Canada’s trade surplus narrows to $778 million in July

Thursday, 02 September 2021 21:29:48 (GMT+3)   |   San Diego

According to Statistics Canada, merchandise imports rose 4.2 percent and exports increased 0.6 percent in July. As a result, Canada's merchandise trade surplus narrowed from $2.6 billion in June to $778 million in July.

In real (or volume) terms, total imports rose 1.9 percent in July, while exports edged down 0.3 percent. Higher prices therefore had a significant impact on import and export values in July. Exports prices increased sharply since the end of last year, up 16.7 percent in July compared with December 2020.

Total imports increased 4.2 percent in July to reach a record high of $53.0 billion. Imports were up in 9 of 11 product sections.

After a sharp increase of 7.5 percent in June, total exports rose 0.6 percent in July to $53.7 billion, another record high. In July, increases in a number of different product sections were partially offset by a sharp decline in lumber exports. Excluding exports of lumber and other sawmill products, total exports were up 2.0 percent.

Imports from the United States increased 8.4 percent in July to a record high of $34.1 billion. Exports to the United States rose 3.6 percent to $40.8 billion, which was also a record high. Both increases were mainly attributable to growth in the trade of motor vehicles and parts. Canada's trade surplus with the United States narrowed from $7.9 billion in June to $6.7 billion in July.

Imports from countries other than the United States decreased 2.6 percent in July, down for the second consecutive month. Imports from China (various products), Mexico (various products) and Japan (passenger cars and light trucks) posted the largest declines.

Exports to countries other than the United States were down 7.6 percent in July, with sharp decreases in exports to China (copper ore, canola and iron ore) and Hong Kong (gold).

Canada's trade deficit with countries other than the United States widened from $5.3 billion in June to $5.9 billion in July.

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