rewrite this title and make it good for SEOCanada’s trade deficit narrows in December, share of exports to U.S. shrinks further

By Promit Mukherjee

OTTAWA, Feb 19 (Reuters) – Canada’s international merchandise trade deficit narrowed in December as exports grew faster than imports, and its share of exports to ‌the United Sates dropped to its lowest level on record barring the COVID-19 ‌months, data showed on Thursday.

Statistics Canada said the country posted a C$1.31 billion ($957 million) deficit in December led ​by metals and non-metallic mineral exports. This was in contrast to a revised C$2.59 billion deficit in November.

Economists had expected around C$2 billion deficit for December.

Total exports rose 2.6% to C$65.63 billion, driven primarily by metals and non-metallic mineral products shipments that grew by 18% in December. ‌Exports of unwrought gold took ⁠the lead in this category with a jump of over 37%, helped by higher prices.

However, excluding the metals and non-metallic category, the Canadian exports ⁠edged down 0.2%. In volume terms, total exports were up 1.4%, the statistics agency said.

Imports increased 0.6% to C$66.93 billion, with six out of 11 product sections registering a rise. The increase ​was driven ​by imports of gold, passenger vehicles and energy ​products.

TRADE WITH THE U.S.

Exports to the ‌United States, Canada’s largest trading partner, rose 1.1%, accounting for just over 67.4% of total exports, compared with 76.2% a year ago.

This was the first time in three months that outbound shipments to the south increased in percentage terms, but the share of exports to the U.S. shrunk to its lowest level in since data collection began, except two months ‌of pandemic in 2020.

The share of exports to the ​U.S. was 68.4% in November and 67.5% in October.

Imports ​from the U.S., however, rose faster ​by 3.5%, narrowing Canada’s merchandise trade surplus with its southern neighbor ‌to C$5.7 billion, from C$6.5 billion in ​November.

Meanwhile, exports to countries ​other than the U.S. continued their upward momentum, reaching an all-time high in December. Exports of gold to the United Kingdom led most of the gains.

Imports from countries ​other than the United States ‌fell 3% in December and Canada’s trade deficit with countries other than the ​United States narrowed to $7 billion in December from $9 billion in November, StatsCan ​said.

(Reporting by Promit Mukherjee; Editing by Dale Smith)