Canada's trade deficit narrows in December as U.S. export share falls to record low outside pandemic

Statistics Canada reported a $1.31-billion merchandise trade deficit in December, down from a revised $2.59-billion in November, as exports rose 2.6% and imports rose 0.6%. The share of Canadian exports going to the United States fell to about 67.4%, the lowest level on record except for two months during the COVID-19 pandemic.

Canada's merchandise trade deficit narrowed in December as exports grew faster than imports. Statistics Canada reported a $1.31-billion deficit for the month, down from a revised $2.59-billion in November. Total exports rose 2.6% to $65.63 billion, led by metals and non-metallic mineral products. The share of exports destined for the United States fell to about 67.4%, its lowest level on record outside two pandemic months. Key figures: - $1.31-billion merchandise trade deficit in December, versus a revised $2.59-billion in November. - Total exports rose 2.6% to $65.63 billion; total imports rose 0.6% to $66.93 billion. - Metals and non-metallic mineral exports increased 18%; unwrought gold exports jumped over 37%, helped by higher prices. - The share of exports to the United States was about 67.4%, down from 76.2% a year earlier and the lowest on record outside two pandemic months. - Exports to countries other than the U.S. reached an all-time high in December, while imports from those countries fell 3%. Summary: The December data show a narrower national merchandise trade deficit driven in part by gains in metal and gold exports while imports edged up. The decline in the U.S. share of Canadian exports and the rise in shipments to other countries indicate shifting trade patterns. Undetermined at this time.