Canada’s trade surplus still over $1.0 billion in February

However, worldwide shortage in semiconductor chips hit country’s exports and imports of motor vehicles & parts

Statistics Canada announced that the country’s trade surplus with the world narrowed from $1.2 billion in January to $1.0 billion in February, as merchandise exports decreased by 2.7%, while imports fell 2.4%.

The federal agency notes that due to the worldwide shortage in semiconductor chips, which are used in the manufacture of several products including motor vehicles, exports of motor vehicles and parts decreased by 10.2% and imports of motor vehicles and parts fell 7.8%. Manufacturers in Canada and abroad had to reduce production because of the shortage of chips.

Overall, the largest export declines were observed in the metal and non-metallic mineral products, motor vehicles and parts, and aircraft and other transportation equipment and parts product sections. As for imports, motor vehicles and parts had the largest decline, followed by energy products.

Canada’s trade deficit with countries other than the United States widened from $4.7 billion in January to $5.7 billion in February. Exports to those countries decreased by 11.7% to $12.5 billion and imports fell 3.6%.

Canada’s trade surplus with the United States widened from $5.9 billion in January to $6.8 billion in February, the largest surplus since September 2008. Exports to the United States increased by 0.8% in February to $37.4 billion and imports from the United States were down 1.7% to $30.6 billion.