Trucks cross the Blue Water Bridge between Sarnia, Ont., and Port Huron, Michigan, carrying goods between the U.S. and Canada, in December.Emily Elconin/Reuters
Canada’s international merchandise trade deficit narrowed in December as exports grew faster than imports, and its share of exports to the United Sates dropped to its lowest level on record barring the COVID-19 months, data showed on Thursday.
Statistics Canada said the country posted a $1.31-billion deficit in December led by metals and non-metallic mineral exports. This was in contrast to a revised $2.59-billion deficit in November.
Economists had expected around $2-billion deficit for December.
Total exports rose 2.6 per cent to $65.63-billion, driven primarily by metals and non-metallic mineral products shipments that grew by 18 per cent in December. Exports of unwrought gold took the lead in this category with a jump of over 37 per cent, helped by higher prices.
However, excluding the metals and non-metallic category, the Canadian exports edged down 0.2 per cent. In volume terms, total exports were up 1.4 per cent, the statistics agency said.
Imports increased 0.6 per cent to $66.93-billion, with six out of 11 product sections registering a rise. The increase was driven by imports of gold, passenger vehicles and energy products.
Trade with U.S.
Exports to the United States, Canada’s largest trading partner, rose 1.1 per cent, accounting for just over 67.4 per cent of total exports, compared with 76.2 per cent a year ago.
This was the first time in three months that outbound shipments to the south increased in percentage terms, but the share of exports to the U.S. shrunk to its lowest level in since data collection began, except two months of pandemic in 2020.
The share of exports to the U.S. was 68.4 per cent in November and 67.5 per cent in October.
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Imports from the U.S., however, rose faster by 3.5 per cent, narrowing Canada’s merchandise trade surplus with its southern neighbor to $5.7-billion, from $6.5-billion in November.
Meanwhile, exports to countries other than the U.S. continued their upward momentum, reaching an all-time high in December. Exports of gold to the United Kingdom led most of the gains.
Imports from countries other than the United States fell 3 per cent in December and Canada’s trade deficit with countries other than the United States narrowed to $7-billion in December from $9-billion in November, Statscan said.