Canadian trade balance remained in a surplus position in June

Statistics Canada announced that the country’s trade balance with the world remained in a surplus position in June, settling at $136 million after posting a $556 million surplus in May. It should be noted that the narrow June surplus represents 0.1% of total monthly merchandise trade and is within the typical margins for revisions to the trade balance in subsequent months.

The Federal agency says total exports decreased 5.1% to $50.3 billion. There were widespread decreases throughout the product sections, with 10 of 11 sections posting declines. Exports of energy products decreased 7.4% to $10.0 billion and exports of aircraft and other transportation equipment and parts were down 25.1% to $2.2 billion.

Total imports were down 4.3% in June to $50.2 billion. Decreases were observed in 9 of 11 sections. Imports of aircraft and other transportation equipment and parts fell 25.8% to $1.7 billion and imports of energy products, down 14.8% to $2.7 billion, also contributed to the overall decline in June.

On a per country perspective, Canada’s trade deficit with countries other than the United States widened from $5.3 billion in May to $5.5 billion in June.

Exports to those countries fell 8.4% to $12.7 billion. Lower exports to Hong Kong (gold) and Saudi Arabia (other transportation equipment) were partially offset by higher exports to the United Kingdom (gold). Imports from countries other than the United States were down 5.2% to $18.2 billion. Lower imports from Germany (cars), Saudi Arabia (crude oil) and Mexico (various products) contributed the most to the widespread decrease.

Canada’s trade surplus with the United States narrowed slightly to $5.7 billion in June, following a $5.9 billion surplus in May, the highest since 2008. Exports to the United States were down 3.9%, mainly on lower exports of crude oil, while imports decreased 3.8%.