Dilas International as a Canadian Customs Broker keeps a close watch on the country’s trade deficit and how it is affecting cross-border shipments. According to the reports provided by Statistics Canada on Tuesday, Canada’s trade deficit came in significantly lower than economists had previously predicted. Canada’s trade deficit went from $781 million in May down to only $469 million in June. Majority of economists consider that this is because of the recent growth in exporting.
Custom brokers have recently noticed a significant escalation in exports. Due to an increase in shipments of precious metals, aircrafts, and autos, Canadian products exports has surged to $39.6 billion. An unexpected hike of U.S. shipments was responsible for around $422 million of the boost in exports, and exports going into the European Union increased by $467 million.
The Impact of the Alberta Floods
The low forecast and expectations were partially based on the prediction that the floods in Alberta would have a more significant impact on the energy sector’s exports. Custom brokers saw energy exports decrease by about $121 million.
Canada’s export sector has been hit by a strong Canadian dollar and weak foreign markets. The cumulative trade deficit for the first half of the year was $4.39 billion, which is the second highest shortfall on record for the January to June period. The highest was $4.72 billion posted in the first half of 2012.
Imports from the United States
Canada’s trade surplus with the United States was $3.8 billion in June. According to Statistics Canada, imports from the United States now total $153.3 billion, which is a new import record between the two countries. Canada imported $40 billion in goods in June, which was a slight increase over May. An increase in crude oil imports appears to be responsible for some of that increase.
The Trade Deficit of the United States
The U.S. Commerce Department has reported that their monthly trade deficit for June is the lowest it has been since October of 2009. The trade deficit has fallen a surprising 22.4% from the previous month. It was estimated to be around $43.8 billion for June, but came in at $34.2 billion.
The majority of this sizeable deficit is due to trade with China. The United States continues to import significantly more from China than it is able to export and therefore the June deficit with China was $26.6 billion. Economists and the experts at Dilas International Customs Brokers do not feel this is likely to change anytime soon.
However, American companies did ship more heavy machinery, aircraft engines, farm goods, and telecommunication equipment in June, and exports rose 2.2% to $191.2 billion. This impressive increase was a major factor in the fall of their trade deficit.
Imports and Exports Outside the United States
Imports from countries other the United States increased by 3.3% to $14.5 billion and exports to other countries were up 1.4% to $10.2 billion. Canada hasn’t experienced a trade surplus since December of 2011, and most economists are not predicting one in the foreseeable future. Please feel free to contact any of the trade experts at Dilas International Customs Brokers for further information on importing and exporting goods from Canada.
If you’re a Canadian exporter, you know all about the B13A Export Declaration form*. The highly detailed document had to be filled out every time
Face-masks, includig plastic face-masks, are eligible for the relief of duty under Certain Goods Remission Order (COVID-19), SOR-2020-101 TARIFF ITEM DESCRIPTION Face and eye protection
B13 PAPER REPORTING TO BE ELIMINATED ON JUNE 30 2020 REMINDER: For shipments containing restricted goods, or commercial goods valued at CAD $2,000 or more,