OTTAWA — Canada’s exports surged to a new monthly peak in the last month of 1005, as well as to a new annual record, despite a Canadian dollar that hit its highest level since the early 1990s, according to Stats Canada.

Canadian companies exported merchandise worth $41.3 billion in December, up 3.9 percent from the month before. With foreign goods cheaper to purchase because of the rising loonie, imports also rose 2.3 percent to $33.6 billion.

As a result, Canada’s trade surplus with the world soared to $7.69 billion in December, up from a revised $6.89 billion in November. This was the second highest level ever, but well below the $8.59 billion record reached in January 2001.

The surplus with the U.S. hit a record $11.6 billion, surpassing the old mark of $11.4 billion set in October. Exports destined for the U.S. surged 3.9 percent, while imports from south of the border jumped 3.0 percent.

Energy products comprised Canada’s top
growing export commodity last year

Overall, energy products comprised Canada’s top growing export commodity last year in terms of value. Exports surged 28.6 percent as back-to-back hurricanes on the US Gulf Coast drove down the supply of natural gas and crude petroleum and sent prices soaring. Excluding energy, exports would have grown at only half the pace. Energy products were a driving force behind export gains in 8 of the 12 months of 2005.

Machinery and equipment exports also grew for the third straight month, rising 3.1 percent to $8.2 billion. This was a result of strong exports of aircraft, engines and parts, along with exports of telecommunications and related equipment which jumped 5.6 percent to $1.2 billion.

Exports of industrial goods and materials reached record levels, rising 2.7% to $7.4 billion. The growth was widespread among metals and alloys, metal ores and chemicals, plastics and fertilizers.

Forestry products posted a 4.3 percent gain in December, reaching $3.1 billion. Lumber and sawmill products led the increase with a 5.3 percent jump to $1.6 billion.

On the down side, exports of automotive products declined following five monthly increases, slipping 1.5 percent to $7.8 billion. Passenger autos and chassis were the main contributors, dropping 4.1 percent to $4.2 billion. However, exports of motor vehicle parts rebounded after two months of decline with a 3.5 percent increase to $2.2 billion.

Imports finished the year with their fourth monthly increase in a row in December. Imports of industrial goods and materials climbed 9.1 percent to $7.0 billion. The growth was widespread as each major group saw imports rise.

Chemicals and plastics also reached a record high, increasing 7.7 percent to $2.6 billion, while imports of machinery and equipment edged up 1.8 percent to $9.6 billion.

Imports of automotive products rebounded from a November decline, rising 1.7 percent to $6.6 billion, with motor vehicle parts responsible for the majority of the rise, jumping 3.1 percent to $3.4 billion.