Trade Gap Widens in October
CBJ — Exports to the U.S. dropped by the most in almost two-and-a-half years in October, leaving Canada with a widening overall trade deficit of more than $2.7 billion.
The decline in October marked the 14th consecutive monthly trade deficit, which analysts say has a lot to do with the struggling oil industry.
Overall international exports dropped by almost 2% to about $43 billion as volumes fell by 1.5%.
Statistics Canada reports declines in 10 of the 11 main sections, with farm, fishing and intermediate food products posting a 7% decline as canola exports fell by 34%. Imports were off by 0.8%, dragged down by a 3.3% decline in consumer goods. Overall import volumes slipped by 0.2%.
Exports to the United States accounted for 75% of Canada’s total exports in October. As a result, Canada’s trade surplus with the United States dropped to $1.58-billion from $2.41-billion in September, marking the smallest surplus in more than five years. We can expect much the same unless oil prices increase, which won’t happen soon after OPEC announced it was increasing its production for the quarter.