According to Statistics Canada, Canada's merchandise exports fell 2.0 percent in January, in part due to lower exports of motor vehicles, while imports were down 0.5 percent mostly on lower imports of pharmaceutical products. As a result, Canada's merchandise trade deficit with the world widened from $732 million in December 2019 to $1.5 billion in January.
Total exports fell 2.0 percent in January to $48.1 billion, with 9 of 11 product sections posting declines. In real (or volume) terms, exports were down 3.1 percent.
Total imports were down 0.5 percent in January to $49.6 billion. After surpassing the $50.0 billion level for most months in 2018 and 2019, total imports have been below this threshold for the past three months. Year over year, total imports fell 4.9 percent compared with January 2019, the strongest year-over-year decline in more than 10 years. In real (or volume) terms, imports (-0.5 percent) also decreased in January.
Imports of metal ores and non-metallic minerals rose significantly in January, up 41.9 percent. Following a 29.5 percent decline in December 2019, imports of other metal ores and concentrates rose 55.7 percent in January, mainly on higher imports of gold for refining purposes. Higher gold prices played a significant role in the increase.
Exports to the United States fell 1.7 percent in January, mainly due to passenger cars and light trucks. Imports from the United States were up 1.6 percent, the first increase in five months. As a result, Canada's trade surplus with the United States narrowed from $4.7 billion in December 2019 to $3.6 billion in January, the smallest surplus since February 2019.
Imports from countries other than the United States fell 4.1 percent in January, led by lower imports from Belgium (parts of other transportation equipment) and China (cellphones).
Exports to countries other than the United States declined 2.8 percent in January. There were lower exports to European countries (mainly Italy, Germany and Belgium) as well as to China. Higher exports of gold to the United Kingdom and Hong Kong partially offset the decrease.
Canada's trade deficit with countries other than the United States narrowed from $5.4 billion in December 2019 to $5.0 billion in January, the lowest deficit in more than a year.