Canada posts trade deficit with the world in August: StatsCan

Canada’s merchandise trade balance with the world went from a surplus of $2.2 billion in July to a deficit of $610 million in August, according to new figures from Statistics Canada.

Imports rose to a record high $44.8 billion, the federal agency said, led by metal and non-metallic mineral products as well as energy products. Overall, volumes increased 2.4% and prices were up 1.5%.

Exports decreased to $44.2 billion, and declined in 9 of 11 sections; the main contributors were motor vehicles and parts as well as energy products. Overall, volumes were down 1.8% and prices 0.7%.

Exports of motor vehicles and parts decreased 11.2% to $6.1 billion in August. “Lower exports of passenger cars and light trucks, down 13.1% to $4.0 billion, was the principal factor behind the decline,” StatsCan said. “Also declining was motor vehicle engines and motor vehicle parts (-8.6%). As with imports, most automotive plants have shutdowns in July. However, this year, several plants reported shorter or no shutdowns during July, which led to an increase in seasonally-adjusted exports for that month, as well as a subsequent decline in August as exports returned to more normal levels.”

Partially offsetting these declines, StatsCan continued, exports of aircraft and other transportation equipment and parts were up 26.8% to $2.1 billion, the second highest value on record. Higher exports of aircraft (+45.4%) led the increase. The commodity grouping “ships, locomotives, railway rolling stock, and rapid transit equipment” also increased, up $143 million to reach $171 million in August.