According to Statistics Canada, Canada's imports fell 1.7 percent in September, while exports declined 1.3 percent. As a result, Canada's merchandise trade deficit with the world narrowed from $1.2 billion in August to $978 million in September.
Total imports fell 1.7 percent to $50.8 billion in September. Declines were observed in 7 of 11 product sections, while the other sections posted modest increases. Total imports in the first nine months of the year were up 1.7 percent compared with the same period in 2018. In real (or volume) terms, imports were down 1.6 percent in September.
After increasing 9.2 percent in August, imports of metal and non-metallic mineral products decreased 9.2 percent in September. Gold imports contributed the most to the drop in September, after increasing in August on higher acquisitions of gold assets. Lower imports of iron and steel products were also observed in September. In contrast with exports, imports of iron and steel products have not yet posted a significant rebound after tariffs were lifted on many of these products in May.
Imports of metal ores and non-metallic minerals fell 20.5 percent in September, mostly due to lower imports of gold and copper ores. Following increases in July and August, imports of gold for refining declined in September, mainly on lower shipments from Peru, Japan and Brazil. Copper ore imports returned to levels similar to July, after a sharp increase in imports from the Philippines in August.
Exports of metal and non-metallic mineral products (-7.3 percent) posted the largest decline in September, mostly on lower gold exports (-$371 million). After two consecutive monthly increases, exports of refined gold fell in September, largely offsetting all the gains in July and August. This decrease was partially offset by higher exports of articles of gold, a similar product classified under miscellaneous goods and supplies (+$254 million) in the consumer goods section.
Imports from countries other than the United States fell 4.1 percent in September. Lower imports from Belgium (parts for other transportation equipment) and Switzerland (pharmaceutical products) were partially offset by higher imports from China (cellphones) and the United Kingdom (various products).
Exports to countries other than the United States decreased 3.3 percent, the second consecutive monthly decline. Lower exports to the Netherlands (crude oil and iron ore), India (coal and potash), Norway (nickel) and Mexico (canola) contributed the most to the decrease. As a result, Canada's trade deficit with countries other than the United States narrowed from $6.1 billion in August to $5.7 billion in September.
Exports to the United States were down 0.6 percent in September, while imports edged down 0.4 percent. As a result, Canada's trade surplus with the United States decreased slightly from $4.9 billion in August to $4.8 billion in September.