Canada posts second consecutive trade surplus in June

OTTAWA: Canada posted a second consecutive trade surplus in June, though down compared to the previous month due to decreases in trade for crude oil and aircraft, Statistics Canada said Friday.

The figure of Can$136 million ($103 million) was well short of analysts´ expectations of a surplus in the ballpark of Can$300 million.

In May, Canada posted a surprise trade surplus of Can$556 million, thanks to record exports to the United States, its main trading partner.

It was only the second such bonanza since December 2016.

June´s diminished surplus was the result of a 5.1 percent decrease in exports. Total imports were also down by 4.3 percent to Can$50.2 billion, the lowest level since November 2018.

Exports suffered a significant drop in crude oil sales abroad for the first time this year, as well as a 40.8 percent drop in aircraft shipments, particularly to the United States.

Imports of oil, aircraft and other transportation equipment and parts also decreased in June by 25.8 percent, according to Statistics Canada.

The trade surplus with the US, which normally buys three-quarters of Canada´s exports, decreased slightly to Can$5.7 billion in June from the May figure of Can$5.9 billion -- the highest since 2008.

At the end of May, the US and Canada lifted customs tariffs on steel and aluminum. As a result, June exports of steel products to the US surged by 15.8 percent, and exports of aluminum products to the US rose by 47.2 percent.