Monthly Merchandise Trade Report

Monthly Report on Canada's International Merchandise Trade Performance, July 2016

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Summary

Canada’s exports rose 3.4% in July while imports decreased modestly by 0.1%. After a record deficit in June, Canada’s merchandise trade deficit contracted to $2.5 billion in July.

Canadian Merchandise Exports

Canadian merchandise exports grew 3.4% in July to reach $42.7 billion. Volumes increased 3.7% while prices fell 0.3%, moderating the increase in value-terms. Year-to-date, exports were down 2.5% compared to the first seven months of 2015. However, non-energy exports were up 3.5% in the first seven months of 2016 compared to the same period in 2015.

  • Geographically, the majority of July’s increase was in exports to the U.S. which expanded by $1.0 billion or 3.3% to reach $32.5 billion. Non-U.S. exports grew 3.9%, outpacing those to the U.S., with strong growth in exports to the U.K. (up $381 million) and China (up $143 million). Meanwhile, exports to Germany and South Korea fell sharply (down 26.5% and 24.4%), contracting by $107 million each.
  • On a sectoral basis, motor vehicles and parts led the increase in exports as they rose by $482 million (6.2%) to reach $8.3 billion. Exports of metal and non-metallic mineral products (up $412 million) and aircraft and other transportation equipment (up $188 million) also contributed to higher exports. Of the 11 major sectors, only energy products (down 0.8%) and consumer goods (down 0.2%) posted decreases in July.

Canadian Merchandise Imports

Canadian merchandise imports edged down 0.1% to $45.2 billion driven by lower volumes (down 1.2%) as prices increased 1.1%. Year-to-date, imports were down 0.2%.

  • Imports from 7 of Canada’s 10 major trading partners declined in July. As a result of its size, U.S. imports contributed most to July’s decline as they contracted by $145 million. Sharp declines in imports from the Netherlands (down 27.5%) and the U.K. (down 16.9%) also contributed to the overall decrease in imports. Increases in imports from Mexico (up 3.2%) and Japan (up 1.7%) helped offset declines elsewhere.
  • Imports fell in 5 out of 11 major sectors, led by declines in consumer goods (down $199 million or 2.0%). Declines in motor vehicles and parts (down 1.7%) and electronic and electrical equipment (down 2.6%) also contributed to the small decrease in imports. Partially offsetting these declines, imports of metal ores and non-metallic minerals expanded by 21.1% to reach $986 million. 

Canada’s Merchandise Trade Balance

Canada’s merchandise trade deficit shrank to $2.5 billion in July, down from a revised $4.0 billion in June.

  • Canada’s trade surplus with the U.S. grew to $2.6 billion in July, up significantly from $1.4 billion in June. Canada’s trade surplus with the U.K. (which nearly doubled to reach $999 million) also contributed to the overall decline in the deficit.
  • The accumulated merchandise trade deficit so far in 2016 (Jan-July) is $20.0 billion compared to $13.0 billion over the same period in 2015.
Key Export Trade Statistics by Region – July 2016
Region$ billionsChange over
previous month (%)
Change over
previous year (%)
YTD 2015
$ billions
YTD change
over previous year
United States32.5223.3-7.5225.420-2.3
EU3.4038.40.923.1890.4
China1.8718.3-3.412.7011.5
Japan0.8526.72.96.1536.3
Mexico0.7374.33.55.01610.6
Other3.316-3.3-15.424.646-12.8
All42.7033.4-7.0297.125-2.5
Key Import Trade Statistics by Region – July 2016
Region$ billionsChange over
previous month (%)
Change over
previous year (%)
YTD 2015
$ billions
YTD change
over previous year
United States29.906-0.5-3.6209.840-0.1
EU4.096-4.5-5.329.722-2.0
China3.107-0.7-4.621.947-3.9
Japan0.9551.77.76.5051.1
Mexico1.6523.21.711.1141.3
Other5.4754.63.237.9681.6
All45.191-0.1-2.6317.097-0.2
Key Trade Balance Statistics –  July 2016
Activity$ billionsChange over
previous month
Change over
previous year
YTD 2015
$ billions
YTD change
over previous
year
Exports42.7033.4%-7.0%297.125-2.5%
Imports45.191-0.1%-2.6%317.097-0.2%
Trade Balance-2.488-3.966-0.479-19.972-13.043
Key Export Trade Statistics by Sector –  July 2016
Sector$ billionsChange over
previous month (%)
Change over
previous year (%)
YTD 2015
$ billions
YTD
change over
previous year
Farm, fishing and intermediate food products2.6602.1-6.218.523-0.6
Energy products5.311-0.8-28.035.952-31.4
Metal ores and non-metallic minerals1.2414.1-13.19.156-16.2
Metal and non-metallic mineral products4.6789.7-7.232.348-6.3
Basic and industrial chemical, plastic and rubber products2.8320.1-6.519.912-4.8
Forestry products and building and packaging materials3.4744.37.423.8544.6
Industrial machinery, equipment and parts2.7706.0-2.619.0100.8
Electronic and electrical equipment and parts2.3180.32.216.4543.5
Motor vehicles and parts8.2786.27.657.39019.8
Aircraft and other transportation equipment and parts2.1549.6-13.113.598-8.2
Consumer goods5.856-0.2-10.542.7579.4
Key Import Trade Statistics by Sector –  July 2016
Sector$ billionsChange over
previous month (%)
Change over
previous year (%)
YTD 2015
$ billions
YTD
change over
previous year
Farm, fishing and intermediate food products1.3992.17.19.9296.7
Energy products2.5623.1-11.114.48-24.2
Metal ores and non-metallic minerals0.98621.110.06.1980.1
Metal and non-metallic mineral products3.499-0.1-5.925.728-7.4
Basic and industrial chemical, plastic and rubber products3.7011.4-2.425.539-0.6
Forestry products and building and packaging materials1.9690.9-5.014.058-1.6
Industrial machinery, equipment and parts4.024-1.4-7.629.63-5.0
Electronic and electrical equipment and parts5.232-2.6-7.336.792-0.2
Motor vehicles and parts8.914-1.73.2627.7
Aircraft and other transportation equipment and parts1.5084.6-17.312.1460.4
Consumer goods9.786-2.00.470.0474.2

