Canadian international merchandise trade

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Canada's merchandise exports fell 0.7% in July, as volumes declined in most sectors, while imports grew 2.0%. As a result, Canada's trade deficit with the world widened to $2.7 billion in July from $1.8 billion in June.

Exports declined from $33.0 billion in June to $32.8 billion in July, the fourth decrease in six months. Overall, export volumes declined 0.6%, falling in all export sectors with the exception of industrial goods and materials. Export prices edged down 0.2% during the month.

Machinery and equipment, other consumer goods and forestry products led the decrease in the value of exports. A gain in exports of industrial goods and materials moderated the decline.

Imports grew from $34.9 billion in June to $35.5 billion in July, the highest level since November 2008. The gain represented the fourth increase in six months. Import volumes rose 1.4%, while prices increased 0.6%.

Energy products accounted for over half the growth in overall imports, followed by automotive products and machinery and equipment. In contrast, imports of industrial goods and materials fell in July.

Exports to the United States fell by 2.2%, while imports rose by 2.9%. As a result, Canada's trade surplus with the United States narrowed to $1.2 billion in July from $2.4 billion in June. Canada's trade surplus with the United States has been declining since December 2009, as exports to the United States have fallen by 2.2% and imports have grown by 14.1% since then.

Exports to countries other than the United States rose 3.7%, mostly as a result of higher exports to the European Union, while imports increased 0.2%. Thus, Canada's trade deficit with countries other than the United States shrank to $3.9 billion in July from $4.2 billion in June.

Exports decline for a second consecutive month

After three months of growth, exports of machinery and equipment declined 1.9% to $6.4 billion in July, as volumes fell. Aircraft, engines and parts, down 9.6%, led the decrease. Exports of industrial machinery, namely gas turbines, fell 7.0%. Higher exports of other equipment and tools and other transportation equipment moderated the decline.

Exports of other consumer goods fell 7.3% to $1.3 billion, the lowest level since June 2000. The decrease was mostly a result of falling volumes. Lower exports of medicinal and pharmaceutical products largely accounted for the decline.

Exports of forestry products declined 5.3% to $1.8 billion, following 10 consecutive months of growth. Exports of lumber fell 18.7% in July after a solid gain a month earlier, as softwood lumber's export tariffs were lifted temporarily in June. Export volumes in the forestry products sector decreased 4.0% in July.

Exports of industrial goods and materials grew 2.3% to $7.5 billion in July, after three months of decline. The gain reflected a 4.9% volume increase. Precious metal exports (+37.2%) largely accounted for the gain in the sector, followed by other crude non-metallic minerals. Exports of metal ores fell in July, mainly copper ores and iron ores.

Crude petroleum leads the growth in imports

Energy products imports rose 11.9% to $3.3 billion in July, as volumes and prices increased. Imports of crude petroleum grew 19.0%, largely the result of higher volumes. Petroleum and coal also increased, on the strength of aviation fuel and metallurgical coke. Coal and other related products, namely natural gas, declined during the month.

Imports of automotive products increased 2.9% to $6.2 billion, as volumes grew 2.7%. Imports of passenger autos rose 9.1%, a third consecutive monthly gain.

Imports of machinery and equipment increased 1.3% to $9.8 billion, as volumes rose for a sixth consecutive month. Widespread gains in this sector were led by a 7.3% increase in imports of other communication and related equipment. Dampening the growth in the sector were imports of engines, turbines and motors, which fell 31.0% after reaching a record high in June.

Following two months of increases, imports of industrial goods and materials declined 3.1% to $7.3 billion in July. The decrease reflected a 5.0% drop in volumes as prices rose for a third straight month. Precious metals led the decline in the sector, followed by organic chemicals.

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

The merchandise imports and exports data in the following tables are presented in dollar values.

Tables 228-0001 to 228-0003: Customs and balance of payments basis, by major groups and principal trading areas for all countries; monthly, quarterly, and annual.

Table 228-0033: Imports, customs-based, by province of clearance; monthly.

Table 228-0034: Domestic exports, customs-based, by province of origin; monthly.

Tables 228-0041 to 228-0043: Customs and balance of payments basis, by sector and sub-sector, for all countries; monthly, quarterly, and annual.

The merchandise imports and exports data in the following tables are indexes (2002=100).

Tables 228-0047 to 228-0049: Balance of payments and customs-based price and volume indexes for all countries; monthly, quarterly, and annual.

Tables 228-0050 to 228-0052: Customs-based price indexes, Canada and United States trade, and Standard International Trade Classification (SITC revision 3) price indexes for all countries and the United States; monthly, quarterly, and annual.

Tables 228-0053 to 228-0055: Price and volume indexes, customs and balance of payments basis, by sector and sub-sector, for all countries; monthly, quarterly, and annual.

Tables 228-0056 and 228-0057: Balance of payments basis, by sector, seasonally adjusted, Fisher formula, chained 2002 dollars, for all countries; monthly and quarterly.

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

These data are available in the Canadian international merchandise trade database.

The July 2010 issue of Canadian International Merchandise Trade, Vol. 64, no. 7 (65-001-X, free), is now available from the Key resource module of our website, under Publications.

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-X, free).

Data on Canadian international merchandise trade for August will be released on October 14.

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