Canada posts current account trade deficit in Q3 November 28, 2009
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Canada posted a record trade deficit in the third quarter of 2009, according to Statistics Canada figures released Friday.
The national statistical agency said Canada produced a current account deficit of $13.1 billion for the July-to-September period, mainly because the country bought more products from other countries than Canadian companies were able to sell overseas.
“A widening in the goods deficit more than offset a marginal narrowing in the services deficit and smaller investment income shortfall,” said Dawn Desjardins, assistant chief economist for RBC Economics Research.
Canada still sold more widgets to the United States than the country’s businesses and individuals purchased from the world’s biggest economy, Statistics Canada said.
But that surplus shrank as Canada’s import bill rose in the third quarter.
“Geographically, Canada continues to record a surplus on goods trade with the United States; however, this bilateral surplus continued to narrow in the third quarter, as Canadian imports from the United States advanced at a faster pace than Canadian exports to American markets,” Statistics Canada said.
Trade balance
A country’s current account position measures its sales of goods and services to foreigners and money inflows to the domestic economy compared to the same country’s purchases of goods and services from other nations and investment outflows to foreigners.
In the third quarter, Canada sold $90 billion in goods outside the country while purchasing $94 billion in foreign products. That resulted in a deficit in this category of $4 billion.
Canada also posted a $5.6-billion deficit on the service side of the trade ledger in the three-month period.
By contrast, Canada received $8.5 billion in repatriated profits and interest payments on foreign investments in the period versus the $8.1 billion in interest and earnings sent outside of the country.
The country’s deficit trade, which appeared in the third quarter, can act to reduce the value of the Canadian dollar. That is because more Canadians will be switching their dollars for other currencies in order to buy foreign goods and services.
The rise in imports purchases also can slow economic growth, said RCB.
“The rapid rise in imports in the third quarter points to the trade sector acting as a significant drag on the pace of GDP growth. RBC estimates that net exports trimmed 4.2 percentage points from the quarterly economic growth rate,” said Desjardins.
Rising exports narrow Canada’s trade deficit November 14, 2009
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Higher exports to the EU helped narrow Canada’s trade deficit to $927 million in September, Statistics Canada said Friday.(Jason R Zalasky/Associated Press)
Canada’s exports were 3.5 per cent higher in September, narrowing the trade deficit to $927 million from $2 billion.
Statistics Canada says exports rose by $1 billion to $30.3 billion in September, as volumes increased 4.5 per cent. Imports were largely unchanged, edging down 0.1 per cent to $31.2 billion.
Exports have been on a downward trend since July 2008 and reached a low point in May 2009 before increasing in three of the past four months.
Automotive products, industrial goods and materials, and machinery and equipment were the main sources of growth for exports. Energy products mitigated the gains.
Higher exports to the European Union were largely responsible for the overall increase in exports.
“The big story in this report was Canada?s diversification away from the United States,” BMO economist Benjamin Reitzes said.
Exports to the EU and other OECD countries jumped 34 per cent and 15 per cent respectively, he noted. “As U.S. consumption is likely to lag the global recovery, a shift towards other markets will be a key to Canadian exporters? success,” he said.
Exports to the United States increased 0.5 per cent while imports grew 1.7 per cent. As a result, Canada’s trade surplus with its largest trading partner shrank to $2.1 billion in September from $2.3 billion in August.
“With the U.S. still Canada?s largest customer, trade deficits are likely to persist,” Reitzes said.
U.S. trade deficit grows 18.2% November 14, 2009
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Rising oil prices widened the U.S. deficit in September, the Commerce Department reported Friday.
The value of imports surpassed those of exports by $36.5 billion US, a rise of 18.2 per cent and the most in nearly a year.
Boeing manufacturing plantAircraft, autos and industrial machinery helped the U.S. to increase exports in September(The Boeing Company)
Still, exports were up 2.9 per cent to $132 billion, their fifth monthly increase. The biggest gains were in sales of autos, aircraft and industrial machinery.
Imports rose 5.8 per cent to $168.4 billion, pushed up by a 20.1 per cent increase in oil prices, which rose to their highest levels in nearly a year.
That benefited Canada, the No. 1 supplier of U.S. petroleum imports, with sales of two million barrels a day to the U.S.
The trade deficit for the first nine months of this year now totals $366 billion. That’s about half its level for all of last year.
