11.2 Estimation methods and data sources–International imports and exports
11.47 The International Trade Division (ITD) compiles and publishes customs administrative data. Customs documents are produced by the Canada Border Services Agency and are compiled by the International Trade Division for all imports from foreign countries and for exports to countries other than the United States. Since import data is usually considered more reliable than export data, the value of exports to the U.S. is gathered from U.S. customs documents on imports from Canada. In addition, Statistics Canada periodically conducts surveys of Canadian exporters and uses the information gathered to supplement its administrative data.
11.48 Goods are recorded in conformity with the standards set out in the General System of Trade Statistics of the United Nations Statistics Division. Both exports and imports are classified and published in accordance with the Harmonized Commodity Description and Coding System (HS). HS coding is an international standard that was developed under the auspices of the World Customs Organization and is currently used by 167 countries, covering 95% of all goods traded in the world
11.49 Although trade estimates are collected at the very detailed HS level, the ITD subsequently aggregates commodities into 64 major export groups and 63 major import groups, on a customs basis and on a Balance of Payments basis. The Income and Expenditure Accounts Division uses the Balance of Payments framework to present trade data1
11.50 As previously mentioned, services differ from goods in terms of the link between their production and their trade. For goods, their trade can generally be separated in time from their production, because a good produced in one country can later be traded at any time, even years after production. That is not the case for services, where the production is closely linked to their trade. This has a major impact on the way in which they are measured.
11.51 The services categories are set out in the Balance of Payments Manual. The categories used by the Income and Expenditure Accounts Division (IEAD) are those of the Balance of Payments Division (BPD), the classification of which represents in part a regrouping of the more detailed categories of the Balance of Payments Manual, plus FSIM. Trade in services is derived from a variety of sources (see paragraphs 11.63 to 11.106).
Presentation of estimates within the Income and Expenditure Accounts
11.52 Table 11.7 shows the level of detail at which international trade estimates are published in Income and Expenditure Accounts, Table 25, for 2000. The goods categories represented correspond to those published by the International Trade Division, the source division for commodity data. The services correspond to the categories published by the Balance of Payments Division, except for the financial intermediation category, which is calculated by Income and Expenditure Accounts Division.2
11.53 The eight goods categories set out in Table 11.7, which are called sectors, are aggregations of the 64 major export groups and 63 major import groups published and provided by International Trade Division, as presented in Appendix 11C. Unlike International Trade Division, Income and Expenditure Accounts Division does not publish at the level of the 64 major export groups and 63 major import groups, but uses them as the working level.
11.54 It should be noted that while the categories bear the same names, they do not contain exactly the same detail on the export and the import side. This asymmetry reflects the fact that Canada exports certain products that it does not import and vice-versa. Energy and forestry products are two examples, as are agricultural and fishing products. In fact, even at the level of the 64 major export and 63 major import groups, the categories are different and, in many instance, cannot be compared.
11.55 A ninth category, Other balance of payment adjustments, consists of a variety of balance of payment adjustments that are not incorporated in the goods groups. Like the other categories, contents differ depending on whether it is on the export or import side. For exports, it includes the total estimated value of inland freight (see paragraph 11.17), an adjustment to take into account fluctuations in the exchange rate between the Canadian and U.S. dollars, and another adjustment for exports of pharmaceuticals to the U.S. that are not recorded by customs.3 For imports, the other balance of payments adjustments includes the addition of inland freight (see paragraph 11.21), an adjustment for imports of cigarettes (because of illegal trafficking in cigarettes), and an adjustment for imports by mail.
11.56 The services, except FSIM, categories are based on the Balance of Payments Manual. As a result, the travel, transportation and government services categories are those of the manual, while the commercial services category represents a combination of various commercial services listed in the manual. Lastly, the FSIM category is added and calculated by the Income and Expenditure Accounts Division.
11.57 Estimates of international imports and exports follow the Canadian System of National Accounts four year revision cycle, such that, once a year, revisions are incorporated for all four years of annual and quarterly data. The three stages of the production-revision cycle are:
- current year quarterly estimates (t)
- non-benchmarked years (t-1, t-2)
- benchmarked years (t-3, t-4)
11.58 Non-benchmarked years international trade data are assembled by the International Trade Division (ITD) for goods and by the Balance of Payments Division (BPD) for services. For goods, data are collected monthly and aggregated to obtain quarterly data. For services, the data are obtained from annual and quarterly surveys by Balance of Payments Division, other Statistics Canada surveys and other statistical sources.
