Canadian international merchandise trade

Canada's merchandise exports fell 2.5% in June, led by industrial goods and materials. Imports decreased 1.2% as a result of a significant decline in energy products. Consequently, Canada's trade deficit with the world widened from $695 million in May to $1.1 billion in June.

Exports declined from $34.4 billion in May to $33.5 billion in June, as export prices contracted by 1.2% and volumes decreased by 1.3%. Export volumes had grown for six consecutive months.

Industrial goods and materials accounted for two-thirds of the decline in the value of overall exports, followed by energy products and automotive products. A gain in exports of machinery and equipment mitigated the decrease.

After a solid gain in May, imports declined from $35.0 billion in May to $34.6 billion in June. Lower imports of energy products were instrumental to the decrease. Excluding energy products, imports grew 0.9% from May to June. Higher imports of industrial goods and materials moderated the overall decline.

Import prices fell 1.2% while volumes remained unchanged, following four consecutive monthly increases.

Exports to the United States decreased 1.0%, reflecting the weakness in exports of energy products, while imports rose 0.8%. As a result, Canada's trade surplus with the United States narrowed from $3.4 billion in May to $3.0 billion in June.

Exports to countries other than the United States fell 7.0%, largely a result of declining exports to the European Union. The fall in exports outpaced a 4.6% decrease in imports and consequently, Canada's trade deficit with countries other than the United States rose from $4.1 billion in May to $4.2 billion in June.

Exports of industrial goods and materials decline for a third straight month

Exports of industrial goods and materials decreased 7.1% to $7.3 billion in June. Precious metal exports fell 24.1%, declining for a third consecutive month after reaching a record high in March. Other crude non-metallic minerals and nickel ores also contributed to the decline.

Energy products exports decreased 5.5% to $7.4 billion, as volumes fell 5.2%. This represented the fifth decline in volume in six months. Exports of petroleum and coal fell 15.0%, largely a result of lower exports of fuel oils. Exports of crude petroleum decreased 4.9%, as prices declined 3.8%. After increasing throughout 2009, prices of crude petroleum have fallen in four of the past six months.

Following a 21.9% increase in May, exports of automotive products declined 4.6% to $5.2 billion in June, as volumes decreased 5.9%. Exports of passenger cars, which led the gain in May, fell 7.1% as a result of declining volumes.

Exports of machinery and equipment increased 3.7% to $6.5 billion, on the strength of aircraft, followed by industrial machinery such as engines and turbines as well as drilling and excavating machinery. The growth in the sector resulted from a gain in volumes.

Import volumes of energy products fall

Energy products imports fell 19.3% to $3.0 billion, reflecting a 15.0% decrease in volumes. Crude petroleum (-26.3%) led the decline, offsetting a strong gain in May. Petroleum and coal as well as coal and other related products also contributed to the decline in the sector.

Imports of industrial goods and materials increased 2.1% to $7.5 billion, on the strength of precious metals. Imports of precious metals, such as gold, increased 20.5%.

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 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.

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

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

The June 2010 issue of Canadian International Merchandise Trade, Vol. 64, no. 6 (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 July will be released on September 9.

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.