According to Statistics Canada, Canada's merchandise exports rose 1.9 percent in December, mostly on higher crude oil exports, while imports edged up 0.2 percent. As a result, Canada's merchandise trade deficit with the world narrowed from $1.2 billion in November to $370 million in December.
Total exports for 2019 rose 1.7 percent, a slowdown from the gains in 2018 (+6.3 percent) and 2017 (+5.4 percent). Compared with the previous year, total imports were up 1.0 percent in 2019, also a deceleration from 2018 (+5.7 percent) and 2017 (+4.9 percent). The trade deficit totaled $18.3 billion in 2019, the smallest deficit since 2014, when the last annual surplus was observed.
Exports increased 1.9 percent in December to $49.3 billion, with 8 of 11 product sections posting gains. This followed a 1.9 percent decline in exports in November, when disruptions in rail and pipeline transportation slowed Canadian trade activity. In real (or volume) terms, exports rose 2.8 percent in December.
The overall export increase was attenuated by a decline in exports of metal and non-metallic mineral products (-10.5 percent). Following a record high in November, exports of precious metals (mainly gold bars) fell 32.1 percent in December to return to levels close to the 2019 monthly average. Despite this decrease, exports of this product rose 20.8 percent in the last quarter of 2019, compared with the previous quarter. The monthly decline in precious metals was partially offset by a gain in aluminum, iron and steel product exports, which were notably impacted by the disruptions in rail transportation in November.
Following a 2.7 percent decline in November, total imports edged up 0.2 percent in December to $49.7 billion, with the gains concentrated in 5 of the 11 product sections.
A decline in imports of metal ores and non-metallic minerals (-20.6 percent) tempered the overall import increase in December. This decrease was led by lower imports of other metal ores and concentrates (-27.6 percent), which were down due to lower imports of gold for refining purposes, as well as zinc.
Exports to the United States rose 2.9 percent in December, mainly due to crude oil exports. Imports from the United States were down 0.2 percent, a fourth consecutive monthly decline.
As a result, Canada's trade surplus with the United States widened from $4.1 billion in November to $5.2 billion in December. On an annual basis, the merchandise trade surplus with the United States was $51.6 billion in 2019, the highest level since 2008.
Exports to countries other than the United States declined 0.9 percent in December. Exports to the United Kingdom, which reached a record high in November, posted the largest decline in December due to lower exports of gold bars. However, this decrease was partly offset by higher exports to China, mainly of gold and potash. Overall, exports to China were down 16.0 percent in 2019, the first annual decline since 2014.