POST Online Media Lite Edition



 

Despite U.S. pressures Canada's exports increased, trend looks excellent

Staff Writer |
Canada's merchandise trade deficit with the world narrowed from $2.7 billion in May to $626 million in June, the smallest deficit since January 2017.

Article continues below




Total exports increased 4.1%, mainly on higher exports of energy products and aircraft. Total imports edged down 0.2%.

In real (or in volume) terms, exports rose 2.1% and imports were down 1.3%.

Exports rose 4.1% to $50.7 billion in June, the first time they have surpassed the $50 billion mark.

Widespread increases throughout the product sections were led by energy products, and aircraft and other transportation equipment and parts. Excluding energy products, exports were up 3.4%. Year over year, total exports rose 9.2%.

Exports of energy products increased 7.1% to $9.9 billion, the highest level since October 2014.

Crude oil exports were primarily responsible for the gain, up 6.6% to $7.2 billion on the strength of prices.

Exports of refined petroleum energy products (+19.2%) also contributed to the growth, owing to higher exports of heavy fuel oils and diesel fuel.

Exports of aircraft and other transportation equipment and parts rose sharply in June, up 18.9% to a record $2.5 billion.

Exports of aircraft were up 44.5% to $984 million, mostly on higher shipments of business jets to both the United States and non-US countries.

Significant export increases were also observed in other sections in June, including in the metal ores and non-metallic minerals (+22.9%), motor vehicles and parts (+3.7%) and industrial machinery, equipment and parts (+6.1%) sections.

Imports edged down 0.2% to $51.3 billion in June, despite increases in 7 of 11 product sections.

Large decreases in imports of energy products and in aircraft and other transportation equipment and parts were largely offset by widespread increases. Year over year, total imports were up 4.2%.

Imports of energy products decreased 15.1% to $2.9 billion in June. Following four consecutive monthly increases, imports of refined petroleum energy products (-27.4%) drove the decline in June, mainly on lower volumes.

A number of Canadian refineries that were temporarily shut down in April and May resumed production in June, reducing the demand for foreign motor gasoline and diesel fuel.

After posting a record high in May, imports of aircraft and other transportation equipment and parts decreased 17.1% to $2.0 billion, returning to April levels.

This reflected lower imports of aircraft (-47.9%) in June, following a sharp increase in imports of airliners from the United States in May.

These declines were largely offset by increases in several other product sections, including metal ores and non-metallic minerals (+16.2%), consumer goods (+1.2%) and basic and industrial chemical, plastic and rubber products (+2.7%).

Exports to countries other than the United States increased 8.7% in June to a record $13.6 billion.

Higher exports destined for Germany (aircraft), India (metal ores, potash), Belgium (nickel) and Mexico (aircraft) contributed the most to the increase. Lower exports to Hong Kong (unwrought gold) partially offset the overall gain.

Imports from countries other than the United States fell 1.2% to $18.4 billion. Lower shipments from China (cellphones, aircraft) and the United Kingdom (motor gasoline) led the decrease.

Consequently, Canada's trade deficit with countries other than the United States narrowed from $6.1 billion in May to $4.7 billion in June, the smallest deficit since March 2017.

Exports to the United States increased 2.5% to a record $37.1 billion, mainly on higher exports of passenger cars and light trucks. Imports from the United States edged up 0.3% in June to $32.9 billion.

As a result, Canada's trade surplus with the United States widened from $3.3 billion in May to $4.1 billion. Comparing the average exchange rates of May and June, the Canadian dollar lost 1.5 US cents relative to the American dollar.

Exports rose 6.0% to $148.2 billion in the second quarter, the largest quarterly increase in 10 years.

Notable gains were observed in the energy products, forestry products and building and packaging materials, metal and non-metallic mineral products, and consumer goods sections.

Imports rose 3.2% to $153.2 billion in the second quarter. Widespread increases were led by basic and industrial chemical, plastic and rubber products, consumer goods, as well as aircraft and other transportation equipment and parts.

As a result, the quarterly trade deficit narrowed from $8.6 billion in the first quarter, to $4.9 billion.

In real (or volume) terms, exports rose 3.8% in the second quarter, mainly on higher exports of energy products and consumer goods. Import volumes were up 1.7%, led by basic and industrial chemical, plastic and rubber products, and by electronic and electrical equipment and parts.

