According to Statistics Canada, following three consecutive monthly surpluses, Canada's merchandise trade balance with the world posted a $972 million deficit in February. Exports were down 2.4 percent, with decreases in 8 of 11 sections. Imports edged up 0.6 percent, on higher imports of special transactions trade and motor vehicles and parts.
After reaching a record high in January, total exports fell 2.4 percent to $45.3 billion in February on lower volumes. Year over year, exports were up 4.4 percent. There were lower exports of farm, fishing and intermediate food products, aircraft and other transportation equipment and parts, as well as consumer goods.
Total imports edged up 0.6 percent in February to $46.3 billion, despite declines in 7 of 11 sections. Volumes and prices were both up 0.3 percent. Higher imports of special transactions trade, motor vehicles and parts, and farm, fishing and intermediate food products contributed the most to the increase. Year over year, total imports rose 1.4 percent.
Imports of motor vehicles and parts rose 1.8 percent to $9.1 billion in February, the highest value since the record high set in August 2016. Imports of passenger cars and light trucks led the increase, up 1.9 percent to $4.2 billion. This ramp up in inventory was potentially in anticipation of higher truck sales in March. For the section as a whole, volumes were up 1.9 percent while prices edged down 0.2 percent.
In February, imports from countries other than the United States increased 4.9 percent to $16.4 billion, mainly on higher imports from Japan, Norway and Brazil. In contrast, exports to countries other than the United States fell 5.9 percent to $11.0 billion in February. Lower exports to China (mainly canola) and South Korea (mainly coal) were responsible for the decrease in February. As a result, Canada's trade deficit with countries other than the United States widened from $4.0 billion in January to $5.4 billion in February.
Imports from the United States decreased 1.6 percent to $29.9 billion in February, led by lower imports of aircraft and crude oil. Exports to the United States were down 1.2 percent to $34.4 billion. As a result, Canada's trade surplus with the United States widened slightly from $4.4 billion in January to $4.5 billion in February. The Canadian dollar gained 0.5 cents US relative to the US dollar in February.