Canadian international merchandise trade, December 2024
Released: 2025-02-05
In December, Canada's merchandise exports increased 4.9% and imports were up 2.3%. As a result, Canada's merchandise trade balance with the world went from a deficit of $986 million in November to a surplus of $708 million in December. This was the first merchandise trade surplus since February 2024.
Due to the implementation of the Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) digital initiative and delays in the receipt of merchandise import data at Statistics Canada, estimates were added to the collected values in order to produce a more complete picture of Canada's import activity from October to December. Please see the Note to readers below for more information.
Consult the "International trade monthly interactive dashboard" to explore the most recent results of Canada's international trade in an interactive format.
Focus on Canada-US merchandise trade
The United States is Canada's most important partner for international merchandise trade. In 2024, the combined value of Canada's imports and exports of goods traded with the United States surpassed the $1 trillion mark for a third consecutive year. In 2024, the United States was the destination for 75.9% of Canada's total exports, and was the source of 62.2% of Canada's total imports.
Canada's merchandise trade surplus with the United States amounted to $102.3 billion for the year 2024, a narrowing compared with the surplus of $108.3 billion observed in 2023. For trade in services, Canada consistently posts deficits with the United States, mainly because of travel services. When trade in goods and services are combined, Canada recorded an overall trade surplus of $94.4 billion with the United States in 2023. Annual results on Canada's trade in services by principal trading partner for 2024 will be available on February 27, 2025.
Exports of energy products are key to Canada's merchandise trade surplus with the United States. In 2024, Canada exported $176.2 billion worth of energy products to other countries, with the vast majority of these exports destined for the United States. Meanwhile, Canadian imports of energy products totalled $39.0 billion in 2024, with the majority also coming from the United States.
In the context of discussions on Canada's trade balance, Statistics Canada produces international merchandise trade statistics on two different bases: customs basis statistics, which are highly detailed and multidimensional, and balance-of-payments basis statistics (such as those cited above), which are included in the calculation of gross domestic product and are consistent with other macroeconomic indicators. This allows for the calculation of the balance of trade in goods with the world and with specific countries from these two perspectives. There are differences between the data produced on each basis, as each is associated with its own concepts, definitions and uses.
Additionally, organizations that collect information on international merchandise trade in the United States produce statistics that often reflect a trade balance with Canada that differs from Statistics Canada's measures. The key factors behind the differences when comparing the data published by Canada and by the United States for bilateral trade between the two countries are country attributions (how trading partners are assigned in trade statistics) and balance-of-payments adjustments.
More information on Canadian international merchandise trade on a customs and balance-of-payments basis, as well as on differences that are apparent when comparing Canadian and US bilateral trade data, can be found in "Understanding the Canadian international merchandise trade balance."
Chart 1
Merchandise exports and imports
The depreciation of the Canadian dollar continues to impact import and export values in December
A large proportion of import and export transactions are completed in US dollars and must be converted to Canadian dollars to compile monthly trade statistics. All other things being equal, when the Canadian dollar depreciates against the US dollar, monthly trade values expressed in Canadian dollars are higher.
The average value of the Canadian dollar decreased sharply for a third consecutive month. The dollar fell 1.3 cents US in December, which was the largest monthly decline in 2024. When expressed in US dollars, Canadian exports increased 3.0% in December, while imports were up 0.4%.
Exports increase for a third consecutive month
After increasing 1.9% in November, total exports were up 4.9% in December, the largest percentage increase since February 2024. Overall, 8 of the 11 product sections were up in December. Exports excluding energy products increased 3.6%. In real (or volume) terms, total exports rose 2.6%.
Chart 2
Contribution to the monthly change in exports, by product, December 2024
Exports of energy products (+9.5%) posted the largest increase in December, mostly driven by the growth in crude oil exports (+11.0%). This increase was mainly the result of higher prices. In recent years, crude oil prices have posted strong declines in the month of December. However, these prices were relatively stable in December 2024, resulting in a seasonally adjusted increase in the price of Canadian crude oil exports for that month. In 2024, the value of exports of energy products increased 1.2% compared with 2023, despite a 3.5% annual decline in prices.
