Canola exports hit record on Chinese demand only months after trade dispute

Marco Green
March 18, 2017

The figure was lowered to $447 million, down from the $923-million reading released a month ago.

OTTAWA-Canada posted its third-straight monthly trade surplus in January, marking the best performance on the trade front since mid-2014 when commodity prices went into a tailspin.

Peter Hall, chief economist with Export Development Canada, said the 0.5 per cent increase for January on its own was decent.

"The gains in two-way trade volumes signal an economy that continues to be on the mend", said Nick Exarhos of CIBC Economics.

"This is no longer a blip". After the release, the Canadian Dollar rose slightly against its USA counterpart, trading at C$1.3406. Back in the Q4 of 2016, the Canadian economy expanded at a stronger than expected pace, driven by higher household spending and lower imports.

The Bank of Canada last week left interest rates unchanged as it focused on the "significant uncertainties" facing the economy, including lack of clarity over what policies U.S. President Donald Trump will enact.

Canada posted a positive trade balance for a third consecutive month, with a rebound in auto exports adding to a recent jump in oil shipments.

Exports of motor vehicles and parts rose by 7.7% after falling by 6.7% in December while shipments of canola jumped by 38.4% on demand from China.

Exports of motor vehicles and parts rose by 7.7 per cent. Exports to the USA where, three quarters of everything Canada makes ultimately goes, grew by 2.3 per cent during the month, pushing Canada's surplus with the US alone to $4.52 billion from $3.82 billion.

The country's trade surplus with the US grew from $3.8 billion in December to $4.5 billion in January.

Other reports by Click Lancashire

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