Statistics Canada announced that the country's merchandise trade deficit with the world narrowed from $1.7 billion in January to $983 million in February.

The Federal agency says merchandise exports rose 0.5% in February, because of higher exports of aircraft, while imports were down 0.8%, in part due to a decrease in crude oil imports.

Exports totaled $48.3 billion. Exports of aircraft and other transportation equipment and parts rose 18.5%. Moderating the overall export increase, energy products fell 7.0%.

Imports fell to $49.3 billion. Imports of energy products fell 16.0% following a high observed in January. Higher imports of aircraft and other transportation equipment and parts (+27.3%) moderated the decline in total imports.

On a global perspective, Canada's trade deficit with countries other than the United States narrowed from $5.0 billion in January to $4.7 billion in February. This is the smallest deficit observed since November 2018. Imports from those countries were down 5.6%. Imports from China (-6.8%), South Korea (-26.8%) and Peru (-32.4%) posted the largest declines. After falling 3.1% in January, exports to countries other than the United States decreased 5.3% in February. These exports totalled $11.8 billion, the lowest level since February 2019. The main contributors to the decrease were exports to the United Kingdom (-21.4%), Hong Kong (-70.8%) and China (-6.4%).

Exports to the United States were up 2.5% in February, in part because of aircraft and passenger cars. Imports from the United States rose 1.7%, mainly on higher aircraft imports.

As a result, Canada's trade surplus with the United States widened from $3.4 billion in January to $3.7 billion in February.

 

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