Canada's trade surplus widened to Can$2.1 billion (US$1.7 billion) in October as exports and imports soared to record highs, the government statistical agency said Tuesday. Up from a downwardly revised Can$1.4 billion surplus in September, the trade figure was in line with expectations. According to Statistics Canada, exports were up 6.4 percent to Can$56.2 billion, while imports rose 5.3 percent to Can$54.1 billion. The sharp rise in trade was led by a rebound in the auto sector, as well as energy products. Autos and energy accounted for 80 percent of the increase in exports, while two-thirds of the rise in imports was attributed to autos. "Overall, solid data today," commented CIBC Economics analyst Andrew Grantham. But he warned that changes in commodity prices since October, floods in westernmost British Columbia and the emergence of the Omicron variant of Covid-19 "will impact next month's data." Statistics Canada said stoppages at auto assembly plants due to semiconductor chip shortages continued to affect Canadian car manufacturers in October, but they were less significant than in previous months. Crude oil led the rise in energy exports. Coal exports also rose 63 percent to a record high, the agency said.
Imports of refined petroleum products were also up. Following two consecutive months of low levels, exports of canola more than doubled in October, mainly to China, Japan and Mexico. Imports of clothing, footwear and accessories increased the most among consumer goods in October, up 15 percent mainly on higher imports from Asian countries. Pharmaceutical imports were up in part due to purchases of Covid vaccines. Meanwhile, Canada's trade surplus with the United States -- it's largest trading partner -- narrowed slightly to Can$8.3 billion in October.