Canada trade deficit narrowed in February

Canada's trade deficit narrowed in February due largely to a strong rise in exports of private jets, the state statistics agency said Thursday, noting that the coronavirus pandemic had yet to be felt in a big way.

Looking forward, it said production halts by North American automakers "could have a significant impact" on Canada's trade in March, while sharp drops in oil prices also would affect trade.

"When looking at international merchandise trade as a whole, COVID-19 did not appear to have a major impact in February, though trade with China was once again affected," Statistics Canada said.

The deficit contracted from Canadian dollar 1.7 billion in January to Canadian dollar 983 million (USD 691 million) in February, with an 0.5 per cent rise in exports and a 0.8 per cent fall in imports, notably crude oil, Statistics Canada said.

Exports totalled Canadian dollar 48.3 billion, including a 47 per cent increase in aircraft deliveries -- the strongest showing in five years -- led by private jets, the agency said. In terms of volume, exports rose 2.7 per cent.

Auto exports rebounded in February after plunging in January, but oil exports declined. Canada is the world's fourth ranked exporter.

Imports eased to Canadian dollar 49.3 billion, the lowest level in two years, with a 1.2 per cent drop in volume, mainly crude oil.

Although it is one of the world's biggest oil producers, Canada nevertheless imports oil to supply its eastern regions that are far from its western production centers.

Imports from China, South Korea, and Peru declined the most, while exports to Britain, Hong Kong and China were also down.

Canada's trade surplus with the United States, its biggest trading partner, grew in February to Canadian dollar 3.7 billion.

With the rest of the world, Canada saw its deficit swell to Can$4.7 billion, its weakest performance since November 2018.