Merchandise imports rise, exports fall in April

OTTAWA — For the third time in the first four months of 2006, Canada’s merchandise exports fell while imports continued to gain ground. As a result, the nation’s merchandise trade surplus with the rest of the world dropped to its lowest level — $4.0 billion — in six months, says Stats Canada.

After a modest gain in March, exports declined 2.3 percent to $37.1 billion in April, while imports registered their second consecutive gain this year, rising 1.2 percent to $33.1 billion.

Exports, which fell in April to almost all Canada’s major trading partners, including the U.S., were 8.4 percent lower than they were in December 2005, according to Stats Can. Canada’s trade surplus with the U.S. fell from $8.3 billion to $7.9 billion.

Exports rose in only two of seven export sectors in April — energy products and agricultural and fishing products. The largest contributors to April’s overall decline were automotive products, where exports fell 8.4 percent, and machinery and equipment, where they were down 3.2 percent.

Sharp increases in fuel and finance costs have depressed demand for vehicles in both Canada and the U.S.

Meanwhile, exports of forestry products fell 1.6 percent to just over $2.8 billion, the third consecutive monthly decline after reaching their most recent peak of $3.2 billion in January.

Imports, instead, have been generally growing since September 2003. In April, four sectors (energy products, automotive products, agricultural and fishing products, and forestry products) registered growth.

Imports of automotive products have been virtually flat since April 2004. Trucks and other motor vehicles, as well as passenger autos, have risen while motor vehicle parts have declined.