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Tab 1

Tab 2

Tab 3 Imports $45.9 billion October 2017 -1.6% (monthly change) Exports $44.5 billion October 2017 2.7% (monthly change) Trade balance -$1.5 billion October 2017

Canada's merchandise trade deficit with the world totalled $1.5 billion in October, narrowing from a $3.4 billion deficit in September. Exports were up 2.7% on higher exports to the United States, while imports decreased 1.6% on lower imports of motor vehicles and parts.

Chart 1

Merchandise exports and imports

Widespread increases in exports

Total exports increased 2.7% to $44.5 billion in October, following four consecutive monthly declines. Prices were up 1.5% and volumes increased 1.2%. Advances were observed in 9 of 11 sections, led by basic and industrial chemical, plastic and rubber products (+12.4%). There were also notable gains in metal and non-metallic mineral products (+4.5%); farm, fishing and intermediate food products (+7.7%); and energy products (+2.7%). Year over year, total exports were up 0.8%.

The increases within the basic and industrial chemical, plastic and rubber products, as well as the energy products sections were driven by similar factors in October. Exports of lubricants and other petroleum refinery products (gasoline blending stock), up 44.5%, and refined petroleum energy products (diesel and fuel oils), up 18.4%, rose for a second consecutive month, mostly on higher US demand. A recent drawdown in inventories of refined petroleum products in the United States (especially on the East Coast) led to increased exports from Canadian refineries.

Exports of farm, fishing and intermediate food products also increased in October, rising 7.7% to $2.8 billion, mostly on higher volumes. Higher exports of canola seed and canola oil were responsible for the increase, partly on higher Chinese demand for Canadian canola. There were also increased exports of canola seed to Mexico, the United Arab Emirates, Pakistan and Japan.

Decrease in imports driven by motor vehicles and parts

Total imports were down 1.6% to $45.9 billion in October, mainly due to a decrease in motor vehicles and parts. Other notable movements included metal ores and non-metallic minerals (-20.1%) and aircraft and other transportation equipment and parts (+16.2%). Overall, import volumes decreased 3.9% while prices rose 2.4%. Year over year, total imports rose 0.9%.

Imports of motor vehicles and parts fell 8.1% to $8.7 billion in October, on lower imports of passenger cars and light trucks as well as motor vehicle engines and motor vehicle parts. Passenger cars and light trucks were down 8.8% in October, returning to June levels after three consecutive monthly increases. Also contributing to the decrease were lower imports of motor vehicle engines and motor vehicle parts, down 11.1%. Work stoppages and planned shutdowns in the automotive industry led to a sharp decrease in the demand for automotive components in October.

Also decreasing in October were imports of metal ores and non-metallic minerals, down 20.1% to $983 million. Other metal ores and concentrates (-21.8%) contributed the most to the decline. After peaking in September, imports of zinc ores from Alaska decreased in October.

Partially offsetting the decreases were higher imports of aircraft and other transportation equipment and parts, up 16.2% to $1.8 billion. Imports of aircraft (+$291 million) led the increase, with new airliners from the United States contributing the most to the gain.

Higher exports to the United States

Exports to the United States rose 4.1% to $33.3 billion in October, led by unwrought gold. Imports from the United States were down 0.6% to $29.8 billion, partly on lower imports of zinc ores. As a result, Canada's trade surplus with the United States widened from $2.0 billion in September to $3.5 billion in October. The Canadian dollar lost 2.1 US cents on average relative to the US dollar from September to October.

Imports from countries other than the United States fell 3.3% to $16.1 billion, on lower imports from Mexico (light trucks), Japan (gold bullion) and Saudi Arabia (crude oil).

Exports to countries other than the United States were down 1.4% to $11.1 billion on lower exports to the United Kingdom and China (both unwrought gold). Partially offsetting these declines were higher exports to the Netherlands (metallurgical coal) and Switzerland (aircraft).

As a result, Canada's trade deficit with countries other than the United States narrowed from $5.4 billion in September to $5.0 billion in October.

Sharp drop in real imports

In real (or volume) terms, imports decreased 3.9% in October, the largest decline since October 2016, with more than half of the decrease coming from motor vehicle and parts. Real exports rose 1.2% on widespread increases. Consequently, Canada's trade balance in real terms went from a $2.0 billion deficit in September to $131 million surplus in October.

Chart 2

International merchandise trade balance

Revisions to September 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 September, originally reported as $43.6 billion in last month's release, were revised to $43.3 billion in the current month's release. September imports, originally reported as $46.7 billion in last month's release, were essentially unchanged in the current's month release.

In celebration of the country's 150th birthday, Statistics Canada is presenting snapshots from our rich statistical history. Impact of the 2008-2009 global financial crisis In spite of the onset of the global financial crisis late in the year, Canada's total international merchandise trade reached $917 billion in 2008, before falling to $725 billion the following year. It was not until four years later that total trade surpassed the 2008 mark, reaching $948 billion in 2013. As for the Canadian merchandise trade balance, after reporting a $49 billion surplus in 2008, Canada posted its first annual deficit since 1975 in 2009. Since then, Canada recorded annual surpluses just twice, in 2011 and 2014. From 2008 to 2009, Canada's exports fell 26%, mostly on lower energy products, metal and non-metallic mineral products as well as motor vehicles and parts. Weak demand in the United States, which was heavily affected by the crisis, drove the decrease in exports. Exports of energy products were down due to lower crude oil prices, which were reduced by one-third from 2008 to 2009. Exports increased in each of the five years following the 2009 downturn, only surpassing 2008 levels in 2014, aided in part by the strength of commodity prices during those years. Meanwhile, imports declined 16% from 2008 to 2009. Energy products and motor vehicles and parts accounted for most of the decrease. These drops reflected falling crude oil prices as well as a weakened auto industry. Unlike exports, imports exceeded their pre-recession levels two years following the downturn, reaching $447 billion in 2011.

Products

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

The updated Canada and the World Statistics Hub – United Sates (Catalogue number13-609-X) is now available from the home page of our website. This new product illustrates the nature and the extent of Canada's economic and financial relationship with the United States using interactive graphs and tables. This product provides an 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.