Canada’s trade deficit with the world widened to $3.7 billion in June amid an ongoing decline in merchandise exports.
Statistics Canada said that exports decreased 2.2% while imports were fell 0.5% in June, resulting in the national trade deficit growing 37% from $2.7 billion in May.
After a 3% decline in May, Canada’s total exports were down 2.2% in June, with 9 of the 11 product segments posting decreases. Total exports in volume terms fell 1.1% in June.
Additionally, export prices declined for the 11th time in the past 12 months, said Statistics Canada. Between June 2022 and June 2023, total export prices decreased 14.2%.
Exports of metal and non-metallic mineral products decreased 8% in June, mainly because of lower exports of unwrought gold, silver, and platinum group metals, and their alloys (down 18.3%).
Exports of industrial machinery, equipment, and parts (down 5%); exports of basic and industrial chemical, plastic and rubber products (down 5.7%); and exports of farm, fishing and intermediate food products (down 4.4%) all contributed to the June decrease.
However, a decline in exports of canola (down 42.4%) and intermediate food products (down 15%) contributed the most to the June decrease, said Statistics Canada.
As for imports, they fell 0.5% in June after rising 3% in May. While seven of the 11 product segments posted declines in June, these were largely offset by an increase in imports of unwrought gold.
Imports of energy products were down 13% in June, a fifth consecutive monthly decrease. Imports of refined petroleum energy products (down 17%) posted the largest decline, mainly because of weaker imports of motor vehicle gasoline.
Imports of consumer goods were down 1.9% in June, driven by a 7.2% decrease in imports of pharmaceutical products. However, imports of metal and non-metallic mineral products (up 12.9%) posted a second consecutive monthly increase and partially offset the overall decline.
In June, exports to countries other than the U.S. decreased 5.5%, while imports from these countries edged down 0.1%. As a result, Canada’s trade deficit with countries other than the U.S. rose from $10.4 billion in May to a record high $11.2 billion in June.
Exports to the U.S. fell 1.2% in June, while imports from the neighbouring country decreased 0.7%. As a result, Canada’s trade surplus with the U.S. narrowed from $7.7 billion in May to $7.4 billion in June.