11.59 For benchmark years, the Industry Accounts Division develops the estimates, based largely on the International Trade Division and Balance of Payments Division estimates. These estimates consist of re-valuing the balance of payments adjustments in light of the rebalancing of the economy by commodity. This rebalancing also makes it possible to provide a better valuation of the under reporting adjustment for overseas exports.
Annual and quarterly estimation methods and data sources—Tradein goods
11.60 The data for goods are assembled monthly, while annual estimates are the summation of months of trade. Trade in goods is largely based on customs documents. In Canada, the customs records are processed and published for statistical purposes by the International Trade Division of Statistics Canada. That division compiles Canadian imports from all foreign countries and Canadian exports to countries other than the United States from the Canadian customs documents filed with the Canada Border ServicesAgency.
11.61 Since January 1, 1990, Canadian exports to the United States have been based on U.S. custo'o; imports from Canada documents. The data are compiled by the U.S. Census Bureau of the U.S. Department of Commerce and provided to the International Trade Division of Statistics anada.
11.62 Although most categories of goods can be easily compiled by the recording of their crossing the border, Balance of Payments adjustments are needed to bring customs data to a Balance of Payments basis.
Annual and quarterly estimation methods and data sources—Trade in services
11.64 The Culture, Tourism and Centre for Education Statistics Division of Statistics Canada compiles the basic Canadian travel statistics. These statistics are derived from a combination of census data and sample counts of travellers crossing the border, coupled with sample surveys used to collect specific information from travellers, including their expenditures and main purpose of visit (business or personal).4
11.65 The Canada Border Services Agency collects information on the number of crossings at frontier ports and distributes the travel survey questionnaires. The frontier count is made by categories, based on mode of transportation (including, in the case of highways and ferry points, cars, trucks, motorcycles and bicycles). Complete counts are taken at all but seven points of entry where automobile, motorcycle and bicycle flows are estimated from samples. The questionnaires that collect the travel expenditure data are distributed according to pre-arranged schedules to non-resident travellers (exports of travel services) upon exit from Canada, or to residents of Canada (imports of travel services) upon their return from travel abroad. Completion of the questionnaires is voluntary and travellers are asked to mail their completed questionnaires directly to Statistics Canada.
11.66 In business travel, estimates of spending by crews (of airplanes, ships, boats, trains and trucks) are calculated by the Culture, Tourism and Centre for Education Statistics Division.
11.67 Personal travel includes travel for health, travel for education and travel for tourism. The receipts data (exports) for health consist of foreign spending for hospital services in Canada, as recorded from the annual hospital survey of the Canadian Institute for Health Information, with projections for recent years where survey results are not yet available. Recent estimates for physician services linked to U.S. data on the payments side were introduced with the 1995 reference year. The payments for health (imports) consist of Canadian residents spending in other countries for hospital and physician charges paid under provincial and other private health plans. Other expenses related to health but not identified as such by the sources would be included under tourism.
11.68 On the receipt (export) side of the education series, the Culture, Tourism and Centre for Education Statistics Division produces the estimates by combining the time series on the number of students with average tuition fees and adding estimates of other expenditures. For payments (imports) of Canadian students in the United States, the data have been supplied by the U.S. Bureau of Economic Analysis from 1981 onward and were linked with balance of payments data for prior years. Data on student expenditures overseas are estimated according to the United Nations Educational, Scientific and Cultural Organization (UNESCO) data on the number of Canadian students who study in various countries abroad. Account is taken of relative living cost indexes overseas, developed by the Prices Division of Statistics Canada.
11.69 Receipts and payments related to basic tourism spending are derived from the International Travel Survey.
11.70 Transport services are a combination of freight transport and passenger fares. In general, passenger fares are obtained from the Culture, Tourism and Centre for Education Statistics Division's surveys. Freight information is derived from various Balance of Payments Division and Transportation Division surveys.
