In December, Canada’s merchandise exports rose 4.9% and imports rose 2.3%. As a result, Canada’s merchandise trade balance with the world shifted from a deficit of $986 million in November to a surplus of $708 million in December. This was the first surplus in goods trade since February 2024.
The Canadian Border Services Agency (CBSA) implemented the Digital Revenue Management and Assessment Initiative, and a delay in receiving import data for goods from Statistics Canada occurred. As a result, estimates were added to the aggregated values to provide a more complete picture of import activity in Canada from October to December. Please see a note to readers below for more information.
The depreciation of the Canadian dollar continues to affect import and export values in December
A large percentage of import and export transactions occur in US dollars and require conversion into Canadian dollars to compile monthly trade statistics. All else is equal, when the value of the Canadian dollar falls against the US dollar, the monthly trade values expressed in Canadian dollars are higher.
The median value of the Canadian dollar fell sharply for the third consecutive month. When expressed in US dollars, Canadian exports increased by 3.0% in December, while imports rose by 0.4%.
Exports increase for the third consecutive month
After a 1.9% increase in November, overall exports rose 4.9% in December, the largest percentage increase since February 2024. Overall, 8 of the 11 product divisions rose in December. Exports excluding energy products increased by 3.6%. In real terms (or volume), total exports increased by 2.6%.
Total imports increased by 1.9% in 2024. Imports of consumer goods (+4.6%) and farm and fishing products and intermediate foods (+11.2%) recorded the largest increases in 2024.
Energy and minerals exports increase in December 2024
Exports of energy products (+9.5%) recorded the largest increase in December, mostly driven by crude oil export growth (+11.0%). This increase was mainly the result of higher prices. In recent years, crude oil prices have recorded strong declines in December. However, these prices were relatively stable in December 2024, resulting in a seasonally adjusted increase in the price of Canadian crude oil exports for that month. In 2024, the value of exports of energy products increased by 1.2% compared to 2023, despite a 3.5% annual price decline%.
Exports of metallic and non-metallic products rose 9.2 percent to a record $10.0 billion in December. Widespread gains were observed across different product categories. On the other hand, there were increases in exports of waste, scrap metal (+35.6%), nickel ore and nickel alloys (+63.3%), mostly destined for Norway. On the other hand, exports of unworked metals from the gold, silver, platinum and alloys group (+3.9%) and basic and semi-finished products of non-ferrous metals and non-ferrous metal alloys (+30.3%) also increased, with shipments mainly going to the United States.
Exports of motor vehicles and their parts rose 3.9% in December to their highest level since May 2024, mainly due to higher exports of passenger cars and light trucks (+7.2%). In a context where motor vehicle production fell sharply in 2024, temporary closures during the holidays in December were less impactful. In addition, an increase in EV exports was observed in the month, which also contributed to the seasonally adjusted increase in exports of passenger cars and light trucks. Despite the monthly gains, these exports decreased by 11.5% in 2024 compared to 2023.
Exports of agricultural, fishery and intermediate food products (+5.8%) also contributed to the overall increase in exports in December, mainly due to higher wheat exports (+28.4%).
Canada’s exports rise and Canada’s trade surplus increases
After a 6.7% increase in November, exports to the U.S. rose 5.0% in December, partly due to higher exports of energy products. Meanwhile, imports from the United States fell 1.5% in December. As a result, Canada’s trade surplus with the United States widened from $8.2 billion in November to $11.3 billion in December.
After a 10.8% decline in November, exports to countries other than the United States rose 4.9% in December. Exports to Germany (nuclear fuel and aircraft), Norway (nickel and scrap metal), Japan (coal and copper), and Switzerland (aircraft) saw the largest increases. Imports from countries other than the United States rose 9.0% in December. Canada’s trade deficit with countries other than the United States widened from $9.2 billion in November to $10.6 billion in December.
Total exports increased by 4.3% in the fourth quarter of 2024, the largest quarterly increase since the second quarter of 2022. Exports of metallic and non-metallic products (+12.9%) and energy products (+4.0%) were the biggest contributors to the increase in the quarter.
After a slight decline of 0.2% in the third quarter, total imports increased by 2.8% in the fourth quarter of 2024. Broad gains were observed across all product segments. Imports data in the fourth quarter were affected by delays due to the CARM Digital Initiative and include estimated values.
In terms of quarterly results in constant dollars (calculated using sequential 2017 dollars), real exports increased by 2.7% in the fourth quarter, while real imports increased by 2.0%.
Exports and imports rise in 2024
In 2024, total merchandise exports increased by 1.0% compared to 2023. This rise follows a 1.8% year-on-year decline in exports in 2023.
