods -19.6 24.1 -25.3 25.3
 Services 3.9 -4.1 3.1 -3.1

 Income 11.9 -13.8 13.0 -13.0

 Current unilateral transfers -0.6 1.5 -0.5 0.5

Current account -4.4 7.7 -9.6 9.6

 1999

 Goods and services -28.9 36.6 -36.3 36.3
 Goods -34.7 40.4 -40.9 40.9
 Services 5.8 -3.9 4.6 -4.6

 Income 14.4 -16.4 17.3 -17.3

 Current unilateral transfers -0.6 1.6 -0.5 0.5

Current account -15.1 21.8 -19.5 19.5

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 1998 and 1999.2 The details of the current-account reconciliation for 1998 and 1999 are presented in the tables that follow this article. Tables 2.1 and 2.2 show the details of the major types of reconciliation adjustments--definitional, methodological, and statistical--that were made to the major current-account components. Tables 3.1 and 3.(2) present the published estimates, the estimates on a common basis (after the estimates have been adjusted for definitional and methodological differences), the reconciled estimates, and the amounts of the adjustments for each major current-account component. Tables 4-7 present the reconciliation details for goods, services, and investment income.(3)

Table 2.1.--Summary of Reconciliation Adjustments, Northbound, 1998

[Millions of U.S. dollars]

 Definitional Methodological

 Reclassification

 United
 States Canada United Canada
 States

Goods, balance of payments basis 321 18 144 ...
 Valuation adjustments 321 18 ... ...
 Reclassification of equipment
 repairs from unaffiliated
 services ... ... 144 ...
 Statistical adjustments ... ... ... ...

Services ... -272 -144 ...

 Travel ... ... 610 -63
 Reclassification of
 education from
 unaffiliated services ... ... 445 ...
 Reclassification of medical
 services from
 unaffiliated services ... ... 165 ...
 Statistical adjustments ... ... ... ...

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

 Other transportation ... -54 ... 167
 Valuation adjustments ... -54 ... ...
 Reclassification of
 transportation services
 from unaffiliated
 services ... ... ... 167
 Statistical adjustments ... ... ... ...

Other services ... -218 -754 -230
 Affiliated ... -162 -212 ...
 Valuation adjustments ... -162 ... ...
 Reclassification of film
 services ... ... -144 ...
 Reclassification of courier
 services to unaffiliated
 services ... ... -68 ...
 Statistical adjustments ... ... ... ...

 Unaffiliated ... -56 -542 -230
 Valuation adjustments ... -56 ... ...
 Reclassification of
 transactions to or from
 other accounts ... ... -542 -230
 Statistical adjustments ... ... ... ...

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

Income ... -1,002 ... 63
 Direct investment ... 377 ... -92
 Valuation adjustments ... -377 ... ...
 Reclassification of
 dividends to "other"
 income ... ... ... -92
 Adjustment of interest
 income to a net basis ... ... ... ...
 Statistical adjustments ... ... ... ...

 Other investment ... -625 ... 92
 Valuation adjustments ... -625 ... ...
 Reclassification of
 dividends from direct
 investment ... ... ... 92
 Adjustment of interest
 income to a gross or net
 basis ... ... ... ...
 Statistical adjustments ... ... ... ...

 Compensation of employees ... ... ... 63

Current unilateral transfers ... -211 ... ...
 Valuation adjustments ... -211 ... ...
 Adjustment of U.S. transfers
 to a gross basis ... ... ... ...
 Statistical adjustments ... ... ... ...

Total adjustments 321 -1,467 ... ...

 Methodological Statistical

 Gross or net
 United
 United Canada States Canada
 States

Goods, balance of payments basis ... ... ... -939
 Valuation adjustments ... ... ... ...
 Reclassification of equipment
 repairs from unaffiliated
 services ... ... ... ...
 Statistical adjustments ... ... ... -939

Services ... ... 1,203 -1,419

 Travel ... ... -90 19
 Reclassification of
 education from
 unaffiliated services ... ... ... ...
 Reclassification of medical
 services from
 unaffiliated services ... ... ... ....
 Statistical adjustments ... ... -90 19

 Passenger fares ... ... -204 ...
 Statistical adjustments ... ... -204 ...

 Other transportation ... ... 5 -106
 Valuation adjustments ... ... ... ...
 Reclassification of
 transportation services
 from unaffiliated
 services ... ... ... -106
 Statistical adjustments ... ... 5 ...

Other services ... ... 1,492 -1,332
 Affiliated ... ... 196 -1,872
 Valuation adjustments ... ... ... ...
 Reclassification of film
 services ... ... ... ...
 Reclassification of courier
 services to unaffiliated
 services ... ... ... ...
 Statistical adjustments ... ... 196 -1,872

 Unaffiliated ... ... 1,296 435
 Valuation adjustments ... ... ... ...
 Reclassification of
 transactions to or from
 other accounts ... ... 1,296 435
 Statistical adjustments ... ... ... ...

 U.S. military sales ... ... ... 105
 Statistical adjustments ... ... ... 105

Income -1,197 -2,828 2,503 -218
 Direct investment ... -124 224 691
 Valuation adjustments ... ... ... ...
 Reclassification of
 dividends to "other"
 income ... ... ... ...
 Adjustment of interest
 income to a net basis ... -124 ... ...
 Statistical adjustments ... ... 224 691

 Other investment -1,197 -2,704 2,279 -921
 Valuation adjustments ... ... ... ...
 Reclassification of
 dividends from direct
 investment ... ... ... ...
 Adjustment of interest
 income to a gross or net
 basis -1,197 -2,704 ... ...
 Statistical adjustments ... ... 2,279 -921

 Compensation of employees ... ... ... 12

Current unilateral transfers 166 ... 110 ...
 Valuation adjustments ... ... ... ...
 Adjustment of U.S. transfers
 to a gross basis 166 ... ... ...
 Statistical adjustments ... ... 110 ...

Total adjustments -1,031 -2,828 3,816 -2,576

 Total

 United Canada
 States

Goods, balance of payments basis 465 -921
 Valuation adjustments 321 18
 Reclassification of equipment
 repairs from unaffiliated
 services 144 ...
 Statistical adjustments ... -939

Services 1,059 -1,754

 Travel 520 19
 Reclassification of
 education from
 unaffiliated services 445 ...
 Reclassification of medical
 services from
 unaffiliated services 165 ...
 Statistical adjustments -90 -215

 Passenger fares -204 ...
 Statistical adjustments -204 ...

 Other transportation 5 7
 Valuation adjustments ... -54
 Reclassification of
 transportation services
 from unaffiliated
 services ... 167
 Statistical adjustments 5 -106

Other services 738 -1,780
 Affiliated -16 -2,034
 Valuation adjustments ... -162
 Reclassification of film
 services -144 ...
 Reclassification of courier
 services to unaffiliated
 services -68 ...
 Statistical adjustments 196 1,872

 Unaffiliated 754 149
 Valuation adjustments ... -56
 Reclassification of
 transactions to or from
 other accounts -542 -230
 Statistical adjustments 1,296 435

 U.S. military sales ... 105
 Statistical adjustments ... 105

Income 1,306 -3,985
 Direct investment 224 98
 Valuation adjustments ... -377
 Reclassification of
 dividends to "other"
 income ... -92
 Adjustment of interest
 income to a net basis ... -124
 Statistical adjustments 224 691

 Other investment 1,082 -4,158
 Valuation adjustments ... -625
 Reclassification of
 dividends from direct
 investment ... 92
 Adjustment of interest
 income to a gross or net
 basis -1,197 -2,704
 Statistical adjustments 2,279 -921

 Compensation of employees ... 75

Current unilateral transfers 276 -211
 Valuation adjustments ... -211
 Adjustment of U.S. transfers
 to a gross basis 166 ...
 Statistical adjustments 110 ...

Total adjustments 3,106 -6,871

Table 2.1.--Summary of Reconciliation Adjustments, Northbound, 1999

[Millions of U.S. dollars]

 Definitional Methodological

 Reclassification

 United Canada
 States United Canada
 States

Goods, balance of payments basis 303 -221 217 ...
 Valuation adjustments 303 -221 ... ...
 Reclassification of equipment
 repairs from unaffiliated
 services ... ... 217 ...
 Statistical adjustments ... ... ... ...

Services ... -300 -217 -65

 Travel ... ... 651 ...
 Reclassification of
 education from
 unaffiliated services ... ... 472 ...
 Reclassification of medical
 services from
 unaffiliated services ... ... 179 ...
 Statistical adjustments ... ... ... ...

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

 Other transportation ... -77 ... 167
 Valuation adjustments ... -77 ... ...
 Reclassification of
 transportation services
 from unaffiliated
 services ... ... ... 167
 Statistical adjustments ... ... ... ...

Other services ... -223 -868 -232
 Affiliated ... -174 -231 ...
 Valuation adjustments ... -174 ... ...
 Reclassification of film
 services ... ... -159 ...
 Reclassification of courier
 services to unaffiliated
 services ... ... -72 ...
 Statistical adjustments ... ... ... ...

 Unaffiliated ... -49 -637 -232
 Valuation adjustments ... -49 ... ...
 Reclassification of
 transactions to or from
 other accounts ... ... -637 -232
 Statistical adjustments ... ... ... ...

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

Income ... -1,013 ... 65
 Direct investment ... -305 ... -164
 Valuation adjustments ... -305 ... ...
 Reclassification of
 dividends to "other"
 income ... ... ... -164
 Adjustment of interest
 income to a net basis ... ... ... ...
 Statistical adjustments ... ... ... ...

 Other investment ... -708 ... 164
 Valuation adjustments ... -708 ... ...
 Reclassification of
 dividends from direct
 investment ... ... ... 164
 Adjustment of interest
 income to a gross or net
 basis ... ... ... ...
 Statistical adjustments ... ... ... ...

