Canada posts smaller than expected trade deficit in July

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Canada posts smaller than expected trade deficit in July
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Canada's trade deficit with the world narrowed to C$987 million ($722.97 million) in July, as imports were dragged lower by a west coast port strike while exports rose slightly, Statistics Canada said on Wednesday. Both exports and imports in July were impacted by a 13-day dock workers strike in British Columbia that disrupted operations at two of Canada's three busiest ports. Statscan said that trade may also be affected in the coming months as freight backlogs continue to be cleared.

FILE PHOTO: Containers and cranes at the Port of Vancouver

Analysts in a Reuters poll had forecast a C$3.65 billion deficit in July. June's deficit was revised to C$4.92 billion - the third largest on record - from a C$3.73 billion shortfall initially reported. Total imports decreased 5.4% in July, the strongest percentage decline since January 2022. Imports were dragged lower largely due to declines in unwrought gold as well as the combined decreases of product categories, such as consumer goods and electronics, that rely on British Columbia ports.Total exports rose 0.7% in July, as higher exports of canola, aircraft and other transportation equipment and parts helped to offset the impact of the strike, Statscan said. By volume, exports fell 0.2%.

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