Canadian international merchandise trade, August 2024
Released: 2024-10-08
In August, Canada's merchandise exports fell 1.0%, while imports edged up 0.3%. Consequently, Canada's merchandise trade balance with the world widened from a revised deficit of $287 million in July to a deficit of $1.1 billion in August. After accounting for the previous month's revisions, this is the sixth consecutive monthly deficit.
Consult the "International trade monthly interactive dashboard" to explore the most recent results of Canada's international trade in an interactive format.
Chart 1
Merchandise exports and imports
Exports of energy products decrease mainly on lower prices
Total exports fell 1.0% in August, a second consecutive monthly decrease. Overall, 6 of the 11 product sections posted declines. Prices played a significant role in the monthly movement in exports, as exports edged up 0.1% in real (or volume) terms in August.
Chart 2
Contribution to the monthly change in exports, by product, August 2024
Exports of energy products (-3.0%) posted the largest decrease in August, mainly on lower exports of crude oil (-4.1%). This decrease was mainly attributable to lower prices for crude oil exports in August, as concerns over oil demand exerted downward pressure on crude oil prices.
Chart 3
Exports of crude oil and bitumen
Exports of forestry products and building and packaging materials fell 5.5% to $3.8 billion in August, its lowest level since July 2023. After two consecutive monthly increases, pulp and paper exports dropped 12.9% in August 2024, more than offsetting the increases in the previous two months. Lower exports of pulp and paper to China and the United States were the biggest contributor to the decline. The decrease may be due to rail transport work stoppages in Canada in August, since a large share of these products are exported by rail.
Exports of motor vehicles and parts increased 5.1% and partly offset the decrease in total exports in August. Exports of passenger cars and light trucks (+6.1%) contributed the most to the increase, mainly due to higher production of light trucks in Canada in August. This follows two consecutive months of sharp declines. Despite the monthly increase, exports of passenger cars and light trucks were down 19.9% in August compared with the high observed in October 2023. This recent downward trend is due in part to lower production in Canada.
Chart 4
Imports and exports of passenger cars and light trucks
Exports of farm, fishing and intermediate food products rose 4.0% in August 2024, also partly offsetting the decline in total exports. The growth in August almost completely offset the decrease observed in July. Canola exports were up 72.9% in August, driven by higher exports to China.
Offsetting movements in imports
After falling 1.4% in July, total imports edged up 0.3% in August. Overall, six product sections were up and five were down. In real (or volume) terms, total imports increased 0.4% in August.
Chart 5
Contribution to the monthly change in imports, by product, August 2024
Imports of motor vehicles and parts rose 2.4% in August and were the largest contributor to the overall growth. Imports of passenger cars and light trucks (+5.6%) saw the largest increase in August. This growth coincides with higher production of light trucks and sport utility vehicles in the United States in August. The monthly movement in imports of passenger cars and light trucks in August follows a sharp decline in July (-17.6%).
In August, imports of industrial machinery, equipment and parts (+3.8%) saw an increase in value similar to that of imports of motor vehicles and parts. Widespread gains were observed in the different product subcategories. After falling 15.9% in July, imports of logging, construction, mining, and oil and gas field machinery and equipment (+10.4%) accounted for almost one-third of the growth in the product section in August. Despite this monthly gain, this product group was down 20.8% year over year.
Chart 6
Imports of industrial machinery, equipment and parts
Imports of consumer goods (-2.8%) fell in August, partially offsetting these increases. Following two consecutive months of growth, imports of pharmaceutical products (-17.5%) were the main contributor to the decline in this product section in August. Lower imports of active pharmaceutical ingredients from Ireland contributed the most to the decline.
The trade surplus with the United States shrinks on lower exports
Exports to the United States were down 4.3% in August, partly due to lower exports of energy products to this country. Meanwhile, imports from the United States increased 0.9%. As a result, Canada's merchandise trade surplus with the United States narrowed sharply from $10.5 billion in July to $8.0 billion in August.
