According to Statistics Canada, in August, Canada's merchandise exports decreased 2.9 percent, largely due to lower exports of energy products. Imports fell 1.7 percent, mainly on decreased imports of motor vehicles and parts. As a result, Canada's merchandise trade surplus with the world narrowed from $2.4 billion in July to $1.5 billion in August. This is the lowest monthly trade surplus observed to date in 2022.
Total exports decreased 2.9 percent to $65.4 billion in August. Declines were observed in 7 of 11 product sections. A decrease was also seen in July, following six increases in 2022. In real (or volume) terms, total exports fell 1.3 percent in August, while export prices were down for a third consecutive month.
Total imports were down 1.7 percent to $63.9 billion in August, a second consecutive monthly decline. This is the first time since September 2021 that imports have declined for two consecutive months. Decreases were observed in 8 of the 11 product sections in August, with imports of motor vehicles and parts posting the largest decline. In real (or volume) terms, total imports fell 0.7 percent.
Exports to the United States fell 2.5 percent in August, partly due to lower crude oil exports. At the same time, imports from the United States were down 3.3 percent, driven in part by lower imports of motor vehicles and parts. Canada's trade surplus with the United States remained essentially unchanged at $10.7 billion in August.
Exports to countries other than the United States fell 4.3 percent in August. Exports to Hong Kong (gold), South Korea (coal and crude oil), the United Kingdom (crude oil and gold) and Japan (wheat, canola and copper) posted the largest declines.
Meanwhile, imports from countries other than the United States rose 1.1 percent in August. Higher imports from China (various products) and Belgium (pharmaceuticals) were partially offset by the decrease in imports from South Korea (light trucks and passenger cars).
The merchandise trade deficit with countries other than the United States widened from $8.3 billion in July to $9.2 billion in August.