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Canada’s trade deficit widens to a record $3.4 billion in March

Wednesday, 04 May 2016 23:27:24 (GMT+3)   |   San Diego
       
According to Statistics Canada, Canada's exports fell 4.8 percent to $41.0 billion in March. Export volumes were down 2.9 percent and prices fell 2.0 percent. Imports declined 2.4 percent to $44.4 billion, as prices were down 2.1 percent and volumes fell 0.3 percent. As a result, Canada's merchandise trade deficit with the world widened from $2.5 billion in February to a record $3.4 billion in March.

Exports to the United States fell 6.3 percent to $30.4 billion in March and imports were down 4.8 percent to $28.9 billion. Consequently, Canada's trade surplus with the United States narrowed from $2.1 billion in February to $1.5 billion in March, the lowest surplus since December 1993.

Imports from countries other than the United States increased 2.2 percent to $15.5 billion. Higher imports from countries other than Canada's principal trading partners as well as from South Korea and Algeria were offset by lower imports from China. Exports to countries other than the United States edged down 0.2 percent to $10.6 billion. Lower exports to countries other than Canada's principal trading partners as well as to China were mostly offset by higher exports to the United Kingdom. As a result, Canada's trade deficit with countries other than the United States widened from $4.6 billion in February to $4.9 billion in March.

In March, total exports fell 4.8 percent to $41.0 billion, the lowest value since January 2014. Exports decreased in 10 of 11 sections, led by motor vehicles and parts, consumer goods, and metal and non-metallic mineral products. Exports excluding energy products also declined 4.8 percent. Year over year, total exports were down 5.1 percent.

Exports of motor vehicles and parts decreased 6.0 percent to $8.1 billion, the second consecutive monthly decline. Passenger cars and light trucks fell 6.6 percent to $5.6 billion in March. Exports of motor vehicle engines and motor vehicle parts declined 4.8 percent to $1.9 billion. For the section as a whole, prices were down 3.3 percent and volumes fell 2.7 percent.

Total imports decreased 2.4 percent to $44.4 billion in March, as 8 of 11 sections declined. Lower imports of consumer goods and aircraft and other transportation equipment and parts were partially offset by higher imports of energy products. Year over year, total imports decreased 4.0 percent.

Following the record high in February, imports of consumer goods fell 4.6 percent to $9.9 billion. Widespread decreases throughout the section were led by miscellaneous goods and supplies (-8.0 percent), furniture and fixtures (-14.2 percent), and clothing, footwear and accessories (-6.4 percent). Overall, volumes were down 2.5 percent and prices decreased 2.1 percent.

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