OTTAWA - Canada's trade deficit with the world widened to $1.4 billion in May from $389 million in April.
Merchandise exports fell 6.9 per cent to $28.4 billion in May, as volumes declined 4.1 per cent and prices decreased 2.9 per cent.
Statistics Canada reports imports were down 3.5 per cent to $29.8 billion due to a 4.9 per cent reduction in prices, while volumes rose 1.5 per cent.
The Canadian dollar appreciated 6.4 per cent against the U.S. dollar in May.
The agency says exports and imports declined for the third straight month in May and have been trending downwards since July 2008.
Export volumes have fallen 23.7 per cent and prices have declined 16.2 per cent since last July.
In comparison, import volumes have fallen 24.5 per cent while prices have edged down 0.1 per cent during the same period.
StatsCan says that, although the declines were widespread across all sectors in May, the continued weakness in global demand for energy products and the restructuring of the automotive industry accounted for more than half of the decrease in exports and imports.
Exports to the United States fell 8.1 per cent to $20.3 billion, largely the result of lower exports of automotive products and crude petroleum. Imports decreased 3.3 per cent to $18.8 billion.
Consequently, Canada's trade surplus with the United States shrank to $1.5 billion in May from $2.6 billion in April.
Canada's trade deficit with countries other than the United States narrowed to $2.9 billion in May from $3 billion in April. Exports and imports both fell by 3.7 per cent.
All export sectors declined, with the largest movements observed in energy products and automotive products.
