Canada Trade Gap Narrows in July


Canada reported a CAD 3.0 billion trade deficit in July of 2017, following an upwardly revised CAD 3.8 billion gap in June and better than market expectations of a CAD 3.1 billion shortfall. Exports fell 4.9 percent to CAD 44.1 billion and imports declined 6 percent to CAD 47.2 billion affected by widespread price decreases as Canadian dollar appreciated sharply against USD in July.

Exports decreased 4.9 percent to CAD 44.1 billion in July 2017 from a downwardly revised CAD 46.4 billion in the previous month. The biggest declines were observed in shipments of motor vehicles and parts (-9.6 percent), and aircraft and other transportation equipment and parts (-18.3 percent). Sales excluding energy products were down 5.2%. 

Exports to the United States fell 3.2 percent to CAD 33.3 billion, dragged down by lower sales of passenger cars and light trucks. Also, exports to the countries other than the United States were down 10 percent with biggest decreases reported for: unwrought gold to the United Kingdom;  copper, canola and seafood to Japan; and personal transportation equipment to Saudi Arabia.

Total imports declined 6 percent to CAD 47.2 billion, first drop in seven mointh, from an upwardly revised CAD 50.2 billion in the previous month. This occurred as the Canadian dollar gained 3.6 cents US relative to the American dollar from June to July. The decline was partially attributable to aircraft and other transportation equipment and parts (-35.2 percent), as well as motor vehicles and parts (-4.4 percent).

Imports from the United States went down 6.7 percent to CAD 30.4 billion, led by lower aircraft imports. Imports from countries other than United States were down 4.7 percent, with biggest decreases reported for bauxite from Brazil and motor vehicle parts from Mexico. 

Year-on-year, exports were up 2.2% while imports rose 4 percent.

Statistics Canada |Luisa Carvalho | luisa.carvalho@tradingeconomics.com
9/6/2017 1:34:40 PM