Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Canadian international merchandise trade for December 2014Monday, February 09, 2015 > 11:29:58
Canada's imports increased by 2.3% in December and exports rose 1.5%. As a result, Canada's merchandise trade deficit with the world widened from $335 million in November to $649 million in December. Import volumes increased 2.8%, while prices declined 0.5%. Meanwhile, export volumes rose 3.5%, while prices declined 1.9%.
Imports were 7.6% higher in 2014 than in 2013 while exports increased 10.3%. Consequently, Canada's annual merchandise trade balance with the world swung from a deficit of $7.2 billion in 2013 to a surplus of $5.2 billion in 2014.
The trade deficit with non-US countries widens, while the trade surplus with the United States narrows
Imports from countries other than the United States were up 5.3% to $14.7 billion in December. There were higher imports from Saudi Arabia (+$174 million), Norway (+$171 million) and the United Kingdom (+$116 million). Imports from the United States increased 0.8% to $30.0 billion in December.
Exports to countries other than the United States increased 4.5% to $11.0 billion, led by exports to the United Kingdom, up $470 million. Exports to the United States were up 0.6% to $33.1 billion.
As a result, Canada's trade deficit with countries other than the United States widened from $3.5 billion in November to $3.8 billion in December. Meanwhile, Canada's trade surplus with the United States narrowed from $3.2 billion in November to $3.1 billion in December.
Widespread increases in imports
Imports rose to $44.7 billion in December with gains in 8 of 11 sections. The main contributors to the increase in imports were energy products, motor vehicles and parts, as well as metal and non-metallic mineral products.
Imports of energy products rose 9.3% to $3.5 billion. Imports of crude oil and crude bitumen increased 20.2% to $1.9 billion, on higher volumes, as a number of refineries have returned to full capacity following maintenance.
Motor vehicles and parts advanced 3.3% to a record $8.1 billion. Imports of motor vehicle engines and motor vehicle parts (+5.4%) and passenger cars and light trucks (+2.1%) were the main contributors to the gain.
Imports of metal and non-metallic mineral products increased 6.1% to $4.2 billion, as volumes rose 4.4% and prices 1.7%. There were increases in 9 of the 10 commodity groupings in the section, led by unwrought precious metals and precious metal alloys, up 18.6% to $926 million.
Exports up on higher volumes
Exports rose to $44.1 billion in December. There were gains in 8 of 11 sections, led by metals and non-metallic mineral products.
Exports of metal and non-metallic mineral products increased 13.1% to a record $5.6 billion in December. Overall, volumes rose 10.4% and prices 2.4%. This increase was led by exports of unwrought precious metals and precious metal alloys, which rose 28.2% to $1.9 billion, followed by exports of unwrought, basic and semi-finished aluminum and aluminum-alloy products, up 28.1% to $860 million.
Consumer goods advanced 5.2% to $5.2 billion, on higher volumes. Exports of pharmaceutical and medicinal products increased 14.7% to $806 million. Other food products, mainly yellow peas, also increased in December, up 6.2% to $1.1 billion.
Partially offsetting these increases was a 10.3% decline in energy products to $8.6 billion, the seventh consecutive monthly decrease. There were lower exports of crude oil and crude bitumen (-12.0%) and natural gas (-19.7%) but higher exports of refined petroleum energy products (+13.7%). Overall, prices declined 12.3% while volumes were up 2.3%.