According to Statistics Canada, Canada's merchandise trade deficit totaled $3.4 billion in August, widening from a $3.0 billion deficit in July. Exports decreased 1.0 percent on lower volumes, while imports were unchanged.
Following two months of large decreases, exports were down a further 1.0 percent to $43.6 billion in August—despite increases in 6 of 11 sections. Volumes decreased 1.9 percent in August, while prices were up 1.0 percent. Year over year, total exports edged down 0.2 percent. Exports of metal ores and non-metallic minerals, down 9.7 percent to $1.5 billion, contributed to the decrease.
Following the largest decline since January 2009 in July, total imports were virtually unchanged in August. Year over year, total imports were up 3.0 percent. Imports of metal ores and non-metallic minerals rose 9.9 percent to $1.2 billion in August on higher volumes.
Exports to the United States were down 1.8 percent to $32.6 billion in August, while imports from the United States rose 0.9 percent to $30.3 billion. As a result, Canada's trade surplus with the United States narrowed from $3.2 billion in July to $2.3 billion in August. The Canadian dollar gained 0.5 US cents relative to the American dollar from July to August.
Imports from countries other than the United States decreased 1.6 percent to $16.7 billion in August. Lower imports from China (cellphones), Saudi Arabia (crude oil) and Norway (ships) were partially offset by higher imports from Mexico (motor vehicles and parts).
Exports to countries other than the United States rose 1.5 percent to $11.0 billion, as increased exports to the United Kingdom (unwrought gold) and Japan (coal and canola) were partially offset by lower exports to China (canola) and India (uranium). Consequently, Canada's trade deficit with countries other than the United States narrowed from $6.2 billion in July to $5.7 billion in August.