The deficit with China rose 9.2 per cent to $22.1 billion, the highest imbalance in 10 months.
Feds ask WTO to resolve trade dispute with U.S. October 8, 2009
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Canada has asked the World Trade Organization to resolve a trade dispute with the U.S. over country-of-origin labelling rules that discourage cattle and hog imports, the federal government announced Wednesday.
It has asked a WTO trade dispute panel to strike down the rules on the grounds they make it difficult for Canadian cattle and hog exporters to compete fairly.
The rule requiring American food processors to label where meat and other products come from is costing Canadian beef exporter $1 million a day.(CBC)
The rule requires firms label meat and other products according to country of origin at every stage of production and on the supermarket shelf.
Talks that started last December have failed to resolve the issue. Canada’s beef industry estimates changing the labelling rule would could save Canadian cattle exporters $1 million a day.
The rule, which went into effect Sept. 30, mandates that American meat processors segregate animals according to where they are born and fed.
The legislation divided cattle into three groups: U.S.-born and raised cattle, Canadian-born and U.S.-raised cattle, and Canadian-born and raised cattle imported for immediate processing. Canadian cattle exporters have said the rule discriminates against cattle directly from Canada.
American processing plants are reluctant to absorb the higher cost of labelling and transporting Canadian beef. Those that do are paying reduced prices for the cattle they accept.
The rule also applies to chicken, lamb, pork, fish, goat meat, ginseng, pecans, macadamia nuts and peanuts. Processed foods ? anything cured roasted, smoked or cooked ? are exempt. Food served at restaurants or sold in specialty markets, such as butcher shops, is also exempt from the labelling rule.
Canada-U.S. agricultural trade totals about $37 billion annually.
With files from The Canadian Press (more…)
Provinces key to trade deal with EU: Charest October 4, 2009
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Provinces need to be at the table when Canada negotiates a future free trade deal with the European Union, says Quebec Premier Jean Charest.
Quebec Premier Jean Charest believes Canada could benefit from a free trade agreement with the European Union(CBC)In order to avoid protectionist policies it is critical that provinces have a say in talks with the EU about government procurement, which the provinces control, Charest told a crowd of supporters Thursday night at a Montreal gala hosted by the Fraser Institute think-tank.
Canada’s free trade agreement with the U.S. did not include such provisions, which led to protectionist “Buy American” policies, Charest said.
“That’s what this whole “Buy American” issue is about now. It’s about government procurement on both sides of the Canadian and American border, which was not part of the free trade agreement ? but will be part of this agreement that we are going to negotiate with Europe,” he said.
A free trade deal with the EU would help secure Canada’s economic future, Charest said. “We’re not a big market, we’re 33 million people, but we have natural resources, we have universities, we have research centres. This is an opportunity for Europe to set foot in America, without having to go through the United States.”
A free trade deal with the EU would also help Canadian provinces attract immigrants, Charest added.
The Quebec premier is one of Canada’s main negotiators with EU representatives, who launched formal talks about a bilateral deal last May.
With files from The Canadian Press (more…)
Wholesale trade rises in July September 18, 2009
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Higher auto sales helped drive wholesale trade to a second straight monthly increase in July, Statistics Canada said Friday.
In current dollars, sales rose 2.8 per cent to $41.7 billion. In volume terms, sales were up 2.6 per cent, the fourth consecutive monthly increase.
Wholesale trade in the automotive sector increased 14.2 per cent to $6.8 billion in July, Statistics Canada said Friday.(Canadian Press)
Five of seven wholesale trade sectors saw growth during the month, with the two exceptions being farm products, and food, beverage and tobacco products.
Sales in the automotive sector increased 14.2 per cent to $6.8 billion in July, a sixth straight monthly advance. Despite the gain, sales in the sector remained 13.5 per cent below their July 2008 level.
The strength across a variety of sectors was echoed geographically, as eight provinces saw wholesale sales rise in July. The two exceptions were New Brunswick and Saskatchewan.
In addition to increasing sales, wholesale inventories were lower for the fifth straight month, losing 0.5 per cent to $56.3 billion in July. Overall, 11 of the 15 wholesale trade groups reported lower inventory levels.
The uptick in sales, coupled with the decrease in inventories, translated into a drop in the inventory-to-sales ratio ? a measure of the time in months required to exhaust supplies at current levels. It fell from 1.40 in June to 1.35 in July.
