Canada reports third consecutive trade surplus in January

According to Statistics Canada, Canada's merchandise trade balance with the world posted a third consecutive monthly surplus, widening from $447 million in December to $807 million in January. Exports were up 0.5 percent on the strength of higher exports of motor vehicles and canola. Imports edged down 0.3 percent in January, mainly due to lower imports of unwrought gold.

Total exports increased 0.5 percent to a record $46.5 billion in January, despite declines in 6 of 11 sections. Volumes rose 1.0 percent while prices were down 0.5 percent.

Total imports edged down 0.3 percent in January to $45.6 billion, with 7 of 11 sections posting declines. Prices decreased 2.7 percent, while volumes rose 2.5 percent. The decline in imports of metal and non-metallic mineral products, as well as industrial machinery, equipment and parts was partially offset by higher imports of motor vehicles and parts. Year over year, total imports were down 2.1 percent.

Exports to the United States rose 2.3 percent to $34.6 billion in January, led by higher exports of passenger cars and light trucks. Imports from the United States edged up 0.3 percent to $30.1 billion. As a result, Canada's trade surplus with the United States widened from $3.8 billion in December to $4.5 billion in January.

Exports to countries other than the United States fell 4.4 percent to $11.8 billion in January. Lower exports to Switzerland (-$298 million) and Spain (-$200 million)—both due to fewer aircraft exports—contributed to the decline.

Imports from countries other than the United States decreased 1.3 percent to $15.5 billion in January. Imports from Japan fell $273 million on lower imports of passenger cars and light trucks. As a result, Canada's trade deficit with countries other than the United States widened from $3.4 billion in December to $3.7 billion in January. Canada recorded a surplus with 4 of its 10 principal trading partners in January.