Weaker auto exports hurt Canada’s trade surplus

OTTAWA, (March 10, 2004) — Automotive products accounted for more than half the decline in Canadian exports in January, as Canada’s trade surplus fell to $5.23 billion from $5.42 billion the month before.

Statistics Canada reported today the 4.7 percent drop from December was the largest in nine months, as January’s exports fell to $31.85 billion from December’s $33.43 billion — marking the seventh time exports fell over the last 10 months.

Auto exports, which were very volatile in the second half of 2003, fell more than 10 per cent in three of the last four months because of market uncertainty. Total exports south of the border fell four per cent to $26 billion, while imports declined 4.2 per cent to $18.7 billion.

Automotive products also accounted for more than one-third of the fall in imports. January’s imports fell to $26.61 billion, the lowest level since June 1999, from $28.01 billion in December, Statscan said.