By Katie Davis S tatistics Canada figures show that Canada’s trade deficit fell in April and its surplus with the United States is at the highest level in three years, driven by the shipments of cars, natural gas and softwood lumber. The country’s trade surplus with the U.S. hit $5.0 billion for the month, up from $3.4 billion in March. This might not be the best news for Canada as this data could provide ammunition for Trump and his administra- tion, to be used to confirm that the US has a trade imbal- ance with Canada and why they are looking for changes to U.S. trade policies, including the revamping of NAFTA.
before the U.S. Commerce Department imposed duties on Canadian softwood products ranging from 3 to as much as 24 percent. Canada’s trade deficit with all countries narrowed to $370 million, down from a revised shortfall of $936 million for March. Economists had expected a razor-thin deficit of $70 million, according to Thomson Reuters. Exports rose to a record high $47.7 billion, a gain of almost 2 percent. Shipments of motor vehicles and parts were up over 4 percent to just over $8 billion, while exports of energy products increased to almost $9 billion, up 2.5 percent.
Canadian exports south of the border rose 5.4 per cent to a record high $36.1 billion in April.
Imports were over $48 billion, resulting in the fifth consecu- tive monthly increase and a new record high.
Imports from Canada’s largest trading partner were up 1.1 per cent to $31.1 billion.
It will be interesting to watch and see if these trends continue with increased duties on products coming into the US from Canada and how that will also affect finished products imported back into Canada.
While overall shipments of forestry products were up a healthy 4.7 percent, it must be noted that these results were
SPOTLIGHT ON BUSINESS MAGAZINE • JULY 2017
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