 Compensation of employees ... ... ... 65

Current unilateral transfers ... -211 ... ...
 Valuation adjustments ... -211 ... ...
 Adjustment of U.S. transfers
 to a gross basis ... ... ... ...
 Statistical adjustments ... ... ... ...

Total adjustments 303 -1,745 ... ...

 Methodological Statistical

 Gross or net

 United Canada
 United Canada States
 States

Goods, balance of payments basis ... ... ... -531
 Valuation adjustments ... ... ... ...
 Reclassification of equipment
 repairs from unaffiliated
 services ... ... ... ...
 Statistical adjustments ... ... ... -531

Services ... ... 1,024 -1,049

 Travel ... ... -93 22
 Reclassification of
 education from
 unaffiliated services ... ... ... ...
 Reclassification of medical
 services from
 unaffiliated services ... ... ... ...
 Statistical adjustments ... ... -93 22

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

 Other transportation ... ... -61 -98
 Valuation adjustments ... ... ... ...
 Reclassification of
 transportation services
 from unaffiliated
 services ... ... ... ...
 Statistical adjustments ... ... -61 -98

Other services ... ... 1,393 -973
 Affiliated ... ... 161 -2,029
 Valuation adjustments ... ... ... ...
 Reclassification of film
 services ... ... ... ...
 Reclassification of courier
 services to unaffiliated
 services ... ... ... ...
 Statistical adjustments ... ... 161 -2,029

 Unaffiliated ... ... 1,232 941
 Valuation adjustments ... ... ... ...
 Reclassification of
 transactions to or from
 other accounts ... ... ... ...
 Statistical adjustments ... ... 1,232 941

 U.S. military sales ... ... ... 115
 Statistical adjustments ... ... ... 115

Income -1,343 -2,905 3,158 1,199
 Direct investment ... -104 170 2,043
 Valuation adjustments ... ... ... ...
 Reclassification of
 dividends to "other"
 income ... ... ... ...
 Adjustment of interest
 income to a net basis ... -104 ... ...
 Statistical adjustments ... ... 170 2,043

 Other investment -1,343 -2,801 2,988 -855
 Valuation adjustments ... ... ... ...
 Reclassification of
 dividends from direct
 investment ... ... ... ...
 Adjustment of interest
 income to a gross or net
 basis -1,343 -2,801 ... ...
 Statistical adjustments ... ... 2,988 -855

 Compensation of employees ... ... ... 11

Current unilateral transfers 167 ... 128 ...
 Valuation adjustments ... ... ... ...
 Adjustment of U.S. transfers
 to a gross basis 167 ... ... ...
 Statistical adjustments ... ... 128 ...

Total adjustments -1,176 -2,905 4,310 -381

 Total

 United Canada
 States

Goods, balance of payments basis 520 -752
 Valuation adjustments 303 -221
 Reclassification of equipment
 repairs from unaffiliated
 services 217 ...
 Statistical adjustments ... -531

Services 807 -1,414

 Travel 558 22
 Reclassification of
 education from
 unaffiliated services 472 ...
 Reclassification of medical
 services from
 unaffiliated services 179 ...
 Statistical adjustments -93 22

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

 Other transportation -61 -8
 Valuation adjustments ... -77
 Reclassification of
 transportation services
 from unaffiliated
 services ... 167
 Statistical adjustments -61 -98

Other services 525 -1,428
 Affiliated -70 -2,203
 Valuation adjustments ... -174
 Reclassification of film
 services -159 ...
 Reclassification of courier
 services to unaffiliated
 services -72 ...
 Statistical adjustments 161 -2,029

 Unaffiliated 595 660
 Valuation adjustments ... -49
 Reclassification of
 transactions to or from
 other accounts -637 -232
 Statistical adjustments 1,232 941

 U.S. military sales ... 115
 Statistical adjustments ... 115

Income 1,815 -2,654
 Direct investment 170 1,470
 Valuation adjustments ... -305
 Reclassification of
 dividends to "other"
 income ... -164
 Adjustment of interest
 income to a net basis ... -104
 Statistical adjustments 170 2,043

 Other investment 1,645 -4,200
 Valuation adjustments ... -708
 Reclassification of
 dividends from direct
 investment ... 164
 Adjustment of interest
 income to a gross or net
 basis -1,343 -2,801
 Statistical adjustments 2,988 -855

 Compensation of employees ... 76

Current unilateral transfers 295 -211
 Valuation adjustments ... -211
 Adjustment of U.S. transfers
 to a gross basis 167 ...
 Statistical adjustments 128 ...

Total adjustments 3,437 -5,031

Table 2.2.--Summary of Reconciliation Adjustments, Southbound, 1998

[Millions of U.S. dollars]

 Definitional Methodological

 Reclassification

 United
 Canada States United
 Canada States

Goods, balance of payments basis 680 5,738 ... 4
 Valuation adjustments -273 246 ... ...
 Canadian re-exports to the ... 4,539 ... ...
 United States 953 953 ... ...
 Inland freight adjustment
 Reclassification of equipment
 repairs from unaffiliated
 services ... ... ... 4
 Statistical adjustments ... ... ... ...

Services -194 -78 -183 -4

 Travel ... ... ... 15
 Reclassification of
 education from
 unaffiliated services ... ... ... 15
 Statistical adjustments ... ... ... ...

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

 Other transportation -100 -78 89 -126
 Valuation adjustments -100 -78 ... ...
 Reclassification of courier
 services to unaffiliated
 services ... ... ... -126
 Reclassification of
 transportation services
 from unaffiliated
 services ... ... 89 ...
 Statistical adjustments ... ... ... ...

Other services -94 ... -272 107
 Affiliated -34 ... ... -25
 Valuation adjustments -34 ... ... ...
 Reclassification of film
 services ... ... ... -25
 Statistical adjustments ... ... ... ...

 Unaffiliated -60 ... -318 132
 Valuation adjustments -60 ... ... ...
 Reclassification of
 transactions to or from
 other accounts ... ... -318 132
 Statistical adjustments ... ... ... ...

 U.S. defense expenditures ... ... 46 ...
 Reclassification of
 defense expenditures
 from unaffiliated
 services ... ... 46 ...
 Statistical adjustments ... ... ... ...

Income -364 ... 183 ...
 Direct investment -67 ... ... ...
 Valuation adjustments -67 ... ... ...
 Adjustment of interest
 income to a net basis ... ... ... ...
 Statistical adjustments ... ... ... ...

 Other investment -297 ... ... ...
 Valuation adjustments -297 ... ... ...
 Adjustment of interest
 income to a gross or
 net basis ... ... ... ...
 Statistical adjustments ... ... ... ...

 Compensation of employees ... ... 183 ...

Current unilateral transfers -1,155 ... ... ...
 Valuation adjustments -1,155 ... ... ...
 Adjustment of U.S. transfers
 to a gross basis ... ... ... ...
 Statistical adjustments ... ... ... ...

 Total adjustments -1,033 5,660 ... ...

 Methodological Statistical

 Gross or net
 United
 United Canada States
 Canada States

Goods, balance of payments basis ... ... -403 454
 Valuation adjustments ... ... ... ...
 Canadian re-exports to the ... ... ... ...
 United States ... ... ... ...
 Inland freight adjustment
 Reclassification of equipment
 repairs from unaffiliated
 services ... ... ... ...
 Statistical adjustments ... ... -403 454

Services ... ... -398 1,932

 Travel ... ... ... 79
 Reclassification of
 education from
 unaffiliated services ... ... ... ...
 Statistical adjustments ... ... ... 79

 Passenger fares ... ... ... 3
 Statistical adjustments ... ... ... 3

 Other transportation ... ... 23 6
 Valuation adjustments ... ... ... ...
 Reclassification of courier
 services to unaffiliated
 services ... ... ... ...
 Reclassification of
 transportation services
 from unaffiliated
 services ... ... ... ...
 Statistical adjustments ... ... 23 6

Other services ... ... -421 1,844
 Affiliated ... ... -643 149
 Valuation adjustments ... ... ... ...
 Reclassification of film
 services ... ... ... ...
 Statistical adjustments ... ... -643 149

 Unaffiliated ... ... 222 1,717
 Valuation adjustments ... ... ... ...
 Reclassification of
 transactions to or from
 other accounts ... ... ... ...
 Statistical adjustments ... ... 222 1,717

 U.S. defense expenditures ... ... ... -22
 Reclassification of
 defense expenditures
 from unaffiliated
 services ... ... ... ...
 Statistical adjustments ... ... ... -22

Income -2,828 -1,197 -244 1,337
 Direct investment -124 ... -881 1,468
 Valuation adjustments ... ... ... ...
 Adjustment of interest
 income to a net basis -124 ... ... ...
 Statistical adjustments ... ... -881 1,468

 Other investment -2,704 -1,197 517 -131
 Valuation adjustments ... ... ... ...
 Adjustment of interest
 income to a gross or
 net basis -2,704 -1,197 ... ...
 Statistical adjustments ... ... 517 -131

 Compensation of employees ... ... 120 ...

Current unilateral transfers ... 166 -20 ...
 Valuation adjustments ... ... ... ...
 Adjustment of U.S. transfers
 to a gross basis ... 166 ... ...
 Statistical adjustments ... ... -20 ...