Chart 3
Exports of crude oil and bitumen
Exports of metal and non-metallic mineral products rose 9.2% to a record high of $10.0 billion in December. Widespread gains were observed across the different product categories. On one hand, there were increases in exports of waste and scrap of metal (+35.6%) and unwrought nickel and nickel alloys (+63.3%), mostly destined to Norway. On the other hand, exports of unwrought gold, silver and platinum group metals, and their alloys (+3.9%) and basic and semi-finished products of non-ferrous metals and non-ferrous metal alloys (+30.3%) also increased, with shipments mainly going to the United States.
Exports of motor vehicles and parts increased 3.9% in December to their highest level since May 2024, mainly because of higher exports of passenger cars and light trucks (+7.2%). In a context where motor vehicle production fell sharply in 2024, temporary closures over the holidays in December were less impactful. Additionally, higher exports of electric vehicles were observed in the month, which also contributed to the seasonally adjusted increase in exports of passenger cars and light trucks. Despite the monthly gain, these exports fell 11.5% in 2024 compared with 2023.
Exports of farm, fishing and intermediate food products (+5.8%) also contributed to the overall increase in exports in December, mainly on higher exports of wheat (+28.4%). The most recent crop year saw an increase in durum wheat harvested areas, and higher wheat production, which led to a ramp up in wheat exports. Exports of wheat rose 39.4% in the fourth quarter of 2024 compared with the third quarter.
Chart 4
Exports of wheat
Imports up in December
After rising 2.8% in November, total imports increased 2.3% in December. The largest contributors to this monthly increase were imports of consumer goods (+4.7%), metal and non-metallic mineral products (+8.7%) and industrial machinery, equipment and parts (+5.0%). In real (or volume) terms, total imports edged up 0.2% in December.
Statistics on imports are primarily based on administrative data from the CBSA and are generally not subject to significant estimation. However, given delays in the receipt of import data for October through December due to the CARM digital initiative, estimated values were added to a majority of the product categories to compensate for the outstanding transactions. Users of merchandise import statistics should exercise caution when analyzing and interpreting the data and should expect significant revisions to the results for these months in future publications. Please see the Note to readers below for more information.
The trade surplus with the United States widens, as does the deficit with countries other than the United States
Following a 6.7% increase in November, exports to the United States rose 5.0% in December, in part on higher exports of energy products. Meanwhile, imports from the United States fell 1.5% in December. As a result, Canada's trade surplus with the United States widened from $8.2 billion in November to $11.3 billion in December.
After falling 10.8% in November, exports to countries other than the United States rose 4.9% in December. The largest increases were observed in exports to Germany (nuclear fuel and aircraft), Norway (nickel and scrap of metal), Japan (coal and copper) and Switzerland (aircraft). Imports from countries other than the United States rose 9.0% in December. Canada's trade deficit with countries other than the United States widened from $9.2 billion in November to $10.6 billion in December.
Chart 5
International merchandise trade balance
Exports outpace imports in the fourth quarter
Total exports rose 4.3% in the fourth quarter of 2024, the largest quarterly increase since the second quarter of 2022. Exports of metal and non-metallic mineral products (+12.9%) and energy products (+4.0%) were the largest contributors to the increase in the quarter.
After edging down 0.2% in the third quarter, total imports rose 2.8% in the fourth quarter of 2024. Widespread gains were observed in all product sections. Data on imports in the fourth quarter were affected by delays due to the CARM digital initiative and include estimated values.
With regard to quarterly results in constant dollars (calculated using 2017 chained dollars), real exports were up 2.7% in the fourth quarter, while real imports increased 2.0%.
Exports and imports edge up in 2024
In 2024, total merchandise exports were up 1.0% from 2023. This increase follows an annual decline of 1.8% in exports in 2023. In 2024, metal and non-metallic mineral products (+11.3%) contributed the most to the upswing, driven by higher exports of unwrought gold, silver, and platinum group metals, and their alloys (+37.5%). Excluding this product group, total exports fell 0.7% in 2024.
