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September 7, 2017
Canada's trade deficit narrowed to $3.0 billion in July
Statistics Canada announced that the country's merchandise trade deficit with the world totalled $3.0 billion in July, narrowing from the $3.8 billion deficit in June.
The federal agency reports that both imports and exports decreased, due mainly to the effect of widespread price decreases, while the Canadian dollar appreciated sharply relative to the American dollar in July.
Total imports fell 6.0% in July to $47.2 billion, following seven consecutive monthly increases. Prices were largely responsible for this decrease, falling 3.8%. This occurred as the Canadian dollar gained 3.6 cents US relative to the American dollar from June to July. The decrease in import values was partially attributable to aircraft and other transportation equipment and parts, as well as motor vehicles and parts.
Total exports fell 4.9% to $44.1 billion as prices decreased 3.9%. Motor vehicles and parts, as well as aircraft and other transportation equipment and parts contributed the most to the decline.
On a per country basis, imports from the United States decreased 6.7% to $30.4 billion in July, led by lower aircraft imports. Exports to the United States were down 3.2% to $33.3 billion, mainly on lower exports of passenger cars and light trucks. As a result, Canada's trade surplus with the United States widened from $1.8 billion in June to $2.9 billion in July.
Exports to countries other than the United States declined 10.0% to $10.8 billion, with the United Kingdom (unwrought gold), Japan (copper, canola and seafood) and Saudi Arabia (personal transportation equipment) posting the largest decreases. Imports from countries other than the United States were down 4.7% to $16.8 billion in July, with Brazil (bauxite) and Mexico (motor vehicle parts) contributing the most to this decrease. Consequently, Canada's trade deficit with countries other than the United States rose from $5.6 billion in June to $5.9 billion in July.
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