Reconciliation

Do You Need Counseling To Succeed?

Timothy Baxter

Special Projects Branch Foreign Trade Division

U.S. Census Bureau

Department of Commerce

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When do you need to reconcile and can differences be resolved?

• Reconciliation is done when there is a significant difference between trading partner’s values.

• Some differences can be resolved. To do so we try to find measurable reasons, and then assign dollar amounts for those reasons that both sides agree are legitimate.

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Common sources of discrepancies

• Valuation of goods• Definition of goods traded• Trade through a third Country• Geographic Coverage• Classification issues• Undercounting or under reporting

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What It Takes To Get Through It

• It takes a lot of resources.

• It takes a lot of time.

• It takes a lot of patience.

• If ( If? ) politics becomes a factor it takes a lot more of the above.

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Is it worth it?Maybe, but I will take some convincing on that.

• On the plus side– Might point out some deficiencies.

• e.g. Need better tracking of exports

– It’s supposed to give you a better sense of what is actually happening in trade, and therefore in your economy.

– Also, better policy making.

• On the not so plus side– You won’t explain all of the difference, and it’s

maybe more accurate to say most.

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Lessons Learned?

• Experience counts.• Sometimes too much reliance on past work.• You don’t find many actual mistakes.• Has to be a cooperative effort, with the same

goals on both sides.• The most successful/efficient reconciliations

are when it’s strictly a technical exercise.• Reconciliations are never strictly technical

exercises.

Counseling any one?

Timothy Baxter

301.763.3255

timothy.baxter@census.gov