Germany's Merkel: US has a big account surplus if services are included

Trade surplus was topic at the G7 discussions

German Chancellor Merkel is on the wires saying:

• The United States has a big account surplus with Europe if you include services
• The international trade accounting methods are outdated

Merkel adds that:

• The US trade surplus with the US was a topic at the G7 discussions

Canada makes the same assertions about services trade with the US.

Honestly, I don't know the right answer to squaring the accounts. However, when accounting methods are criticized, you get into arguments. You also end up comparing apples to oranges all the time, and never getting to a solution. The US will focus on the goods deficit as it takes away from the manufacturing base. Germany will focus on goods and services because it is the aggregate. That is before you get to what is generally accepted accounting principles.

Needless to say, it can become a huge point of contention especially if you are not getting along, and the parties are not getting along.