OTTAWA, (Dec. 16, 2004) — Canada’s merchandise trade surplus with the world fell for the second consecutive month in October to its lowest level in a year, mostly because of declining exports.

A Statistics Canada report shows the surplus hit $4.4 billion in October, down from a revised $5.0 billion in September. October’s level was $3.0 billion lower than the most recent high of $7.4 billion in June, which was the biggest surplus in three and a half years.

Canadian companies exported $35.6 billion in merchandise in October, down 1.1 per cent from September and the fourth consecutive monthly decline. The strong Canadian dollar and shipping congestion at Canadian ports were likely contributors to the lower export traffic.

In contrast, imports rose for the second month in a row in October. They edged up 0.9 per cent to $31.3 billion, primarily the result of a 16.5 per cent surge in imports of energy products.

Canada’s trade surplus with the United States narrowed from $7.9 billion to $7.6 billion as exports south of the border fell at more than twice the rate of imports. Canadian companies exported $28.8 billion in merchandise to the United States, down 1.6 per cent, while our imports from south of the border edged down 0.7 per cent to $21.2 billion.

A $240-million plunge in exports of Canadian forestry products to the United States accounted for the majority of October’s overall decline.