11.71 The Culture, Tourism and Centre for Education Statistics Division estimates passenger fare receipts and expenditures. The monthly data on air travellers, provided by Canada Border Services Agency, are combined with estimates of average passenger fares, obtained from the quarterly sample survey of travellers.5
11.72 Quarterly estimates of transportation of goods by truck6 beyond the exporting country are derived from customs documentation compiled by the International Trade Division for payments (imports) and by the U.S. Census Bureau for receipts (exports). The earnings of Canadian truckers for the carriage of goods in the United States, as well as the expenses paid to U.S. truckers for transporting goods in Canada, are obtained from the U.S. Bureau of Economic Analysis (BEA). The Bureau of Economic Analysis incorporates freight data from the customs data compiled by the International Trade Division of Statistics Canada.
11.73 For estimates of trucking freight beyond the Canadian/American border, most components of the calculation are taken from the U.S. Bureau of Economic Analysis whose basic methodology is followed for this series.7 Beginning with the reference year 1987, the receipts of Canadian-domiciled truckers comprise the freight for carrying exports within the United States to the U.S. destination and the freight for carrying goods from U.S. suppliers within the United States to the U.S.-Canadian border. Freight on the Canadian imports for the remaining journey within Canada is classified as a resident-to-resident transaction, outside the scope of balance of payments.
11.74 In the opposite direction, since 1981, the payments made to U.S. based truckers have included the payments made for carrying imports within Canada from the Canadian border to their destination in Canada, as well as the payments to carry Canadian exports in Canada to the Canadian border.
11.75 The other transportation components are derived from five annual surveys conducted by the Balance of Payments Division:
- Great Lakes–St. Lawrence Seaway Shipping Transactions;
- Report of Cargo, Earnings and Expenses of Ocean Vessels Operated by Non-resident Companies;
- Report of Cargo, Earnings and Expenses of Ocean Vessels Operated by Canadian Companies;
- Report on Imports of Crude Petroleum and Petroleum Products and Other Shipping Operations; and
- Transactions of Foreign Airlines with Residents of Canada.
11.76 The Balance of Payments Division collects information and estimates for 26 categories of commercial services. The information is published on an annual basis by type of control, affiliation, geography and industry. Income and Expenditure Accounts only publishes the total. Table 11.8 presents the category and the estimates of commercial services for year 2000, as they are shown in Canada's International Trade in Services, 2003.
11.77 The Balance of Payments Division (BPD) collects much of the annual data on commercial services8 through its questionnaire International Transactions in Commercial Services - BP-21S (annual). A shorter version of this survey is conducted quarterly (BP-21SQ). The results of this survey are used to establish the quarterly patterns of many series. Other divisions at Statistics Canada also conducts many other surveys, some very specific, that are used by Balance of Payments Division to estimate some categories of commercial services. A complete list of those surveys is available in Appendix 11B of this chapter.
11.78 For the current year, commercial services estimates are derived from quarterly sample surveys, which are calculated at a much higher level of aggregation. Those surveys are:
- International Transactions in Commercial Services - BP-21SQ (quarterly);
- Transactions Between Canada and Other Countries - BP-21A (quarterly);
- Canada's International Transactions in Securities - BP-30 (monthly)
11.79 The coverage of the survey is updated from listings provided by trade associations and from the monitoring of events by an ongoing scanning of the business media for international transactions. Tracked events are both company-specific and of a general background nature (for example, industry trends and developments). The information assists with the editing and updating of survey coverage for Balance of Payments Division surveys and other series.
11.80 Communication services include postal and courier services (pick-up, transport, and delivery of letters and other printed matter, parcels, packages and postal outlet services) and telecommunications services (basic service, such as telephone, e-mail, electronic data exchange or teleconferencing). Data include costs associated with use of communications infrastructure. The data are drawn from the annual International Transactions in Commercial Services survey and information provided by industry participants.
11.81 Construction services cover the erection of structures, structural repairs, installation, refurbishing, special trade, demolition and site work. Rentals of construction equipment are excluded, appearing instead with equipment rentals. Labour and local supplies are included in construction services. The data is obtained from the annual International Transactions in Commercial Services survey.
11.82 Insurance services cover the provision of various types of insurance to non-residents by resident insurance companies and the provision of various types of insurance to Canadian residents by non-resident insurance companies. Broker and agency commissions are included.9 Contrary to international standards, Canadian statistics are established on the basis of gross premiums and claims. Exports of insurance services are calculated as the sum of premiums received by Canadian residents abroad and claims paid to clients in Canada by non-resident insurers. Imports are the sum of claims paid abroad by insurers resident in Canada and premiums paid to outside insurers by policyholders in Canada.
