Tuesday, May 17, 2005

Trade balance stable

CANADA’S merchandise trade with the world remained relatively stable in March as imports stayed flat and declines in automotive products and industrial goods and materials dampened export growth.

Exports managed a marginal 0.2% increase to $35.8 billion led by gains in energy products and machinery and equipment. Imports remained unchanged at just over $31.5 billion.

As a result, the nation's merchandise trade surplus edged up $80 million from February's revised figure to $4.2 billion.

The trade surplus with the United States held steady at $8.1 billion, and the trade deficit with all other trading partners remained at $3.9 billion.

Both the export and import of automotive products fell to their lowest levels since January 2004, perhaps a result of soaring gas prices. Energy exports recorded their biggest gain in three months in March.

Machinery and equipment exports increased for the third consecutive month after falling during the latter half of 2004.

Exports of nickel and alloys as well as zinc and alloys surged, primarily as a result of China's growing demand for these materials.

Business investment picks up

A combination of higher corporate profits and low interest rates has fuelled business investment in recent months, with machinery and equipment imports posting four consecutive monthly increases.

Growth in the oil and gas industry coupled with expansion in other mining activities in Canada has meant much higher imports of other industrial machinery and excavating machinery, in particular.

For more information, contact Diana Wyman (613-951-3116), International Trade Division.

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© 2004, 2005 Statistics Canada.