MNI DATA IMPACT:Cdn Goods Trade Gap Narrows More Than Expected>

By Courtney Tower

     OTTAWA (MNI) - Following are the key points from the February 

data on Canadian merchandise trade released Wednesday by Statistics 

Canada: 

     - The goods trade deficit narrowed to C$2.9 billion from C$3.1 

billion, which was revised from -C$4.2 billion in January. Analysts in a 

MNI survey and the market had expected a deficit of C$3.5 billion. The 

trade deficit for the previous month was revised due to late reporting 

of crude oil transactions, which were revised C$1.2 billion upward. 

     - There was a widespread decrease in imports in February after two 

consecutive monthly increases. Imports declined 1.6% to C$50.9 billion 

and were down in eight of 11 sub-sectors. Import prices were the cause, 

down 1.6%, while volumes were essentially unchanged. Lower imports of 

gold to the UK led the overall decrease, creating a 7.7% decrease for 

the metal and non-metallic mineral products section. Imports of  

industrial machinery, equipment and parts declined 3.5% on lower 

volumes, a negative sign for investment activity in Canada. 

     - Total exports declined 1.3% to C$48.0 billion, with all 

non-energy exports declining 4.0%. In real terms, the decline for 

non-energy products was 4.5%. Export volumes overall were down 4.1%, 

while prices were up 2.9%. Exports of energy products were up 11.7% on 

the month, largely on higher prices for crude oil; in fact crude oil 

volumes exported were down 5.3%. 

     - Exports to the United States rose 3.5%, mainly because of crude 

oil. Imports from the U.S. were up 1.2%. Canada's trade surplus with the 

U.S. widened from C$2.6 billion in January to C$3.5 billion in February, 

the largest surplus since October 2018.  

     - Exports to countries other than the United States declined 14.0% 

to C$11.7 billion, the lowest level since February 2018. Imports from 

these countries also declined strongly, down 6.3%. Canada's trade 

deficit with countries other than the United States widened to C$6.4 

billion from C$5.7 billion in January. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

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