Canada's merchandise exports fell 2.5 per cent in June, led by a drop in industrial goods and materials, while imports decreased 1.2 per cent due to a significant decline in energy products.
Consequently, Canada's trade deficit with the world widened to $1.1-billion in June from $695-million in May.
Statistics Canada reports exports declined to $33.5-billion from $34.4-billion as export prices contracted by 1.2 per cent and volumes decreased by 1.3.
Industrial goods and materials accounted for two-thirds of the decline in the value of overall exports, followed by energy products and automotive products.
The agency says a gain in exports of machinery and equipment mitigated the decrease.
After a solid gain in May, imports declined to $34.6-billion in June from $35-billion.
Lower imports of energy products were instrumental to the decrease.
Excluding energy products, imports grew 0.9 per cent.
Import prices fell 1.2 per cent while volumes remained unchanged, following four straight monthly increases.
Exports to the United States decreased one per cent, reflecting the weakness in exports of energy products, while imports rose 0.8. As a result, Canada's trade surplus with the United States narrowed to $3-billion in June from $3.4-billion in May.
Exports to countries other than the United States fell seven per cent, largely a result of declining exports to the European Union. The fall in exports outpaced a 4.6 per cent decrease in imports.
Consequently, Canada's trade deficit with countries other than the United States rose to $4.2-billion in June from $4.1-billion in May.
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