11.83 The insurance series are divided into four categories: primary life and non-life, which includes premiums and claims of insurance carriers for fire, accident, risk and miscellaneous insurance; reinsurance – life, subcontracted risk on life insurance for a proportional share of the premium income; reinsurance – non-life, for other subcontracted risks; and finally, insurance commissions, which covers commissions by brokers and agencies and commissions identified by carriers.
11.84 Insurance data are drawn from surveys by the Balance of Payments Division of Canadian and foreign insurers in Canada,10 to which are added data from the annual International Transactions in Commercial Services survey. Data from the U.S. Bureau of Economic Analysis on cross-border insurance activity is also used, especially for insurance of Canadian resident individuals with U.S. insurance companies.
11.85 Other financial services cover intermediary and auxiliary financial services between residents and non-residents. It includes commissions and other fees related to transactions in securities (brokerage, placement of issues, underwriting, redemption and arrangement of swaps, options and other hedging instruments), commissions of commodity futures traders, as well as services related to asset management, financial market operational and regulatory services and lastly, intermediary service fees (fees associated with letters of credit, bankers' acceptance, lines of credit and financial leasing). Note that financial services indirectly measured (FSIM) are excluded from this category and are posted separately under trade in services (see paragraph 11.23).
11.86 Commissions on new issues and fees related to securities transactions—which constitute the vast majority of services in this category—are calculated by applying ratios. The commissions on new issues are largely derived by applying a percentage against the proceeds from new issues,11 percentages that are checked from time to time against prospectuses. Fees on securities transactions are derived from gross trading data coupled with certain rate factors based on discussions with the industry. Other fees and commissions in this commercial services category are derived from corporate and regulatory sources, supplemented by the annual International Transactions in Commercial Services survey.
11.87 Within computer and information services, computer services include the design, manufacture and management of computer systems (exclusive of the value of hardware). Also covered are the development and production of original software. Pre-packaged software for general commercial or personal use are excluded from this category and included in goods. Information services includes online information retrieval services, especially database services and computer-assisted document searches, and news agency services. Data on computer services and on information services are derived from the annual International Transactions in Commercial Services survey. These data are supplemented by receipts of major computer industry firms surveyed by Statistics Canada's Services Industries Division.
11.88 The royalties and licence fees category covers the use of intellectual property rights. It is broken down into five subcategories: patents and industrial designs, which covers royalties or licence fees for use of patents, industrial designs, industrial know-how or manufacturing rights; trademarks, which includes royalties and fees for use of trademarks; franchises, which covers contractual privileges granted by an individual or corporation to another, permitting the sale of a product or service in a specified area or manner; copyrights and related rights covers royalty and licence fees for use of original artistic, literary, dramatic or musical works, for example, to stage productions or performances or make recordings or a film; and lastly, software and other royalties covers mainly computer-related royalties, notably, the right to replicate, distribute or use software, whether custom or pre-packaged, and to a lesser degree, fees for the exclusive use of natural resources. Most of the data is derived from the annual International Transactions in Commercial Services survey.
11.89 Non-financial commissions covers commissions on transactions of goods and services between non-residents and resident brokers, commodity traders, dealers, manufacturers' sales branches and commission agents. The data are derived from the annual International Transactions in Commercial Services survey and estimates from the application of fixed factors to merchandise exports and imports.
11.90 Equipment rentals cover rentals (without operator) of light and heavy equipment and tools, drilling rigs and supply vessels, rail and road or off-road vehicles, and aircraft. It also includes the rental of containers, office machinery and equipment, including computers, as well as rentals of household and personal goods. Estimates for equipment rentals are based on the annual International Transactions in Commercial Services survey and other smaller surveys.
11.91 The management services category covers legal, accounting and business management services (which include management and administrative overheads between related enterprises and business management consulting). Legal services cover legal advisory and representational services in any legal, judicial and statutory procedures, and the drawing up of legal instruments or documentation. Other management services covers accounting (business and other accounts, including reviews and audits, bookkeeping and preparation of related statements and tax returns), business management consulting (public relations services) and other management services (charges for managerial and administrative services rendered by an individual or corporation that cannot be included in any other service category). The data are derived largely from the annual International Transactions in Commercial Services survey.
