According to Statistics Canada, Canada's merchandise exports rose 0.5 percent in February, because of higher exports of aircraft, while imports were down 0.8 percent, in part due to a decrease in crude oil imports. As a result, Canada's merchandise trade deficit with the world narrowed from $1.7 billion in January to $983 million in February.
Total exports were up 0.5 percent to $48.3 billion in February, with 8 of 11 product sections increasing. Non-energy exports rose 2.3 percent. In real (or volume) terms, exports increased 2.7 percent.
Total imports fell 0.8 percent to $49.3 billion in February, the lowest level in the past two years. Decreases were observed in 7 of 11 sections, with energy products posting the largest decline. In real (or volume) terms, imports fell 1.2 percent.
Data on international trade by mode of transport are available on a customs basis and are not seasonally adjusted. The mode of transport in international trade statistics represents the mode used to transport goods from one economic territory to another.
In the context of disruptions in rail transportation in February, related to various blockades across Canada, there are no indications of a significant impact on international merchandise trade by rail. However, rail transport plays a key role in international trade by the marine mode, which posted low levels compared with February 2018 and February 2019. On the other hand, this drop in levels could also be associated with decreased trade with the countries hardest hit by COVID-19 in February.
Imports from countries other than the United States were down 5.6 percent in February, the second consecutive monthly decrease. Imports from China (-6.8 percent), South Korea (-26.8 percent) and Peru (-32.4 percent) posted the largest declines.
After falling 3.1 percent in January, exports to countries other than the United States decreased 5.3 percent in February. These exports totaled $11.8 billion, the lowest level since February 2019. The main contributors to the decrease were exports to the United Kingdom (-21.4 percent), Hong Kong (-70.8 percent) and China (-6.4 percent).
Consequently, Canada's trade deficit with countries other than the United States narrowed from $5.0 billion in January to $4.7 billion in February. This is the smallest deficit observed since November 2018.
Exports to the United States were up 2.5 percent in February, in part because of aircraft and passenger cars. Imports from the United States rose 1.7 percent, mainly on higher aircraft imports.
As a result, Canada's trade surplus with the United States widened from $3.4 billion in January to $3.7 billion in February.