Exports rise again in most sectors; but US shipments lower y-y

OTTAWA — Halting two consecutive declines, Canada’s merchandise exports rose 2.8 percent this past November, with increases in all sectors but agriculture and forestry. Imports inched up 0.4 percent for the month.

As a result, Canada’s merchandise trade surplus with the world widened to $4.7 billion from $3.8 billion in October, reports Stats Canada.
Exports to the U.S. surged 3.6 percent to $29.4 billion, with gains in exports of energy and autos. This was in contrast to a downward trend in exports to the that has dominated the second half of 2006 in the wake of retreating energy prices and falling shipments of lumber and autos.

These second-half declines, combined with rising demand for metals, chemicals and aircraft from countries other than the U.S., have changed the composition of Canada’s exports, states StatsCan.

The U.S. accounted for only 77 percent of all merchandise exports in November, compared with 82 percent a year ago and 84 percent in November 2002. Exports were 1.7 percent lower in the first 11 months of 2006 compared with the same period a year earlier.

On the other hand, exports to countries other than the United States were up 13 percent during the same period.

Exports to the European Union were up 15.7 percent compared with January to November 2005, thanks to higher exports of gold, uranium and aircraft. Exports to India were also up, with wheat, aircraft and metal ores leading the way. Brazil and Russia have also shown large gains in 2006.

No surprise, exports to China increased over 2005 levels. Canada’s exports of metals to China, such as nickel, have recorded a large jump, but overall numbers were partially offset by declines in agricultural materials, such as potash.

AUTOS BOUNCE BACK; FORESTRY KEEPS FALLING

After some serious cooling due to production slowdowns and plant retooling, exports of automotive products rebounded, showing strength in November. In contrast to October — when trucks alone pushed up auto export values — increases in most vehicle classes as well as parts accounted for the rise.

The export story for 2006, says StatsCan, has certainly been industrial goods and materials, specifically metals. Exports of industrial goods for the January to November period of 2006 are 11.3 percent greater than during the same period in 2005. Also, since June, industrial goods have been the highest value export sector, rising above machinery and equipment.

Energy and machinery and equipment also registered gains in November, with energy export values were up 3.7 percent in November to $6.4 billion. An increase in exports of petroleum and coal products, specifically, ultra low sulphur diesel to the U.S., secured the rise.

Exports of agricultural products remained at $2.7 billion, with a slight decline in wheat and fish exports being offset by an increase in barley, other cereal preparations and live animals.

Forestry exports were down 2.2 percent in November, continuing the downward trend that has dominated 2006.