According to Statistics Canada, Canada's exports were up 2.9 percent in January, mainly on the strength of higher crude oil export prices. Imports rose 1.5 percent, led by higher aircraft imports. As a result, Canada's merchandise trade deficit with the world narrowed from $4.8 billion in December to $4.2 billion in January.
Total exports rose 2.9 percent to $47.6 billion in January, the first increase since July 2018. Export prices were up 2.0 percent, while volumes increased 0.9 percent. Higher exports of energy products and metal and non-metallic mineral products were partially offset by lower exports of farm, fishing and intermediate food products. Excluding energy products, exports rose 1.2 percent in January.
After increasing 1.8 percent in December, total imports rose 1.5 percent to a record $51.8 billion in January, essentially on increased volumes. Higher imports of aircraft and other transportation equipment and parts were moderated by lower imports of energy products.
Exports to countries other than the United States rose 7.9 percent to $13.6 billion in January, mainly on higher exports to the United Kingdom (gold). Other countries, such as Hong Kong (gold) and Saudi Arabia (other transportation equipment) also contributed to the increase, while China (soybeans) posted the largest decrease.
Imports from countries other than the United States rose 1.1 percent to $19.4 billion in January, surpassing the record set in December. A number of countries contributed to the increase, including Belgium (pharmaceutical products), the United Kingdom (aircraft and aircraft parts), Saudi Arabia (crude oil), China (various products) and Mexico (various products). These gains were partially offset by lower imports from Brazil (bauxite) and South Korea (iron and steel products).
As a result, Canada's trade deficit with countries other than the United States narrowed from $6.6 billion in December to $5.8 billion in January.
Following five consecutive monthly declines, exports to the United States rose 1.1 percent to $34.0 billion in January, primarily on the strength of higher exports of crude oil. Imports from the United States were up 1.8 percent to $32.5 billion, mostly on higher imports of aircraft.
As a result, Canada's trade surplus with the United States narrowed for the sixth consecutive month, from $1.8 billion in December to $1.6 billion in January. Comparing the average exchange rates of December and January, the Canadian dollar gained 0.8 US cents relative to the American dollar.
The share of Canada's exports to the United States was 71.5 percent in January, compared with an average of 73.9 percent in 2018. Meanwhile, the share of Canada's imports from the United States settled at 62.6 percent in January, compared with an average of 64.4 percent in 2018.