Canada trade surplus highest in years

OTTAWA, (May 12, 2004) — Last month, Canada’s trade surplus hit its highest level in three years, largely attributed to merchandise export growth at almost twice the pace of imports, Statistics Canada reports.

Canadian companies exported nearly $34.9 billion worth of merchandise in March, up 1.7 per cent from February. Imports rose only 0.9 per cent to nearly $28.7 billion, the highest level in a year. That made the country’s surplus more than $6.2 billion, the highest since May 2001.

Exports to the United States rose 0.9 per cent to $28.1 billion, the highest level since March last year, while imports from south of the border were up 1.2 per cent. Canada’s trade surplus with the U.S. remained unchanged at just over $8.1 billion.

An increase of $200 million in passenger car exports helped automotive products achieve consecutive monthly gains for the first time since February 2003. Most manufacturers reported export growth during the month, driven by strong sales in the U.S. Exports of motor vehicle parts increased to a lesser extent, while trucks and other motor vehicles declined slightly.

— with files from Canadian Press