January 9, 2018

Canada's trade deficit increased to $2.5 billion in November

Statistics Canada announced that the country's merchandise trade deficit with the world totalled $2.5 billion in November, widening from a $1.6 billion deficit in October.

The federal agency reports that total imports increased 5.8% to $48.7 billion in November, the strongest increase since July 2009. Imports of electronic and electrical equipment and parts, motor vehicles and parts, as well as aircraft and other transportation equipment and parts contributed the most to the growth in November. Total imports were up 8.1% year over year.

Total exports were up 3.7% to $46.2 billion. Higher exports of motor vehicles and parts and consumer goods contributed the most to the growth. Pharmaceutical and medicinal products posted the strongest increase, due mainly to increased exports to Italy.

On a per country basis, imports from the United States increased by 6.5% to $31.9 billion and exports to the United States were up 5.4% to $35.2 billion, led by passenger cars and light trucks. As a result, Canada's trade surplus with the United States decreased from $3.5 billion in October to $3.3 billion in November.

Imports from countries other than the United States increased 4.4% to $16.9 billion in November, mainly on higher imports from China (cell phones), Japan (passenger cars and light trucks) and Saudi Arabia (crude oil). Exports to those countries dropped 1.4% to $11.0 billion, due to lower exports to the United Kingdom (unwrought gold), South Korea (copper ores) and Mexico (canola). These declines were partially offset by higher exports to China (wood pulp). As a result, Canada's trade deficit with countries other than the United States widened from $5.0 billion in October to $5.9 billion in November.