11.92 Advertising and related services covers design, creation and marketing of advertisements by advertising agencies, placement of advertisements in various media (print, electronic, various advertising spaces), participation in trade fairs and other promotional outlays (for example, exhibition services, telemarketing and promotional material). The data are derived from the annual International Transactions in Commercial Services survey. Tourism promotion outlays are obtained from provincial authorities on an annual basis.
11.93 Research and development covers charges related to systematic investigation through experiment or analysis to achieve a scientific or commercial advance for, or through, the creation of new or significantly improved products or processes.12 The statistics are derived from the annual International Transactions in Commercial Services survey and other surveys of the Science, Innovation and Electronic Information Division.
11.94 Architectural, engineering and other technical services includes a range of architectural and engineering activities, together with a diverse group of scientific and technical services and specific services related to mineral extraction, processing and the environment. More specifically, architectural and engineering services comprise consulting, design and pre-design, as well as contract supervision services. Urban planning and landscape architectural services are covered, as are project management services. Other technical services covers scientific and technical services (geological and geophysical services, mineral exploration and prospecting work, surveying, mapping and weather services, services of testing, analysis, inspection or certification of materials or products), mining services (drilling and field services) and environmental services (sanitation services, waste storage, treatment and destruction, decontamination, clean-up, confinement and pollution control, environmental consulting, environmental audits and site assessments). The statistics for this category are derived from the annual International Transactions in Commercial Services survey, which are supplemented by data from other surveys of technical, engineering and architectural services by the Services Division.
11.95 Miscellaneous services to business comprises tooling and other services (e.g., retooling for production of new models for automobile companies) and miscellaneous business services (transactions not allocated elsewhere: real estate services, suits and settlements, medical and dental laboratories, education, training and staff development). The data on tooling and other automotive charges are based on the annual International Transactions in Commercial Services survey and customs data from the International Trade Division. Remaining data are in part based on unspecified services reported by individual companies in the annual International Transactions in Commercial Services survey and reported under other transactions. Compensation of non-residents employees (including commuter and seasonal worker's remuneration) is included under miscellaneous services to business since these employees are treated as self-employed service providers. This is a departure from international standards where such compensation should be included under income, not sercies.
11.96 Audiovisual services cover film and video production and distribution, performing arts and organized sports. Services related to the production of motion pictures, radio and television programs and sound recording are included in this category, as are rentals, the services of actors, directors, producers and other crew members for artistic productions. Most of the data are derived from annual surveys of the Science, Innovation and Electronic Information Division and the Culture, Tourism and Centre for Education Statistics Division.
11.97 Personal, cultural and recreational services are presently limited to international activities of trade unions. Figures, that until recently were estimated from annual returns filed with Statistics Canada under the former Corporations and Labour Unions Returns Act, are now projected since the Act no longer covers labour unions.
11.98 The Balance of Payments Division also relies on other Statistics Canada surveys and on administrative data to produce estimates of commercial services. An exhaustive list of these sources and surveys is found in Appendix 11B.
11.99 Most of the data are collected from administrative sources; except for ad hoc surveys conducted to obtain estimates of spending by foreign embassies in Canada (the last such survey collected 1995 data). Federal government administrative sources include the following:
- Public Accounts of Canada;
- National Defence;
- Canadian International Development Agency;
- Department of Foreign Affairs and International Trade; and
- International Development Research Centre.
11.100 Data for provincial and territorial governments come from the provincial Public Accounts while data for crown corporations are taken from federal and provincial Public Accounts and supplementary data obtained directly from selected corporations.
11.101 Most of the data on spending in Canada by U.S. government authorities are provided by the U.S. Bureau of Economic Analysis (BEA). Data on spending by country, other than the U.S., are obtained from Canadian administrative records.
11.102 For Canadian expenditures by personnel posted abroad, two-thirds of their salary is assumed to be available for personal spending in the local economy. Payments for Canadian military personnel are calculated and provided by the Government section of the Income and Expenditure Accounts Division.
11.103 Canadian expenditures abroad are based on quarterly estimates of salary paid to military and embassies personnel. Quarterly expenditures in Canada by the U.S. come from the Bureau of Economic Analysis and expenditures of other countries in Canada are obtained from Canadian administrative records.
