According to Statistics Canada, in February, Canada's merchandise imports were up 3.9 percent, following a 7.5 percent decline in January. Meanwhile, exports rose 2.8 percent in February, largely due to higher exports of energy products. As a result, Canada's merchandise trade surplus with the world narrowed from $3.1 billion in January to $2.7 billion in February.
Total imports rose 3.9 percent to $56.1 billion in February. This monthly increase offsets almost half of the sharp decline (-7.5 percent) observed in January. Gains were observed in 9 of 11 product sections, with 8 of them posting increases of more than $100 million. In real (or volume) terms, total imports rose 2.0 percent in February.
In February, total exports increased 2.8 percent to a record $58.7 billion. Overall, there were increases in 8 of 11 product sections, with each gain topping $100 million. Exports of non-energy products rose 1.2 percent in February. Prices continued to play an important role in the monthly growth of exports. Exports in real (or volume) terms increased by 0.6 percent in February.
Imports from countries other than the United States rose 10.8 percent in February. China (+26.9 percent) had the strongest growth by far. Many products contributed to this increase, including imports of pharmaceutical products (COVID-19 testing kits). In addition, imports from China usually decrease as a result of Chinese New Year. This year, however, despite the holiday occurring in early February, imports from this country increased, which led to a sharp rise on a seasonally adjusted basis.
Exports to countries other than the United States were up 8.1 percent in February. Many countries contributed to this gain, including India (aircraft), Brazil (potash), Taiwan (coal), China (various products) and Italy (pharmaceutical products and crude oil).
Canada's trade deficit with countries other than the United States widened from $6.6 billion in January to $7.7 billion in February.
Exports to the United States rose 1.3 percent in February, while imports from the United States edged down 0.1 percent. As a result, Canada's trade surplus with the United States widened from $9.7 billion in January to $10.3 billion in February. This was the largest trade surplus with the United States since December 2005.