Worldwide imports, exports rise to record highs in ’06

OTTAWA — Canada’s merchandise exports to the world hit a record annual high in 2006, even though shippers saw the first decline in exports to the U.S. in three years.

In total, Canadian companies exported nearly $458.2 billion worth of merchandise abroad last year, a 1.1 percent gain from 2005, reports Stats Canada. However, imports rose nearly four times as fast (+4.2%) to $404.5 billion, which was also a record high.

As a result, Canada’s annual merchandise trade balance with the world fell by more than $11.2 billion to $53.6 billion, its lowest level since 1999.
Imports surged 3.6 percent in December to a new monthly peak of $35.4 billion, the third monthly gain in a row, while exports rose 3.8 percent to $40.4 billion.

All sectors registered increases, but energy and automobiles led December’s gains in both exports and imports, thanks to stronger auto sales in Canada up to the very end of 2006.

A glance at 2006:

Overall, export receipts were up for agricultural products, machinery and equipment and industrial goods last year, primarily due to exporters receiving higher metals prices and finding new markets for wheat, canola and aerospace products. Imports rose in all major sectors in 2006.

Energy exports last year were stable at 2005’s high levels, but the picture was mixed. Crude petroleum exporters had a stellar year, but that was offset by a year of falling prices for natural gas exporters, states StatsCan.

Canada’s exports to the United States fell 2.0 percent last year, largely because of weakness in the automobile and forestry industries. Exports in the auto industry, primarily to the US, slumped 6.0 percent from 2005, while forestry exports were down 8.6 percent.

The United States, still Canada’s largest export market, still accounted for 79 percent of exports in 2006, down from 81 percent the year before. Canada’s trade surplus with the United States amounted to $96.5 billion, the lowest value since 2003.

Emerging Economies:

Customs-based trade with the emerging economies of China, Brazil, India, and Russia advanced in 2006. Exports to the group equaled $11.5 billion, 17 percent higher than 2005, while imports registered gains of 14 percent, hitting $41.1 billion for the year.

Increased demand for Canadian wood pulp, metals and aerospace products accounted for the gain in these international exports. The gain for imported products was widespread, with increased Canadian orders of consumer goods such as house furnishings, electronics, and clothing from China, and sugar and aerospace products from Brazil, and coffee and teas and jewellery from India all contributing.

China remained Canada’s second largest source of imports and fourth-largest destination for exports in 2006. Exports grew by 7.8 percent to $7.7 billion while import values increased by 17 percent to $34.4 billion.