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Canadian international merchandise trade, March 2018

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Released: 2018-05-03

Canada's imports rose 6.0% to a record $51.7 billion in March. Exports also increased, up 3.7% to $47.6 billion. As a result, Canada's merchandise trade deficit with the world widened from $2.9 billion in February to a record $4.1 billion in March.

In real (or in volume) terms, imports rose 5.3% and exports were up 3.0%.

Chart 1  Chart 1: Merchandise exports and imports
Merchandise exports and imports

Imports reach record high

Imports rose 6.0% to a record high $51.7 billion in March, with increases in 9 of 11 sections. Motor vehicles and parts and also consumer goods were largely responsible for the increase. Year over year, imports were up 9.2%.

Imports of motor vehicles and parts rose 8.3% to $10.3 billion, the strongest increase since 2011. Passenger cars and light trucks contributed the most to the March increase, rising 13.0%. Higher than usual import levels for March were observed for light trucks. For the section as a whole, volumes rose 10.0%, while prices fell 1.5%.

Imports of consumer goods also contributed to the overall increase, up 7.7% to a record $11.0 billion. Higher imports of clothing, footwear and accessories (+20.8%) drove the widespread gain in the section, posting an atypical increase in March. Pharmaceutical and medicinal products (+13.2%) also contributed to the increase, mainly on higher imports from the United States and Belgium. For the section as a whole, volumes were up 6.0% and prices rose 1.6%.

Widespread increase in exports

Exports rose 3.7% in March to $47.6 billion. Aircraft and other transportation equipment and parts; farm, fishing and intermediate food products; and energy products contributed the most to the widespread increase. Exports excluding energy products rose 3.6%. Year over year, total exports were up 1.9%.

For a second consecutive month, exports of aircraft and other transportation equipment and parts rose sharply, up 24.3% in March to $2.3 billion. Exports of boats and other personal transportation equipment almost tripled, mainly due to higher exports of other transportation equipment to Saudi Arabia. Aircraft engines and aircraft parts (+15.2%) also contributed to the increase in March, primarily on higher shipments to the United States.

Exports of farm, fishing and intermediate food products also increased, up 14.7% to $2.8 billion. Following a sharp decline in February, which coincided with rail transportation disruptions in Western Canada, wheat exports (+51.9%) rebounded in March.

Increase in trade with countries other than the United States

In March, Canada's total trade with countries other than the United States reached a record $31.2 billion, with imports increasing 11.5% and exports up 11.4%. Imports from China (+26.6%) led the increase, mainly on higher imports of computers and computer peripheral equipment and of communications and audio and video equipment. Other notable increases were in imports from the Netherlands (motor gasoline) and Germany (passenger cars and light trucks).

Higher exports to countries other than the United States were mostly attributable to the United Kingdom (unwrought gold), Saudi Arabia (other transportation equipment), South Korea (aircraft) and Japan (copper and coal).

Consequently, Canada's trade deficit with countries other than the United States widened from $5.2 billion in February to $5.8 billion in March.

After rising 3.8% in February, imports from the United States increased 3.1% in March, mainly due to higher imports of passenger cars and light trucks. Exports to the United States rose 1.2%, led primarily by higher exports of crude oil. Comparing the average exchange rates of March and February, the Canadian dollar lost 2.1 US cents relative to the American dollar.

As a result, Canada's trade surplus with the United States narrowed for the fifth consecutive month, moving from $2.3 billion in February to $1.7 billion in March.

Imports and exports rise in the first quarter

Imports rose 2.1% to $148.3 billion in the first quarter of 2018, mainly on higher imports of motor vehicles and parts. Exports were up 1.0% to $139.2 billion on increased exports of energy products. As a result, Canada's trade deficit widened from $7.4 billion in the fourth quarter of 2017 to $9.1 billion in the first quarter of 2018.

In real (or volume) terms, imports rose 1.5% in the first quarter, while exports edged up 0.3%.

Revisions to February exports and imports

Revisions reflected initial estimates being updated with or replaced by administrative and survey data as they became available, as well as amendments made for late documentation of high-value transactions. Exports in February, originally reported as $45.9 billion in last month's release, were essentially unchanged in the current month's release. February imports, originally reported as $48.6 billion in last month's release, were revised to $48.8 billion.

Update (June 1, 2018): Information related to recent US/Canada tariff changes

On June 1st the United States implemented additional US tariffs on selected steel and aluminum products. The additional tariffs are 25% and 10% respectively. According to Statistics Canada's international merchandise trade data, in 2017, the United States imported $9.2 billion of aluminum and $7.2 billion of steel products that fall under these tariffs.

