Canada’s trade deficit widens as imports hit record

Canada’s trade deficit in August climbed to $1.31 billion as imports grew by 2.1% to set a new record and exports rose by 1.8%, Statistics Canada said on Tuesday…

Imports hit $41.08 billion in August on higher shipments of energy products, aircraft and motor vehicles as volumes rose 1.2% and prices increased by 0.9%. The previous high was the $40.89 billion recorded in April 2013.

Exports advanced on higher shipments of energy products and mineral products. Volumes grew by 1.4% and prices edged up by 0.4%.

Exports to the United States, which comprised 75.7% of all Canadian exports in August, grew by 1.9% while imports rose by 0.1%. As a result the trade surplus with the United States grew to $3.99 billion from $3.44 billion in July.

The cumulative trade deficit for the first eight months of the year was $6.98 billion, the second highest January-August shortfall on record after the $9.14 billion posted in 2012.

This article has been excerpted from 8 October 2013 article by the Financial Post, and is available in its entirety at (subscription may be required.)