MNI DATA IMPACT: Canada Nov Trade Gap Smaller, Oct Revised Up>

By Greg Quinn and Anahita Alinejad

     Ottawa (MNI) - Canada's foreign trade weakened in November with 

imports and exports dropping and a smaller trade deficit overshadowed by 

a big upward revision to the October shortfall. 

     Imports dropped the most in almost two years with a 2.4% decline 

led by aircraft shipments from Europe and the U.S. Exports fell for a 

third straight month with a 1.4% decline, Statistics Canada said Tuesday 

from Ottawa. 

     The trade deficit was C$1.09 billion in November, smaller than the 

MNI median of C$1.25 billion. That improvement was overshadowed with 

October's deficit revised up to C$1.61 billion from the initial C$1.08 

billion, the widest since March. 

     The Bank of Canada calls foreign trade the biggest risk to an 

economy that has held near full output amid a potential U.S.-China trade 

war and Brexit. While inflation has held near the BOC's 2% target other 

reports from the end of last year showed falling GDP and a big drop in 

employment, suggesting fourth-quarter growth of 1% or less. 

     The November trade figures were marked by several one-off forces 

including a major railway strike and a oil pipeline rupture that lowered 

energy exports by 7.4%. Statistics Canada also marked down the value of 

October exports after changing how it accounted for a major shipment of 

artwork for sale on consignment in the U.S. 

     Canada remains on track for a record annual deficit with non-U.S. 

countries. The shortfall from January to September of C$64.5 billion 

beats the 2017 record of C$57.9 billion. That shortfall is being eased 

by a C$47.5 billion surplus with the U.S. Canada's cumulative 

year-to-date trade deficit with all nations is C$16.9 billion.

     Another sign of the broad weakness in global trade was that 

shipments declined in seven of 11 major categories exports, and on 10 of 

11 import categories in November.       

--MNI Ottawa Bureau; +1-613-314-9647; greg.quinn@marketnews.com

[TOPICS: M$C$$$,MACDS$,MAUDR$]