According to Statistics Canada, Canada's merchandise trade balance with the world was in a surplus position in May for the second time since December 2016. The $762 million surplus in May followed a $1.1 billion deficit in April. Exports rose 4.6 percent in May, in part due to an increase in exports of motor vehicles. Imports were up 1.0 percent, mainly on higher imports of aircraft.
Total exports rose 4.6 percent to a record $53.1 billion in May, with 9 of 11 product sections posting increases. Exports of motor vehicles and parts, aircraft and other transportation equipment and parts, and energy products contributed the most to the increase. Year over year, total exports were up 8.6 percent. In May, non-energy exports rose 4.5 percent.
Following a 1.2 percent decline in April, total imports rose 1.0 percent to $52.3 billion in May, with 6 of 11 product sections posting increases. Higher imports of aircraft, as well as motor vehicle engines and motor vehicle parts, contributed the most to the overall increase. Year over year, total imports were up 1.1 percent.
Exports to the United States rose 3.7 percent to a record $39.3 billion in May. Imports from the United States declined 0.5 percent to $33.3 billion. As a result, Canada's trade surplus with the United States widened from $4.4 billion in April to $5.9 billion in May, the largest surplus since October 2008. Comparing the average exchange rates of April and May, the Canadian dollar lost 0.4 US cents relative to the American dollar.
Exports to countries other than the United States rose 7.3 percent to a record $13.8 billion in May, partly due to an increase in exports to Saudi Arabia (other transportation equipment). Higher exports to Japan (copper, coal), South Korea (metal ores) and the Netherlands (energy products, iron ores) also contributed to the increase. A significant decline in exports to the United Kingdom (gold) partially offset these increases.
Imports from countries other than the United States rose 3.7 percent in May to $19.0 billion. Higher imports from Saudi Arabia (crude oil) and Norway (motor gasoline, crude oil) contributed the most to the overall increase.
As a result, Canada's trade deficit with countries other than the United States narrowed from $5.5 billion in April to $5.2 billion in May.