Canadian exports increased in May by 6.7pc to $25.5bn, while imports declined by 3.9pc to $26bn from a month earlier, according to a report from Statistics Canada (StatCan).
Global exports in May, however, declined by 34.1pc from the same month in 2019, while total imports lost close a one-third of their value in May 2020.
After a major drop in motor vehicle exports in April 2020 totaling close to $3.9bn, motor vehicle exports in May rose sharply and gained around $607mn. This was mainly because some automobile and automotive parts manufacturers reopened production in Canada that month. Nevertheless, there was a 80pc decline in motor vehicle exports in May 2020 compared to the same month last year.
Motor vehicle imports into Canada in May declined by 14.8pc following a 77pc decline in April. Passenger car imports fell by 96.5pc because most countries prioritized domestic sales rather than exports.
On the other hand, imports of engine and engine parts increased by 18pc in May from April, mainly due to higher imports from the US and Mexico.
Canadian exports to countries other than the US increased by 2.4pc in May, especially iron ore exports to China and aircrafts to France. This resulted in Canada’s trade deficit with countries other than US narrowing to $2.5 in May from $4bn in April 2020. Exports to the US rose by 8.9pc to $17bn in May from the previous month, with major a contribution from the motor vehicle industry.
Imports from countries excluding US fell by 10.1pc in May. Despite production returning to many countries, the export lead-time played a major factor in this decline. However, imports from the US moved up by 1.2pc to $15bn. This resulted in Canada’s trade surplus widening with the US to $2bn in May from $885mn a month earlier.
Canada’s exports services dropped by 2.6pc to $5.8bn in May, while its import services declined by 0.6pc to $5.7bn from a month earlier