According to Statistics Canada, Canada's imports fell 6.3 percent to $44.7 billion in October; import volumes decreased 6.2 percent and prices edged down 0.1 percent. Exports increased 0.5 percent to $43.6 billion, as a 1.2 percent increase in prices was partially offset by a 0.7 percent decline in volumes.
Consequently, Canada's merchandise trade deficit with the world narrowed from a record $4.4 billion in September to $1.1 billion in October, the smallest since January 2016.
Following a record high in September, total imports were down 6.3 percent to $44.7 billion in October, the lowest level since February 2015. The large decline in October was mostly attributable to lower imports of industrial machinery, equipment and parts, down 42.0 percent to $4.0 billion. This decrease followed a high-value shipment from South Korea destined for the Hebron offshore oil project, which was responsible for the large increase in September.
Lower imports of energy products and metal ores and non-metallic minerals also contributed to the decline in October. Higher imports of electronic and electrical equipment and parts partially offset the overall decrease.
Total exports rose 0.5 percent to $43.6 billion in October, despite declines in 7 of 11 sections. Higher exports of energy products and motor vehicles and parts were partially offset by lower exports of consumer goods and aircraft and other transportation equipment and parts. Exports of motor vehicles and parts also contributed to the overall increase, rising 3.2 percent to $8.0 billion in October.
Exports to the United States increased 1.6 percent to $32.8 billion in October, led by exports of crude oil and crude bitumen. Imports edged down 0.1 percent to $29.7 billion. Consequently, Canada's trade surplus with the United States widened from $2.5 billion in September to $3.0 billion in October.