 Total adjustments -2,828 -1,031 -1,065 3,723

 Total

 United
 Canada States

Goods, balance of payments basis 277 6,196
 Valuation adjustments -273 246
 Canadian re-exports to the ... 4,539
 United States 953 953
 Inland freight adjustment
 Reclassification of equipment
 repairs from unaffiliated
 services ... 4
 Statistical adjustments -403 454

Services -775 1,850

 Travel ... 94
 Reclassification of
 education from
 unaffiliated services ... 15
 Statistical adjustments ... 79

 Passenger fares ... 3
 Statistical adjustments ... 3

 Other transportation 12 -198
 Valuation adjustments -100 -78
 Reclassification of courier
 services to unaffiliated
 services ... -126
 Reclassification of
 transportation services
 from unaffiliated
 services 89 ...
 Statistical adjustments 23 6

Other services -787 1,951
 Affiliated -677 124
 Valuation adjustments -34 ...
 Reclassification of film
 services ... -25
 Statistical adjustments -643 149

 Unaffiliated -156 1,849
 Valuation adjustments -60 ...
 Reclassification of
 transactions to or from
 other accounts -318 132
 Statistical adjustments 222 1,717

 U.S. defense expenditures 46 -22
 Reclassification of
 defense expenditures
 from unaffiliated
 services ... 46
 Statistical adjustments ... -22

Income -3,253 140
 Direct investment -1,072 1,468
 Valuation adjustments -67 ...
 Adjustment of interest
 income to a net basis -124 ...
 Statistical adjustments -881 1,468

 Other investment -2,484 -1,328
 Valuation adjustments -297 ...
 Adjustment of interest
 income to a gross or
 net basis -2,704 -1,197
 Statistical adjustments 517 -131

 Compensation of employees 303 ...

Current unilateral transfers -1,175 166
 Valuation adjustments -1,155 ...
 Adjustment of U.S. transfers
 to a gross basis ... 166
 Statistical adjustments -20 ...

 Total adjustments -4,926 8,352

Table 2.2.--Summary of Reconciliation Adjustments, Southbound, 1998

[Millions of U.S. dollars]

 Definitional Methodological

 Reclassification

 United
 Canada States United
 Canada States

Goods, balance of payments basis -428 6,154 ... 16
 Valuation adjustments -1,401 286 ... ...
 Canadian re-exports to the ... 4,895 ... ...
 United States 973 973 ... ...
 Inland freight adjustment
 Reclassification of equipment
 repairs from unaffiliated
 services ... ... ... 16
 Statistical adjustments ... ... ... ...

Services -323 -85 -171 -16

 Travel ... ... ... 18
 Reclassification of
 education from
 unaffiliated services ... ... ... 18
 Statistical adjustments ... ... ... ...

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

 Other transportation -156 -85 102 -153
 Valuation adjustments -156 -85 ... ...
 Reclassification of courier
 services to unaffiliated
 services ... ... ... -153
 Reclassification of
 transportation services
 from unaffiliated
 services ... ... 102 ...
 Statistical adjustments ... ... ... ...

Other services -167 ... -273 119
 Affiliated -35 ... ... -26
 Valuation adjustments -35 ... ... ...
 Reclassification of film
 services ... ... ... -26
 Statistical adjustments ... ... ... ...

 Unaffiliated -132 ... -326 145
 Valuation adjustments -132 ... ... ...
 Reclassification of
 transactions to or from
 other accounts ... ... -326 145
 Statistical adjustments ... ... ... ...

 U.S. defense expenditures ... ... 53 ...
 Reclassification of
 defense expenditures
 from unaffiliated
 services ... ... 53 ...
 Statistical adjustments ... ... ... ...

Income -105 5 171 ...
 Direct investment -1 ... ... ...
 Valuation adjustments -1 ... ... ...
 Adjustment of interest
 income to a net basis ... ... ... ...
 Statistical adjustments ... ... ... ...

 Other investment -123 5 ... ...
 Valuation adjustments -123 5 ... ...
 Adjustment of interest
 income to a gross or
 net basis ... ... ... ...
 Statistical adjustments ... ... ... ...

 Compensation of employees 19 ... 171 ...

Current unilateral transfers -1,323 ... ... ...
 Valuation adjustments -1,323 ... ... ...
 Adjustment of U.S. transfers
 to a gross basis ... ... ... ...
 Statistical adjustments ... ... ... ...

 Total adjustments -2,179 6,074 ... ...

 Methodological Statistical

 Gross or net
 United
 United Canada States
 Canada States

Goods, balance of payments basis ... ... 124 494
 Valuation adjustments ... ... ... ...
 Canadian re-exports to the ... ... ... ...
 United States ... ... ... ...
 Inland freight adjustment
 Reclassification of equipment
 repairs from unaffiliated
 services ... ... ... ...
 Statistical adjustments ... ... 124 494

Services ... ... -1,614 2,143

 Travel ... ... ... 96
 Reclassification of
 education from
 unaffiliated services ... ... ... ...
 Statistical adjustments ... ... ... 96

 Passenger fares ... ... ... -2
 Statistical adjustments ... ... ... -2

 Other transportation ... ... 37 -81
 Valuation adjustments ... ... ... ...
 Reclassification of courier
 services to unaffiliated
 services ... ... ... ...
 Reclassification of
 transportation services
 from unaffiliated
 services ... ... ... ...
 Statistical adjustments ... ... 37 -81

Other services ... ... -1,651 2,130
 Affiliated ... ... -1,764 266
 Valuation adjustments ... ... ... ...
 Reclassification of film
 services ... ... ... ...
 Statistical adjustments ... ... -1,764 266

 Unaffiliated ... ... 113 1,883
 Valuation adjustments ... ... ... ...
 Reclassification of
 transactions to or from
 other accounts ... ... ... ...
 Statistical adjustments ... ... 113 1,883

 U.S. defense expenditures ... ... ... -19
 Reclassification of
 defense expenditures
 from unaffiliated
 services ... ... ... ...
 Statistical adjustments ... ... ... -19

Income -2,905 -1,343 -750 262
 Direct investment -104 ... -1,596 531
 Valuation adjustments ... ... ... ...
 Adjustment of interest
 income to a net basis -104 ... ... ...
 Statistical adjustments ... ... -1,596 531

 Other investment -2,801 -1,343 724 -269
 Valuation adjustments ... ... ... ...
 Adjustment of interest
 income to a gross or
 net basis -2,801 -1,343 ... ...
 Statistical adjustments ... ... 724 -269

 Compensation of employees ... ... 122 ...

Current unilateral transfers ... 167 -21 ...
 Valuation adjustments ... ... ... ...
 Adjustment of U.S. transfers
 to a gross basis ... 167 ... ...
 Statistical adjustments ... ... -21 ...

 Total adjustments -2,905 -1,176 -2,261 2,899

 Total

 United
 Canada States

Goods, balance of payments basis -304 6,664
 Valuation adjustments -1,401 286
 Canadian re-exports to the ... 4,895
 United States 973 973
 Inland freight adjustment
 Reclassification of equipment
 repairs from unaffiliated
 services ... 16
 Statistical adjustments 124 494

Services -2,108 2,042

 Travel ... 114
 Reclassification of
 education from
 unaffiliated services ... 18
 Statistical adjustments ... 96

 Passenger fares ... -2
 Statistical adjustments ... -2

 Other transportation -17 -319
 Valuation adjustments -156 -85
 Reclassification of courier
 services to unaffiliated
 services ... -153
 Reclassification of
 transportation services
 from unaffiliated
 services 102 ...
 Statistical adjustments 37 -81

Other services -2,091 2,249
 Affiliated -1,799 240
 Valuation adjustments -35 ...
 Reclassification of film
 services ... -26
 Statistical adjustments -1,764 266

 Unaffiliated -345 2,028
 Valuation adjustments -132 ...
 Reclassification of
 transactions to or from
 other accounts -326 145
 Statistical adjustments 113 1,883

 U.S. defense expenditures 53 -19
 Reclassification of
 defense expenditures
 from unaffiliated
 services 53 ...
 Statistical adjustments ... -19

Income -3,589 -1,076
 Direct investment -1,701 531
 Valuation adjustments -1 ...
 Adjustment of interest
 income to a net basis -104 ...
 Statistical adjustments -1,596 531

 Other investment -220 -1,607
 Valuation adjustments 123 5
 Adjustment of interest
 income to a gross or
 net basis -2,801 -1,343
 Statistical adjustments 724 -269

 Compensation of employees 312 ...

Current unilateral transfers -1,344 167
 Valuation adjustments -1,323 ...
 Adjustment of U.S. transfers
 to a gross basis ... 167
 Statistical adjustments -21 ...

 Total adjustments -7,345 7,797

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

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Difference
 receipts payments
 1998

Goods and services 175,579 179,776 -4,197

 Goods, balance of
 payments basis 156,241 157,627 -1,386

 Services 19,338 22,149 -2,811
 Travel 6,206 6,707 -501
 Passenger fares 1,478 1,274 204
 Other transportation 2,317 2,315 2
 Other services 9,232 11,853 -2,621
 U.S. military sales 105 (1) 105

Income 18,911 24,202 -5,291
 Investment income 18,836 24,202 -5,366
 Direct investment 7,527 7,653 -126
 Other investment 11,309 16,549 -5,240
 Compensation of employees 75 (2) 75

Current unilateral transfers (3) 487 -487

 Current account,
 northbound 194,490 204,465 -9,975

 1999

Goods and services 187,873 191,365 -3,492

 Goods, balance of
 payments basis 166,533 167,805 -1,272

 Services 21,340 23,560 -2,220
 Travel 6,670 7,206 -536
 Passenger fares 1,540 1,325 215
 Other transportation 2,479 2,426 53
 Other services 10,536 12,603 -2,067
 U.S. military sales 115 (1) 115

Income 22,024 26,493 -4,469
 Investment income 21,948 26,493 -4,545
 Direct investment 11,102 9,802 1,300
 Other investment 10,846 16,691 -5,845
 Compensation of employees 76 (2) 76

Current unilateral transfers (3) 506 -506

Current account, northbound 209,897 218,364 -9,467

 Common-basis estimates, after
 definitional and methodological
 adjustments

 U.S. Canadian Remaining
 1998 receipts payments difference

Goods and services 175,899 179,460 -3,561

 Goods, balance of
 payments basis 156,706 157,645 -939

 Services 19,193 21,815 -2,622
 Travel 6,816 6,707 109
 Passenger fares 1,478 1,274 204
 Other transportation 2,317 2,428 -111
 Other services 8,477 11,406 -2,929
 U.S. military sales 105 (2) 105

