Canada Trade Deficit Widens in October on Lower US Exports


Canada trade gap increased to CAD 2.76 billion in October of 2015 from an upwardly revised CAD 2.32 billion deficit in the previous month, mainly due to a 2.8 percent drop in sales to the United States.

Weakness in exports was concentrated in trade with the United States. Exports to the United States declined 2.8% to $32.2 billion in October, while imports from the United States edged down 0.3% to $30.6 billion. Consequently, Canada's trade surplus with the United States narrowed from $2.4 billion in September to $1.6 billion in October.

Total exports decreased 1.8% to $43.0 billion in October. There were declines in 10 of 11 sections, with the largest in farm, fishing and intermediate food products; basic and industrial chemical, plastic and rubber products; metal ores and non-metallic minerals; and metal and non-metallic mineral products. Exports excluding energy products were down 2.1%. Year over year, total exports declined 3.5%.

Exports of farm, fishing and intermediate food products fell 7.3% to $2.5 billion on lower volumes. The main contributor was lower exports of canola, down 33.6% to $319 million.

Basic and industrial chemical, plastic and rubber products declined 5.6% to $2.8 billion. Volumes declined 4.9% and prices were down 0.7%. Exports of dyes and pigments; petrochemicals (-20.5%), basic chemicals (-8.2%), and lubricants and other petroleum refinery products (-14.7%) decreased in October.

Exports of metal ores and non-metallic minerals fell 9.4% to $1.5 billion. The main contributor to the decline was copper ores and concentrates, down 24.5% to $242 million on lower volumes.

Exports of metal and non-metallic mineral products decreased 2.2% to $4.6 billion in October. Following a $109 million increase in September, exports of unwrought copper and copper alloys fell $110 million to reach $119 million in October.

Total imports declined 0.8% to $45.7 billion in October. Imports fell in 7 of 11 sections, led by consumer goods. Year over year, imports increased 1.5%.

Imports of consumer goods decreased 3.3% to $9.9 billion. Overall, volumes declined 3.1% and prices were down 0.2%. There were lower imports of pharmaceutical and medicinal products (-10.1%) and miscellaneous goods and supplies (-4.9%) in October. Year over year, imports in this section were up 7.0%.

Imports of electronic and electrical equipment and parts were down 3.1% to $5.3 billion on lower volumes. There were widespread declines in imports throughout the section, led by communications and audio and video equipment (-3.8%) and computers and computer peripheral equipment (-6.6%).

Energy products fell 6.8% to $2.3 billion, the fourth consecutive monthly decline. Imports of natural gas liquids and related products were down $123 million to reach $55 million in October. Imports of crude oil and crude bitumen declined 9.2% to $1.0 billion, the lowest value since September 2003. These declines were partly offset by a 29.8% increase in imports of natural gas to $272 million. For the section overall, prices fell 8.8% while volumes were up 2.2%.

These declines were moderated by a 3.6% increase in imports of metal and non-metallic mineral products to $3.7 billion in October. For the section overall, volumes rose 3.8%. Imports of unwrought precious metals and precious metal alloys increased 13.1% to $727 million. Imports of unwrought copper and copper alloys rose $51 million to reach $94 million in October.

Canada Trade Deficit Widens in October on Lower US Exports


Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
12/4/2015 2:12:29 PM