Statistics Canada announced that the country’s merchandise imports decreased 5.4% in July, while exports were up 0.7%.
As a result, Canada’s merchandise trade deficit with the world narrowed from a revised $4.9 billion in June to $987 million in July.
The Federal agency notes that total imports saw the strongest percentage decline since January 2022. Overall, imports in 9 of 11 product sections decreased in July 2023 and, as was the case in May and June, imports of unwrought gold were central to the monthly movement.
Following declines of 2.7% in May and 3.5% in June, total exports were up in July. Exports of aircraft and other transportation equipment and parts increased 23.4% in July to reach a record of $3.2 billion. Following four consecutive months of sharp declines, exports of farm, fishing and intermediate food products increased 9.7%. Partially offsetting these increases, exports of metal and non-metallic mineral products fell 8.6%.
Imports from countries other than the United States decreased 13.2% in July, the sharpest decline since October 2016. Imports from China (-27.2%) decreased the most in July 2023. Notable decreases were also observed in imports from the United Kingdom and Germany. Exports to countries other than the United States were down 2.0% in July. Lower exports to Saudi Arabia, Japan and Italy were largely offset by higher exports to China.
After reaching a record $11.4 billion in June, Canada’s merchandise trade deficit with countries other than the United States narrowed to $8.4 billion in July.
Imports from the United States were down 0.6% in July, while exports to that country rose 1.5%. As a result, Canada’s merchandise trade surplus with the United States went from $6.4 billion in June to $7.4 billion in July.