Income 17,714 20,435 -2,721
 Investment income 17,639 20,372 -2,733
 Direct investment 7,527 7,060 467
 Other investment 10,112 13,312 -3,200
 Compensation of employees 75 63 12

Current unilateral transfers 166 276 -110

 Current account,
 northbound 193,779 200,171 -6,392

 1999

Goods and services 188,176 190,780 -2,604

 Goods, balance of
 payments basis 167,053 167,584 -531

 Services 21,123 23,196 -2,073
 Travel 7,321 7,206 115
 Passenger fares 1,540 1,325 215
 Other transportation 2,479 2,516 -37
 Other services 9,668 12,149 -2,481
 U.S. military sales 115 (1) 115

Income 20,681 22,640 -1,959
 Investment income 20,605 22,575 -1,970
 Direct investment 11,102 9,229 1,873
 Other investment 9,503 13,348 -3,843
 Compensation of employees 76 65 11

Current unilateral transfers 167 295 -128

Current account, northbound 209,024 213,715 -4,691

 Reconciled
 estimates, Total
 including adjustments
 statistical to published
 adjustments estimates

 United
 1998 U.S. Canadian States Canada
 receipts payments

Goods and services 177,102 177,102 1,523 -2,674

 Goods, balance of
 payments basis 156,706 156,706 465 -921

 Services 20,396 20,396 1,059 -1,754
 Travel 6,726 6,726 520 19
 Passenger fares 1,274 1,274 -204 ...
 Other transportation 2,322 2,322 5 7
 Other services 9,969 9,969 738 -1,884
 U.S. military sales 105 105 ... 105

Income 20,217 20,217 1,306 -3,985
 Investment income 20,142 20,142 1,306 -4,060
 Direct investment 7,751 7,751 224 98
 Other investment 12,391 12,391 1,082 -4,158
 Compensation of employees 75 75 ... 75

Current unilateral transfers 276 276 276 -211

 Current account,
 northbound 197,595 197,595 3,106 -6,871

 1999

Goods and services 189,200 189,200 1,327 -2,165

 Goods, balance of
 payments basis 167,053 167,053 520 -752

 Services 22,147 22,147 807 -1,414
 Travel 7,228 7,228 558 22
 Passenger fares 1,325 1,325 -215 ...
 Other transportation 2,418 2,418 -61 -8
 Other services 11,061 11,061 525 -1,542
 U.S. military sales 115 115 ... 115

Income 23,839 23,839 1,815 -2,654
 Investment income 23,763 23,763 1,815 -2,730
 Direct investment 11,272 11,272 1701 1,470
 Other investment 12,491 12,491 1,645 -4,200
 Compensation of employees 76 76 ... 76

Current unilateral transfers 295 295 295 -211

Current account, northbound 213,334 213,334 3,437 -5,031

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

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

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

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

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S. Difference
 receipts payments

 1998

Goods and services 199,749 191,207 8,542

 Goods 181,725 175,806 5,919

 Services 18,024 15,401 2,623
 Travel 5,812 5,718 94
 Passenger fares 590 587 3
 Other transportation 2,700 2,910 -210
 Other services 8,922 6,118 2,804
 U.S. defense
 expenditures (1) 68 -68

 Income 10,429 7,036 3,393
 Investment income 10,429 6,733 3,696
 Direct investment 4,103 1,563 2,540
 Other investment 6,326 5,170 1,156
 Other private
 investment 5,277 4,295 982
 U.S. Government
 liabilities 1,049 875 174
 Compensation of
 employees (2) 303 -303

 Current unilateral
 transfers 1,955 (3)614 1,341

 Current account,
 southbound 212,133 198,857 13,276

 1999

Goods and services 227,915 216,796 11,119

 Goods 208,236 201,268 6,968

 Services 19,679 15,528 4,151
 Travel 6,249 6,135 114
 Passenger fares 710 712 -2
 Other transportation 2,922 3,224 -302
 Other services 9,798 5,385 4,413
 U.S. defense
 expenditures (1) 72 -72

 Income 10,112 7,599 2,513
 Investment income 10,112 7,287 2,825
 Direct investment 3,714 1,482 2,232
 Other investment 6,398 5,805 593
 Other private
 investment 5,467 4,661 806
 U.S. Government
 liabilities 931 1,144 -213
 Compensation
 of employees (2) 312 -312

 Current unilateral
 transfers 2,154 (3)643 1,511

 Current account,
 southbound 240,181 225,038 15,143

 Common-basis
 estimates,
 after definitional
 and methodological
 adjustments

 Canadian U.S. Remaining
 receipts payments difference

 1998

Goods and services 200,053 196,866 3,187

 Goods 182,405 181,548 857

 Services 17,648 15,318 2,330
 Travel 5,812 5,733 79
 Passenger fares 590 587 3
 Other transportation 2,689 2,706 -17
 Other services 8,511 6,224 2,287
 U.S. defense
 expenditures 46 68 -22

 Income 7,420 5,839 1,581
 Investment income 7,237 5,536 1,701
 Direct investment 3,912 1,563 2,349
 Other investment 3,325 3,973 -648
 Other private
 investment 2,408 3,098 -890
 U.S. Government
 liabilities 917 875 42
 Compensation of
 employees 183 303 -120

 Current unilateral
 transfers 800 780 20

 Current account,
 southbound 208,273 203,485 4,788

 1999

Goods and services 226,993 222,866 4,127

 Goods 207,808 207,438 370

 Services 19,185 15,428 3,757
 Travel 6,249 6,153 96
 Passenger fares 710 712 -21
 Other transportation 2,868 2,986 -118
 Other services 9,305 5,505 3,800
 U.S. defense
 expenditures 53 72 -19

 Income 7,273 6,261 1,012
 Investment income 7,083 5,949 1,134
 Direct investment 3,609 1,482 2,127
 Other investment 3,474 4,467 -993
 Other private
 investment 2,515 3,323 -808
 U.S. Government
 liabilities 959 1,144 -185
 Compensation
 of employees 190 312 -122

 Current unilateral
 transfers 831 810 21

 Current account,
 southbound 235,097 229,937 5,160

 Reconciled
 estimates, Total
 including adjustments
 statistical to published
 adjustment estimates

 Canadian U.S. Canada United
 receipts payments States
 1998

Goods and services 199,252 199,252 -497 8,045

 Goods 182,002 182,002 277 6,196

 Services 17,250 17,250 -775 1,850
 Travel 5,812 5,812 ... 94
 Passenger fares 590 590 ... 3
 Other transportation 2,712 2,712 12 -198
 Other services 8,090 8,090 -832 1,972
 U.S. defense
 expenditures 46 46 46 -22

 Income 7,176 7,176 -3,253 140
 Investment income 6,873 6,873 -3,556 140
 Direct investment 3,031 3,031 -1,072 1,468
 Other investment 3,842 3,842 -2,484 -1,328
 Other private
 investment 2,946 2,946 -2,331 -1,349
 U.S. Government
 liabilities 896 896 -153 21
 Compensation of
 employees 303 303 303 ...

 Current unilateral
 transfers 780 780 -1,175 166

 Current account,
 southbound 207,208 207,208 -4,926 8,352

 1999

Goods and services 225,503 225,503 -2,412 8,707

 Goods 207,932 207,932 -304 2,043

 Services 17,571 17,571 -2,108 2,045
 Travel 6,249 6,249 ... 114
 Passenger fares 710 710 ... -2
 Other transportation 2,905 2,905 -17 -319
 Other services 7,654 7,654 -2,144 2,269
 U.S. defense
 expenditures 53 53 53 -19

 Income 6,523 6,523 -3,589 -1,076
 Investment income 6,211 6,211 -3,901 -1,076
 Direct investment 2,013 2,013 -1,701 531
 Other investment 4,198 4,198 -2,200 -1,607
 Other private
 investment 3,146 3,146 -2,321 -1,515
 U.S. Government
 liabilities 1,052 1,052 121 -92
 Compensation
 of employees 312 312 312 ...

 Current unilateral
 transfers 810 810 -1,344 16

 Current account,
 southbound 232,836 232,836 -7,345 7,797

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

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

(3.) Current unilateral transfers, which are published on a net basis in the U.S. accounts, are net payments.

Table 4.1.--Trade in Goods, Northbound

(Millions of U.S. dollars)

 U.S. Canadian Type of
 receipts payments adjustment
 1998

Balance of payments
 basis, published 156,241 157,627

 Definitional and
 methodological
 adjustments:
 Valuation
 adjustments 321 18 Definitional
 Reclassification
 of equipment
 repair from
 unaffiliated
 services 144 ... Reclassification

 Common basis, after
 definitional and
 methodological
 adjustments 156,706 157,645

 Statistical
 adjustments ... -939

Reconciled, including
 statistical
 adjustments 156,706 156,706

 1999

Balance of payments
 basis, published 156,533 167,805

 Definitional and
 methodological
 adjustments:
 Valuation
 adjustments 303 -221 Definitional
 Reclassification
 of equipment
 repair from
 unaffiliated
 services 217 ... Reclassification

 Common basis,
 after definitional
 and methodological
 adjustments 167,053 167,584

 Statistical
 adjustments ... -531

Reconciled, including
 statistical
 adjustments 167,053 167,053

Table 4.2.--Trade in Goods, Southbound

[Millions of U.S. dollars]

 Canadian U.S. Type
 receipts payments of adjustment

 1998

Balance of payments
 basis, published 181,725 175,806

Definitional and
 methodological
 adjustments:
 Valuation adjustments -273 246 Definitional
 Canadian reexports to
 the United States ... 4,539 Definitional
 inland freight
 adjustment 953 953 Definitional
 Reclassification
 of equipment
 repair from
 unaffiliated
 services ... 4 Reclassification

