Canada posted a narrower-than-expected trade deficit of $370 million in December, largely on the strength of higher crude exports, according to data released on Wednesday by Statistics Canada
Analysts had forecast a shortfall of $610 million. StatsCan revised the November deficit to $1.20 billion from an initial $1.09 billion.
The value of exports increased 1.9% in December to C$49.32 billion, with gains in eight of the 11 product sections tracked by the nation's number crunchers. Imports edged up 0.2%, with advances in five of the 11 product sections.
The Canadian dollar was trading at 75.28 U.S. cents, after the data was released.
StatsCan went on to say exports of energy products jumped 9.5% in December, with crude oil exports surging 18.0% following the repair of a rupture in the Keystone pipeline in North Dakota.
Canada's ongoing trade row with China, that has seen Beijing block Canadian canola seed exports because of disputed pest concerns, also appeared to be taking a toll.
StatsCan said on Wednesday overall exports to China were down 16.0% in 2019, the first annual decline since 2014, largely on lower canola and soybean shipments.
Meanwhile, Canadian exports to the United States rose 2.9%, mainly due to crude exports, while imports from the United States were down 0.2%, the fourth consecutive monthly decline.
