OTTAWA — Exports and imports declined for the third consecutive month in May and have been trending downwards since July 2008.

Canada’s merchandise exports fell 6.9 percent to $28.4 billion in May, as volumes declined 4.1 percent and prices decreased 2.9 percent, reports Stats Canada.

Imports were down 3.5 percent to $29.8 billion. As a result, Canada’s trade deficit with the world widened to $1.4 billion in May from $389 million in April.

However, the declines observed in March, April and May 2009 were less pronounced than those at the end of 2008 and January 2009.

Meanwhile, the Canadian dollar appreciated 6.4 percent against the US dollar in May.

Since July 2008, export volumes have fallen by 23.7 percent and prices have declined by 16.2 percent. In comparison, import volumes have fallen by 24.5 percent while prices have edged just down 0.1 percent during the same period.

Although the declines were widespread across all sectors in May, the continued weakness in global demand for energy products and the restructuring of the automotive industry accounted for more than half of the decrease in exports and imports.
Exports to the United States, specifically, fell 8.1 percent to $20.3 billion, largely the result of lower exports of automotive products and crude petroleum, which have been affected by the economic downturn.

Imports decreased 3.3 percent to $18.8 billion.

Consequently, Canada’s trade surplus with the United States shrank to $1.5 billion in May from $2.6 billion in April.