Canadian goods trade suffered a large 1.4% decline in exports in March, the largest fall since last October's -2.6%, while imports edged up 0.4%, Statistics Canada reported Tuesday.
The decline to $42.70 billion in exports from $43.29 billion in February, and the slight rise of 0.4% in imports to $42.62 billion from $42.44 billion in February, left an overall surplus of $79 million. That compared with an increase in surplus of $847 million in February, revised from $290 million.
The March data gave the first quarter performance for Canada a surplus of $645 million from the deficit of $2.4 billion in Q4 of last year.
First quarter exports were $126.9 billion or +4.8% versus $121.1 billion in Q4. Imports at $126.2 billion were up 2.2% over the $123.5 billion recorded in Q4 last year.
The decline in exports in March was due to a 2.0% drop in prices, while volumes rose by 0.7%. The main contributor to the decline in exports was energy products, down 7.9% to $11.2 billion after three months of what Statistics Canada called "significant increases." Prices were down 4.8% and volumes down 3.2%. Crude oil and crude bitumen (-7.3%) and natural gas (-17.5%) were the main contributors to the decline.
Exports of forestry products and building and packaging materials declined on volumes. Lumber and other sawmill and millwork products declined (-16.9%), as did pulp and paper stock (-7.5%).
Imports edged up very slightly, with increases in basic and industrial chemical, plastic and rubber products, and in consumer goods, largely offset by declines in electronic and electrical equipment and parts and in energy products.
Exports to the United States were down 2.5% to $32.2 billion, on lower values of energy products. Imports from the U.S. rose by 1.0% to $28.5 billion. As a result, Canada's trade surplus with the United States narrowed from $4.9 billion in February to $3.8 billion in March.
Exports to non-U.S. countries rose by 2.5% to $10.49 billion, as the European Union took 8.5% more Canadian products than in February. Imports from non-U.S. countries declined by 0.7%. Canada's trade deficit with other countries than the U.S., as a result, went from $4.0 billion in February to $3.7 billion in March.