Financial services indirectly measured (FSIM)
11.104 The estimation of FSIM is done on a quarterly basis; annual estimates are obtained by summing quarterly estimates. Financial services indirectly measured (FSIM) are calculated as follows for all types of financial institutions except credit unions:
Interest received minus interest paid
- Adjustments for own funds used
= Net interest (Total FSIM)
11.105 The calculation for credit unions is slightly different, these institutions being considered associations of individuals. As such, the profits made are not part of corporate profits but considered as rebates and subtracted from the FSIM estimate. The calculation of FSIM is presented in paragraph 11.39 and paragraph 11.40.
11.106 Source data are obtained from:
- Chartered banks : Office of Superintendent of Financial Institutions (OSFI);
- Trust companies, mortgage loan companies and consumer loan companies and credit unions; and
- Industrial Organization and Finance Division (IOFD).13
Deflation—Estimates of international trade in goods in real terms
11.107 The goods series are deflated on a monthly basis by the International Trade Division. Deflation is done at a very detailed level and relies on various data sources for prices.
11.108 On the exports side, most of the goods are deflated by the price indexes of domestic industrial products, by unit values derived from customs data, and by price indexes for exported industrial products. In a few other special cases, prices are drawn from alternative sources, such as the U.S. Bureau of Labor Statistics, the National Energy Board of Canada and the Manufacturing, Construction and Energy Division.
11.109 On the imports side, goods are deflated primarily by producer price indexes from the U.S. Bureau of Labor Statistics multiplied by the exchange rate. When applicable, unit values are drawn from customs data and export prices of the Bank of Japan are used.
11.110 Once deflated, goods at the HS level are aggregated into 64 major export groups and 63 major import groups. The groups, both in nominal and Laspeyres fixed-weight volume terms, are published monthly14 by the International Trade Division and sent as is to the Income and Expenditure Accounts Division (IEAD) for compilation of the quarterly gross domestic product (GDP).
11.111 Income and Expenditure Accounts Division uses the 64 major export groups and 63 major import groups, aggregated quarterly, as the starting point for calculating the chain Fisher indexes. In this case, the groups are considered as unit series, each with its unit price (the implicit price for the group). Real Fisher aggregates are calculated for the nine sectors defined in nominal value and for the totals of goods exports and imports.
Deflation —Estimates of international trade in services in real terms
11.112 Services are deflated by the Income and Expenditure Accounts Division (IEAD). Although the published level of services consists of five large groups, deflation is applied at a more detailed level, with the exception of travel services. At this lower level of detail, the series are deflated individually by price indexes and aggregated to the level of the five groups published, using the fixed-base Laspeyres index method. Once the real series have been aggregated to their published level, they are used, along with their nominal value counterparts, as the basis for calculating the chain Fisher index of the aggregate of services and the aggregates of exports and imports.
Quarterly deflation of services exports
11.113 The unique deflator of travel services comes from the personal expenditure section of the Income and Expenditure Accounts Division (IEAD). It is unique because it is used both to deflate travel services for personal expenditures and for exports. A detailed description of this deflator is provided in the chapter on personal expenditures on consumer goods and services.
11.114 Transportation services are deflated in two distinct parts: passenger transport services and goods transport services. The travel services deflator for fares (see paragraph 11.113) serves for deflation of the passenger transport services. Goods transport services, for their part, are divided into five categories: air, marine, rail, truck transport services and pipeline services. A deflator is constructed for each of these categories, based on the index of industrial product prices for all goods, indexes of industrial product prices for certain fuels and the index of wages for the industry that is conceptually closest to the transportation category concerned.15 These indexes are weighted based on the structure of the inputs of the industry that, once again, most closely corresponds to the transportation category concerned.
11.115 Commercial services are deflated for the 48 components provided by the Balance of Payments Division. A combination of average weekly earnings from the Survey of Employment, Payrolls and Hours, personal expenditure deflators, and consumer and industry price indexes are used for deflating the 48 commercial export services. The weights of these prices are based on the weights of inputs into these industries coming from the Input-Output Tables.
11.116 Government services, excluding immigration and work permits, are deflated using the consumer price index of non-durable goods. Immigration and work permits are deflated by the price index of non-wage expenditures of public administrations.