June was the first month in which Canadian exports of steel and aluminum products to the United States were subject to tariffs.

On a customs basis and unadjusted for seasonality, exports of steel products to the United States that were subject to a 25% tariff fell 36.8%. This decrease followed a 40.0% gain from February to May.

The average growth for these products from February to May in the previous three years was 8.7%, while the average June decline was 0.2%. Compared with June 2017, exports of steel were down 14.3%.

Exports of aluminum to the United States that were subject to a 10% tariff were down 7.0% in June, on a customs unadjusted basis. This also followed a significant ramp up (+28.5%) in exports from February to May.

In the previous three years, the average increase for these products from February to May was 11.7%, while the average June decline was 2.3%. Year over year, exports of aluminum were up 10.2% in June.

Revisions reflect initial estimates being updated with or replaced by administrative and survey data as they become available, as well as amendments made for late documentation of high-value transactions.

Exports in May, originally reported as $48.3 billion in last month's release, were revised to $48.7 billion in the current month's release.

May imports, originally reported as $51.1 billion in last month's release, were revised to $51.4 billion.


What to read next

Canada trade gap smallest since July 2015
Canada trade gap widens in January to CAD 0.66 billion
Malaysia's August exports exceed forecasts at 21.5 percent

Ofgem launching urgent investigation into British Gas after reports of breaking into customers' homes

 
Ofgem has launched an investigation into British Gas following reports the firm has been sending debt collectors to “break into” customers’ homes to “force fit” prepayment meters including in vulnerable households.
 
 

Latest

2024 Range Rover Velar, pure greed and distraction
Saudi Dussur-Korean JV breaks ground on $240m steel plant
Japan gives priority review status to Alzheimer's drug developed by Eisai, Biogen
Australia to remove British monarch from banknotes

NEWS

Philippines: DepEd to look into camera purchases amid overpricing allegations

Lithuania: EPPO uncovers €580 000 fraud, EU funds fully recovered
EPPO dismantles tobacco smuggling network operating in Italy and France
Phantom F-4 crash: Captain Efstathios Tsitlakidis confirmed dead
Entire leadership of State Customs Service of Ukraine dismissed
SBU exposes large-scale schemes for misappropriation of $1 billion for Ukrnafta, Ukrtatnafta
 

BUSINESS

€25 million EBRD loan to support new tram line in Sarajevo, Bosnia and Herzegovina

Five vessels to deliver Ukrainian food exports to China, Egypt, Turkey, Spain, Portugal
New York City mayor announces roadmap for nation's largest compost collection program
Bulgaria starts construction of gas interconnector with Serbia
Intermediate bulk container market to rech $46.2 billion
Global gold demand hit decade high in 2022
 

Trending Now

Japan gives priority review status to Alzheimer's drug developed by Eisai, Biogen

Bird flu spills over to otters and foxes in UK

Australia to remove British monarch from banknotes

Saudi Dussur-Korean JV breaks ground on $240m steel plant


POLITICS

Ukraine, Austria memoranda on energy and environmental protection signed

Iran to put South Pars 14th Phase refinery into operation
Malaysia plans to set up cyber security commission
Finland approves €2bn supplementary budget
Commission approves €600 million Slovak scheme to support its economy
UK ready to boost CPTPP’s economic clout, says Trade Minister on Asia-Pacific visit
 

Today We Recommend

Working group proposes on how to make Finland tobacco-free by 2030


Highlights 

Novartis Q4 income declined 91 percent

GM and Lithium Americas to develop U.S. lithium production through $650 million deal

Biden presents work on Baltimore tunnel, 72,000 new jobs expected


COMPANIES

Wolfspeed plans to construct world’s largest, advanced silicon carbide device manufacturing facility in Saarland

NRRP, Enel X and Intesa Sanpaolo to help agricultural companies develop agrisolar parks
Uruguay: Private investment of 5 million dollars in Nueva Helvecia cheese factory generates jobs
Project Air in Sweden: Uniper commissions Sunfire to build 30 MW electrolyzer
Qatar Airways and Airbus reach amicable settlement in legal dispute
Hungary gives Dunaferr steelworks $45 million bailout to pay wages
 

CAREERS

Satu Rautavalta appointed new CEO of Pimatic

Exothera appoints Darren Leva as chief business officer
Vesta taps Shimon Steinmetz as CFO
Bruno Ultra Barcelos appointed managing director of Ethypharm UK
Syntach names Patrick NJ Schnegelsberg as new CEO
Chiesi appoints Giuseppe Accogli as new group CEO
 

