Canadian international merchandise trade

Canada's merchandise exports rose 5.2% in May, led by higher volumes of automotive products, while imports increased 5.7%, reflecting broad-based gains in volumes. Canada posted a trade deficit with the world of $503 million in May, compared with a deficit of $330 million in April.

Exports rose to $34.5 billion in May from $32.8 billion in April, following two months of decline. While all the export sectors posted gains, automotive products accounted for over half the growth.

Export volumes increased 3.9% and prices grew 1.2%. Export volumes have been trending upwards since the low reached in May 2009.

Imports rose to $35.0 billion from $33.1 billion in April, as all import sectors, except agricultural and fishing products, grew in May. Machinery and equipment, industrial goods and materials as well as other consumer goods led the gain in imports.

Import volumes increased 4.2% while prices grew 1.4%. Import volumes, up for a fourth consecutive month, have been trending upward since March 2009.

Exports to the United States increased 5.5% while imports grew 5.8%, both on the strength of automotive products trade. Overall, Canada's trade surplus with the United States widened to $3.6 billion in May from $3.5 billion in April.

Exports to countries other than the United States grew 4.4%, led by a 25.2% increase in exports to the European Union, while imports rose 5.5%. As a result, Canada's trade deficit with countries other than the United States expanded to $4.1 billion in May from $3.8 billion in April.

Passenger autos lead the growth in exports

Automotive products exports rose 20.8% to $5.4 billion, as volumes grew 16.9%. Exports in this sector trended downward from December 2006 to a low of $2.6 billion in January 2009. Since then, exports of automotive products have more than doubled. In May, exports of passenger autos increased 28.1% to $3.7 billion, their highest level since December 2006. This gain reflected the popularity of some models manufactured in Canada. Exports of motor vehicle parts, up 9.6%, increased for a seventh consecutive month.

Exports of machinery and equipment grew 4.6% to $6.3 billion, as a result of a 4.8% increase in prices, while volumes declined slightly. Exports of other end products, namely gold coins, increased 25.2% and were the main factor behind the increase in the sector. Exports of industrial machinery such as drilling, excavating and mining machinery also grew in May. Mitigating the gain in the sector were lower exports of aircraft, engines and parts.

Exports of agricultural and fishing products increased 6.0% to $3.0 billion in May. Higher exports of meat and meat preparations, wheat, as well as other food, feed, beverages and tobacco were the main contributors to the gain. Prices of agricultural and fishing products, which had been declining since October 2008, grew 3.4% in May.

Following three months of declines, exports of energy products increased 1.6% to $7.7 billion in May, as volumes rose 8.1% while prices fell. Exports of natural gas grew 21.3%, followed by exports of petroleum and coal, up 13.4%. Moderating the gain in the sector was a third consecutive monthly decrease in exports of crude petroleum, which declined 8.5%.

Widespread increases in volumes drive the gain in imports

Machinery and equipment imports grew 6.6% to $9.4 billion. This fourth consecutive month of increase was largely the result of volumes increasing 5.3%. Widespread gains in the sector were led by office machines and equipment, other equipment and tools as well as other industrial machinery.

Imports of office machines and equipment increased 19.8% as new electronic products became available in May. Imports of other equipment and tools grew 6.8%, reflecting gains in a wide variety of commodities such as laboratory equipment, furniture and fixtures and electrical transformers.

Imports of industrial goods and materials rose 6.8% to $7.3 billion, as prices increased 5.4%. Over three-quarters of the gain in the sector were attributable to higher imports of metals in ores, precious metals and metal fabricated products. Imports of metals in ores grew 34.2% while precious metals increased 17.3% on the strength of gold.

Following two months of declines, imports of other consumer goods grew 9.3% to $4.8 billion, as volumes rose 5.2%. Imports of miscellaneous end products, such as medicinal and pharmaceutical products, accounted for most of the gain.

Imports of automotive products increased 4.8% to $5.9 billion. The gain in the sector reflected a 3.1% increase in volumes. Imports of motor vehicle parts, up 7.7%, accounted for more than two-thirds of the gain in the sector.

Available on CANSIM: tables 228-0001 to 228-0003, 228-0033, 228-0034, 228-0041 to 228-0043 and 228-0047 to 228-0057.

The merchandise imports and exports data in the following tables are presented in dollar values.

Tables 228-0001 to 228-0003: Customs and balance of payments basis, by major groups and principal trading areas for all countries; monthly, quarterly, and annual.

Table 228-0033: Imports, customs-based, by province of clearance; monthly.

Table 228-0034: Domestic exports, customs-based, by province of origin; monthly.

Tables 228-0041 to 228-0043: Customs and balance of payments basis, by sector and sub-sector, for all countries; monthly, quarterly, and annual.

The merchandise imports and exports data in the following tables are indexes (2002=100).

Tables 228-0047 to 228-0049: Balance of payments and customs-based price and volume indexes, for all countries; monthly, quarterly, and annual.

Tables 228-0050 to 228-0052: Customs-based price indexes, Canada and United States trade, and Standard International Trade Classification (SITC revision 3) price indexes for all countries and the United States; monthly, quarterly, and annual.

Tables 228-0053 to 228-0055: Price and volume indexes customs and balance of payments basis, by sector and sub-sector, for all countries; monthly, quarterly, and annual.

Tables 228-0056 and 228-0057: Balance of payments basis, by sector, seasonally adjusted, Fisher formula, chained 2002 dollars, for all countries; monthly and quarterly.

These data are available in the Canadian international merchandise trade database.

Definitions, data sources and methods: survey numbers, including related surveys, 2201, 2202 and 2203.

The May 2010 issue of Canadian International Merchandise Trade, Vol. 64, no. 5 (65-001-X, free), is now available from the Key resource module of our website under Publications.

Current account data (which incorporate merchandise trade statistics, service transactions, investment income and transfers) are available quarterly in Canada's Balance of International Payments (67-001-X, free).

Data on Canadian international merchandise trade for June will be released on August 11.

For more information, contact Marc Nadeau (toll-free 1-800-294-5583; 613-951-9786; trade@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Mychèle Gagnon (613-951-0994), International Trade Division.