Canadian trade deficit widens in June
Canada’s merchandise trade deficit widened to CAD 3.2 billion in June from May’s deficit of CAD 1.3 billion. Exports grew 17.1 percent sequentially, while imports rose 21.8 percent. Compared with their pre-pandemic levels, nominal exports were still down 17.9 percent, and imports stood 14.3 percent below February levels.
Excluding price moves, export volumes rose 10.6 percent, while imports rose 28.3 percent. The big driver on both sides were motor vehicles and parts. This category accounted for around half of the rise in imports, and more than two-thirds of the rise in exports.
Transportation equipment was the other major driver. For exports, metals and non-metallic mineral product shipments surged, with Statistics Canada reporting that exports of gold were an important contributor.
As pandemic measures continued to ease on both sides of the border, trade with the U.S. normalized slightly in June. Imports from the U.S. rose 28 percent, while exports rose 21.8 percent. Motor vehicles and parts were the main drivers.
Overall, for the second quarter, exports were down 24.7 percent and imports were down 22.7 percent, to levels last seen in 2010 and 2011 respectively.
Like goods shipments, trade in services recorded gains on both sides, with imports leading the way. Imports of services rose 17 percent sequentially in June, aided by imports of travel services. Services exports rose 4.1 percent.