Canada’s Surprise Deficit Provides No NAFTA Comfort — Panjiva
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Canada’s Surprise Deficit Provides No NAFTA Comfort

Canada 507 Cons. Discr. - Autos 1209 Energy - Refined Oil 199 Materials - Metals/Mining 771 Trade Balance 933 U.S. 5354 USMCA 458

Canada’s trade deficit widened to C$3.6 billion ($2.9 billion) in June, which was 2.9x economists’ expectations. A 10% rise in imports included a 73% jump in metals imports and the second highest level of aircraft purchases on record. Export growth to the U.S. reached 7%, outpacing imports for the ninth straight month. That makes for an unhelpful backdrop to NAFTA talks. Added to that, Canada’s automotive “surplus” in completed vehicles – mostly with the U.S. – climbed to its highest since February 2016, which may also prove controversial in this month’s NAFTA talks.

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