Canada’s international merchandise trade surplus totalled $972 million in March, 2023, according to numbers released on May 4 by Statistics Canada.1 The surplus followed a $487 million deficit a month previous. Imports decreased 2.9% in March, while exports were down by only 0.7%.
The Latest Statistics
Canadian Alliance president William McKinnon’s insights below.
Imports Drop as Pharmaceutical Shipments Not Repeated
Import totals dropped 2.9% to $62.6 billion, the lowest monthly total observed since March 2022. Imports were down 5.3% in real or volume terms.
A 31.8% decrease in the import of pharmaceutical products contributed to an 11% drop for the category of consumer goods. A large February import of non-Covid related drugs was not repeated in March.
Meanwhile, clothing, footwear, and accessories imports were down 11.9%.
There was a 5.2% dip in the import of electronic and electrical equipment. A factor here was a 12.6% decrease in the import of communication and audio and video equipment. The subcategory cooled after the release of new cell phone models led to high activity in the previous two months.
Falling Crude Oil Prices Contribute to Decline in Exports
Exports were down 0.7% in March, totalling $63.6 billion, the lowest level since February 2022. Exports were up 0.1%, however, when measured in real or volume terms. Lower prices explain the difference.
Crude oil exports saw a dip in both price and volume in March, resulting a 5.9% decline in the export of energy products.
Exports of farm, fishing, and intermediate food products were down 5.3%, while forestry products and building and packaging materials saw a 6.4% drop.
Aircraft and other transportation equipment, meanwhile, saw a 30.8% spike in exports, the result of increased business jet exports to the US.
Trade Surplus with US, Deficit with Rest of World
Canada exported $47.8 billion in trade merchandise to our southern neighbor in March, with $40.1 billion in goods heading north. This resulted in a $7.7 billion surplus.
Exports to the rest of the world totalled $15.8 billion, as imports added up to $22.5 billion, a $6.7 billion deficit.
Exports, Imports Decrease in First Quarter of 2023
Exports dropped 0.3% in the first quarter of 2023 despite a 3.5% increase in real terms. The discrepancy is attributable to lower prices. Imports fell 0.2%, down 0.4% in real terms.
Insights from Canadian Alliance
Striking PSAC Workers Block Port of Vancouver
Striking PSAC workers recently blocked access to the Port of Vancouver as well as other government properties and buildings.2 Canadian Alliance President William McKinnon believes that such action is damaging to Canada’s reputation as a trade partner.
“It’s counterproductive and it taints Canada’s image,” he says. “It will ultimately result in costs, because there will be delays out of port. Any delay out of port has a consequence for detention charges.”
McKinnon sees no need for lasting concern, however, calling it a “short term game.”
Federal Government Approves Roberts Bank Terminal 2 Project
The federal government has given the go-ahead for an expansion project that will see a second terminal added at Roberts Bank. The project aims to address growing concerns about capacity on the West Coast.
“This is great news for Canadian Alliance, given that we’re so close to the port,” says McKinnon.
The CA President believes that the project will benefit from infrastructure that’s already in place.
“There are parking lots on site that are currently nowhere near capacity,” he says “The roads in and out are currently two lanes, but land on either side would allow for easy expansion. I think it’s been really well thought out.”
Expanding Order Management Capabilities
“We’re working right now to set up arrangements with different partners across North America to expand our network,” he says. “This will give us the potential to handle our customers’ business with a third party. It will be totally transparent to the customer and will improve the whole order management process. I think it’s going to be a game changer for us.”
Cited Sources
1 Government of Canada, Statistics Canada. “Canadian International Merchandise Trade, March 2023.” The Daily – , May 4, 2023. https://www150.statcan.gc.ca/n1/daily-quotidien/230504/dq230504a-eng.htm.
2 Press, The Canadian. “Striking Public Servants Block Access to Government Buildings and Key Infrastructure.” Ottawa. CTV News, April 25, 2023. https://ottawa.ctvnews.ca/striking-public-servants-block-access-to-government-buildings-and-key-infrastructure-1.6370421.