Canada's merchandise trade deficit totaled $3.0 billion in July, narrowing from a $3.8 billion deficit in June. Imports fell 6.0 percent and exports decreased 4.9 percent, both due mainly to the effect of widespread price decreases, while the Canadian dollar appreciated sharply relative to the American dollar in July.
Total imports fell 6.0 percent in July to $47.2 billion, following seven consecutive monthly increases, with declines observed in all commodity sections. Prices were largely responsible for this decrease, falling 3.8 percent. This occurred as the Canadian dollar gained 3.6 cents US relative to the American dollar from June to July. The decrease in import values was partially attributable to aircraft and other transportation equipment and parts, as well as motor vehicles and parts. Year over year, imports rose 4.0 percent.
After posting a 5.0 percent decline in June, total exports fell 4.9 percent in July to $44.1 billion, with decreases observed in 9 of 11 sections. Prices decreased 3.9 percent, while volumes were down 1.1 percent. Motor vehicles and parts, as well as aircraft and other transportation equipment and parts contributed the most to the decline. In July, exports excluding energy products were down 5.2 percent. Year over year, total exports were up 2.2 percent.
Imports from the United States decreased 6.7 percent to $30.4 billion in July, led by lower aircraft imports. Exports to the United States were down 3.2 percent to $33.3 billion, mainly on lower exports of passenger cars and light trucks. As a result, Canada's trade surplus with the United States widened from $1.8 billion in June to $2.9 billion in July.
Exports to countries other than the United States declined 10.0 percent in July to $10.8 billion, with the United Kingdom (unwrought gold), Japan (copper, canola and seafood) and Saudi Arabia (personal transportation equipment) posting the largest decreases. Imports from countries other than the United States were down 4.7 percent to $16.8 billion in July, with Brazil (bauxite) and Mexico (motor vehicle parts) contributing the most to this decrease. Consequently, Canada's trade deficit with countries other than the United States rose from $5.6 billion in June to $5.9 billion in July.