According to Statistics Canada, Canada's merchandise trade deficit with the world totaled $2.5 billion in November, widening from a $1.6 billion deficit in October. Imports were up 5.8 percent and exports rose 3.7 percent, both due largely to increased activity in the automotive industry.
Total imports rose 5.8 percent to $48.7 billion in November, the strongest increase since July 2009. Increases were observed in 10 of 11 sections. Volumes rose 5.0 percent and prices were up 0.7 percent. Imports of electronic and electrical equipment and parts, motor vehicles and parts, as well as aircraft and other transportation equipment and parts contributed the most to the growth in November.
Also contributing to the increase were imports of motor vehicles and parts, which rose 5.4 percent to $9.2 billion. After two consecutive monthly decreases, imports of motor vehicle engines and motor vehicle parts were up 15.7 percent in November, returning to August levels. Activity in the automotive industry rebounded in November following the planned shutdowns and work stoppages that occurred in September and October.
Total exports rose 3.7 percent to $46.2 billion in November, with increases observed in 8 of 11 sections. Higher exports of motor vehicles and parts and consumer goods contributed the most to the growth. Overall, prices were up 3.2 percent, while volumes increased 0.6 percent. However, excluding exports of motor vehicles and parts, export volumes were down 1.4 percent.
The export value of motor vehicles and parts increased 14.6 percent to $7.7 billion in November. Following a decrease of $1.7 billion over four months, exports of passenger cars and light trucks rebounded 21.2 percent to $5.3 billion in November. As with imports of motor vehicle engines and motor vehicle parts, increased activity in the automotive industry led to a rise in exports. For the section as a whole, volumes rose 13.4 percent.
Imports from the United States rose 6.5 percent to $31.9 billion in November. Exports to the United States were up 5.4 percent to $35.2 billion, led by passenger cars and light trucks. As a result, Canada's trade surplus with the United States decreased from $3.5 billion in October to $3.3 billion in November.
Imports from countries other than the United States increased 4.4 percent to $16.9 billion in November, mainly on higher imports from China (cell phones), Japan (passenger cars and light trucks) and Saudi Arabia (crude oil).
Exports to countries other than the United States fell 1.4 percent to $11.0 billion, due to lower exports to the United Kingdom (unwrought gold), South Korea (copper ores) and Mexico (canola). These declines were partially offset by higher exports to China (wood pulp).
As a result, Canada's trade deficit with countries other than the United States widened from $5.0 billion in October to $5.9 billion in November.