Canadian merchandise imports and exports both increased in July as a result of broad-based growth in volumes. The spike in imports were largely attributed to fuel and aircraft. Imports were upÂ 8.3% toÂ $31.7Â billion while exports grewÂ 3.3% toÂ $30.3Â billion. As a result, Canada registered a trade deficit ofÂ $1.4Â billion in July compared with a trade surplus ofÂ $37Â million in June.
The gain in imports stopped 4 months of decline and was the result of anÂ 8.7% rise in volumes as prices edged downÂ 0.4%. Although the increases were widespread, machinery and equipment, automotive products and energy products were the main sources of growth.
The second consecutive monthly advance in exports was attributable to aÂ 5.9% increase in volumes, as prices declinedÂ 2.4%. Higher exports of machinery and equipment and automotive products led the increase in overall exports. Declines in exports of energy products tempered the gain.
Merchandise trade is one component of Canada's international balance of payments, which also includes trade in services, investment income, current transfers as well as capital and financial flows.
International merchandise trade data by country are available on both a balance of payments and a customs basis for the United States, Japan and the United Kingdom. Trade data for all other individual countries are available on a customs basis only. Balance of payments data are derived from customs data by making adjustments for characteristics such as valuation, coverage, timing and residency. These adjustments are made to conform to the concepts and definitions of the Canadian System of National Accounts.
Canada’s trade surplus with the US shrank toÂ $1.9Â billion in July fromÂ $3.2Â billion in June, as the growth in imports outpaced the increase in exports. Imports from the United States roseÂ 9.9%, mainly as a result of higher imports of organic chemicals and aircraft. Exports were upÂ 2.5%, mostly due to increases in exports of aircraft.
Imports and exports to countries other than the United States both advancedÂ 5.7%, and the trade deficit with this group of countries grew toÂ $3.4Â billion in July fromÂ $3.2Â billion in June.