Strong increase in exports to countries other than the United States
Exports to countries other than the United States rose 10.3% in August. Higher exports to the United Kingdom (unwrought gold) contributed the most to this gain. This increase follows a sharp decline in exports of unwrought gold to the United Kingdom in July. Exports to Switzerland (unwrought gold) were also up in August.
Imports from countries other than the United States fell 0.7% in August. Lower imports from Ireland (pharmaceutical products) and Mexico (passenger cars and light trucks) were partly offset by higher imports from Switzerland (unwrought gold).
Canada's trade deficit with countries other than the United States narrowed from $10.8 billion in July to $9.1 billion in August.
Chart 7
International merchandise trade balance
Revisions to July merchandise export and import data
Imports in July, originally reported at $65.0 billion in the previous release, were revised to $65.2 billion in the current reference month's release. Exports in July, originally reported at $65.7 billion in the previous release, were revised to $64.9 billion in the current reference month's release.
Monthly trade in services
In August, monthly service exports were up 0.5% to $16.9 billion. Meanwhile, imports of services decreased 0.6% to $18.2 billion.
When international trade in goods and services are combined, exports were down 0.7% to $81.2 billion in August, while imports edged up 0.1% to $83.6 billion. As a result, Canada's total trade deficit with the world went from $1.8 billion in July to $2.4 billion in August.
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Note to readers
Information on concepts and methods used for the monthly release of Canada's international merchandise trade is now available online. Please see "Notes on the monthly release of Canadian international merchandise trade" for more details.
For a detailed overview of the Canadian International Merchandise Trade program, please see "Guide to Canadian International Merchandise Trade Statistics."
Important changes to the collection of data on Canada's imports with the release of CBSA Assessment and Revenue Management (CARM)
Statistics Canada has previously communicated with users of international merchandise trade statistics on the impending changes to final accounting data, the primary input source for statistics on Canada's merchandise imports, as a result of the Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) digital initiative.
The CARM initiative will introduce new functionality and requirements for trade chain partners submitting data, and also for receiving organizations such as Statistics Canada. With the transition to CARM, there may be impacts on patterns in the data submitted to the CBSA, or delays in the receipt of data at Statistics Canada.
The September reference month will mark the final month in which the B3 final accounting forms are used as the source for statistics on Canada's merchandise imports. Importers will not be able to submit final accounting declarations to the CBSA during the October 4 to October 20 cutover period required for the implementation of CARM. It is therefore likely that more data will be received after Statistics Canada's deadline for finalizing the September 2024 reference month than what is observed in a typical month. Strategies for producing estimates to account for the late receipt of data are being reviewed to ensure the comprehensiveness of merchandise trade statistics for the month of September.
Following the cutover period, Statistics Canada will begin receiving final accounting information from the new Commercial Accounting Declaration (CAD) form. This information may be used in the context of the third quarter releases of the Balance of Payments and Gross Domestic Product at the end of November, and to replace estimates in subsequent publications of monthly international merchandise trade.
The October reference month will mark the first month in which the CAD form will be used as the primary source for statistics on Canada's merchandise imports. Statistics Canada will be closely monitoring incoming data with additional emphasis on quality assurance, and preparing to respond to impacts resulting from the transition to CARM.
Users of these statistics should be aware of the increased likelihood of larger revisions in the months following the implementation of CARM. Additionally, the reported information under the new collection system could lead to changes in patterns in import data. This may be more apparent at lower levels of aggregation. Statistics Canada will provide further updates as new information becomes available.
Real-time data table
The real-time data table 12-10-0165-01 will be updated on October 21.
Next release
Data on Canadian international merchandise trade for September will be released on November 5.
Products
The product "International trade monthly interactive dashboard" (71-607-X) is now available. This new interactive dashboard is a comprehensive analytical tool that presents monthly changes in Canada's international merchandise trade data on a balance-of-payments basis, fully supporting the information presented every month in the Daily release.
The product "The International Trade Explorer" (71-607-X) is now available online.
The online Canadian International Merchandise Trade Database is no longer available. It has been replaced by the Canadian International Merchandise Trade Web Application (71-607-X), a modern tool that provides trade data users with a number of enhancements.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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