OTTAWA: Canada's recent trade rally faded in February, resulting in a Can$972 million (US$723 million) trade deficit with the world, the government statistical agency announced Tuesday.
Economists had forecast another surplus of Can$640 million following three consecutive monthly surpluses.
According to Statistics Canada, exports fell 2.4 percent to Can$43.5 billion in February after hitting a record high at the beginning of the year, while imports edged up 0.6 percent to Can$46.3 billion.
The agency said exports of canola were down 34 percent following a three month surge in sales to China. Canada also exported fewer boats to Saudi Arabia, and aircraft, and gold coins to the United States.
Meanwhile, imports of passenger cars and trucks beat a record high set in August 2016, and higher imports of low-valued transactions bounced back from "atypically low import levels" in January, said Statistics Canada. As well, there were increased imports of food and tobacco.
Overall, Canada imported more goods from Japan, Norway and Brazil in the month, while exports to China (mainly canola) and South Korea (mainly coal) fell.
Canada's trade surplus with the United States -- its neighbor and biggest trading partner -- widened slightly from Can$4.4 billion in January to Can$4.5 billion in February, as both imports and exports fell.
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