Canadian and International Merchandise trade, November 2012

Data just released by Statistics Canada reveals Canada’s merchandise imports rose 2.7% in November, while exports decreased 0.9%. As a result, Canada’s trade deficit with the world widened substantially from $552 million in October to $2 billion in November.

Imports rose to $39.5 billion, as volumes increased 2.2%. Electronic and electrical equipment and parts led the gain in overall imports, followed closely by motor vehicles and parts as well as metal and non-metallic mineral products. Exports declined to $37.5 billion, as prices were down 1.3%. Exports of farm, fishing and intermediate food products as well as metal and non-metallic mineral products contributed the most to the overall decline.

Exports to the United States grew 3.9% to $28.3 billion. Imports from the United States rose 1.7% to $25 billion, the third consecutive monthly increase. Consequently, Canada’s trade surplus with the United States increased from $2.7 billion in October to $3.3 billion in November.  Exports to countries other than the United States fell 13.4% to $9.2 billion, the lowest level since September 2010. Imports rose 4.6% to $14.5 billion bringing Canada’s trade deficit with countries other than the United States from $3.2 billion in October to a record $5.3 billion in November.

Imports up due to higher volumes

Imports of electronic and electrical equipment and parts rose 5.6% to $4.6 billion, with widespread increases recorded throughout the section. Imports of communications and audio and video equipment (+14.2%), primarily cellular telephones led the gain.  Registering their first increase in five months, imports of motor vehicles and parts grew 3.5% to $6.9 billion in November. Higher imports of motor vehicle engines and motor vehicle parts (+4.1%) and passenger cars and light trucks (+4.0%) accounted for most of the monthly gain. Imports of metal and non-metallic mineral products increased 6.8% to $3.7 billion and imports of unwrought precious metals and precious metal alloys were up 14.4%.  Imports of basic and industrial chemical, plastic and rubber products grew 6.7% to $3.2 billion while basic chemicals imports rose 20.1% in November.  Imports of energy products decreased 3.7% to $3.5 billion, as volumes fell 4%. Imports of refined petroleum energy products, mainly motor gasoline, fell 13.2%.

Farm, fishing and intermediate food products lead the decline in exports

After reaching a record high in October, exports of farm, fishing and intermediate food products fell 14.6% to $2.3 billion, as widespread declines were registered throughout the section. Leading the overall decline were exports of canola (-32.5%) and other crop products (-15.7%). Exports of metal and non-metallic mineral products decreased 7.6% to $4.2 billion. The main contributor to the decline was unwrought precious metals and precious metal alloys, as volumes fell 24.3%.  Following four consecutive monthly decreases, exports of motor vehicles and parts grew 6.6% to $6 billion, with passenger cars and light trucks accounting for most of the gain ( + 8.8%).

Exports of basic and industrial chemical, plastic and rubber products increased 7.5% to $2.7 billion with lubricants and other petroleum refinery products (+26%) and dyes and pigments and petrochemicals (+26.1%) leading the gain.

How about our neighbors South of the border ?

Statistics just out by the U.S. Census Bureau reveal that the United States  international trade deficit in goods and services increased from $42.1 billion in October to $48.7 billion in November , as imports increased more than exports.

Geographically, the U.S. goods deficit with China decreased from $29.5 billion in October to $29 billion in November. Exports decreased $0.2 billion (primarily nonferrous metals and oilseeds and food oils) to $10.6 billion, while imports decreased $0.7 billion (primarily apparel and footwear) to $39.5 billion.

The goods deficit with Canada increased from $1.7 billion in October to $3.3 billion in November. Exports decreased $1.2 billion (primarily generators, passenger cars, and electric apparatus) to $24.7 billion, while imports increased $0.1 billion (primarily fuel oil) to $27.7 billion.

The goods deficit with Mexico increased from $4.4 billion in October to $4.9 billion in November. Exports decreased $1.6 billion (primarily petroleum products, computer accessories, and soybeans) to $18.8 billion, while imports decreased $1.1 billion (primarily crude oil, automotive parts and accessories, and computers) to $23.7 billion.

And how about Canada’s trade with Sweden ?

Regarding trade with Sweden, Canadian exports went from $26 million in September, up to $30 million in October and up again to $45 million in November.  Canadian imports from Sweden, on the other hand, went from $308 million in September, up to $341million in October and down to $276 million in November.  Our bilateral trade remains heavily in favour of Sweden, with peaks and valleys and it will be interesting to see its evolution in the months ahead.

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Christian Sivière                                                                       Import Export Logistics Solutions TM, Montréal Christian.siviere@videotron.ca All Rights Reserved    January 2013

Sources : Statistics Canada, U.S. Census Bureau