The deficit on international trade in goods widened CAD 1.4 billion to CAD 2.7 billion in the fourth quarter, as exports fell and imports moved higher. The trade surplus with the United States was down by CAD 3.3 billion on stronger imports (up CAD 2.4 billion) and weaker exports, both sides led by changes in crude petroleum. The narrowing in the deficit with the rest of the world had a moderating effect, as imports of crude petroleum were down CAD 1.6 billion.
The overall deficit on transactions in services narrowed CAD 0.3 billion to CAD 5.9 billion in the fourth quarter. Commercial services accounted for most of this activity. The surplus on commercial services rose CAD 0.3 billion led by higher exports, mainly from technical and other business services. However, the deficit on international travel edged up CAD 0.1 billion, largely reflecting the increase in the number of Canadians travelling abroad.
The deficit on cross border investment income was up CAD 0.3 billion to CAD 6.1 billion in the fourth quarter, with most of the changes related to foreign direct investment.