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August 10, 2018
Canada's trade deficit drops to $626 million in June
Statistics Canada announced that the country's merchandise trade deficit with the world narrowed from $2.7 billion in May to $626 million in June, the smallest deficit since January 2017.
The federal agency reports that total exports rose 4.1% to $50.7 billion in June, the first time they have surpassed the $50 billion mark, with widespread increases throughout the product sections. Exports of energy products increased 7.1% to $9.9 billion, the highest level since October 2014. Exports of aircraft and other transportation equipment and parts rose sharply in June, up 18.9% to a record $2.5 billion. Significant export increases were also observed in other sections, including in the metal ores and non-metallic minerals (22.9%), motor vehicles and parts (3.7%) and industrial machinery, equipment and parts (6.1%) sections.
Imports edged down 0.2% to $51.3 billion, despite increases in 7 of 11 product sections. Imports of energy products decreased 15.1% to $2.9 billion. Imports of aircraft and other transportation equipment and parts decreased 17.1% to $2.0 billion. These declines were largely offset by increases in several other product sections, including metal ores and non-metallic minerals (16.2%), consumer goods (1.2%) and basic and industrial chemical, plastic and rubber products (2.7%).
On a per country basis, exports to countries other than the United States increased 8.7% in June to a record $13.6 billion. Higher exports destined for Germany (aircraft), India (metal ores, potash), Belgium (nickel) and Mexico (aircraft) contributed the most to the increase. Imports from those countries other than the United States fell 1.2% to $18.4 billion. Consequently, Canada's trade deficit with countries other than the United States narrowed from $6.1 billion in May to $4.7 billion in June, the smallest deficit since March 2017.
Exports to the United States increased 2.5% to a record $37.1 billion, mainly on higher exports of passenger cars and light trucks. Imports from the United States edged up 0.3% in June to $32.9 billion. As a result, Canada's trade surplus with the United States widened from $3.3 billion in May to $4.1 billion.
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