Canada’s trade deficit widens in May

Unemployment rate rises slightly in June

July 7, (AFP): Canada’s trade deficit in goods widened in May, from Can$1.9 billion ($1.45 billion) to Can$2.8 billion, as imports rose while exports edged down, the national statistical institute announced Friday.

The May figure was significantly higher than economists’ average prediction of Can$2.1 billion.

Pushed by a 17.7 percent rise in orders of aircraft and other transportation equipment — the fifth consecutive monthly rise for that category — Canadian imports rose 1.7 percent to Can$51.1 billion in May, Statistics Canada said.

The year-on-year increase was 3.5 percent.

Canada also imported 13.9 percent more refined petroleum energy products, for a total of Can$1.6 billion in May. Volume rose sharply, as several Canadian refineries were temporarily shut for the month, while prices fell slightly.

Exports were off slightly for the month, falling 0.1 percent to Can$48.3 billion, on a 3.6 percent decline in sales of motor vehicles and auto parts.

Amid trade tensions with the United States, a “disruption” in the supply of auto parts from the US in May led to a 4.9 percent decline in exports of passenger cars and light trucks.

“Over the first five months of 2018, exports of passenger cars and light trucks were down 14.6 percent compared with the same period in 2017,” Statistics Canada said.

Canada in May imported 2.9 percent more goods from countries other than

the US, its leading trade partner.

Total non-US imports were Can$18.5 billion, with the largest increases coming from China, Belgium and Germany.

Imports from the United States rose one percent in May, totaling Can$32.6 billion, but exports to the US edged down by 0.2 percent to Can$35.9 billion.

Canada’s trade surplus with the US narrowed from Can$3.7 billion in April to Can$3.3 billion in May.

Meanwhile, Canada’s unemployment rate rose slightly last month to six percent of the active population, the national statistical institute announced Friday.

That was slightly higher than analysts’ predictions of a 5.8 percent rate.

The Canadian economy added 31,800 jobs for the month, but with 75,000 people entering the work force the jobless rate rose 0.2 percent from May, Statistics Canada said.

In all, 22,700 part-time jobs and 9,100 full-time positions were created in June.

The construction, natural resources and manufacturing sectors saw the greatest job creation, while employment declined in hospitality and food services, as well as in agriculture.

Summer brought good news for some young people, as the number of those aged 20 to 24 finding jobs last month rose by 26,000, up 5.4 percent from June 2017.

But among all those aged 15 to 24, an increase of 27,000 job-seekers pushed the unemployment rate up 0.6 percentage points from May, to 11.7 percent.

The greatest numbers of new jobs were reported in the provinces of Ontario (35,000), Saskatchewan (8,300) and Manitoba (4,100), Statistics Canada said.

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GENEVA: Canada won the bulk of a ruling at the World Trade Organization on Thursday in a dispute over US duties on Canadian exports of supercalendered paper, which is used in glossy magazines and catalogues.

Canada filed the complaint in 2016, saying Washington was wrong to penalise Canada for subsidising its paper industry.

The ruling can be appealed by either side.

The panel of WTO judges declined to rule on several of Canada's arguments, but in other respects they found almost entirely in Canada's favour.

Canada had complained about US subsidy investigations into Canadian firms Port Hawkesbury Paper LP and Resolute FP, and claims that other firms had received subsidies.

It also said the US Department of Commerce had been wrong to accept allegations made by rival US firms when it discovered that Canadian firms had not fully disclosed potential subsidy programmes. The WTO panel agreed.

The ruling could deepen US President Donald Trump's ire with the global trading body. He has complained that it treats the United States unfairly, although trade experts say the US win/lose rate in trade disputes is no worse, and possibly somewhat better,