BUSINESS NEWS: Canadian international merchandise trade - STATSCAN

Canadian international merchandise trade

March 2010

Canada's merchandise exports declined 0.7% in March as a result of falling prices for energy products, while imports grew 2.0% on the strength of precious metals. Export and import volumes increased during the month. Canada's trade surplus with the world narrowed to $254 million in March from $1.2 billion in February.
Exports and imports
Note to readers

Merchandise trade is one component of Canada's international balance of payments, which also includes trade in services, investment income, current transfers as well as capital and financial flows.

International merchandise trade data by country are available on both a balance of payments and a customs basis for the United States, Japan and the United Kingdom. Trade data for all other individual countries are available on a customs basis only. Balance of payments data are derived from customs data by making adjustments for characteristics such as valuation, coverage, timing and residency. These adjustments are made to conform to the concepts and definitions of the Canadian System of National Accounts.

Data in this release are on a balance of payments basis, seasonally adjusted in current dollars. Constant dollars are calculated using the Laspeyres volume formula.

Revisions

In general, merchandise trade data are revised on an ongoing basis for each month of the current year. Current year revisions are reflected in both the customs and balance of payments based data. Revisions to customs based data for the previous year are released on a quarterly basis. Revisions to balance of payments based data for the three previous years are released annually in June.

Factors influencing revisions include late receipt of import and export documentation, incorrect information on customs forms, replacement of estimates with actual figures, changes in classification of merchandise based on more current information, and changes to seasonal adjustment factors.

Revised data are available in the appropriate CANSIM tables.

Exports decreased to $33.5 billion in March from $33.8 billion in February, halting six consecutive months of increases. Export prices fell 2.9%, while volumes grew 2.3%. This was the first decline in prices in six months.

Energy products accounted for the decline in the value of exports, as their prices fell 6.9%. Excluding energy products, overall exports increased 1.3%. Exports of machinery and equipment also declined. Moderating the overall decrease were gains in exports of industrial goods and materials as well as forestry products.

Imports grew from $32.6 billion in February to $33.3 billion in March, the highest level since December 2008. This represented the fourth gain in five months. Import volumes increased 3.5%, while prices decreased 1.5%.

On the strength of precious metals, industrial goods and materials led the growth in imports, followed by energy products. Lower imports of automotive products and other consumer goods mitigated the gain in imports.

Exports and imports to the United States both fell in March. Exports declined 2.5%, reflecting the weakness in exports of energy products, while imports decreased 0.6%. As a result, Canada's trade surplus with the United States narrowed to $3.8 billion in March from $4.3 billion in February.

Exports to countries other than the United States grew 4.2%, a third consecutive monthly gain. Exports to the European Union led the growth. Imports rose 6.5%, primarily as a result of a 19.4% increase in imports from the European Union. Consequently, Canada's trade deficit with countries other than the United States widened to $3.6 billion in March from $3.2 billion in February.
Trade balance
Exports of energy products decline

Following a slight decrease in February, exports of energy products fell a further 6.6% to $8.0 billion, the largest percentage decrease since April 2009. Exports of petroleum and coal products declined 15.8%, as a result of lower volumes. Crude petroleum and natural gas fell as a result of a decrease in prices.

Exports of machinery and equipment decreased 1.9% to $5.8 billion, as prices fell. Although the declines were widespread throughout the sector, exports of telecommunication equipment were the main factor behind the decrease, falling 9.1%.

Exports of industrial goods and materials rose 4.7% to $8.3 billion. This third consecutive monthly gain was mostly attributable to a 4.2% increase in volumes. Exports of precious metals grew 47.0% to reach a record high of $1.5 billion. After gains in February, exports of fertilizers and fertilizer materials as well as copper ores fell in March.

Exports of forestry products increased 3.0% to $1.7 billion, the seventh consecutive monthly gain, as volumes rose 4.4%. Exports of wood pulp grew 8.6%, accounting for almost three-quarters of the gain, and were followed by exports of other crude wood products, which include items such as poles, fence posts and logs.
Precious metals account for over two-thirds of the gain in imports

Imports of industrial goods and materials rose 10.4% to $7.3 billion, the largest percentage increase since January 1992. The gain was due to an 18.5% increase in volumes, as prices fell 6.8%. Imports of metals and metal ores grew 21.2% in March, largely as a result of precious metals increasing to $1.0 billion, a record high. Chemicals and plastics rose 6.7%, mainly on the strength of higher imports of organic chemicals, which were up for a fourth consecutive month.

Following two months of decline, imports of energy products increased 10.1% to $3.2 billion. Imports of crude petroleum were the main factor behind the growth in the sector, rising 17.7% as result of higher volumes.

Imports of automotive products fell 5.8% to $5.6 billion, as volumes declined 4.5%. Imports of passenger autos fell 13.3% and accounted for over three-quarters of the decrease in the sector. Imports of trucks and motor vehicle parts also fell in March.

Imports of other consumer goods declined 2.3% to $4.6 billion, the lowest level since April 2008. Miscellaneous end products, which include items such as sporting goods, toys, and medicinal and pharmaceutical products, led the decline in the sector. The prices of miscellaneous end products have generally been decreasing since March 2009, while volumes have increased.

SOURCE: Statistics Canada