OTTAWA — Canadian merchandise exports increased in November for only the third time in 2007, halting a three-month decline. At the same time, imports increased but at a slower pace, Stats Canada reports.

Canadian companies exported $37.9 billion worth of merchandise, a 3.1 percent increase, while imports rose 1.7 percent to $34.2 billion, partially reversed a decline in October.

While exports to most of the world have grown since early 2006, the share of Canada’s exports to the United States continues to fall. In November, exports to the United States accounted for 75 percent of the total compared with 82 percent in January 2006.

In November, the Canadian dollar hit its highest level against its American counterpart. During the first 11 months of 2007, says StatsCan, the loonie appreciated 22 percent against the greenback. However, the net impact of this appreciation on individual traders is unclear since nearly two-thirds of exporters were also importers. Furthermore, almost half of these traders imported more than they exported.

Overall, for the first 11 months of 2007, exports were 0.7 percent below levels reached in the same period in 2006, while imports were up 2.5 percent.
All sectors other than consumer products recorded growth in exports, with energy products and industrial goods and materials accounting for the largest share of the increase.

Exports of industrial goods and materials grew 4.8 percent to $8.5 billion, partially reversing three consecutive months of decline. The bulk of the advance stemmed from strong increases for metal ores (+9.8%) and chemicals, plastics and fertilizers (+8.1%).

Energy products soared 5.4 percent to $7.8 billion, as crude petroleum exports jumped 13.1 percent, reaching a record high of $4.1 billion.
Machinery and equipment rose 3.3 percent to $7.8 billion, propelled by an 11.4 percent increase in aircraft, engines and parts.

Automotive products climbed a marginal 1.5 percent to $6.3 billion, largely driven by motor vehicle parts, which grew 6.9 percent, following three consecutive declines.

Exports of agricultural and fishing products experienced widespread increases across most of the sector, rising 2.4 percent to $2.8 billion.

Forestry products increased for the first time since March and only the third time in eleven months, rising 1.2 percent to $2.2 billion. Exports of forestry products have been generally on the decline since early 2004.

Imports Fuelled by Rising Energy Products:

Meanwhile, imports of energy products soared a whopping 20.8 percent to $3.3 billion, largely on the strength of both crude petroleum and other energy products.

Automotive products advanced 1.9 percent to $6.7 billion, as imports of both truck and other motor vehicles and passenger auto and chassis increased significantly.

Machinery and equipment continued its downward trend for the fourth consecutive month, however, falling 3.4 percent to $9.3 billion, the result of widespread declines in all sub-sectors.