At the same time, Canada has proposed additional tariffs on the imports of certain products from the United States. These tariff rates are also at the 25% and 10% levels. The tariffs cover a more diverse range of products and primarily fall under the categories of aluminum products; articles of iron and steel; machinery and electrical equipment; prepared foodstuffs; chemical products; paper products; and other miscellaneous manufactured items. In 2017, Canada imported $19.4 billion worth of the items that are subject to the proposed tariffs.

In order to help Canadians understand the trade flows of these products, table 3 is included below that provides the Canadian International Merchandise Trade Statistics Imports and Exports for the items subject to the tariffs.

Chart 2  Chart 2: International merchandise trade balance
International merchandise trade balance




  Note to readers

Merchandise trade is one component of Canada's international balance of payments (BOP), which also includes trade in services, investment income, current transfers and capital and financial flows.

International trade data by commodity are available on both a BOP and a customs basis. International trade data by country are available on a customs basis for all countries and on a BOP basis for Canada's 27 principal trading partners (PTPs). The list of PTPs is based on their annual share of total merchandise trade—imports and exports—with Canada in 2012. BOP data are derived from customs data by making adjustments for factors such as valuation, coverage, timing and residency. These adjustments are made to conform to the concepts and definitions of the Canadian System of National Accounts.

For a conceptual analysis of BOP versus customs-based data, see "Balance of Payments trade in goods at Statistics Canada: Expanding geographic detail to 27 principal trading partners."

For more information on these and other macroeconomic concepts, see the Methodological Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-607-X) and User Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-606-G).

Data in this release are on a BOP basis and are seasonally adjusted. Unless otherwise stated, values are expressed in nominal terms, or current dollars. References to prices are based on aggregate Paasche (current-weighted) price indexes (2007=100). Volumes, or constant dollars, are calculated using the Laspeyres formula (2007=100).

For information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions.

Revisions

In general, merchandise trade data are revised on an ongoing basis for each month of the current year. Current-year revisions are reflected in both the customs and BOP-based data.

The previous year's customs data are revised with the release of the January and February reference months, and then on a quarterly basis. The previous two years of customs-based data are revised annually and revisions are released in February with the December reference month.

The previous year's BOP-based data are revised with the release of the January, February, March and April reference months. To remain consistent with the Canadian System of Macroeconomic Accounts, revisions to BOP-based data for previous years are released annually in December with the October reference month.

Factors influencing revisions include the late receipt of import and export documentation, incorrect information on customs forms, replacement of estimates produced for the energy section with actual figures, changes in classification of merchandise based on more current information, and changes to seasonal adjustment factors.

For information on data revisions for crude oil and natural gas, see "Revisions to trade data for crude oil and natural gas."

Revised data are available in the appropriate CANSIM tables.

New CANSIM tables

Statistics Canada released on April 5 a new CANSIM table comparing Canadian and US bilateral trade in goods data. CANSIM table 228-0091 includes Canadian and American quarterly imports, exports and trade balance, with adjustments for concepts that lead to differences between the statistics of the two countries. Data are available on a customs and on a BOP basis, and in Canadian and US dollars dating back to the first quarter of 2013.

Also on April 5, Statistics Canada released a new CANSIM table featuring Canada's international merchandise imports and exports by province and territory, classified by North American Product Classification System. CANSIM table 228-0092 includes monthly merchandise trade values on a customs basis by Canadian principal trading partners dating back to January 1997. This new table will eventually replace CANSIM table 228-0060.

The data in these two new tables are used as inputs for new features that were recently added to the Canada and the World Statistics Hub (Catalogue number13-609-X).

Real-time CANSIM tables

Real-time CANSIM table 228-8059 will be updated on May 14. For more information, consult the document Real-time CANSIM tables.

Next release

Data on Canadian international merchandise trade for April will be released on June 6.

Products

Customs based data are now available in the Canadian International Merchandise Trade Database (Catalogue number65F0013X).

The updated Canada and the World Statistics Hub (Catalogue number13-609-X) is now available from the home page of our website. This product illustrates the nature and extent of Canada's economic and financial relationship with the world using interactive graphs and tables. This product provides easy access to information on trade, investment, employment and travel, including merchandise trade by Canadian provinces and US states.

Contact information

For more information, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca).

To enquire about the concepts, methods or data quality of this release, contact Benoît Carrière (613-415-5305; benoit.carriere@canada.ca), International Accounts and Trade Division.

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