13 February 2007

 

 

 

 

Canada's merchandise exports to the world hit a record annual high in 2006, despite the first decline in exports to the United States in three years.

 

In total, Canadian companies exported nearly $458.2 billion worth of merchandise abroad last year, a 1.1% gain from 2005. However, imports rose nearly four times as fast (+4.2%) to $404.5 billion, which was also a record high.

 

As a result, Canada's annual merchandise trade balance with the world fell by more than $11.2 billion to $53.6 billion, its lowest level since 1999.

 

On a monthly basis, both exports and imports ended the year on a strong note. Imports surged 3.6% in December to a new monthly peak of $35.4 billion, the third monthly gain in a row. Exports rose 3.8% to $40.4 billion. This level was just shy of the monthly high recorded a year ago December, when energy prices peaked after hurricanes devastated the US Gulf Coast.

 

As a result of the larger gain in exports, Canada's trade surplus with the world increased to $5.0 billion in December, its highest level since February.

 

Automobiles and energy led December's gains in both exports and imports, although all sectors registered increases. Shipments of new car and truck models to the rest of the North American auto market pushed up exports. Strong auto sales in Canada up to the very end of 2006 meant strong auto imports for December.

 

 A glance at 2006

 

Overall, export receipts were up for agricultural products, machinery and equipment and industrial goods last year. This was due primarily to exporters receiving higher metals prices and finding new markets for wheat, canola and aerospace products. Imports rose in all major sectors in 2006….

 

Import prices were pulled down by falling prices for electronics and consumer goods, while export prices registered a decline as a result of energy and forestry prices offsetting the gains in metals.