Total imports rose 1.9% in 2024. Imports of consumer goods (+4.6%) and farm, fishing and intermediate food products (+11.2%) posted the largest increases in 2024. Because growth in annual imports outpaced the gain in exports, the merchandise trade deficit widened from $610 million in 2023 to $7.2 billion in 2024.
Revisions to November merchandise export and import data
Imports in November, originally reported at $66.4 billion in the previous release, were revised to $67.2 billion in the current reference month's release. Exports in November, originally reported at $66.1 billion in the previous release, were revised to $66.2 billion in the current reference month's release.
Monthly trade in services
In December, monthly service exports were up 0.8% to $18.1 billion. Meanwhile, imports of services decreased 1.2% to $18.2 billion.
When international trade in goods and services are combined, exports rose 4.1% to $87.6 billion in December, while imports increased 1.6% to $86.9 billion. As a result, Canada's total trade balance with the world went from a deficit of $1.4 billion in November to a surplus of $641 million in December.
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Note to readers
Information on concepts and methods used for the monthly release of Canada's international merchandise trade is now available online. Please see "Notes on the monthly release of Canadian international merchandise trade" for more details.
For a detailed overview of the Canadian International Merchandise Trade program, please see "Guide to Canadian International Merchandise Trade Statistics."
Important notice to users of import statistics following the implementation of CBSA Assessment and Revenue Management (CARM)
Statistics Canada's primary data source used in the compilation of import statistics is undergoing a major transition as a result of the Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) digital initiative, implemented on October 21, 2024. Despite improved coverage since the last publication of Canadian International Merchandise Trade statistics, delays in the receipt of import data at Statistics Canada continue to impact the completeness and quality of import statistics.
Analysis indicates that additional data volumes will be received after Statistics Canada's deadline for monthly collection for the reference months of October through December. While strategies for producing estimates to account for the late receipt of data have been enhanced to maximize the comprehensiveness of merchandise trade indicators for these months, Statistics Canada's ability to respond to these issues is limited.
Canadian International Merchandise Trade statistics are produced on both a customs basis and a balance-of-payments basis. Customs basis statistics are highly detailed and multidimensional, while more aggregated balance-of-payments basis statistics are aligned with Canada's macroeconomic accounting framework and are the source for key indicators related to merchandise trade. Within the customs basis statistics, the use of estimates is limited compared with the balance-of-payments basis statistics, relying on placeholder estimates within the special transactions category to partially account for data expected to be received at a later date. Within balance-of-payments basis statistics, estimation is more comprehensive in order to produce a more complete picture of Canada's import activity throughout the various categories for the affected months.
In light of the issues that are temporarily impacting the completeness and quality of international merchandise trade statistics, users should exercise caution and expect material revisions until the situation stabilizes, notably for import statistics on a customs basis. Statistics Canada will provide further updates as new information becomes available.
Real-time data table
The real-time data table 12-10-0165-01 will be updated on February 17.
Next release
Data on Canadian international merchandise trade for January will be released on March 6.
Products
The product "International trade monthly interactive dashboard" (71-607-X) is now available. This interactive dashboard is a comprehensive analytical tool that presents monthly changes in Canada's international merchandise trade data on a balance-of-payments basis, fully supporting the information presented every month in the Daily release.
The updated "Canada and the World Statistics Hub" (13-609-X) is now available online. This product illustrates the nature and extent of Canada's economic and financial relationship with the world using interactive charts and tables. It provides easy access to information on trade, investment, employment and travel between Canada and a number of countries, including the United States, Mexico, China, Japan, Belgium, Italy, the Netherlands and Spain.
The product "The International Trade Explorer" (71-607-X) is now available.
The product "Canada's international trade and investment country fact sheet" (71-607-X) is also available.
The online Canadian International Merchandise Trade Database is no longer available. It has been replaced by the Canadian International Merchandise Trade Web Application (71-607-X), a modern tool that provides trade data users with a number of enhancements.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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