Cnd trade gap expands between US and the world

OTTAWA — Canada’s merchandise trade surplus with the world continues to expand.

For the third consecutive month, exports grew (up 1.6%) and imports declined in March. The trade surplus jumped to $5.5 billion, its highest level since May 2007, reports Stats Canada.

Exports to the United States climbed for the third month in a row while imports from Canada’s southern neighbor decreased. Consequently, the trade surplus with the United States rose to $8.6 billion, the highest level since April 2006.

Energy Boost Exports:

Canada’s exports rose largely on the strength of energy products, which surpassed the $10-billion mark for the first time ever. Price hikes for natural gas and crude petroleum, combined with a volume jump in petroleum and coal products, contributed to the increase.

Contributing to a lesser degree to the growth in exports, other consumer goods rose 13.4 percent, including commodities such as pharmaceutical, household products, toys, sporting goods, apparel and footwear are grouped in this category.

The only export sectors to falter, not surprisingly, were automotive and forestry products. Trucks and other motor vehicles exports plummeted 29.9 percent to their lowest level in almost two decades.

As demand from the United States remained sluggish, forestry products fell 7.7 percent, continuing its decline that began in 2004.