Canadian exports plunged 4.7% in March to a more than two-year low as oil prices collapsed and the coronavirus pandemic shut down economies across the world. Export volumes dropped by the most since 2009.
The drop in goods shipments widened the trade deficit to C$1.4 billion ($1 billion), from a revised C$894 million in February, the agency said. Imports also tanked 3.5% amid waning demand in Canada to a level not seen since October 2017. Combined, Canadian exports and imports were the lowest since January 2018.
The substantial depreciation of the Canadian dollar versus the U.S. dollar in March made the import and export decreases appear less extreme; in volume terms, exports were down 4.8%, the biggest one-month since the 2009 recession. Import volumes fell by even more, down 5.8%.
“As we had expected, the significant move weaker in the Canadian dollar blunted a significant portion of the impacts on the nominal values of exports and imports by keeping prices higher in CAD terms,” Royce Mendes, an economist at Canadian Imperial Bank of Commerce, wrote in a note. “Given that shutdowns in North America only really began in earnest in the latter half of March, two-way trade is likely to have sharply deteriorated again in April. That could, however, be the worst of it, with gradual re-openings now on the horizon.”
Key Insights
Get More
The Transportation Intermediaries Association (TIA) - the only organization exclusively representing transportation intermediaries of all disciplines doing business in domestic and international commerce –announces the successful passage of S. 794,…
View ArticleThe Committee, chaired by Assistant United States Trade Representative for Environment and Natural Resources Kelly Milton, exchanged views and priorities regarding trade and environment policies, including addressing the climate crisis,…
View ArticleThe Biden administration is moving to curb low-value shipments entering the US duty-free under the $800 ‘de minimis’ threshold, which it says has been abused by Chinese e-commerce platforms such…
View ArticleIn a joint letter to Dr. Mohammad Yunus — Chief Advisor of the Interim Government of the People’s Republic of Bangladesh — the American Apparel & Footwear Association (AAFA) and…
View ArticleIndustry updates and weekly newsletter direct to your inbox!