Imports keep surpassing exports: Statscan

OTTAWA — Exports increased 2.2 percent and volumes were up 1.7 percent in July continuing the trend for 2008.

However, imports rose 4.6 percent to $39.4 billion, the fourth consecutive monthly increase. Import prices have been on an upward trend for the past nine months, reports Stats Canada.

Canada’s trade surplus with the world declined to $4.9 billion in July from $5.6 billion in June, as the growth in imports surpassed the growth in exports.

Exports to the United States rose 3.1 percent to $34.2 billion, while imports increased 8 percent to $25.3 billion, yielding a trade surplus with the United States of $8.9 billion.

Exports to countries other than the United States decreased 0.7 percent, while imports from these countries as a group declined 0.9 percent.

Exports of industrial goods and materials led the gain, rising 5 percent to $10.1 billion in July as both prices and volume increased. Rising exports of nickel to Norway, and fertilizers to Brazil contributed to the gain. Industrial goods and materials has been trending upwards since January 2008 on account of rising prices.

Machinery and equipment increased 6.6 percent to $7.6 billion, due to rising exports of drilling, excavating and mining machinery and aircraft. However, for the first seven months of the year, the value of exports for this sector remained below 2007 levels, due to lower volumes and prices.

Imports Up Across the Board:

Imports increased in all sectors in July, with automotive products leading the increase, rising 9.5 percent to $7 billion and reaching its highest level since July 2007. The increase was primarily attributable to imports of passenger autos, as sales of these products in Canada remained strong for the first half of the year. Trucks and other motor vehicles also registered a gain.