Canada's goods trade surplus widens; LeBlanc says trade focus unchanged after U.S. midterms
September trade figures
Canada's merchandise trade surplus widened to C$5.4 billion in September from a revised C$5.0 billion in August, Statistics Canada said in a release published November 4. Exports rose 0.2% to C$78.6 billion, while imports fell 0.3% to C$73.2 billion.
Higher exports of crude oil and gold supported the increase in export value. But eight of the 11 product sections recorded declines. Excluding energy products and metal and non-metallic mineral products, exports fell 5.6%. Overall export volumes dropped 4.0%, showing that the small rise in dollar value did not reflect an increase in the volume of goods shipped.
Exports to the United States increased 0.7%, while imports from the United States rose 0.4%. Canada's goods trade surplus with the United States widened to C$12.3 billion from C$12.1 billion in August. Exports to countries other than the United States fell 1.1%, and imports from those countries declined 1.4%.
Imports of motor vehicles and parts fell 9.1%, their second consecutive monthly decline. Meanwhile, imports of computers and computer peripherals rose 29.4%, mainly because of higher imports of processing units used in data centres from the United States. The C$5.4 billion headline surplus covers goods, not the separate combined balance for goods and services.
Trade priorities after the U.S. election
Canada-U.S. Trade Minister Dominic LeBlanc said Canada's focus on its economy and trade relationships had not changed after the U.S. midterm elections, Global News reported November 4. He cautioned that the current Congress remains in place until January and that Canada must continue working with the representatives now in office.
LeBlanc said the government's priorities remained affordability, major projects, strengthening the economy and diversifying trade relationships. He said Canada's job was to focus on what it could control and work with the people Americans had elected.
Justice Minister Sean Fraser also warned against assuming what would happen before discussions with partners. He said Canada would continue defending its economic interests by diversifying trade partners while trying to work through its difficulties with the United States.
Ontario Premier Doug Ford said the election results did not mean the trade dispute was over, noting that President Donald Trump still held power. Ford said his ministers would build relationships with elected U.S. officials. The comments did not announce a new trade agreement or the removal of tariffs.
