December 6, 2018
Canadian trade deficit widens to $1.2 billion in October
Statistics Canada announced that the country's merchandise trade deficit with the world widened from $891 million in September to $1.2 billion in October, mostly because of lower exports of crude oil.
The Federal agency says total exports fell 1.2% to $49.3 billion in October. Exports of energy products fell 12.4% to $8.8 billion and exports of crude oil (-16.2%) drove the decrease. Partially offsetting the overall decrease were higher exports of motor vehicles and parts, up 4.4% to $7.8 billion. Exports of farm, fishing and intermediate food products also partially offset the decrease in October, up 4.8% to $3.4 billion
Total imports fell 0.6% to $50.5 billion in October. Imports of motor vehicles and parts declined 3.5% to $9.1 billion and imports of basic and industrial chemical, plastic and rubber products were down 4.5% to $4.0 billion. Partially offsetting the overall decrease were higher imports of aircraft and other transportation equipment and parts, up 11.3% to $1.7 billion.
On a per country perspective, Canada's trade deficit with countries other than the United States narrowed from $5.2 billion in September to $4.2 billion in October, the smallest deficit since December 2016.
Imports from those countries fell 4.1% to $17.1 billion in October, with lower imports from China (various products), Japan (passenger cars and light trucks), the United Kingdom (motor gasoline) and Saudi Arabia (crude oil). Exports to countries other than the United States were up 2.3% to $12.9 billion. Higher exports to Hong Kong (gold) and Japan (canola) were partially offset by lower exports to the United Kingdom (gold).
Exports to the United States fell 2.3% to $36.5 billion, mainly on lower exports of crude oil. Imports were up 1.3% to $33.4 billion. As a result, Canada's trade surplus with the United States narrowed from $4.3 billion in September to $3.1 billion in October, the smallest surplus since March 2018.