Canada's Trade Deficit Widens in April


Canada's merchandise exports decreased 1.9% in April, following a 4.8% gain in March. Imports also declined, falling 0.6%. As a result, Canada's trade deficit with the world widened from $417 million in March to $924 million in April.

Exports decreased to $36.3 billion in April, as volumes declined 1.1% and prices fell 0.9%. The decrease in volume was led by the machinery and equipment sector. The industrial goods and materials, and the automotive sectors contributed the most to the decline in prices.

Imports fell to $37.2 billion, as prices declined 1.5% and volumes rose 1.0%. Imports of automotive products registered the largest decline. The automotive sector, which reported strong gains in March, has been adversely affected by the earthquake and tsunami in Japan in March.

Exports to the United States increased for the second month in a row, edging up 0.3% to $26.9 billion. Imports increased 1.7% to $23.1 billion in April, reaching their highest level since November 2008. Consequently, Canada's trade surplus with the United States narrowed from $4.2 billion in March to $3.9 billion in April.

Exports to countries other than the United States fell 7.9% in April to $9.3 billion, as exports to all principal trading areas declined. Imports decreased 4.1% to $14.1 billion. As a result, Canada's trade deficit with countries other than the United States widened from $4.6 billion in March to $4.8 billion in April.


TradingEconomics.com, Statistics Canada
6/9/2011 2:02:31 PM