A significant increase in the export of motor vehicles and automotive parts in November helped narrow Canada’s international merchandise trade deficit.
Statistics Canada reported yesterday that Canada’s imports decreased 0.7% in November and exports increased 0.4%.
Import volumes declined 1.6% while prices increased 0.9%. For exports, volumes were up 0.7% while prices declined 0.4%. See chart below.
As a result, Canada’s merchandise trade deficit with the world narrowed from $2.5 billion in October to $2.0 billion in November.
Total exports rose to $43.3 billion in November, following three consecutive declines. There were increased exports of motor vehicles and parts; metal ores and non-metallic minerals; and forestry products and building and packaging materials. These gains were partially offset by lower exports of energy products and consumer goods. Exports excluding energy products rose 1.6% in November. Year over year, total exports were down 1.6%.
Exports of motor vehicles and parts rose 5.9% to $7.9 billion. The main contributor was passenger cars and light trucks, up 7.7% to $5.4 billion. Overall, volumes rose 4.7% and prices increased 1.1%.
Exports to the United States rose 1.3% to $32.5 billion in November, while imports edged down 0.1% to 44 $30.4 billion. Consequently, Canada’s trade surplus with the United States widened from $1.7 billion in October to $2.1 billion in November.
Exports to countries other than the United States declined 2.2% to $10.7 billion in November. The declines were widespread, led by the United Kingdom and Germany. Meanwhile, imports from countries other than the United 40 States decreased 2.1% to $14.8 billion. Lower imports from Switzerland and China were moderated by higher imports from Japan and Saudi Arabia. As a result, Canada’s trade deficit with countries other than the United States narrowed from $4.2 billion in October to $4.1 billion in November.
Total imports declined 0.7% to $45.2 billion in November. Imports fell in 7 of 11 sections, with the largest declines in electronic and electrical equipment and parts as well as energy products. Year over year, total imports increased 2.8%.