Canada’s trade balance returned to surplus as imports fell due to persistent disruptions in global supply, particularly in the auto industry.
According to data released Tuesday by Statistics Canada, the country’s trade balance went from a deficit of $ 1.3 billion to a surplus of $ 594 million in April. The latest surplus marks the third of its kind this year; however, its value was less than 0.6% of all monthly merchandise trade.
Much of the surplus was attributable to lower imports, which fell 4.7% to $ 49.6 billion, following a 6.1% increase in March. This is the largest drop since record declines were recorded in April 2020. Motor vehicles and parts aside, imports fell 1.3%. Meanwhile, Canadian exports fell 1% to $ 50.2 billion, as 6 of 11 categories posted declines.
Imports of motor vehicles and parts fell 22.1% in April to $ 6.6 billion, the lowest level since February 2012. The current global semiconductor shortage has decimated automakers worldwide, significantly affecting the supply of vehicles and vehicle parts. Likewise, exports of motor vehicles and parts fell 18.1% in April to $ 5.5 billion, the lowest since January 2014.
Canada’s trade surplus with the United States rose from $ 4.2 billion to $ 6.4 billion in April, as imports fell 5.2% and exports rose 1.4%. High levels of seafood and lumber exports were mainly responsible for April’s trade surplus with the southern Canadian counterpart.
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