Merchandise trade surplus surges to highest level in two years

OTTAWA (March 18) — Canada’s merchandise trade surplus hit $2.73 billion in January, its highest level since February 1997

Statistics Canada reported that exports grew to $28.93 billion in January — a record high — after remaining flat since November, while continued weakness dropped imports to $26.20 billion.

Exports to the United States continued to surge, up 2.5% over December.

Automotive product exports climbed 1.6% in the month.

“The strong recovery in exports of trucks, and to a lesser extent cars, more than offset the slight drop in parts exports,” Statscan noted.

On the import side, machinery and equipment imports dropped 4.0 percent in January after a strong increase in December, mainly due to the sharp decline in used aircraft imports following December’s record levels.

Robust parts imports drove the automotive parts sector up 1.1% in January, despite the third consecutive monthly decline of passenger car imports.