Canada's goods trade deficit widens to $2.2 billion in November as exports fall
Monthly goods deficit rose to $2.2-billion as exports slipped, driven by metals and motor vehicle shipments. Trade with the U.S. stayed in surplus despite overall weakness.
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By Torontoer Staff
Canada recorded a goods trade deficit of $2.2-billion in November, up sharply from an upwardly revised $395-million deficit in October, Statistics Canada reported Thursday. The jump came as merchandise exports fell broadly, with metals and motor vehicle shipments posting the largest declines.
The release was delayed because some export data to the United States were unavailable after a 43-day U.S. government shutdown between October and November, affecting data collection. Statistics Canada said the November decline reflected both value and volume weaknesses across key sectors.
Which exports fell the most
Statistics Canada identified metals and non-metallic mineral products as the main drag, with exports in that category down 24.4 per cent. Unwrought gold led declines, with large drops in shipments to the United Kingdom, the United States and Hong Kong. In volume terms, total exports were down 0.9 per cent.
The November deficit was largely driven by a 24.4-per-cent drop in the exports of metals and non-metallic goods, led by a drop in exports of unwrought gold.
Statistics Canada
Motor vehicles and parts also contracted sharply, with exports falling 11.6 per cent. That was the largest monthly drop for the category in three years, according to the agency.
Imports and the U.S. relationship
Imports edged down 0.1 per cent to $66.14-billion, with motor vehicles and parts and energy products contributing to the small decline. Despite the overall weakness, Canada’s merchandise trade surplus with the United States increased to $6.6-billion in November, up from $5.2-billion in October.
Exports to the U.S. fell 1.8 per cent, while imports from the U.S. dropped 5.4 per cent. In November, roughly 68 per cent of Canada’s exports went to the United States, and about 56 per cent of imports came from the U.S.
Trade with other countries and broader trends
Imports from countries other than the United States rose 7.8 per cent, the largest increase on record for the series, led by higher shipments from China and Germany. At the same time, exports to partners outside the U.S. declined 4.9 per cent, widening Canada’s deficit with non-U.S. countries to $8.8-billion from $5.6-billion in October.
Except for a marginal surplus in September, the merchandise trade balance has been in deficit since February of last year, a period that has coincided with tariff threats and measures affecting steel, automotive products, aluminium and lumber. Those measures have been cited as a source of uncertainty in affected sectors.
Key figures at a glance
- Goods trade deficit: $2.2-billion in November, up from $395-million in October
- Exports: down overall, volumes down 0.9 per cent
- Metals and non-metallic mineral products exports: down 24.4 per cent
- Motor vehicles and parts exports: down 11.6 per cent
- Imports: $66.14-billion, down 0.1 per cent
- Merchandise trade surplus with the U.S.: $6.6-billion in November
Analysts will watch coming months for signs of recovery in metals and motor vehicle shipments and for how shifts in global supply chains and trade policy continue to affect Canadian trade flows. The delayed data collection related to the U.S. shutdown means some recent movements may be revised as more information becomes available.
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