Canada Balance of Trade

Canada posted a trade surplus of CAD 0.78 billion in July of 2021, compared to a downwardly revised surplus of CAD 2.56 billion in the prior month and missed market expectations of a CAD 1.40 billion surplus. Total exports rose 0.6% to a fresh record of CAD 53.7 billion, underpinned by motor vehicles and parts (+6.4%) and energy products (+1.9%), which received support from higher prices. However, gains were almost offset by a sharp decline in forestry products & building and packaging materials (-12.7%), mainly lumber and other sawmill products (-23.6%), due to lower prices. Meanwhile, imports rose a faster 4.2% to CAD 53.0 billion, with gains observed in 9 of the 11 product sections, notably in motor vehicles and parts (+21.1%), which contributed with more than 2/3 of July’s import growth and electronic equipment and parts (+8.5%).