Trade irritants a fact of life: WTO September 16, 2009
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Most countries have held off of initiating full-fledged trade wars during the current recession, the World Trade Organization said Monday.
But with unemployment likely to remain high for the foreseeable future, expect trade skirmishes between countries for years to come, the global trade watchdog said.
“During the period under review, we have not observed widespread resort to trade or investment restrictions as a reaction to the global financial and economic crisis,” a joint report on G20 countries and their trade practices says.
“[But] growing unemployment due to the crisis will continue to fuel protectionist pressures for the years to come, despite signs that the collapse in world trade and investment flows may be bottoming out,” the study says.
China retaliates
The trade report was undertaken by the WTO, the Organization for Economic Co-operation and Development and the United Nations Conference on Trade and Development and is scheduled to be presented later in September at a meeting of G20 countries in Pittsburgh.
On Monday, if as on cue, China fired the latest salvo in a growing trade spat with the United States by launching an investigation into whether American companies were illegally dumping motor vehicles and chicken products in the East Asian country.
The Chinese move was widely interpreted as retaliation for Washington’s imposition earlier in September of trade duties of 35 per cent on tires produced in China.
Before that, in August, the WTO admonished China for putting up too many barriers to the importation of U.S. films, books and other cultural products.
China has begun flexing its trade muscles, launching an anti-dumping case against the U.S. in the wake of new American tariffs on Chinese-made tires.(Eugene Hoshiko/Associated Press)
The latest WTO-UN-OECD report says countries have actually done a decent job refraining from using trade sanctions as a way to direct domestic demand to their own producers.
The document notes that merchandise flows between countries will slump by a modest 10 per cent in 2009 while foreign direct investment, which tends to be more sensitive to economic conditions, could plunge by 30 to 40 per cent in the current year.
“There is no indication of a descent into high-intensity protectionism as a reaction to the crisis, involving widespread resort to trade or investment restriction or retaliation. This suggests that G20 members and other governments have so far succeeded in managing the political process of keeping domestic protectionist pressures under control,” the report notes.
Still, some governments are resorting to higher tariffs and non-tariff measures, especially in steel and auto production, the report says. And at least two governments ? the United States and European Union ? have re-introduced dairy exports subsidies to help their domestic industry.
Agricultural provisions have historically proven very difficult to remove once a government implements them.
Trade irritants a fact of life: WTO September 14, 2009
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Most countries have held off of initiating full-fledged trade wars during the current recession, the World Trade Organization said Monday.
But with unemployment likely to remain high for the foreseeable future, expect trade skirmishes between countries for years to come, the global trade watchdog said.
“During the period under review, we have not observed widespread resort to trade or investment restrictions as a reaction to the global financial and economic crisis,” a joint report on G20 countries and their trade practices says.
“[But] growing unemployment due to the crisis will continue to fuel protectionist pressures for the years to come, despite signs that the collapse in world trade and investment flows may be bottoming out,” the study says.
China retaliates
The trade report was undertaken by the WTO, the Organization for Economic Co-operation and Development and the United Nations Conference on Trade and Development and is scheduled to be presented later in September at a meeting of G20 countries in Pittsburgh.
On Monday, if as on cue, China fired the latest salvo in a growing trade spat with the United States by launching an investigation into whether American companies were illegally dumping motor vehicles and chicken products in the East Asian country.
The Chinese move was widely interpreted as retaliation for Washington’s imposition earlier in September of trade duties of 35 per cent on tires produced in China.
Before that, in August, the WTO admonished China for putting up too many barriers to the importation of U.S. films, books and other cultural products.
China has begun flexing its trade muscles, launching an anti-dumping case against the U.S. in the wake of new American tariffs on Chinese-made tires.(Eugene Hoshiko/Associated Press)
The latest WTO-UN-OECD report says countries have actually done a decent job refraining from using trade sanctions as a way to direct domestic demand to their own producers.
The document notes that merchandise flows between countries will slump by a modest 10 per cent in 2009 while foreign direct investment, which tends to be more sensitive to economic conditions, could plunge by 30 to 40 per cent in the current year.
“There is no indication of a descent into high-intensity protectionism as a reaction to the crisis, involving widespread resort to trade or investment restriction or retaliation. This suggests that G20 members and other governments have so far succeeded in managing the political process of keeping domestic protectionist pressures under control,” the report notes.
