Canada Trade Gap Widens in July

Canada’s trade deficit widened to CAD 1.12 billion in July 2019 from a downwardly revised CAD 0.06 billion in the previous month and compared with market expectations of a CAD 0.4 billion shortfall. Imports rose 1.2 percent while exports dropped 0.9 percent.
Statistics Canada | Stefanie Moya | 9/4/2019 12:50:34 PM
Imports increased 1.2 percent over the previous month to CAD 50.9 billion in July, boosted by higher purchases of consumer goods (2.4 percent) in particular pharmaceutical products (+19.7 percent), which hit a record high, as a result of gains in imports from Switzerland and Germany. Additionally, imports of aircraft and other transportation equipment and parts advanced 10.2 percent, namely locomotive cars used to transport crude oil, and parts for armoured vehicles. Also, purchases of metal ores and non-metallic minerals went up 12.6 percent, largely on the strength of other metal ores and concentrates, bauxite and aluminum oxide, and gold driven mainly by increased shipments from Japan and Peru.

Imports from the US rose 1.6 percent and those from countries other than the US advanced 0.5 percent, of which Switzerland (pharmaceutical products) and Belgium (parts for armoured vehicles and pharmaceutical products).

Exports declined 0.9 percent to CAD 49.8 billion, mainly due to lower sales of energy product (-6.7 percent), in particular crude oil (-7.7 percent). In addition, sales of farm, fishing and intermediate food products fell 5.4 percent, mainly as a result of lower wheat exports (-20.9 percent). On the other hand, sales of metal and non-metallic mineral products went up 8.5 percent, with gold exports contributing the most to the gain, on higher sales of refined gold to the US and transfers of gold within the banking sector. Also, exports of unwrought aluminum increased 18.2 percent in July, the first full month after the removal of US tariffs on Canadian aluminum.

Exports to the US fell 1.1 percent and those to countries other than the US edged down 0.3 percent, mostly to China (metal ores and pork).

The country's trade surplus with the US narrowed to CAD 4.6 billion from CAD 5.5 billion in the previous month.

Canada Trade Gap Widens in July