Canada's trade deficit narrows in December, share of exports to U.S. shrinks further

Core Insights - Canada's international merchandise trade deficit narrowed to C$1.31 billion ($957 million) in December, down from a revised C$2.59 billion deficit in November, driven by increased exports, particularly in metals and non-metallic minerals [1][2] Trade Performance - Total exports rose by 2.6% to C$65.63 billion, primarily due to an 18% increase in metals and non-metallic mineral products, with unwrought gold exports increasing over 37% [2] - Exports excluding metals and non-metallic minerals decreased by 0.2%, while total exports in volume terms increased by 1.4% [2] Import Dynamics - Imports increased by 0.6% to C$66.93 billion, with six out of eleven product sections showing growth, driven by gold, passenger vehicles, and energy products [3] U.S. Trade Relations - Exports to the United States rose by 1.1%, accounting for just over 67.4% of total exports, a significant drop from 76.2% a year ago [3][4] - This marks the first increase in outbound shipments to the U.S. in three months, although the share of exports to the U.S. reached its lowest level since data collection began, excluding two months during the pandemic [4] Trade with Other Countries - Exports to countries other than the U.S. reached an all-time high in December, with gold exports to the United Kingdom leading the gains [5] - Imports from countries other than the U.S. fell by 3%, narrowing Canada's trade deficit with these countries to $7 billion in December from $9 billion in November [5]