The following is the text of
Canada’s international merchandise trade report for
February
from Statistics Canada.

Canada’s merchandise exports and imports fell in
February, led by lower volumes of automotive products and
energy products. Exports fell 4.9% to $35.9 billion while
imports decreased 4.0% to $35.8 billion. Consequently,
Canada’s trade surplus went from $382 million in January
to $33 million in February.

After four consecutive months of growth, exports fell
as a result of volumes declining 5.2%. Although volumes
declined in all sectors, those of energy products (-8.1%)
and automotive products (-12.4%) were the main
contributors to the decline in overall exports. Prices
increased 0.3% in February.

Import volumes fell 4.3% while prices edged up 0.2%. As
was the case with exports, falling volumes of automotive
products (-12.4%) and energy products (-12.7%) accounted
for most of the decline in the value of imports.

Imports from the United States fell 6.1%, reflecting
lower imports of automotive products. Exports declined
3.5%, after four consecutive months of growth. Canada’s
trade surplus with the United States increased from $4.1
billion in January to $4.6 billion in February.

Exports to countries other than the United States fell
8.5%, mostly a result of lower exports of precious metals
to the European Union. At the same time, imports declined
0.7%. Thus, Canada’s trade deficit with countries other
than the United States widened from $3.8 billion in
January to $4.5 billion in February.

Exports fall in six of the seven sectors

Exports of energy products fell 8.0% to $8.8 billion in
February, as a result of lower volumes. The decline in
value and volume followed four consecutive months of
growth. Exports of crude petroleum decreased 6.9%,
reflecting higher inventories in the United States. This
decline followed a 71.3% advance from September 2010 to
January 2011. Exports of petroleum and coal products,
namely diesel fuel and light oil preparation, also
decreased, as some refineries experienced problems during
the month.

Following a 16.0% increase in January, exports of
automotive products fell 12.3% to $4.5 billion in
February. The decline was a result of falling volumes.
Passenger autos, down 15.8%, accounted for over three-
quarters of the decrease in the sector.

Exports of industrial goods and materials decreased
3.0% to $9.3 billion, as volumes declined. Exports of
precious metals fell 12.1%, after reaching a record high
in January, and were the main factor behind the decline in
the sector. Lower exports of nickel ores also contributed
to the decrease.

Exports of agricultural and fishing products increased
1.3% to $3.2 billion, as prices rose. The gain was led by
higher exports of other cereals, unmilled; other food,
feed, beverage and tobacco products; as well as exports of
canola, which reached unprecedented levels in February.

Widespread declines in imports

Imports of automotive products fell 12.5% to $5.6
billion in February, as a result of lower volumes. This
decline partially offset the increase in January. Imports
of motor vehicle parts, down 14.5%, accounted for over
half of the decline. Imports of trucks also fell during
the month.

Imports of energy products declined 9.4% to $3.9
billion, as volumes fell. Imports of crude petroleum
decreased 8.4%, following three months of growth. Imports
of petroleum and coal products fell, mostly as a result of
lower imports of aviation fuel and motor gasoline.

Imports of machinery and equipment decreased 2.3% to
$9.8 billion, nearly offsetting the gain recorded in
January. After leading the growth in January, aircraft
were the main contributors to the decline in the sector.

Imports of industrial goods and materials declined 1.6%
to $7.5 billion, as imports of precious metals fell for a
third consecutive month. Imports of chemicals and
plastics, especially organic chemicals, also decreased in
February.

Note to readers

Merchandise trade is one component of Canada’s
international balance of payments, which also includes
trade in services, investment income, current transfers as
well as capital and financial flows.

International merchandise trade data by country are
available on both a balance of payments and a customs
basis for the United States, Japan and the United Kingdom.
Trade data for all other individual countries are
available on a customs basis only. Balance of payments
data are derived from customs data by making adjustments
for characteristics such as valuation, coverage, timing
and residency. These adjustments are made to conform to
the concepts and definitions of the Canadian System of
National Accounts.

Data in this release are on a balance of payments
basis, seasonally adjusted in current dollars. Constant
dollars are calculated using the Laspeyres volume formula.

Revisions

In general, merchandise trade data are revised on an
ongoing basis for each month of the current year. Current
year revisions are reflected in both the customs and
balance of payments based data. Revisions to customs based
data for the previous year are released on a quarterly
basis. Revisions to balance of payments based data for the
three previous years are released annually in June.

Factors influencing revisions include late receipt of
import and export documentation, incorrect information on
customs forms, replacement of estimates produced for the
energy sector with actual figures, changes in
classification of merchandise based on more current
information, and changes to seasonal adjustment factors.

Revised data are available in the appropriate CANSIM
tables.

To contact the reporter on this story:
Ilan Kolet in Ottawa at
ikolet@bloomberg.net

To contact the editor responsible for this story:
Marco Babic at mbabic@bloomberg.net

Article source: http://www.bloomberg.com/news/2011-04-12/canada-february-international-merchandise-trade-report-text-.html

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