Canada’s international merchandise trade landscape showed positive developments in April 2024, with a notable increase in exports and a marginal rise in imports, leading to a narrowed trade deficit.
In April, Canadian merchandise exports surged by 2.6% to reach $64.4 billion, recovering from a 5.2% decline in March. This rebound was underpinned by gains in eight of the eleven major product categories, reflecting a broad-based recovery. In real terms, which account for volume changes, exports increased by 1.7%.
The most significant contributor to this rise was the energy sector. Exports of energy products climbed by 2.7%, with natural gas exports skyrocketing by 60.1%. This leap was attributed to a return to normal levels after a dip in March due to milder weather conditions in the northeastern United States. Crude oil exports also saw a 3.0% increase, benefiting from a resurgence in US Midwest refining capacity.
Metal and non-metallic mineral products exports grew by 4.7%, driven largely by a 15.7% increase in unwrought gold. This increase was primarily due to higher prices, influenced by geopolitical factors and strong global demand.
Canadian imports rose by 1.1% in April to $65.5 billion, maintaining levels observed in February. However, in volume terms, imports slightly declined by 0.2%. The automotive sector led the gains, with motor vehicles and parts imports rising by 4.2%, marking the third consecutive monthly increase. This uptick was largely driven by a 9.2% rise in imports of passenger cars and light trucks, reflecting higher production in the United States.
Imports of aircraft and other transportation equipment rebounded strongly with a 23.7% increase, following a sharp decline in March. This rebound was largely due to the delivery of several ships, including a ferry from China to service routes between Newfoundland and Nova Scotia. Additionally, imports of metal and non-metallic mineral products rose by 7.7%, driven by a 30.7% increase in unwrought gold imports.
Trade with the United States, Canada’s largest trading partner, saw positive developments. Exports to the US increased by 2.4%, while imports from the US rose by 1.8%. Consequently, Canada’s trade surplus with the US expanded from $6.9 billion in March to $7.3 billion in April.
Exports to countries other than the United States grew by 3.1%, with notable increases in shipments to the United Kingdom, Japan, and Mexico. These gains were somewhat offset by a decrease in exports to Hong Kong. Imports from non-US countries slightly declined by 0.1%, leading to a reduced trade deficit with these countries, which fell from $8.9 billion in March to $8.4 billion in April.
When combining merchandise trade with services, Canada’s total exports rose by 2.0% to $81.4 billion in April, while total imports increased by 1.1% to $83.5 billion. This combination resulted in a reduction of Canada’s overall trade deficit, from $2.9 billion in March to $2.2 billion in April.