11.117 Exports of financial services indirectly measured (FSIM) are deflated using a current weighted price index based on the borrowing and deposits portion of FSIM. For the borrowings portion, the personal expenditure deflator of financial Intermediation, implicit loan charges is used. For the deposits portion, the personal expenditure deflator for financial intermediation, implicit deposit charges is being used; a description of those deflators is available in the personal expenditure on consumer goods and services chapter of this guide.
Quarterly deflation of services imports
11.118 Prices to deflate imports of travel services are constructed by the personal expenditure area of Income and Expenditure Accounts Division. The deflator is based on a combination of foreign prices and exchange rates.
11.119 Transportation services are deflated according to two categories—passenger transportation services and transportation services for goods. Passenger transportation services are deflated using the travel price index for imports. Goods transportation services are deflated according to five categories: transport by pipeline, air, marine, train and truck. The weighting used is based on the nominal values of transportation services for each category, as provided by the Balance of Payments Division.
11.120 Similar to exports, deflation of imports of commercial services is done at a very detailed level. U.S. Average Weekly Earnings (AWE) CPI's, PPI's and services price indexes from the Bureau of Labor Statistics (BLS) are the principal sources of information. Where applicable, the Bureau of Labor Statistics series are supplemented by Canadian consumer price indexes and industrial product price indexes.
11.121 Imports of government services are deflated in two parts: military pay and allowances abroad and other expenditures. The first part is deflated using a weighted average of indexes of the cost of living at bases abroad, adjusted to take into account exchange rates. The second part is deflated by the index of international travel services. A description of these deflators is available in the chapter on personal expenditure on consumer goods and services.
11.122 As is the case for exports, imports of financial services indirectly measured (FSIM) are deflated using a current weighted price index based on the borrowings and deposits portion of FSIM. For the borrowings portion, the personal expenditure price for financial intermediation, implicit loan charges is used. The personal expenditure price for financial intermediation, implicit deposit charge is used for the deposits portion; a description of these deflators is available in the Personal expenditure on consumer goods and services chapter of this guide.
1. This framework of 64 export groups and 63 import groups is not a natural extension of the HS system or an official classification of commodities of Statistics Canada. Its origin goes back 60 years when it was born of the defunct MCC (Import Commodity Classification) and the XCC (Export Commodity Classification).
2. For goods published by International Trade Division, see Canadian International Merchandise Trade, catalogue no. 65-001. Services are published in Canada's International Balance of Payments, catalogue no. 67-001.
4. For more information, see Canada's Balance of International Payments and International Investment Position: Concepts, Sources, Methods and Products, catalogue no. 67-506, pages 32 and 33. A full description of methods and data sources is available from the same source, Chapter 4.
5. Information on passenger fares is from Canada's Balance of International Payments and International Investment Position: Concepts, Sources, Methods and Products, catalogue no. 67-506, p. 37.
6. For more information on transportation of goods by truck, see Canada's Balance of International Payments and International Investment Position: Concepts, Sources, Methods and Products, catalogue no. 67-506, p.37, and Canada's International Trade in Services, catalogue no. 67-203, p. 53.
8. The commercial services that appear in paragraphs 11.77 to 11.97 are from Canada's Balance of International Payments and International Investment Position: Concepts, Sources, Methods and Products, catalogue no. 67-506, pp. 42-43. The only elements not in the list are those that are covered in sub-annual surveys which are being used for the derivation of quarterly estimates. These elements appear in the section on quarterly methodology.
9. Canada's Balance of International Payments and International Investment Position: Concepts, Sources, Methods and Products, catalogue no. 67-506, p. 44.
10. The surveys used are: International Transactions between Insurance Brokers in Canada and their Foreign Affiliates, Agents and Other Companies or Persons Outside Canada (annual); Transactions between Canadian Incorporated Insurance Companies and their Foreign Affiliates, Agencies and Bank Accounts and Other Companies or Persons Outside Canada (annual); Transactions between Canadian Branches of Foreign Insurance Companies in Canada and Head or Other Offices, Companies or Persons Outside Canada (annual).
11. Canada's Balance of International Payments and International Investment Position: Concepts, Sources, Methods and Products, catalogue no. 67-506, p. 45.
12. Canada's Balance of International Payments and International Investment Position: Concepts, Sources, Methods and Products, catalogue no. 67-506, p. 49.
13. Financial and Taxation Statistics for Enterprises, survey no. 2510, catalogue no. 61-219.
14. Canadian International Merchandise Trade, catalogue no. 65-001.
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