Canada Faces First Trade Deficit In Decades

In December, Canada recorded its first trade deficit in nearly 32 years, as exports and imports both dropped, The Canadian Press reports. With exports falling at a faster pace than imports, Statistics Canada reports a trade deficit of $458 million for December, compared with a trade surplus of $1.2 billion in November. The deficit was the first since March 1976.

The agency said exports dropped 9.7% to $35.3 billion, as both prices and volumes declined, the largest month-over-month percentage decrease since October 1982. Imports also declined, falling 5.7% to $35.8 billion.

Canadian exports of everything from oil and gas to autos and parts to agricultural goods fell year over year, mainly because the U.S. economic slump worsened.

Exports to the U.S. dropped 10% to $25.9 billion, as Canada’s trade balance with the U.S., its biggest trading partner, fell to $3.8 billion in December from $4.6 billion in November. Canada’s trade deficit with countries other than the U.S. grew to $4.2 billion in December from $3.4 billion in November, as exports declined 9% while imports fell 1%.

Exports of energy products dropped 19.4% to $6.8 billion. Exports of industrial goods and materials fell 17.1% to $7.4 billion, largely due to a drop in volume. Agricultural and fishing product exports dropped 7% to $3.4 billion in December.