High prices inflate Canada's trade surplus as shipments decline
Canada's trade surplus with the rest of the world widened to $5.8 billion in dollar terms in June from $5.2 billion in May as companies exported less but got higher prices.
Total exports reached $43.2 billion, up 3.1 per cent from the previous month, as prices rose 4.5 per cent and volumes fell 1.4 per cent, Statistics Canada reported Tuesday.
The dollar-value increase was driven partly by oil shipments to the United States at a time of near-record oil prices.
In general, export prices have been on the rise for eight months while volumes have trended downward, Statistics Canada said.
Imports rose 2 per cent to $37.4 billion, the third consecutive monthly increase, as prices rose 2.6 per cent and volumes declined 0.6 per cent. Import prices have also been on an upward trend for the past eight months, while volumes have not shown a clear trend, the federal agency said.
Exports to the United States rose 5.3 per cent to $32.8 billion, primarily due to greater exports of crude petroleum. Imports also increased, but not as much, yielding a trade surplus with the United States of $9.6 billion, up from $8.1 billion.
Exports to other countries declined in June, while imports from these countries increased. As a result, Canada's trade deficit with countries other than the United States widened to $3.9 billion from $2.9 billion in May.
The higher import figure is largely attributable to increased imports of oil, Statistics Canada said.
Although Canada is a net exporter of oil, much of the eastern half of the country relies on oil shipped from overseas.
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