Canadian international merchandise trade

View the most recent version.

Canada's trade deficit with the world widened to $993 million in January 2009 from $652 million in December 2008, as both exports and imports fell, led by a sharp decline in automotive products trade. Overall exports fell 9.0% to $31.7 billion while imports fell 7.9% to $32.7 billion.

Chart 1

Although January's decline in exports was widespread, nearly half was due to automotive products, which fell for a sixth consecutive month. The decrease in overall exports reflected mostly declining volumes. Since July 2008, exports have fallen 28.4% in current dollars, while volumes dropped 19.6% during the same period.

Imports fell in January 2009 due to a combination of volume and price reductions. Lower imports of automotive products and machinery and equipment accounted for nearly three-quarters of the monthly decline in January. Since October 2008, imports have fallen 16.1% in current dollars, while volumes have dropped 14.6% during the same period.

Exports to the United States fell 8.9% to $23.3 billion, largely reflecting drops in automotive products and crude petroleum. This outpaced an 8.4% decrease in imports. As a result, the trade surplus with the United States shrank to $3.0 billion in January 2009 from $3.4 billion in December 2008.

Exports to countries other than the United States dropped 9.3% while imports decreased 7.0%. Consequently, Canada's trade deficit with this group of countries totalled $4.0 billion, virtually unchanged from December.

Chart 2

Automotive products lead the decline in exports

Falling to their lowest level since January 1992, exports of automotive products dropped 34.5% to $3.0 billion, as passenger autos, motor vehicle parts, trucks and other motor vehicles all declined. Passenger autos, the largest contributor, shrank 44.1% to $1.4 billion as new vehicle sales in the United States fell in January 2009 to their lowest level since 1982. The decline in automotive products was the result of a 35.0% drop in volumes. The sector has been on a downward trend since December 2006.

Exports of machinery and equipment fell 6.8% to $7.5 billion, mainly due to volume reductions. Leading the decrease were exports of aircraft and other transportation equipment, which fell 21.6% following two months of growth. Mitigating the drop of the sector, exports of industrial machinery increased 4.0%.

Exports of industrial goods and materials contracted 6.1% to $6.9 billion, largely the result of a decline in prices. Although there was weakness throughout the sector, metal ores posted the largest decrease, in particular, copper dropped 67.6%. Metal and alloys declined 6.1% to $2.2 billion.

Contraction in imports continues

Automotive products dropped 22.6% to $3.9 billion, as sales remained weak and manufacturers cut back production. Passenger cars declined for the fourth month in a row, falling 30.1% to $1.2 billion, while motor vehicles parts declined 20.6% to $1.7 billion. The contraction in the automotive sector imports was due to a 23.0% drop in volumes.

Machinery and equipment imports declined 8.9% to $9.7 billion as both prices and volumes decreased. This marked the second consecutive monthly decline of the sector following a rising trend that started in December 2007. Weak consumer demand affected the imports of flat panel televisions, resulting in a decrease of 7.5% in other machinery and equipment. Imports of aircrafts, engines and parts fell by 34.4%, more than offsetting the December gains.

Industrial goods and material decreased 9.0% to $6.8 billion, due to prices and volumes reductions. Metals and metal ores and chemicals and plastics led the decline. The fall in metals imports was softened by the growth in imports of precious metals. Imports of chemicals and plastics contracted 9.5% to $2.4 billion.

Available on CANSIM: tables 228-0001 to 228-0003, 228-0033, 228-0034, 228-0041 to 228-0043 and 228-0047 to 228-0057.

Definitions, data sources and methods: survey numbers, including related surveys, 2201, 2202 and 2203.

The January 2009 issue of Canadian International Merchandise Trade, Vol. 63, no. 1 (65-001-XWE, free) is now available from the Publications module of our website.

Current account data (which incorporate merchandise trade statistics, service transactions, investment income and transfers) are available quarterly in Canada's Balance of International Payments (67-001-XWE, free).

For more information, contact Sharon Nevins (toll-free 1-800-294-5583; 613-951-9798). To enquire about the concepts, methods or data quality of this release, contact Mychèle Gagnon (613-951-0994), International Trade Division.