12 November 2004

Exports' sag cuts surplus

The following article is excerpted from the 11 November 2004 edition of the “Toronto Star”.

The country's merchandise trade surplus tumbled in September in the wake of an across-the-board decline in exports, Statistics Canada says.

Companies exported $36.1 billion worth of merchandise, a 3.4 per cent decline from August, the agency said Wednesday.

"Exports fell to the United States, Japan, European Union and in every major commodity group, …”.

"On the other hand, imports edged up 0.4 per cent to $31 billion, with gains occurring in energy products, forestry, industrial goods and consumer goods."

As a result, the merchandise trade surplus fell by $1.4 billion to $5.1 billion.

"Demand for goods continued to fall south of the border, as exports to the United States fell 2.7 per cent to $29.4 billion.

"At the same time, Canadian purchases from American firms rose only 0.9 per cent. This resulted in a $1.0-billion decline in Canada's trade surplus with the United States to $7.9 billion.

"Exports to countries other than the United States fell 6.4 per cent to $6.6 billion, while non-U.S. imports edged down to $9.5 billion. As a result, Canada's non-U.S. trade deficit widened to $2.8 billion from $2.5 billion in August."…

Imports, meanwhile, dipped by 0.8 per cent in September from August to $149 billion. Even with the drop, imports of goods and services were still the second-best on record, a testimony to Americans' solid appetite for foreign-made items.