OTTAWA — Exports to non-U.S. countries reached their highest level ever, but even southbound shipments have rebounded in the first five months of 2008.

According to Stats Canada, Canadian exports rose for the fifth consecutive month in May, increasing 5.4 percent to $42.1 billion, as both volumes and prices increased. However, since November 2007, export prices have been on the rise, while volumes have been on a downward trend.

Imports also increased 3.9 percent to $36.6 billion, their jump since July 2007. Import prices have been on an upward trend for the past seven months, while movements in volume have been more volatile.

Exports to the U.S. have slowed in recent years, but they increased for the fifth month in a row, reaching $31.3 billion, their highest level since December 2006. Imports grew by almost the same dollar value as exports, leaving the trade surplus with Canada’s largest trading partner virtually unchanged at $8.1 billion.

Meanwhile, exports to countries other than the U.S. surpassed the $10-billion mark. Since the growth in exports was twice as large as the rise in imports, the trade deficit narrowed to $2.5 billion from $3.3 billion.

This growth was partially attributed to increased coal and other energy exports, which rose 8.1 percent to $11.6 billion in May.
Exports of industrial goods and materials increased 9.0 percent in May to $9.6 billion, while agricultural and fishing products increased 2.6 percent to $3.5 billion.

Not surprisingly, though, exports of automotive products declined for the third month in a row, decreasing 3.5 percent in May. Higher gas prices and the economic slowdown in the U.S. have weakened demand for automotive products stateside.