Common basis, after
 definitional
 and methodological
 adjustments 182,405 181,548

 Statistical adjustments -403 4541

Reconciled, including
 statistical adjustments 182,002 182,002

 1999

Balance of payments
 basis, published 208,236 201,268

 Definitional and
 methodological
 adjustments:
 Valuation adjustments -1,401 286 Definitional
 Canadian reexports
 to the United
 States ... 4,895 Definitional
 Inland freight
 adjustment 973 973 Definitional
 Reclassification of
 equipment repair
 from unaffiliated
 services ... 16 Reclassification

Common basis, after
 definitional
 and methodological
 adjustments 207,808 207,438

 Statistical
 adjustments 124 494

Reconciled, including
 statistical
 adjustments 207,932 207,932

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

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Difference
 receipts payments

 1998

Travel 6,206 6,707 -501
 Business and personal 6,206 6,116 90
 Education ... 426 -426
 Medical ... 165 -165

Passenger fares 1,478 1,274 204

Other transportation 2,317 2,315 2

 Freight 1,856 1,977 -121
 Ocean 60 294 -234
 Air (D) (D) (D)
 Truck 1,222 1,222 ...
 Other (D) (D) (D)

 Port services 461 323 138
 Vessel operators 38 28 10
 Airline operators 263 278 -15
 Other 160 17 143

 Other ... 16 -16

 1999

 Travel 6,670 7,206 -536
 Business and personal 6,670 6,577 93
 Education ... 450 -450
 Medical ... 179 -179

 Passenger fares 1,540 1,325 215

 Other transportation 2,479 2,426 53

 Freight 1,967 2,079 -112
 Ocean 52 309 -257
 Air (D) (D) (D)
 Truck 1,302 1,304 -2
 Other (D) (D) (D)

 Port services 512 332 180
 Vessel operators 63 25 38
 Airline operators 282 291 -9
 Other 167 16 151

Other ... 15 -15

 Common-bass estimates, after
 definitional and methodological
 adjustments

 U.S. Canadian Remaining
 receipts payments difference

 1998

Travel 6,816 6,767 109
 Business and personal 6,206 6,116 90
 Education 445 426 19
 Medical 165 165 ...

Passenger fares 1,478 1,274 -204

Other transportation 2,317 2,428 -111

 Freight 1,714 1,939 -225
 Ocean 60 250 -190
 Air (D) (D) (D)
 Truck 1,222 1,222 ...
 Other (D) (D) (D)

 Port services 603 475 128
 Vessel operators 38 28 10
 Airline operators 263 263 ...
 Other 302 184 118

 Other ... 16 -16

 1999

 Travel 7,321 7,206 115
 Business and personal 6,670 6,577 93
 Education 472 450 22
 Medical 179 179 ...

 Passenger fares 1,540 1,325 215

 Other transportation 2,479 2,516 -37

 Freight 1,815 2,012 -197
 Ocean 52 268 -216
 Air (D) (D) (D)
 Truck 1,302 1,304 -2
 Other (D) (D) (D)

 Port services 664 490 174
 Vessel operators 63 25 38
 Airline operators 282 282 ...
 Other 319 183 136

Other ... 15 -15

 Reconciled
 estimates, Total
 including adjustments
 statistical to published
 adjustments estimates

 United
 U.S. Canadian States
 receipts payments
 1998

Travel 6,726 6,726 520
 Business and personal 6,116 6,116 -90
 Education 445 445 445
 Medical 165 165 165

Passenger fares 1,274 1,274 -204

Other transportation 2,322 2,322 5

 Freight 1,796 1,796 -60
 Ocean 107 107 47
 Air (D) (D) (D)
 Truck 1,222 1,222 ...
 Other (D) (D) (D)

 Port services 511 50 50
 Vessel operators 28 -10 -10
 Airline operators 263 ... ...
 Other 220 60 60

 Other 16 16 16

 1999

 Travel 7,228 558 558
 Business and personal 6,577 -93 -93
 Education 72 472 472
 Medical 179 179 179

 Passenger fares 1,325 -215 -215

 Other transportation 2,418 -61 -61

 Freight 1,877 -90 -90
 Ocean 116 64 64
 Air (D) (D) (D)
 Truck 1,302 ... ...
 Other (D) (D) (D)

 Port services 526 14 14
 Vessel operators 25 -38 -38
 Airline operators 282 ... ...
 Other 219 52 52

Other 15 15 15

 Total adjustments to
 published estimates

 Canada Type of adjustment

 1998

Travel 19
 Business and personal ... Statistical
 Education 19 Reclassification and
 statistical
 Medical ... Reclassification and
 statistical

Passenger fares ... Statistical

Other transportation 7

 Freight -181
 Ocean -187 Statistical
 Air (D) Statistical
 Truck ...
 Other (D) Reclassification and
 statistical

 Port services 188
 Vessel operators ... Statistical
 Airline operators -15 Statistical
 Other 203 Reclassification and
 statistical

 Other ... Statistical

 1999

 Travel 22
 Business and personal ... Statistical
 Education 22 Reclassification and
 statistical
 Medical ... Reclassification

 Passenger fares ... Statistical

 Other transportation -8

 Freight -202
 Ocean -193 Statistical
 Air (D) Statistical
 Truck -2 Statistical
 Other (D) Reclassification and
 statistical

 Port services 194
 Vessel operators ... Statistical
 Airline operators -9 Statistical
 Other 203 Statistical

Other ... Reclassification and
 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. Difference
 receipts payments

 1998

Travel 5,812 5,718 94
 Business and personal 5,693 5,718 -25
 Education 73 ... 73
 Medical 46 ... 46

Passenger fares 590 587 3

Other transportation 2,700 2,910 -210

 Freight 2,198 2,284 -86
 Ocean 135 98 39
 Air (D) (D) (D)
 Land 1,909 1,910 -1
 Other (D) (D) (D)

 Port services 417 625 -208
 Vessel operators 80 158 -78
 Airline operators 255 381 -126
 Other 82 86 -4

 Other 85 ... 85

 1999

Travel 6,249 6,135 114
 Business and personal 6,112 6,135 -22
 Education 84 ... 84
 Medical 53 ... 53

Passenger fares 710 712 -2

Other transportation 2,922 3,224 -302

 Freight 2,380 2,510 -130
 Ocean 105 101 4
 Air (D) (D) (D)
 Land 2,115 2,112 3
 Other (D) (D) (D)

 Port services 447 714 -267
 Vessel operators 72 170 -98
 Airline operators 293 446 -153
 Other 82 98 -16

 Other 96 ... 96

 Common-basis estimates, after
 definitional and methodological
 adjustments

 Canadian U.S. Remaining
 receipts payments Difference

Travel 5,812 5,733 79
 Business and personal 5,693 5,718 -25
 Education 73 15 58
 Medical 46 ... 46

Passenger fares 590 587 3

Other transportation 2,689 2,706 -17

 Freight 2,198 2,161 37
 Ocean 135 96 39
 Air (D) (D) (D)
 Land 1,909 1,910 -1
 Other (D) (D) (D)

 Port services 484 544 -60
 Vessel operators 58 80 -22
 Airline operators 255 255 ...
 Other 171 209 -38

 Other 6 ... 6

 1999

Travel 6,249 6,153 96
 Business and personal 6,112 6,135 -22
 Education 84 18 66
 Medical 53 ... 53

Passenger fares 710 712 -2

Other transportation 2,868 2,986 -118

 Freight 2,380 2,386 -6
 Ocean 105 101 4
 Air (D) (D) (D)
 Land 2,115 2,112 3
 Other (D) (D) (D)

 Port services 481 600 -119
 Vessel operators 45 85 -40
 Airline operators 252 293 -41
 Other 184 222 -38

 Other 7 ... 7

 Reconciled Total
 estimates, adjustment
 including to published
 adjustments estimates

 Canadian U.S. Canada
 receipts payments

Travel 5,812 5,812 ...
 Business and personal 5,693 5,693 ...
 Education 73 73 ...
 Medical 46 46 ...

Passenger fares 590 590 ...

Other transportation 2,712 2,712 12

 Freight 2,180 2,180 -18
 Ocean 116 116 -19
 Air (D) (D) (D)
 Land 1,910 1,910 1
 Other (D) (D) (D)

 Port services 526 526 109
 Vessel operators 69 69 -11
 Airline operators 255 255 ...
 Other 202 202 120

 Other 6 6 -79

 1999

Travel 6,249 6,249 ...
 Business and personal 6,112 6,112 ...
 Education 84 84 ...
 Medical 53 53 ...

Passenger fares 710 710 ...

