Monthly Merchandise Trade Report

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

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Summary

Both imports and exports saw only modest increases for the month, growing by 0.8% and 0.6% respectively. Canada recorded its largest monthly trade deficit on record in June at $3.6 billion, up from a revised deficit of $3.5 billion in May.

Canadian Merchandise Exports

Canadian merchandise exports expanded by 0.6% in June to reach $41.4 billion as prices increased 2.0% but volumes fell 1.4%. Year-to-date, exports are 1.8% below the same period in 2015. This however still reflects the large fall in energy prices; excluding energy products exports are 4.4% higher over the first half of 2016 compared to 2015. Automotive and consumer products have shown particular strength, up 21.5% and 13.4% respectively compared to the first half of 2015.

  • On a geographic basis, June’s increase was the result of solid growth in exports to non-U.S. destinations which rose 6.9%. Large swings in exporters were seen on both sides of the ledger as exports to the UK, South Korea and Germany all jumped (up 31.5%, 24.9% and 21.9% respectively) but were partially offset by falls elsewhere including to Italy and Hong Kong (down 27.0% and 23.2%). Exports to the U.S. fell 1.2% for the month, bringing down the overall growth in exports.
  • 6 of 11 major sectors saw increased exports for the month with energy products leading the way with an increase of 7.2%. This marks the fourth consecutive monthly increase in energy exports. The largest percentage decline in exports was for metal and non-metallic mineral products which fell 6.9%, mostly due to lower exports of gold.

Canadian Merchandise Imports

Canadian merchandise imports rose 0.8% in June to reach $45.0 billion on higher volumes (up 0.7%) and prices (up 0.2%).

  • June’s growth was the result of increased imports from the U.S., which rose 1.5%. Imports from non-U.S. sources fell 0.5%.
  • A significant driver of increased imports was the motor vehicle sector which rose 3.6%, as well as energy products which increased 12.7%. Imports of aircraft and other transportation equipment, on the other hand, fell 22.0%. 

Canada’s Merchandise Trade Balance

Canada’s merchandise trade deficit reached a record $3.6 billion in June as a result of a narrowed surplus with the U.S. which shrank to $1.8 billion in June from $2.6 billion in May. Canada’s trade deficit with the rest of the world narrowed in June from $6.1 billion to $5.4 billion.

  • The merchandise trade deficit for the first half of 2016 was almost $17.1 billion, $4.5 billion more than the first half of 2015.]
  • For the second quarter of 2016, Canada’s exports in real terms (i.e. adjusted for prices) fell 5.0% while imports edged up 0.2%. This implies that net exports were a drag on Canadian GDP growth in the second quarter of 2016 which is not entirely surprising given the precarious state of the global economy.
Key Export Trade Statistics by Region – June 2016
Region$ billionsChange over
previous month (%)
Change over
previous year (%)
YTD 2015
$ billions
YTD change
over previous year
United States31.617-1.2-8.0192.818-1.4
EU3.12618.1-9.519.7400.1
China1.7435.1-0.210.8772.8
Japan0.795-3.6-5.15.2896.7
Mexico0.703-1.411.14.26111.5
Other3.4033.2-10.021.263-12.6
All41.3870.6-7.6254.248-1.8

Key Import Trade Statistics by Region – June 2016
Region$ billionsChange over
previous month (%)
Change over
previous year (%)
YTD 2015
$ billions
YTD change
over previous year
United States29.8121.5-0.8179.4660.3
EU4.240-1.0-7.925.581-1.6
China3.1231.93.918.833-3.8
Japan0.9311.3-0.45.541-0.1
Mexico1.582-0.50.39.4050.7
Other5.331-1.6-1.432.5151.4
All45.0190.8-1.2271.3410.0

Key Trade Balance Statistics –  June 2016
Activity$ billionsChange over
previous month
Change over
previous year
YTD 2015
$ billions
YTD change
over previous
year
Exports41.3870.6%-7.6%254.248-1.8%
Imports45.0190.8%-1.2%271.3410%
Trade Balance-3.632-3.504-0.761-17.093-12.564

