Auto prods lead rebound in exports; imports hit record high

OTTAWA — Canadian imports and exports set new record highs in March, as transportation flows returned to normal following a disruption to rail traffic in February.

According to Stats Canada, Canadian companies exported $40.6 billion worth of merchandise in March, up 1.4 percent from February. Automotive products led the growth of exports, increasing a robust 7.9 percent to $7.4 billion.

Imports were up 3.3 percent in March, reaching a record high of $35.9 billion. All but two sectors, namely forestry products, and agricultural and fishing products, registered increases, but an advance in imports of energy products led the gain.

The growth of imports surpassed that of exports, leading Canada’s merchandise trade surplus with the world to contract to $4.6 billion from a revised $5.2 billion in February.

Imports from the U.S. increased by more than $1.0 billion to reach a peak of $23.6 billion, while exports south of the border grew just over $300 million to $31.3 billion.

Autos Surge:

Automotive products stood alone as the sole sector with a gain greater than the drop recorded the previous month. Exports of passenger autos drove the export growth of this sector, accounting for 65 percent of the total as manufacturers’ stepped up production.

Meanwhile, industrial goods and materials increased 3.1 percent to $8.8 billion. After a very weak February, forestry products exports jumped 7.0 percent to $2.7 billion, with exports of lumber, wood pulp and newsprint all contributing to the increase.

Energy products posted the largest decline, with exports falling 5.0 percent to $7.7 billion.

Imports Peaking:

However the same sector experienced expansion of imports in March, accounting for almost half of the increase. Imports soared 22.1 percent to $2.9 billion. An increase in the volume of crude petroleum imports to refineries in Eastern Canada was the main contributor, on the heels of a significant decline in February.

Automotive products also grew 4.5 percent from the previous month to $7.2 billion — the bulk of which came from motor vehicle parts (+5.2%).

Imports of other consumer goods advanced for the eighth straight month, breaking the previous month’s record value and reaching $4.7 billion. Imports of pharmaceutical products played a role in the increase, says Stats Canada.