Other transportation 2,905 2,905 -17

 Freight 2,375 2,375 -5
 Ocean 103 103 -2
 Air (D) (D) (D)
 Land 2,112 2,112 -3
 Other (D) (D) (D)

 Port services 523 523 76
 Vessel operators 65 65 -7
 Airline operators 252 252 -41
 Other 206 206 124

 Other 7 7 -89

 Total adjustments to
 published estimates

 United
 States Type of adjustment

 1998

Travel 94
 Business and personal -25 Statistical
 Education 73 Reclassification and
 statistical
 Medical 46 Reclassification and
 statistical

Passenger fares 3 Statistical

Other transportation -198

 Freight -104
 Ocean 20 Statistical
 Air (D) Statistical
 Land ... Reclassification and
 statistical
 Other (D) Statistical

 Port services -99
 Vessel operators -89 Statistical
 Airline operators -126 Statistical
 Other 116 Statistical

 Other 6 Definitional,
 reclassification, and
 statistical

 1999

Travel 114
 Business and personal -23 Statistical
 Education 84 Reclassification
 and statistical
 Medical 53 Reclassification
 and statistical

Passenger fares -2 Statistical

Other transportation -319

 Freight -135
 Ocean 2 Statistical
 Air (D) Reclassification
 and statistical
 Land ... Reclassification
 and statistical
 Other (D) Statistical

 Port services -191
 Vessel operators -105 Statistical
 Airline operators -194 Statistical
 Other 108 Statistical

 Other 7 Definitional,
 reclassification, 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 Difference

 1998

 Total 9,337 11,853 -2,516

 Affiliated 4,947 6,965 -2,018

 Royalties and
 license fees 1,330 1,418 -88
 Other services 3,617 5,547 -1,930

 Unaffiliated 4,284 4,888 -804

 Royalties,
 license fees,
 and selected
 services 843 844 -1
 Insurance 112 319 -207
 Financial services 771 611 160
 Education and training 468 15 453
 Communications 305 633 -328
 Computer services 405 446 -41
 Business services 961 712 249
 Sports and entertainment 254 926 -872
 Other private ... 195 -195
 Government:
 United States (non-
 military) 77 74 3
 Canada 88 113 -25
 U.S. military sales 105 ... 105

 1999

 Total 10,651 12,603 -1,952

 Affiliated 5,312 7,445 -2,133

 Royalties and
 license fees 1,339 1,655 -316
 Other services 3,973 5,790 -1,817

 Unaffiliated 5,225 5,158 66

 Royalties, license fees,
 and selected services 1,088 921 167
 Insurance 207 372 -165
 Financial services 1,090 635 455
 Education and training 465 15 470
 Communications 301 747 -446
 Computer services 425 415 10
 Business services 1,190 740 450
 Sports and entertainment 263 954 -691
 Other 200 -200
 Government:
 United States (non-
 military) 91 46 45
 Canada 85 114 -29
U.S. military sales 115 ... 115

 Common-basis estimates, after
 definitional and methodological
 adjustments

 U.S. Canadian Remaining
 receipts payments difference

 1998

 Total 8,582 11,406 -2,824

 Affiliated 4,735 6,803 -2,069

 Royalties and
 license fees 1,330 1,375 -45
 Other services 3,405 5,429 -2,024

 Unaffiliated 3,742 4,603 -860

 Royalties,
 license fees,
 and selected
 services 829 837 -8
 Insurance 112 319 -207
 Financial services 771 611 160
 Education and training 23 15 8
 Communications 305 367 -82
 Computer services 405 446 -41
 Business services 720 922 -202
 Sports and entertainment 412 905 -493
 Other private ... ... ...
 Government:
 United States (non-
 military) 77 67 10
 Canada 881 113 -25
 U.S. military sales 105 ... 105

 1999

 Total 9,783 12,149 -2,386

 Affiliated 5,081 7,271 -2,190

 Royalties and
 license fees 1,339 1,600 -261
 Other services 3,742 5,671 -1,929

 Unaffiliated 4,587 4,878 -289

 Royalties, license fees,
 and selected services 1,074 912 162
 Insurance 207 372 -165
 Financial services 1,090 662' 428
 Education and training 13 15 -2
 Communications 301 425 -124
 Computer services 425 415 10
 Business services 866 965 -99
 Sports and entertainment 436 919 -483
 Other ... ... ...
 Government:
 United States (non-
 military) 91 78 13
 Canada 85 114 -29
U.S. military sales 115 ... 115

 Reconciled Total
 estimates, adjustments
 including to
 statistical published
 adjustments estimates

 United
 U.S. Canadian States
 receipts payments

 1998

 Total 10,074 10,074 738

 Affiliated 4,931 4,931 -16

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

 Unaffiliated 5,038 5,038 754

 Royalties,
 license fees,
 and selected
 services 837 837 -6
 Insurance 312 312 200
 Financial services 875 875 104
 Education and training 23 23 -445
 Communications 367 367 62
 Computer services 405 405 ...
 Business services 1,184 1,184 223
 Sports and entertainment 845 845 591
 Other private ... ... ...
 Government:
 United States (non-
 military) 77 77 ...
 Canada 113 113 25
 U.S. military sales 105 105 ...

 1999

 Total 11,176 11,176 525

 Affiliated 5,242 5,242 -70

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

 Unaffiliated 5,819 5,819 595

 Royalties, license fees,
 and selected services 1,074 1,074 -14
 Insurance 421 421 214
 Financial services 1,135 1,135 45
 Education and training 13 13 -472
 Communications 363 363 62
 Computer services 425 425 ...
 Business services 1,324 1,324 134
 Sports and entertainment 859 859 596
 Other ... ... ...
 Government:
 United States (non-
 military) 91 91 ...
 Canada 114 114 29
U.S. military sales 115 115 ...

 Total adjustments to
 published estimates

 Canada Type of adjustments

 1998

 Total -1,780

 Affiliated -2,034 Definitional,
 reclassification, and
 statistical
 Royalties and
 license fees (1)
 Other services (1)

 Unaffiliated 149

 Royalties,
 license fees,
 and selected
 services -7 Reclassification
 and statistical
 Insurance -7 Statistical
 Financial services 264 Statistical
 Education and training 8 Reclassification
 and statistical
 Communications -266 Reclassification
 and statistical
 Computer services -41 Statistical
 Business services 472 Reclassification
 and statistical
 Sports and entertainment -81 Reclassification
 and statistical
 Other private -195 Definitional
 and reclassification
 Government:
 United States (non-
 military) 3 Statistical
 Canada ... Statistical
 U.S. military sales 105 Statistical

 1999

 Total -1,428

 Affiliated -2,203 Definitional,
 reclassification,
 and statistical
 Royalties and
 license fees (1)
 Other services (1)

 Unaffiliated 660

 Royalties, license fees,
 and selected services 153 Reclassification
 and statistical
 Insurance 49 Statistical
 Financial services 500 Statistical
 Education and training -2 Reclassification
 and statistical
 Communications -384 Reclassification
 and statistical
 Computer services 10 Statistical
 Business services 584 Reclassification
 and statistical
 Sports and entertainment -95 Reclassification
 and statistical
 Other -200 Definitional
 and reclassification
 Government:
 United States (non-
 military) 45 Statistical
 Canada ... Statistical
U.S. military sales 115 Statistical

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

Table 6.2.--Other Services, Southbound

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S. Difference
 receipts payments

 1998

 Total 8,922 6,186 2,736

Affiliated 4,177 3,376 801

 Royalties and license fees 390 296 94
 Other services 3,787 3,080 707

Unaffiliated 4,746 2,741 2,005

 Royalties, license fees,
 and selected services 1,142 439 703
 Insurance 193 712 -519
 Financial services 385 227 158
 Education and training 38 22 16
 Communications 582 309 273
 Computer services 398 96 302
 Business services 809 608 201
 Sports and entertainment 788 121 667
 Other private 191 ... 191
 Government:
 Canada 13 ... 13
 United States (non-
 defense agencies) 207 207 ...

U.S. defense agencies ... 68 -68

 1999

 Total 9,798 5,457 4,341

Affiliated 4,904 2,865 2,038

 Royalties and license fees 443 407 36
 Other services 4,460 2,458 2,002

Unaffiliated 4,894 2,521 2,373

 Royalties, license fees,
 and selected services 1,184 685 499
 Insurance 217 231 -14
 Financial services 367 203 164
 Education and training 40 26 14
 Communications 469 220 249
 Computer services 413 88 325
 Business services 882 683 199
 Sports and entertainment 852 150 702
 Other 213 ... 213
 Government:
 Canada 14 ... 14
 United States (non-
 defense agencies) 243 235 8

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

 Common basis estimates, after
 definitional and methodological
 adjustments

 Canadian U.S. Remaining
 receipts payments differences

 1998

 Total 8,557 6,292 2,265

Affiliated 4,143 3,351 791

 Royalties and license fees 386 296 90
 Other services 3,756 3,055 701

Unaffiliated 4,368 2,873 1,495

 Royalties, license fees,
 and selected services 1,142 430 712
 Insurance 193 712 -519
 Financial services 385 227 158
 Education and training 18 7 11
 Communications 319 309 10
 Computer services 398 96 302
 Business services 909 534 375
 Sports and entertainment 784 351 433
 Other private ... ... ...
 Government:
 Canada 13 ... 13
 United States (non-
 defense agencies) 207 207 ...

U.S. defense agencies 46 68 -22

 1999

 Total 9,358 5,577 3,781

Affiliated 4,869 2,839 2,030

 Royalties and license fees 433 407 26
 Other services 4,436 2,432 2,004

Unaffiliated 4,436 2,666 1,770

 Royalties, license fees,
 and selected services 1,182 677 505
 Insurance 217 231 -14
 Financial services 327 203 124
 Education and training 21 8 13
 Communications 201 220 -19
 Computer services 413 88 325
 Business services 989 581 388
 Sports and entertainment 849 423 426
 Other ... ... ...
 Government:
 Canada 14 ... 14
 United States (non-
 defense agencies) 243 235 8

U.S. defense agencies 53 72 -19

 Reconciled estimates, Total
 including statistical adjustments
 adjustment to published
 estimates

 Canadian U.S. Canada
 receipts payments

 1998

 Total 8,136 8,136 -787

Affiliated 3,500 3,500 -677

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

Unaffiliated 4,590 4,590 -156

 Royalties, license fees,
 and selected services 1,142 1,142 ...
 Insurance 411 411 218
 Financial services 340 340 -45
 Education and training 18 18 -20
 Communications 319 319 -263
 Computer services 398 398 ...
 Business services 996 996 187
 Sports and entertainment 744 744 -44
 Other private ... ... -191
 Government:
 Canada 13 13 ...
 United States (non-
 defense agencies) 207 207 ...

