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 May 2014Thursday, July 03, 2014 > 11:47:33
Canada's merchandise exports advanced 3.5% and imports grew 1.6% in May. As a result, Canada's trade deficit with the world narrowed from $961 million in April to $152 million in May.
Exports increased to $44.2 billion, the second highest value on record, led by motor vehicles and parts. Overall, volumes were up 4.2% and prices declined 0.7%.
Imports expanded to $44.3 billion, as volumes increased 2.4% and prices declined 0.8%. The main contributors to the increase in imports were motor vehicles and parts as well as metal ores and non-metallic minerals.
Exports to the United States lead growth
Exports to the United States advanced 2.1% to $33.5 billion in May, led by passenger cars and light trucks. Imports from the United States edged down 0.2% to $28.7 billion. Consequently, Canada's trade surplus with the United States widened from $4.0 billion in April to $4.8 billion in May.
Exports to countries other than the United States grew 8.3% to $10.7 billion. Imports from countries other than the United States rose 5.1% to $15.6 billion, led by the European Union (+12.4%). As a result, Canada's trade deficit with countries other than the United States narrowed from $5.0 billion in April to $4.9 billion in May.
Motor vehicles and parts leads gain in exports
Exports of motor vehicles and parts grew 9.8% to $6.6 billion in May, a fourth consecutive monthly increase. Volumes were up 10.7%. The increase in exports in May was led by passenger cars and light trucks (+15.7%), as production resumed after maintenance was conducted at some Canadian manufacturing plants in April.
Exports of energy products advanced 3.4% to $10.9 billion, on higher volumes. Exports of refined petroleum energy products increased by $505 million to $1.1 billion in May, following a $452 million decline in April, as some Canadian refineries that were conducting maintenance in April returned to more normal levels of production.
Exports of consumer goods increased 4.4% to a record $4.8 billion, as volumes were up 6.5%. Pharmaceutical and medicinal products led the growth in exports, up 41.4% to $748 million in May following a 25.6% decline in April. Also contributing to the section's increase was other food products (+10.5%), mainly red lentils and yellow peas.
Imports increase on higher volumes
Imports of motor vehicles and parts increased for a fourth consecutive month, up 6.7% to $7.8 billion in May, as volumes increased 7.3%. Motor vehicle engines and motor vehicle parts (+7.5%) and passenger cars and light trucks (+6.3%) were the main contributors to the section's growth, as production resumed after maintenance was conducted at some Canadian manufacturing plants in April.
Imports of metal ores and non-metallic minerals grew 44.5% to $1.0 billion, on higher volumes. Imports of the commodity grouping "other metal ores and concentrates" increased $202 million in May following a $241 million decline in April. In both cases, gold bullion was the main factor.
Imports of aircraft and other transportation equipment and parts advanced 12.7% to $1.4 billion, as imports of aircraft increased by $195 million to reach $286 million.
Imports of energy products declined 3.6% to $3.6 billion, as prices fell 7.5% while volumes increased 4.2%. Natural gas was the main contributor to the decrease, as imports fell 13.7% to $609 million following four consecutive monthly increases.