Canada Trade Deficit Unchanged in September


Canada's merchandise trade deficit with the world totaled CAD 3.17 billion in September 2017, essentially unchanged from a CAD 3.18 billion gap in the previous month and above market expectations of CAD 3 billion shortfall. Exports were down 0.3 percent on lower passenger car and light truck sales, while imports decreased 0.3 percent on lower prices.

Total exports were down 0.3 percent to CAD 43.6 billion in September, the fourth consecutive monthly decline since the record high in May. Lower exports of motor vehicles and parts were largely offset by higher exports of energy products. Shipments of motor vehicles and parts fell 10.6 percent to CAD 6.5 billion. Prices decreased 0.6 percent, while volumes rose 0.3 percent. Exports excluding energy products fell 1.8 percent. However, exports excluding motor vehicles and parts were up 1.8 percent. Year-on-year, total exports rose 0.3 percent. 

Exports to the United States fell 1.2 percent to CAD 32.3 billion in September, due to lower exports of passenger cars and light trucks. Exports to countries other than the United States rose 2.4 percent to CAD 11.3 billion, as higher exports to China (unwrought gold) and Brazil (pharmaceutical products) were partially offset by lower exports to Japan (iron, coal and copper).

Total imports amounted to CAD 46.7 billion, down 0.3 percent from the previous month. Declines in the electronic and electrical equipment and parts and consumer goods sections were mostly offset by higher imports of energy products. Purchases of electronic and electrical equipment and parts were down 4.6 percent to CAD 5.1 billion. Prices decreased 1.5 percent, while volumes were up 1.3 percent. Year-on-year, total imports fell 2.0 percent.

Imports from the United States rose 0.4 percent to CAD 30.1 billion. As a result, Canada's trade surplus with the United States narrowed from CAD 2.7 billion in August to CAD 2.2 billion. Imports from countries other than the United States fell 1.4 percent to CAD 16.6 billion. Lower imports from Switzerland (pharmaceutical products) and Japan (gold bars) were partially offset by higher imports from Saudi Arabia (crude oil) and Singapore.

Statistics Canada | Marta Dubiel | marta.dubiel@tradingeconomics.com
11/3/2017 2:29:11 PM