U.S. defense agencies 46 46 46

 1999

 Total 7,707 7,707 -2,091

Affiliated 3,105 3,105 -1,799

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

Unaffiliated 4,549 4,549 -345

 Royalties, license fees,
 and selected services 1,182 1,182 -2
 Insurance 290 290 731
 Financial services 297 297 -70
 Education and training 21 21 -19
 Communications 220 220 -249
 Computer services 413 413
 Business services 1,068 1,068 186
 Sports and entertainment 809 809 -43
 Other ... ... -213
 Government:
 Canada 14 14 ...
 United States (non-
 defense agencies) 235 235 -8

U.S. defense agencies 53 53 53

 Total adjustments to published
 estimates

 United Type of adjustment
 States

 1998

 Total 1,951

Affiliated 124 Definitional, reclassi-
 fication, and statistical
 Royalties and license fees (1)
 Other services (1)

Unaffiliated 1,849

 Royalties, license fees,
 and selected services 703 Statistical
 Insurance -301 Statistical
 Financial services 113 Statistical
 Education and training -4 Reclassification and
 statistic
 Communications 10 Reclassification and
 statistic
 Computer services 302 Statistical
 Business services 388 Reclassification and
 statistic
 Sports and entertainment 623 Reclassification and
 statistic
 Other private ... Definitional and
 reclassification
 Government:
 Canada 13 Statistical
 United States (non-
 defense agencies) ...

U.S. defense agencies -22 Statistical

 1999

 Total 2,249

Affiliated 240 Definitional, reclassi-
 fication and statistical
 Royalties and license fees (1)
 Other services (1)

Unaffiliated 2,028

 Royalties, license fees,
 and selected services 497 Statistical
 Insurance 59 Statistical
 Financial services 94 Statistical
 Education and training -5 Reclassification and
 statistic
 Communications ... Reclassification and
 statistic
 Computer services 325 Statistical
 Business services 385 Reclassification and
 statistic
 Sports and entertainment 659 Reclassification and
 statistic
 Other ... Definitional and
 reclassification
 Government:
 Canada 14 Statistical
 United States (non-
 defense agencies) ... Statistical

U.S. defense agencies -19 Statistical

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

Table 7.1.--investment Income, Northbound

[Millions of U.S. dollars]

 Published estimates

 U.S. Canadian Difference
 receipts payments

 1998

Investment income 18,836 24,202 -5,366

 Direct investment income 7,527 7,653 -126
 Earnings of incorporated
 affiliates 7,008 6,711 297
 Dividends 4,581 3,470 1,111

 Reinvested earnings 2,427 3,241 -814
 Earnings of unincorpo-
 rated affiliates 153 268 -115

 Interest 366 674 -308

Other Investment Income 11,309 16,549 -5,240

 Securities 7,373 10,424 -3,051
 Dividends 812 789 23

 Interest on bonds 6,561 9,635 -3,074
 U.S. claims/Canadian
 liabilities 3,936 6,124 -2,188
 U.S. bank claims 3,147 3,754 -607

 Other private
 U.S. claims 789 2,370 -1,581

 1999

Investment income 21,948 26,493 -4,545

 Direct investment income 11,102 9,802 1,300
 Earnings of incorporated
 affiliates 10,345 8,842 1,503
 Dividends 4,683 4,186 497

 Reinvested earnings 5,662 4,656 1,006
 Earnings of unincorpo-
 rated affiliates 360 277 83

 Interest 397 682 -285

Other Investment Income 10,846 16,691 -5,845

 Securities 7,121 10,682 -3,561
 Dividends 896 727 169

 Interest on bonds 6,225 9,955 -3,730

 U.S. claims/Canadian
 liabilities 3,725 6,009 -2,284
 U.S. bank claims 3,023 3,691 -668

 Other private
 U.S. claims 702 2,318 -1,616

 Common-basis estimates, after
 definitional end methodological
 adjustments

 U.S. Canadian Remaining
 receipts payments difference
 1998

Investment income 17,639 20,372 -2,733

 Direct investment income 7,527 7,060 467
 Earnings of incorporated
 affiliates 7,008 6,284 724
 Dividends 4,581 3,057 1,524

 Reinvested earnings 2,427 3,227 -800
 Earnings of unincorpo-
 rated affiliates 153 306 -153

 Interest 366 470 -104

Other Investment Income 10,112 13,312 -3,200

 Securities 7,373 10,401 -3,028
 Dividends 812 766 46

 Interest on bonds 6,561 9,635 -3,074
 U.S. claims/Canadian
 liabilities 2,739 2,911 -172
 U.S. bank claims 1,077 1,050 27

 Other private
 U.S. claims 1,662 1,861 -199

 1999

Investment income 20,605 22,575 -1,970

 Direct investment income 11,102 9,229 1,873
 Earnings of incorporated
 affiliates 10,345 8,300 2,045
 Dividends 4,683 3,636 1,047

 Reinvested earnings 5,662 4,664 998
 Earnings of unincorpo-
 rated affiliates 360 429 -69

 Interest 397 499 -102

Other Investment Income 9,503 13,346 -3,843

 Securities 7,121 10,748 -3,627
 Dividends 896 793 103

 Interest on bonds 6,225 9,955 -3,730

 U.S. claims/Canadian
 liabilities 23,821 2,600 -218
 U.S. bank claims 942 890 52

 Other private
 U.S. claims 1,440 1,710 -270

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

 United
 U.S. Canadian States
 receipts payments
 1998

Investment income 20,142 20,142 1,306

 Direct investment income 7,751 7,751 224
 Earnings of incorporated
 affiliates 7,008 7,008 ...
 Dividends 4,581 4,581 ...

 Reinvested earnings 2,427 2,427 ...
 Earnings of unincorpo-
 rated affiliates 326 326 173

 Interest 419 419 53

Other Investment Income 12,391 12,391 1,082

 Securities 9,483 9,483 2,110
 Dividends 812 812 ...

 Interest on bonds 8,671 8,671 2,110
 U.S. claims/Canadian
 liabilities 2,909 2,909 -1,027
 U.S. bank claims 1,064 1,064 -2,083

 Other private
 U.S. claims 1,845 1,845 1,056

 1999

Investment income 23,763 23,763 1,815

 Direct investment income 11,272 11,272 170
 Earnings of incorporated
 affiliates 10,345 10,345 ...
 Dividends 4,683 4,683 ...

 Reinvested earnings 5,662 5,662 ...
 Earnings of unincorpo-
 rated affiliates 477 477 117

 Interest 449 449 52

Other Investment Income 12,491 12,491 1,645

 Securities 9,855 9,855 2,734
 Dividends 896 896 ...

 Interest on bonds 8,959 8,959 2,734

 U.S. claims/Canadian
 liabilities 2,636 2,636 -1,089
 U.S. bank claims 916 916 -2,107

 Other private
 U.S. claims 1,720 1,720 1,018

 Total adjustments
 to published estimates

 Canada Type of adjustment

 1998

Investment income -4,060

 Direct investment income 98
 Earnings of incorporated
 affiliates 297
 Dividends 1,111 Definitional, reclassi-
 fication, and statistical
 Reinvested earnings -814 Statistical
 Earnings of unincorpo-
 rated affiliates 58 Definitional, reclassi-
 fication, and statistical
 Interest -255 Reclassification, net to
 gross, and statistical
Other Investment Income -4,158

 Securities -941
 Dividends 23 Definitional, reclassi-
 fication, and statistical
 Interest on bonds -964 Definitional and
 statistical
 U.S. claims/Canadian
 liabilities -3,215
 U.S. bank claims -2,690 Net to gross, gross to
 net, and
 statistical
 Other private
 U.S. claims -525 Net to gross and
 statistical

 1999

Investment income -2,730

 Direct investment income 1,470
 Earnings of incorporated
 affiliates 1,503
 Dividends 497 Definitional, reclassi-
 fication, and
 statistical
 Reinvested earnings 1,006 Statistical
 Earnings of unincorpo-
 rated affiliates 200 Definitional, reclassi-
 fication, and
 statistical
 Interest -233 Reclassification, net
 to gross, and
 statistical
Other Investment Income -4,200

 Securities -827
 Dividends 169 Definitional, reclassi-
 fication, and
 statistical
 Interest on bonds -996 Definitional and
 statistical

 U.S. claims/Canadian
 liabilities -3,373
 U.S. bank claims -2,775 Net to gross, gross to
 net, and
 statistical
 Other private
 U.S. claims -598 Net to gross and
 statistical

Table 7.2.--Investment Income, Southbound

[Millions of U.S. dollars]

 Published estimates

 Canadian U.S.
 receipts payments Difference

 1998

Investment income 10,429 6,733 3,696
 Direct Investment income 4,103 1,563 2,540
 Earnings of incorporated
 affiliates 2,993 1,308 1,685
 Dividends 737 4,206 -3,469
 Reinvested earnings 2,256 -2,898 5,154
 Earnings of unincorpo-
 rated affiliates 889 65 824
 Interest 222 190 32

Other Investment income 6,326 5,170 1,156

 Securities 1,734 2,430 -696
 Dividends 1,116 1,346 -230
 Interest on bonds 618 1,084 -466

 Canadian claims/
 U.S. liabilities 3,543 1,865 1,678
 Canadian bank
 claims 3,073 1,433 1,640

 Other private
 Canadian claims 470 432 38

 U.S. Government
 liabilities 1,049 875 174

 1999

Investment income 10,112 7,287 2,825

 Direct investment income 3,714 1,482 2,232
 Earnings of incorporated
 affiliates 2,336 1,530 806
 Dividends 590 599 -9
 Reinvested earnings 1,746 931 815
 Earnings of unincorpo-
 rated affiliates 1,121 -386 1,507
 Interest 256 338 -62

Other investment income 6,398 5,805 693

 Securities 1,661 2,758 -1,097
 Dividends 1,124 1,382 -258
 Interest on bonds 537 1,376 -839

 Canadian claims/U.S.
 liabilities 3,807 1,903 1,904
 Canadian bank
 claims 3,371 1,538 1,833

