Canada: Another Outstanding Trade Surplus in June

Summary of the publication

Canada’s international merchandise trade surplus widened in June, expanding to $5.0 billion from a downwardly revised $4.8 billion in May.

Exports posted a respectable advance of 2.0% to $69.9 billion, on the back of solid gains in exports of energy products, metals ores and non-metallic mineral products, and consumer goods. In all, 8 of 11 product categories posted increases, supporting the sixth consecutive monthly increase in exports. The export story was largely one of a solid increase in volumes (+1.7%), as prices posted the weakest advance since contracting in December 2021 on falling energy prices.

At the same time, imports were up 1.7% to $64.9 billion, with imports of energy products—particularly refined petroleum and natural gas—leading the advance. Notably, imports of aircraft and other transportation also reversed their substantial decline in May. And while import volumes advanced in the month (+0.1%), the real story here was the 1.6% increase in prices.

Canada’s trade surplus with the United States narrowed from $13.6 billion in May to $13.2 billion in June, still the secondhighest surplus on record.