Canada's foreign trade deficit with the world decreased from CAD 2.7 billion in May to CAD 626 million in June, the smallest deficit since January 2017. Total merchandise exports went up by 4.1%, mainly because of higher exports of energy products and aircraft. Total imports declined 0.2%.
In real (or in volume) terms, exports rose 2.1% and imports decreased 1.3%.
Exports from Canada rose 4.1% to CAD 50.7 billion in June, the first time they have surpassed the CAD 50 billion mark. Widespread increases throughout the product sections were led by energy products, and aircraft and other transportation equipment and parts. Excluding energy products, exports were up 3.4%. Year over year, total exports rose 9.2%.
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| Canadian total exports rose by 7.1% in June 2018 |
Exports of energy products from Canada increased by 7.1%
Exports of energy products from Canada increased 7.1% to CAD 9.9 billion, the highest level since October 2014. Crude oil exports were primarily responsible for the gain, up 6.6% to CAD 7.2 billion on the strength of prices. Exports of refined petroleum energy products (+19.2%) also contributed to the growth, owing to higher exports of heavy fuel oils and diesel fuel.
Exports of aircraft and other transportation equipment and parts from Canada rose sharply in June, up 18.9% to a record CAD 2.5 billion. Exports of aircraft were up 44.5% to CAD 984 million, mostly on higher shipments of business jets to both the United States and non-US countries.
Significant export increases were also observed in other sections in June, including in the metal ores and non-metallic minerals (+22.9%), motor vehicles and parts (+3.7%) and industrial machinery, equipment and parts (+6.1%) sections.
Imports of energy products decreased 15.1%
Imports edged down 0.2% to CAD 51.3 billion in June, despite increases in 7 of 11 product sections. Large decreases in imports of energy products and in aircraft and other transportation equipment and parts were largely offset by widespread increases. Year over year, total Canadian imports were up 4.2%.
Imports of energy products to Canada decreased 15.1% to CAD 2.9 billion in June. Following four consecutive monthly increases, imports of refined petroleum energy products (-27.4%) drove the decline in June, mainly on lower volumes. A number of Canadian refineries that were temporarily shut down in April and May resumed production in June, reducing the demand for foreign motor gasoline and diesel fuel.
After posting a record high in May, imports of aircraft and other transportation equipment and parts decreased 17.1% to CAD 2.0 billion, returning to April levels. This reflected lower imports of aircraft (-47.9%) in June, following a sharp increase in imports of airliners from the United States in May.
These declines were largely offset by increases in several other product sections, including metal ores and non-metallic minerals (+16.2%), consumer goods (+1.2%) and basic and industrial chemical, plastic and rubber products (+2.7%).
Exports from Canada to countries other than the United States increased 8.7% in June to a record CAD 13.6 billion. Higher exports destined for Germany (aircraft), India (metal ores, potash), Belgium (nickel) and Mexico (aircraft) contributed the most to the increase. Lower exports to Hong Kong (unwrought gold) partially offset the overall gain.
Accordong to the Canada Trade Statistics Database, the main destination of Canadian exports to the United States in June 2018 were Michigan (15% of total exports to the US), Illinois (13.4%), California (9.5%) and Texas (6.1%).
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| Destinations of merchandise exports from Canada to the US in June 2018 |
Imports from countries other than the United States fell 1.2% to CAD 18.4 billion. Lower shipments from China (cellphones, aircraft) and the United Kingdom (motor gasoline) led the decrease.
Sources: Canada Trade Statistics Database, Statistics Canada