Import drop outpaces export declines

OTTAWA — Depressed volumes is being blamed for more Canadian merchandise imports and exports declines in March.

According to Stats Canada, imports dropped (4.4% to $31.4) more than twice as fast as exports (-1.8% to $32.5 billion) leading to the widening of Canada’s trade surplus with the world from $262 million in February to $1.1 billion in March.

Energy products registered the largest decline for imports (-18.4%), followed by machinery and equipment, as well as industrial goods and materials.

Since the peak of July 2008, imports have fallen by more than $8 billion, mainly as a result of declines in the energy products and automotive products sectors.

Export declines largely reflecting a softening of southbound trade with the U.S. Increased exports to the European Union moderated the decline, however.

Overall exports have fallen by $11.8 billion since reaching their highest level in July 2008.

Machinery equipment and automotive products accounted for almost two-thirds of the decline in exports, followed by energy products.

Automotive product exports, trending downward since December 2006, fell 3.3 percent to $3.4 billion.