ECONOMY

Germany's foreign trade balance sees surplus of 10.0 billion euros in December 2022

Material shortages decrease in German manufacturing
Companies added 106,000 new workers in January
Scotland's onshore GDP fell by 0.1% in November 2022
UK house prices continued to fall in January
Italian economic growth stronger than expected in 2022
 

EARNINGS

Eli Lilly Q4 profit $1.94 billion

Siemens Gamesa Q1 revenue 2.0 billion euros
Roche sales up 2%
Sony Q3 profit $2.32 billion
Shell Q4 earnings $9.81 billion
Deutsche Bank reports 2022 profit before tax of €5.6 billion
 

OP-ED

Micromanaging is the worst enemy of efficiency and teamwork

Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
 

AGRIFISH

Bird flu spills over to otters and foxes in UK

Spain authorizes 300m euros aid to farmers for increase in price of fertilizers
Main destinations for Brazilian fruit in 2021 were EU, U.S., Argentina and Canada
Vietnam: Agriculture increasingly asserts its supporting role for economy
Rosselkhoznadzor prohibits supply of sunflower seeds from Syngenta Seeds
Forum held about beef sector in Poland
 

LEADERSHIP

Lucky CEO means bad luck for hiring company

Product images could boost food pantry use
The madness of fast service: I want it now!
How to build a resilient brand
Only 32% of employees believe their pay is fair
Corporate duty waivers limit organic company growth and innovation
 

CRIME

AG for District of Colubia: $1,950,000 available for eligible Drizly drivers as result of tip-theft investigation

North Carolina: 52 stores pay fines for price scanning errors in 33 counties
EAO issued third fine for Coastal GasLink project
Dutch central bank fines cryptocurrency exchange Coinbase 3.3 mln euros
Bloomberg to pay $5 million for misleading disclosures about its valuation methodologies for fixed income securities
Italy fines Yoox with over 5 million euro for misleading prices and limitations of right of withdrawal
 

Magazine

TRAVEL

Legend Rock Petroglyphs in Wyoming, history right in front of you

La Chandeleur in Paris: Crêpe Day for all of you
Tru by Hilton Monterrey Fundidora hotel opens in Mexico
IntercityHotel Berlin Airport BER opens
Art After School, the perfect way to spark imagination in your child
The world's biggest food fair in Berlin you don't wanna miss
 

SEA, LAND, AIR

Honda Pilot TrailSport, fully equipped SUV with great ground clearance

2024 Corvette E-ray, electrified 4WD
Jaguar I-PACE is now more distinctive
2023 Toyota Prius expected this January
2023 Lincoln Corsair, advance features and ActiveGlide
Lamborghini Huracán Sterrato, first super sports car for any terrain
 

DESIGN

Curved sofas, elegant and gentle

Solios watches, from nature to luxury
Coats of faux fur, but not of faux style
Redifining kitchen space and experience with workstations
Dinning sofas, a soft addition to a modern dinning table
Patchwork carpets, vintage Persian carpets made with unparalleled skill
 

GADGETS

Harman Luxury Audio introduces new JBL Classic Series

KEF KC62, audio excellence and design ingenuity
Panasonic announces flagship OLED TV MZ2000
McIntosh MC451, 150 Watt vacuum tube and 300 Watt solid state amplifier
Headonia 2A3, luxury headphone amplifier that comes with gloves
ASUS launches ExpertBook B9 for executives
 

HEALTH

Working group proposes on how to make Finland tobacco-free by 2030

Study: Merck COVID-19 pill linked to virus mutations
South Africa authorises roll out of COVID-19 boosters to fight Omicron variant
FDA approves Orserdutm for patients with advanced or metastatic breast cancer
Indonesia to start rolling out COVID-19 vaccination for children under 6
Ipsen receives CHMP negative opinion for Palovarotene as treatment for fibrodysplasia ossificans progressiva in EU
 

MEANTIME

Webb telescope catches early galaxy formation in action

Straigh and gay men both prefer masculine men for important jobs
Green comet to visit Earth after 50,000 years
Astronomers captured spectacular, ongoing collision between at least three galaxy clusters
NASA system predicts small asteroid to pass close by Earth this week
NASA, Pentagon developing nuclear-powered rocket for Mars