 Other private
 Canadian claims 436 365 71

 U.S. Government
 liabilities 931 1,144 -213

 Common-basis estimates, after
 definitional and methodological
 adjustments

 Canadian U.S. Remaining
 receipts payments difference

 1998

Investment income 7,237 5,536 1,701
 Direct Investment income 3,912 1,563 2,349
 Earnings of incorporated
 affiliates 3,230 1,308 1,922
 Dividends (D) (D) (D)
 Reinvested earnings (D) (D) (D)
 Earnings of unincorpo-
 rated affiliates 596 65 531
 Interest 86 190 -104

Other Investment income 3,326 3,973 -648

 Securities 1,690 2,430 -740
 Dividends 1,072 1,346 -274
 Interest on bonds 618 1,084 -466

 Canadian claims/
 U.S. liabilities 719 668 51
 Canadian bank
 claims 249 619 -370

 Other private
 Canadian claims 470 49 421

 U.S. Government
 liabilities 917 875 42

 1999

Investment income 7,083 5949 1,134

 Direct investment income 3,609 1,402 2,126
 Earnings of incorporated
 affiliates 2,552 1,530 1,022
 Dividends 568 599 -31
 Reinvested earnings 1,984 931 1,053
 Earnings of unincorpo-
 rated affiliates 919 -386 1,305
 Interest 137 338 -201

Other investment income 3,474 4,467 -993

 Securities 1,616 2,758 -1,142
 Dividends 1,079 1,382 -303
 Interest on bonds 537 1,376 -839

 Canadian claims/U.S.
 liabilities 899 565 334
 Canadian bank
 claims 467 496 -29

 Other private
 Canadian claims 432 69 363

 U.S. Government
 liabilities 959 1,144 -185

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

 Canadian U.S. Canada
 receipts payments

 1998

Investment income 6,873 6,873 -3,556
 Direct Investment income 3,031 3,031 -1,072
 Earnings of incorporated
 affiliates 2,520 2,520 -473
 Dividends (D) (D) (D)
 Reinvested earnings (D) (D) (D)
 Earnings of unincorpo-
 rated affiliates 323 323 -566
 Interest 188 188 -34

Other Investment income 3,842 3,842 -2,484

 Securities 2,197 2,197 463
 Dividends 1,346 1,346 230
 Interest on bonds 851 851 233

 Canadian claims/
 U.S. liabilities 749 749 -2,794
 Canadian bank
 claims 452 452 -2,621

 Other private
 Canadian claims 297 297 -173

 U.S. Government
 liabilities 896 896 -153

 1999

Investment income 6,211 6,211 -3,901

 Direct investment income 2,013 2,013 -1,701
 Earnings of incorporated
 affiliates 1,692 1,692 -644
 Dividends 584 584 -6
 Reinvested earnings 1,108 1,108 -638
 Earnings of unincorpo-
 rated affiliates 85 85 -1,036
 Interest 237 237 -19

Other investment income 4,198 4,198 -2,200

 Securities 2,278 2,276 617
 Dividends 1,382 1,382 258
 Interest on bonds 896 896 359

 Canadian claims/U.S.
 liabilities 868 868 -2,939
 Canadian bank
 claims 555 555 -2,816

 Other private
 Canadian claims 313 313 -123

 U.S. Government
 liabilities 1,052 1,052 121

 Total adjustments to
 published estimates

 United Type of adjustment
 States

 1998

Investment income 140
 Direct Investment income 1,468
 Earnings of incorporated
 affiliates 1,212
 Dividends (D) Statistical
 Reinvested earnings (D) StatiStical
 Earnings of unincorpo-
 rated affiliates 258 Definitional and
 statistical
 Interest Gross to net and
 statistical

Other Investment income -1,328

 Securities -233
 Dividends ... Definitional and
 statistical
 Interest on bonds -233 Definitional and
 statistical

 Canadian claims/
 U.S. liabilities -1,116
 Canadian bank
 claims -981 Net to gross, gross to
 net,
 and statistical
 Other private
 Canadian claims -135 Net to gross and
 statistical

 U.S. Government
 liabilities 21 Statistical

 1999

Investment income -1,076

 Direct investment income 531
 Earnings of incorporated
 affiliates 162
 Dividends -15 Statistical
 Reinvested earnings 177 Statistical
 Earnings of unincorpo-
 rated affiliates 471 Definitional and
 statistical
 Interest -101 Gross to net and
 statistical

Other investment income -1,607

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

 Canadian claims/U.S.
 liabilities -1,035
 Canadian bank
 claims -983 Net to gross, gross
 to net,
 and statistical
 Other private
 Canadian claims -52 Net to gross and
 statistical

 U.S. Government
 liabilities -92 Statistical

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

Reconciled Current-Account Balances

In the U.S. current account, the reconciliation adjustments resulted in an increase of $5.2 billion in the U.S. deficit for 1998 and an increase of $4.4 billion in the U.S. deficit for 1999. In both years, the changes reflect larger adjustments to the U.S. southbound estimates than to the northbound estimates (tables 2.1 and 2.2).(4) The largest increases in the U.S. southbound estimates result from the addition of Canadian reexports to U.S. goods imports (a definitional adjustment), from the valuation of U.S. natural gas imports to include inland freight (a definitional adjustment), and from an increase for undercoverage of some southbound services (a statistical adjustment). The largest increases in the U.S. northbound estimates result from upward adjustments to investment income for undercoverage of income on U.S. holdings of Canadian bonds (a statistical adjustment).

In the Canadian current account, the reconciliation adjustments resulted in an increase of $1.9 billion in the 1998 Canadian surplus and in a decrease of $2.3 billion in the 1999 Canadian surplus. In 1998, the increase reflects larger downward adjustments to the Canadian northbound estimates than to the Canadian southbound estimates. In 1999, the decrease reflects smaller downward adjustments to the Canadian northbound estimates than to the Canadian southbound estimates. In both years, 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 and in investment income. In the Canadian northbound estimates, downward adjustments for definitional and methodological differences were mainly in "other" investment income. Downward adjustments for statistical differences in 1998 were mainly in services; in 1999, downward statistical adjustments to services were partly offset by upward statistical adjustments to income.

Expanded Presentation of the Reconciliation The presentation of the reconciliation tables has been expanded this year. Additional information is now included in tables 2.1 and 2.2. The details of the definitional, methodological, and statistical adjustments for each major account are now shown, whereas only the total adjustments were previously shown.

In tables 3-7, columns have been added that show the current-account estimates on a common basis--that is, after they have been adjusted for definitional and methodological differences; the remaining adjustments that are needed to reach the reconciled values are the statistical adjustments. The common-basis estimates, which were initiated by Statistics Canada, provide a useful means to analyze the differences between the U.S.- and Canadian-published estimates. These estimates, though compiled in the past, were not published, because some of the definitional and methodological adjustments were arbitrary. The method of compiling the common-basis estimates has been changed to conform to the international standards published in the International Monetary Fund's Balance of Payments Manual (fifth edition) and to reflect the recent improvements to the U.S.- and Canadian-published estimates. The U.S.- and Canadian-published estimates now largely conform to the international standards, but some differences with the international standards--and between the U.S. and Canadian estimates---persist because of data limitations, difficulties in determining country attribution, and differences in classification.

In the expanded presentation, the tables of the individual accounts (tables 4-7) continue to identify the type of adjustments made to the published estimates. 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 "net of withholding taxes" basis 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 different accounts; for reconciliation, they are reclassified to a single account (part of business services). A few U.S. and Canadian income accounts are adjusted to a net or gross basis for comparability.

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

Tables 2.1 through 7.2 follow.

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

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

In principle, the bilateral current account of one country should mirror the bilateral current account of the other country. Differences occur in the published estimates of the U.S. and Canadian current accounts because of variations in the definitions, methodologies, and statistical sources that are used by each agency. In addition, some of the differences for 1999 are in components of the current account for which data are still preliminary and subject to revision; these differences may be eliminated when final data for these components become available.

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

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

(1.) A detailed article on the methodology was published by BEA in "Reconciliation of the U.S.-Canadian Current Account" in the November 1992 SURVEY and by Statistics Canada in Reconciliation of the Canadian-United States Current Account, 1990-91. Statistics Canada also published a shortened version in the December 1992 Canadian Economic Observer and in Canada's Balance of International Payments, Third Quarter 1992.

Acknowledgments

The reconciliations were carried out under the direction of Hugh Henderson, Chief, Current Account, in Statistics Canada's Balance of Payments Division, and Anthony DiLullo, Assistant Chief of BEA's Balance of Payments Division. At Statistics Canada, Denis Caron, Christian Lajule, Eric Simard, and Robert Theberge participated in the reconciliation of the Canadian accounts, with collaboration and assistance from Art Ridgeway, Barry Mersereau, and Laura Petts. Denis Caron was responsible for the production and coordination of the reconciliation tables. At BEA, Russell Scholl was responsible for reconciling the U.S. portfolio income accounts; Mark New, for the accounts related to U.S. direct investment in Canada; Gregory Fouch, for the accounts related to Canadian direct investment in the United States; Kwok Lee, for goods; Michael Mann, for services; and Edward Dozier, for transportation.

(1.) The reconciled estimates are intended to show how the current-account estimates would appear if both countries used the same definitions, methodologies, and data sources.

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

(2.) The reconciliation of the current account has been undertaken each year since 1970. Summary results of the reconciliations were published in the United States in the following issues of the SURVEY OF CURRENT BUSINESS: June 1975, September 1976 and 1977, December 1979, June 1981, and each December of 1981-91. Complete details of the reconciliations for 1990 forward were published in the following issues of the SURVEY: November 1992, each October of 1993-95, and each November of 1996-99. In Canada, the results were published in the following issues of Canada's Balance of International Payments (catalogue 67-001), a publication of Statistics Canada: Fourth Quarter 1973, Second Quarter 1976 and 1977, Third Quarter 1978 and 1979, First Quarter 1981, and each Third Quarter 1981-99.

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

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

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 Division. This article will also be published in Canada's Balance of International Payments, Third Quarter 2000.