Still, some governments are resorting to higher tariffs and non-tariff measures, especially in steel and auto production, the report says. And at least two governments — the United States and European Union — have re-introduced dairy exports subsidies to help their domestic industry.
Agricultural provisions have historically proven very difficult to remove once a government implements them.
Trade irritants a fact of life: WTO September 14, 2009
Posted by businessnewss in businessnewss.wordpress.com.Tags: Fact, irritants, Life, Trade
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Most countries have held off of initiating full-fledged trade wars during the current recession, the World Trade Organization said Monday.
But with unemployment likely to remain high for the foreseeable future, expect trade skirmishes between countries for years to come, the global trade watchdog said.
“During the period under review, we have not observed widespread resort to trade or investment restrictions as a reaction to the global financial and economic crisis,” a joint report on G20 countries and their trade practices says.
“[But] growing unemployment due to the crisis will continue to fuel protectionist pressures for the years to come, despite signs that the collapse in world trade and investment flows may be bottoming out,” the study says.
China retaliates
The trade report was undertaken by the WTO, the Organization for Economic Co-operation and Development and the United Nations Conference on Trade and Development and is scheduled to be presented later in September at a meeting of G20 countries in Pittsburgh.
On Monday, if as on cue, China fired the latest salvo in a growing trade spat with the United States by launching an investigation into whether American companies were illegally dumping motor vehicles and chicken products in the East Asian country.
The Chinese move was widely interpreted as retaliation for Washington’s imposition earlier in September of trade duties of 35 per cent on tires produced in China.
Before that, in August, the WTO admonished China for putting up too many barriers to the importation of U.S. films, books and other cultural products.
China has begun flexing its trade muscles, launching an anti-dumping case against the U.S. in the wake of new American tariffs on Chinese-made tires.(Eugene Hoshiko/Associated Press)
The latest WTO-UN-OECD report says countries have actually done a decent job refraining from using trade sanctions as a way to direct domestic demand to their own producers.
The document notes that merchandise flows between countries will slump by a modest 10 per cent in 2009 while foreign direct investment, which tends to be more sensitive to economic conditions, could plunge by 30 to 40 per cent in the current year.
“There is no indication of a descent into high-intensity protectionism as a reaction to the crisis, involving widespread resort to trade or investment restriction or retaliation. This suggests that G20 members and other governments have so far succeeded in managing the political process of keeping domestic protectionist pressures under control,” the report notes.
Still, some governments are resorting to higher tariffs and non-tariff measures, especially in steel and auto production, the report says. And at least two governments — the United States and European Union — have re-introduced dairy exports subsidies to help their domestic industry.
Agricultural provisions have historically proven very difficult to remove once a government implements them.
Canada’s wholesale trade rises by 0.6% August 21, 2009
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Canada’s wholesale trade rose for the first time in nine months in June, climbing to $40.4 billion.
Statistics Canada released figures Thursday indicating companies sold 0.6 per cent more to retailers in the sixth month of the year compared with May’s figures when measured in current dollar terms.
“Wholesale sales rose for the first time in nine months in June, mainly due to increases in the automotive products and food, beverages and tobacco products sectors,” said the agency.
Better still, Canada’s wholesale trade rose by one per cent in volume terms ? which corrects for higher-selling prices ? in June, the third consecutive month in which companies sold more physical product.
Statistics Canada said cars and automotive parts sold well in the month, up 3.3 per cent, reaching $5.8 billion in June. That result was the fifth straight increase for this beleaguered industry but remained below the sector’s sales peak back in June 2008.
Once cars were subtracted, Canada’s wholesale trade numbers edged up 0.1 per cent to $34.6 billion.
In addition, wholesalers’ inventories dropped in the month, down more than $600 million in June versus May. That was the fourth month in a row in which goods in the warehouse decreased.
Combined with higher sales, the wholesale inventory-to-sales ratio ? an indicator of slack demand ? fell to 1.4 in June, down from 1.42 in May.
On the downside, Statistics Canada noted that the “other” category, which included agricultural fertilizer, slid for the fifth straight month, hitting $4.3 billion.
Corrections and ClarificationsCanada’s wholesale trade rose by 0.6% in June, not by six per cent as reported in an earlier headline. Aug. 20, 2009 | 11:39 a.m. ET (more…)
