Canada Trade Deficit Narrows in February


Canada's merchandise trade deficit shrank to CAD 984 million in February from a revised CAD 1.5 billion in January, as exports were up 0.4 percent and imports declined 0.7 percent.

Exports rose to $43.5 billion in February, as 5 of 11 sections increased. Year over year, exports were up 0.5%.

Exports of energy products rose 14.9% to $8.8 billion. There were widespread increases in the section, led by crude oil and crude bitumen (+9.3%), natural gas (+45.1%) and refined petroleum energy products (+22.2%). Overall, prices increased 17.5% while volumes were down 2.3%.

Offsetting this increase, exports of motor vehicles and parts declined 15.1% to $5.9 billion. Lower exports of passenger cars and light trucks were the main contributor, down 24.1% to $3.7 billion, the lowest value since January 2014.

Imports were down to $44.5 billion in February, as 7 of 11 sections declined. Year over year, imports increased 4.3%.

Imports of motor vehicles and parts declined 4.7% to $7.5 billion. Passenger cars and light trucks (-5.4%) and motor vehicle engines and motor vehicle parts (-5.5%) contributed to the overall decrease in the section.

After reaching a record high in January, imports of industrial machinery, equipment and parts were down 4.3% to $4.5 billion in February. Other industry-specific machinery (-18.2%) and other general-purpose machinery and equipment (-4.0%) were the main contributors to the decline in the section. Overall, volumes were down 7.4% while prices were up 3.3%.

Energy products decreased 7.0% to $2.5 billion, the third consecutive monthly decline. Imports of crude oil and crude bitumen fell 19.7% to $1.1 billion, on lower volumes. Since November 2014, imports of crude oil and crude bitumen have declined 44.9%, with prices falling 27.0% and volumes 24.6%.

Imports of basic and industrial chemical, plastic and rubber products decreased 4.6% to $3.6 billion. Overall, prices declined 3.1% and volumes 1.5%. There were widespread declines in the section, led by lubricants and other petroleum refinery products, down 17.1% to $462 million.

Meanwhile, imports of metal ores and non-metallic minerals increased 16.3% to $918 million in February. Other metal ores and concentrates (+36.2%) were the main contributor to the increase. Overall, volumes increased 15.2%.

Exports to the United States rose 1.1% to $32.8 billion. Exports to countries other than the United States were down 1.5% to $10.8 billion, with the United Kingdom (-$555 million) and Japan (-$198 million) contributing the most to the decline.

Imports from the United States declined 1.2% to $29.8 billion in February. Imports from countries other than the United States edged up 0.3% to $14.7 billion, led by Mexico (+$81 million) and Saudi Arabia (+$59 million).

As a result, Canada's trade surplus with the United States widened from $2.2 billion in January to $2.9 billion in February. Canada's trade deficit with countries other than the United States widened from $3.7 billion in January to $3.9 billion in February.

Canada Trade Deficit Narrows in February


Statistics Canada | Joana Ferreira | joana.ferreira@tradingeconomics.com
4/2/2015 1:59:08 PM