Key Rates and Indices - July 2016
TypeCurrent
month
Previous
month
Same month
previous year
Change over
previous month (%)
Change over
same month
previous year (%)
Commodity Price IndexFootnote 1355.6372.6396.5-4.6-10.3
Can/US Exchange Rate1.3051.2901.2861.21.4
Trade weighted exchange rateFootnote 296.397.197.6-0.8-1.3
Terms of trade (2007 = 100)88.188.991.5-0.9-3.7

Canada-U.S. Trade in Billions of DollarsFootnote 3
MonthExportsImports
July 201632.52229.906
June 201631.61729.813
May 201632.01129.380
April 201631.08629.784
March 201630.71628.912
February 201632.38530.300
January 201635.00231.278
December 201533.64330.755
November 201532.77330.316
October 201532.39730.371
September 201533.39930.754
August 201534.19230.909
July 201535.15731.009

Canada-U.S. Trade in Billions of Dollars
Exports to the EU, China, Japan, Mexico and Others in Billions of DollarsFootnote 4
MonthExports to EUExports to ChinaExports to JapanExports to MexicoExports to Others
July 20163.4031.8710.8520.7373.316
June 20163.1261.7430.7950.7033.403
May 20162.6461.6580.8240.7143.298
April 20163.4101.7360.9110.7743.581
March 20163.7971.7620.8880.6843.468
February 20163.3961.9240.9650.6973.514
January 20163.3662.0530.9070.6903.999
December 20153.4721.7950.9260.6944.532
November 20153.2991.8070.9660.6713.929
October 20153.6301.7200.7440.6144.241
September 20153.2151.7450.8470.6554.207
August 20152.7421.8800.8550.7534.121
July 20153.3731.9370.8280.7123.921
Exports to the EU, China, Japan, Mexico and Others in Billions of Dollars
Exchange Rate Indices
MonthUS
dollar
Chinese
renminbi
EuroJapanese
yen
Mexican
peso
July 201698.6106.098.183.3115.1
June 201699.8105.997.785.2116.7
May 201699.4104.596.787.8113.0
April 2016100.4104.797.389.2110.0
March 201697.3101.996.189.1107.6
February 201693.298.492.486.7107.8
January 201690.495.891.686.7102.5
December 201593.997.694.892.6100.4
November 201596.999.499.496.3101.0
October 201598.4100.796.495.8102.3
September 201597.099.595.094.5102.4
August 201597.8100.096.597.5101.6
July 2015100.0100.0100.0100.0100.0
Exchange Rate Indices
Commodity
Price Indices
Footnote 5
MonthTotal, all
commodities
Total
excl. energy
EnergyForestryAgriculture
July 201689.892.288.3105.878.5
June 201694.093.394.9104.483.3
May 201689.893.387.5103.484.5
April 201682.892.376.699.584.0
March 201678.691.670.299.183.2
February 201669.388.957.693.181.2
January 201671.187.061.392.080.1
December 201577.487.670.893.580.5
November 201584.789.981.192.285.7
October 201589.592.287.593.387.6
September 201590.391.889.390.488.9
August 201587.794.783.094.593.9
July 2015100.0100.0100.0100.0100.0
Commodity Price Indices

Footnotes

Footnote 1

Bank of Canada commodity price index: a chain Fisher price index of the US dollar prices of 24 commodities produced in Canada and sold in world markets, with weights updated on an annual basis.

Return to footnote 1 referrer

Footnote 2

Canadian dollar effective exchange rate index: a Bank of Canada trade-weighted index which measures the value of the Canadian dollar vis-à-vis the currencies of its most important trading partners. 

Return to footnote 2 referrer

Footnote 3

 The time series trade data do not include revisions to the historical figures.

Return to footnote 3 referrer

Footnote 4

The time series trade data do not include revisions to the historical figures.

Return to footnote 4 referrer

Footnote 5

Bank of Canada commodity price index, see previous page for details.

Return to footnote 5 referrer