According to Statistics Canada, in January, Canada's merchandise imports decreased 3.8 percent, while exports fell 1.7 percent. As a result, Canada's merchandise trade balance changed position for a second consecutive month, moving from a deficit of $863 million in December to a surplus of $496 million in January. The January surplus is close to the typical bounds for monthly revisions to imports and exports.
Total imports decreased 3.8 percent in January to $61.8 billion, the lowest level since February 2022. Overall, 7 of the 11 product sections were down. On a year-over-year basis, imports were down 6.0 percent in January 2024. In real (or volume) terms, total imports fell 4.1 percent in January compared with the previous month.
Total exports decreased 1.7 percent in January, a third consecutive monthly decline. Decreases were observed in 8 of the 11 product sections. Exports were down 7.5 percent in January compared with the same month in 2023, when exports reached a peak. In real (or volume) terms, total exports fell 1.8 percent in January 2024 compared with December 2023.
Imports from countries other than the United States were down 7.3 percent in January, partly because of lower imports from China (various products) and South Korea (passenger cars and light trucks). Exports to countries other than the United States (-4.2 percent) also fell, in large part because of lower exports to Italy (aircraft and pharmaceutical products), China (coal), Norway (nickel), and Germany (crude oil).
Canada's trade deficit with countries other than the United States narrowed from $9.4 billion in December to $8.3 billion in January.
Imports from the United States decreased 1.7 percent in January, partly because of lower imports of motor vehicles and parts and pharmaceutical products. Meanwhile, exports to that country fell 1.0 percent, primarily because of lower exports of aircraft. As a result, Canada's merchandise trade surplus with the United States widened slightly from $8.6 billion in December to $8.8 billion in January.