Canada's merchandise exports increased 1.2 per cent in May while imports rose 1.1 per cent.
As a result, Statistics Canada reports the country's trade deficit with the world narrowed to $814-million in May from $857-million in April.
The agency reports exports increased to $36.9-billion as volumes rose 1.5 per cent while prices decreased 0.3 per cent.
Statscan says the higher volumes were led by the machinery and equipment as well as the automotive products sectors, while energy products were the main contributor to the price decline.
Imports increased to $37.8-billion, as all sectors except energy products recorded gains.
Prices rose 2.1 per cent, with the increase led by energy products and industrial goods and materials, while volumes fell 1 per cent.
Canada's trade surplus with the United States narrowed to $3.7-billion in May from $4.0-billion in April.
Exports to the United States edged up 0.1 per cent to $27.1-billion. Imports increased 1.1 per cent to $23.4-billion, their third straight monthly increase.
Exports to countries other than the United States rose 4.4 per cent to $9.8-billion in May, on the strength of higher exports to the European Union.
Imports increased 1.1 per cent to $14.4-billion, as most of Canada's principal trading areas registered gains. As a result, Canada's trade deficit with countries other than the United States narrowed to $4.6-billion in May from $4.8-billion in April.