Canada Posts Surprise March Trade Surplus on Oil and Gold

Overview

• Canada recorded a $1.78 billion merchandise trade surplus in March, reversing February’s $5.11 billion deficit as exports rose 8.5% to $72.8 billion and imports fell 1.6%.
• The outcome beat expectations after a Reuters poll pointed to a $2.88 billion deficit.
• Energy exports increased 15.6% to the highest value since September 2022, with higher crude prices linked to the war in Iran lifting receipts.
• Geographic shifts were pronounced as exports to non-U.S. partners rose 9.1% to a record, exports to the United States climbed 8.3%, and the U.S. bilateral surplus reached $7.1 billion as U.S. imports fell 1.2%.
• Outside energy and metals, export growth was modest at 1.1% in value and volumes slipped 0.3%, showing the improvement was concentrated in a few commodity categories.