Statistics Canada announced that the country's merchandise trade deficit with the world widened from $894 million in February to $1.4 billion in March.

The Federal agency says merchandise exports fell 4.7% to $46.3 billion in March, the lowest level since January 2018. Total imports declined 3.5% to $47.7 billion, a level not observed since October 2017.

Exports of passenger cars and light trucks decreased 9.8% in March, while imports fell 6.2%. As for engines and parts, exports dropped 28.9% and imports decreased 23.0%.

Aircraft exports fell $469 million, after increasing $364 million in February. Meanwhile, , aircraft engines and parts fell $175 million in March. Imports of aircraft also decreased (-$169 million), following a $565 million increase in February.

Exports of energy products decreased 7.4% in March, while imports were down 5.2%, mainly on lower imports of crude oil (-12.8%).

On a global perspective, Canada's trade deficit with countries other than the United States widened from $4.9 billion in February to $5.3 billion in March. Exports to those countries decreased (-4.1%), mainly on lower exports to the United Kingdom (gold) and Saudi Arabia (other transportation equipment). Imports from non-U.S. countries were down 0.5%, due to lower imports from Mexico (-14.4%) and Germany (-10.2%), both in part on decreased imports of motor vehicles and parts.

The United States was the main contributor to the decreases in total exports and imports this month. Exports to the United States were down 4.9%, while imports fell 5.1%. These declines were likely attenuated by a weaker Canadian currency in March. The trade surplus with the United States narrowed slightly from $4.0 billion in February to $3.9 billion in March.

 

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