Despite transportation disruptions caused by flooding and landslides in British Columbia in November, total exports increased 3.8%, while imports rose 2.4%.
As a result, Canada's merchandise trade surplus widened from $2.3 billion in October to $3.1 billion in November.
Following a record high in October, total exports rose 3.8% in November to $58.6 billion, the fifth increase in six months. Gains were observed in 8 of the 11 product sections. In real (or volume) terms, total exports rose 3.5%.
Exports of consumer goods increased 9.0% in November to $7.3 billion, mainly on higher exports of pharmaceutical products (+$610 million). In November, large shipments of COVID-19 medication came into Canada for packaging and labelling.
Most of the medication was subsequently exported during the same month, resulting in a boost to both export and import statistics. Excluding exports of pharmaceutical products, total exports were up 2.8% in November.
Exports of basic and industrial chemical, plastic and rubber products increased 14.7% in November, with all subcategories posting gains. Exports of lubricants and other petroleum refinery products (+58.1%) increased the most, rising on higher exports of motor gasoline blending stock (a refinery output) to the United States.
Exports of energy products rose 2.8% in November, a seventh consecutive monthly increase. Crude oil exports (+5.6%) were up on higher prices, while exports of refined petroleum energy products (+61.2%) increased on higher refinery production.
Offsetting these gains were lower exports of coal (-29.0%), which coincided with the flooding in British Columbia, and natural gas (-17.0%), which were down mostly on lower prices.
Exports of forestry products and building and packaging materials (+6.7%) also rose in November. Exports of lumber and other sawmill products (+8.6%) increased for a second consecutive month, following three months of declines, as both volumes and prices were up in November. Exports of asphalt (except natural) and asphalt products (+51.8%) also increased in November, mainly because of higher refinery output.
Following a record-high level of $54.2 billion in October, total imports rose a further 2.4% in November to $55.4 billion. These gains are largely attributable to atypical shipments of pharmaceutical products. Excluding imports of pharmaceutical products, total imports were up 0.1%. Overall, gains were observed in 6 of 11 product sections. In real (or volume) terms, total imports increased 0.8%.
Imports of consumer goods rose for the fourth consecutive month, up 5.2% in November. Imports of pharmaceutical products were responsible for the gain, rising sharply by $1.2 billion. November saw large imports of medication for packaging and labelling. As discussed with exports, a significant part of the packaged goods were subsequently exported in the same month.
There was also a sharp increase in imports of "vaccines for human medicine other than for influenza," a category that includes vaccines for COVID-19. November marked the beginning of the campaign to vaccinate children aged 5 to 11 in Canada. Widespread decreases throughout the other product groupings in consumer goods partially offset the increase in imports of pharmaceutical products in November.
Following an 8.2% decrease in October, imports of metal and non-metallic mineral products rose 7.3% in November. Imports of iron and steel products (+24.9%) increased the most, reaching a record high of $1.6 billion, largely because of higher imports from South Korea.
Imports of basic and industrial chemical, plastic and rubber products (+7.3%) also contributed to the overall gain in November, reaching a record high of $4.7 billion. The increase was primarily the result of higher imports of lubricants and other petroleum refinery products (+34.2%), which rose mainly on higher imports of crude oil diluents from the United States.
Following a 7.5% increase in October, exports to the United States rose 6.4% in November to a record high $45.2 billion. Meanwhile, imports from the United States were up 4.9% to $35.4 billion, also a record. This followed a 7.7% gain in October.
Both November increases were partly influenced by higher trade in pharmaceutical products. Canada's trade surplus with the United States widened from $8.8 billion in October to $9.8 billion in November, the largest trade surplus since January 2006.
When the average exchange rates of October and November are compared, the Canadian dollar lost 0.8 US cents relative to the American dollar.
Exports to countries other than the United States were down 4.0%, partly because of the transportation disruptions in British Columbia in November. Exports destined to Hong Kong (crude oil), China (coal, and farm and fishing products) and the Netherlands (various products) contributed the most to the decrease.
Imports from countries other than the United States decreased 1.8% in November. Lower imports from China (various products) were partially offset by higher imports from Japan (turbines and light trucks).
Canada's trade deficit with countries other than the United States widened from $6.5 billion in October to $6.7 billion in November.
Imports in October, originally reported at $54.1 billion in the previous release, were revised to $54.2 billion in the release for the current reference month. Exports in October, originally reported at $56.2 billion in the previous release, were revised to $56.4 billion in the current month's release.
In November, monthly service exports were up 2.9% to $11.7 billion. Service imports increased 0.3% to $11.9 billion.
When international trade in goods and international trade in services were combined, exports increased 3.7% to $70.3 billion in November, while imports were up 2.0% to $67.4 billion. As a result, Canada's trade surplus with the world for goods and services widened from $1.7 billion in October to $2.9 billion in November. ■