According to Statistics Canada, Canada's merchandise trade deficit totaled $2.7 billion in February, widening from a $1.9 billion deficit in January. Imports rose 1.9 percent, mainly due to higher imports of energy products. Exports increased 0.4 percent, primarily on higher exports of passenger cars and light trucks.
Following a 4.3 percent decline in January, total imports were up 1.9 percent in February to $48.6 billion, with increases in 8 of 11 sections. Higher imports of energy products and of motor vehicles and parts were partially offset by lower imports of gold. Year over year, total imports increased 3.5 percent.
Following atypical plant shutdowns in January, imports of motor vehicles and parts partially rebounded in February, up 1.7 percent to $9.4 billion, on higher imports of motor vehicle engines and motor vehicle parts.
Partially offsetting the overall increase were lower imports of gold, which contributed to decreases in the metal ores and non-metallic minerals (-11.9 percent) and in the metal and non-metallic mineral products (-3.0 percent) sections.
Total exports edged up 0.4 percent to $45.9 billion in February, with increases in exports of motor vehicles and parts, and aircraft and other transportation equipment and parts. These were largely offset by lower exports of farm, fishing and intermediate food products, and of metal and non-metallic mineral products. Year over year, total exports were up 1.5 percent. Exports excluding energy products were up 0.7 percent.
Exports of motor vehicles and parts, up 5.0 percent to $7.5 billion, led the increase in February, mostly on higher exports of passenger cars and light trucks (+6.7 percent). This marks a partial recovery after atypical plant closures in the automotive industry in January.
Exports of metal and non-metallic mineral products also fell sharply in February, down 7.2 percent to $5.2 billion. Following a 27.4 percent increase in December and January combined, exports of unwrought precious metals and precious metal alloys fell 34.3 percent in February, primarily on lower shipments of unwrought gold to the United Kingdom.
Following two consecutive monthly decreases, trade with the United States rose in February. Imports from the United States were up 3.3 percent to $32.1 billion, mostly on higher imports of aircraft. Exports to the United States increased 1.9 percent to $34.6 billion, mainly on higher exports of passenger cars and light trucks.
As a result, Canada's trade surplus with the United States narrowed from $2.9 billion in January to $2.6 billion in February.
Exports to countries other than the United States fell 4.2 percent to $11.3 billion, mainly on lower exports to the United Kingdom (unwrought gold). Imports from countries other than the United States also declined, down 0.6 percent to $16.6 billion. Lower imports of gold from the Dominican Republic and Argentina were partially offset by higher imports of passenger cars and light trucks from India and Mexico.
As a result, Canada's merchandise trade deficit with countries other than the United States widened from $4.9 billion in January to $5.3 billion in February.