Key Export Trade Statistics by Sector –  June 2016
Sector$ billionsChange over
previous month (%)
Change over
previous year (%)
YTD 2015
$ billions
YTD
change over
previous year
Farm, fishing and intermediate food products2.5852.2-5.715.7960.0
Energy products5.7247.2-27.231.064-31.1
Metal ores and non-metallic minerals1.193-1.2-25.97.930-16.5
Metal and non-metallic mineral products4.235-6.9-16.427.622-6.3
Basic and industrial chemical, plastic and rubber products2.8335.2-8.217.071-4.6
Forestry products and building and packaging materials3.3120.1-1.620.3073.8
Industrial machinery, equipment and parts2.612-0.6-3.016.2151.3
Electronic and electrical equipment and parts2.3101.41.914.1313.7
Motor vehicles and parts7.639-1.610.848.83621.5
Aircraft and other transportation equipment and parts1.926-0.1-4.111.324-8.2
Consumer goods5.8721.1-2.536.90913.4

Key Import Trade Statistics by Sector –  June 2016
Sector$ billionsChange over
previous month (%)
Change over
previous year (%)
YTD 2015
$ billions
YTD
change over
previous year
Farm, fishing and intermediate food products1.366-3.6-3.38.5266.6
Energy products2.40612.7-12.611.595-28.5
Metal ores and non-metallic minerals0.80610.3-12.45.16-2.5
Metal and non-metallic mineral products3.493-2.7-13.522.206-7.8
Basic and industrial chemical, plastic and rubber products3.628-0.5-1.421.81-0.5
Forestry products and building and packaging materials1.933-1.7-3.612.066-1.2
Industrial machinery, equipment and parts4.078-0.5-4.325.584-4.7
Electronic and electrical equipment and parts5.3323.12.031.5371.0
Motor vehicles and parts9.0593.65.553.0388.4
Aircraft and other transportation equipment and parts1.398-22.0-3.110.5452.6
Consumer goods9.9580.82.660.3024.9

Key Rates and Indices - June 2016
TypeCurrent
month
Previous
month
Same month
previous year
Change over
previous month (%)
Change over
same month
previous year (%)
Commodity Price IndexFootnote 1372.6355.7437.54.8-14.8
Can/US Exchange Rate1.2901.2941.237-0.44.3
Trade weighted exchange rateFootnote 297.196.6101.10.5-3.9
Terms of trade (2007 = 100)89.288.792.90.6-4.0

Canada-U.S. Trade in Billions of DollarsFootnote 3
MonthExportsImports
June 201631.61729.812
May 201632.09329.336
April 201630.97329.663
March 201630.69028.864
February 201632.38830.261
January 201634.98331.249
December 201533.64330.755
November 201532.77330.316
October 201532.39730.371
September 201533.39930.754
August 201534.19230.909
July 201535.15731.009
June 201534.35930.048

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
June 20163.1261.7430.7950.7033.403
May 20162.6471.5850.8430.7163.262
April 20163.3681.7450.9360.7723.657
March 20163.7921.7750.8930.6843.429
February 20163.3971.9350.9690.6973.517
January 20163.3632.0670.9090.6903.995
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
June 20153.4551.7470.8370.6333.782
Exports to the EU, China, Japan, Mexico and Others in Billions of Dollars
Exchange Rate Indices
MonthUS
dollar
Chinese
renminbi
EuroJapanese
yen
Mexican
peso
June 201695.9101.995.881.6115.6
May 201695.5100.694.884.1111.9
April 201696.5100.795.485.4108.9
March 201693.598.094.385.3106.5
February 201689.694.690.783.0106.7
January 201686.992.189.983.0101.5
December 201590.293.893.088.799.5
November 201593.195.697.592.3100.0
October 201594.696.894.691.8101.3
September 201593.295.793.290.5101.4
August 201594.096.294.793.4100.6
July 201596.196.298.195.899.0
June 2015100.0100.0100.0100.0100.0
Exchange Rate Indices
Commodity
Price Indices
Footnote 5
MonthTotal, all
commodities
Total
excl. energy
EnergyForestryAgriculture
June 201685.191.581.2105.781.7
May 201681.391.674.9104.383.1
April 201675.090.765.5100.482.7
March 201671.189.960.099.681.8
February 201662.787.149.293.479.9
January 201664.485.652.493.478.8
December 201570.085.960.593.579.2
November 201576.888.669.494.284.4
October 201581.090.674.994.186.2
September 201581.990.376.392.087.5
August 201579.693.571.097.192.4
July 201590.798.485.5101.898.4
June 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