In July, Canada's merchandise exports decreased 2.8%, while imports were down 1.8%. As a result, Canada's merchandise trade surplus with the world narrowed from $4.9 billion in June to $4.1 billion in July. So far in 2022, trade surpluses have been observed in every month.
Following six consecutive monthly increases, total exports decreased 2.8% to $68.3 billion in July. Declines were observed in 6 of the 11 product sections. Since the beginning of 2022, the value of exports has risen by almost 20%, and higher prices were behind the bulk of that increase. However, a sharp decrease in prices drove export values down in July, while total exports in real (or volume) terms increased 1.7%, a third consecutive monthly increase.
Total imports fell 1.8% in July to $64.2 billion, the first decrease since January. Declines were observed in 7 of the 11 product sections. In real (or volume) terms, total imports decreased 1.4%.
Exports to the United States decreased 2.2% in July, partly because of lower exports of crude oil and pharmaceutical products. Meanwhile, imports from the United States increased 0.7%. As a result, Canada's merchandise trade surplus with the United States narrowed from $13.3 billion in June to $11.8 billion in July.
Imports from countries other than the United States decreased 5.7% in July. There were lower imports from the Netherlands (motor gasoline), Switzerland (non-ferrous metals), the United Kingdom (motor gasoline), and India (various products). Exports to countries other than the United States were down 4.8% in July. Lower exports to the United Kingdom (gold and crude oil), the Netherlands (pharmaceutical products and iron ore), Australia (pharmaceutical products), Peru (diesel and wheat), and China (coal and copper) were partially offset by higher exports to Hong Kong (gold) and South Korea (crude oil, coal and potash). The merchandise trade deficit with countries other than the United States narrowed from $8.4 billion in June to $7.8 billion in July, the lowest recorded deficit since January.
This is an excerpt from the 07 September 2022 edition of The Daily from Statistics Canada.