Oversees exports surging; U.S. trade flat

OTTAWA — Canadian companies exported a record high $40.8 billion worth of merchandise goods in January while imports slowed, pushing the nation’s trade surplus with the world to its highest level in more than a year.

According to Stats Canada, exports rose for the third consecutive month, up 0.9 percent, while imports fell 2.8 percent to $34.4 billion in January.

Exports to the United States were up slightly 0.4 percent despite drops in automotive and energy products, while imports dropped 2.9 percent as a result of widespread declines.

On the other hand, exports to other countries increased 2.6 percent to $9.6 billion as metals, drilling equipment, and fishing vessels all headed overseas. Those were also aided by increases in industrial goods, agricultural products (up 3.3% to a record high $2.9 billion), as well as forestry, thanks to woodpulp and lumber.

Also, for the first time since December 1995, Canada posted a merchandise trade surplus with the European Union, reports Statscan.

Machinery and equipment exports increased 5.4 percent to $8.7 billion, on the strength of transportation equipment. Information technology equipment and industrial machinery also contributed to the jump.

Meanwhile, exports of energy products was down 2.0 percent, dragged down by lower crude, coal and refined petroleum export values. The recent export growth for automotive products came to an end in January, declining 2.5 percent to $7.3 billion.

Imports Decline in Most Sectors:

Agricultural and fishing imports were the only sectors that didn’t see import declines, surging 4.0 percent to a record high of $2.1 billion in January. Imports of fruit and vegetables hit a record level of $622 million.

However, imports of automotive products fell 6.5 percent in January to $6.7 billion while machinery and equipment imports were down 3.2 percent to $9.8 billion. Lower imports of aircraft as well as scientific equipment accounted for the majority of the decline.

Imports of consumer goods also edged down. Televisions, radios and similar goods sustained the losses, as did clothing and footwear, after rallying towards the end of 2006.