Canada’s Trade Goes from Deficit to Surplus

OTTAWA — Canada’s trade balance with the world went from a deficit of $487 million in August to a surplus of $1.2 billion in September, according to a recent Statscan report. It’s the first trade surplus since January 2011.

Merchandise exports grew 4.2 percent in September to $39.7 billion, marking the highest value since October 2008. Six out of seven sectors posted gains. The main reason for the increase was a 3.9 percent rise in prices, reported Statscan. Volumes baby-stepped 0.3 percent.

Exports to the U.S. grew 5 percent to $28.2 billion — also the highest value since January 2011.

For the fifth straight month, exports to countries other than the U.S. grew 2.3 percent to $11.5 billion.

Exports of energy products jumped 11.3 percent to $9.6 billion as prices as prices rose 8 percent. Petroleum and coal products stepped up by 36.4 percent to $2 billion — the highest value since the July 2008 peak. This, said Statscan, was mainly due to a 23.3 percent increase in volumes as refineries re-opened after several months of shutdowns for maintenance and expansion. Crude petroleum also helped with a 10.2 percent increase in prices.

Industrial goods and materials exports put a notch in the record books with $10.5 billion high — a 3.4 percent gain. This also marked the fifth straight month of increase for the sector. Plastics, fertilizers, metals and alloys, and chemicals were the main drivers.

Agricultural and fishing product exports rose 9.4 percent to $3.7 billion — the highest level since October 2008. Canola led the sector, hitting a record high of $444 billion.

Machinery and equipment declined 4.9 percent to $7 billion after four straight months of increases, a result of aircraft and other transportation equipment dropping 19.7 percent as volumes slowed 20.9 percent.

Imports decreased to $38.5 billion, with a 3.1 percent drop in volumes, and prices increasing 2.8 percent.

Lower imports of machinery and equipment, and automotive products, are what led the drop in imports with each sector recording declines in volumes.

Energy products and industrial goods and materials offset the decline as both sectors posted gains, with prices rising in each.

Imports from the U.S. lessened 1 percent to $23.8 billion, and as a result, Canada’s trade surplus with the States rose from $2.8 billion in August to $4.4 billion in September.

Imports from countries other than the U-S-of-A climbed a slight 0.7 percent to $14.7 billion in September. Consequently, reported Statscan, the trade deficit with countries other than the U.S. dropped $3.3 billion in August to $3.1 billion, marking the lowest level this year.

Machinery and equipment imports slowed 3.3 percent to $10.2 billion, as three of the four sub-sectors called in declines. The 14.9 percent drop in aircraft and other transportation equipment was the primary driver of the decrease, with volumes dropping 15.2 percent.

Automotive products decreased 5.5 percent to $5.9 billion as volumes fell 6.3 percent. Passenger autos and chassis dropped 10.9 percent, and trucks and other motor vehicles were down 9 percent.

Imports of energy products climbed 5.7 percent to $4.3 billion with prices rising 4.7 percent. And crude petroleum went up 9.9 percent with refineries resuming production after those shutdowns.

Industrial goods and materials showed a 2.6 percent jump to $8.6 billion. Metal and metal ores were responsible for nearly half of that gain as precious metal imports reached a record high of $1.4 billion in September.