Canada U.S Trade Deficits: Contrasting Stories

International Trade Deficit Narrows to $927M in September

(Ottawa Business Journal)

Canada's international trade deficit narrowed to $927 million in September from $1.99 billion, amid stronger export numbers and a slight decline in imports, although the positive news was tempered by the fact that the country's trade surplus with the United States also shrank.

The Statistics Canada report showed exports grew 3.5 per cent to $30.26 billion, while imports edged down 0.1 per cent to $31.18 billion.

Export volumes increased 4.5 per cent, as Canada's outward-bound trade continued rebounding after reaching a low point in May 2009. Exports have increased in three of the past four months, the report added, following a downward trend that began in July 2008.


U.S. Trade Gap Widens as Imports Outpace Exports

(Wall Street Journal)

The U.S. trade deficit widened more than expected in September while import prices rose less than forecast, in line with the Federal Reserve's view that the economy is recovering slowly with inflation staying low.

The trade deficit rose 18.2% to $36.5 billion in September as rising imports, especially for oil, continued to offset export gains. The trade gap with China reached its highest level in nearly a year. Economists surveyed by Dow Jones Newswires had expected the September deficit would widen to just $32 billion.

U.S. exports in September rose 2.9% to $132.0 billion from $128.30 billion the previous month, the Commerce Department reported Friday. Imports rose twice as much, growing 5.8% to $168.4 billion from $159.1 billion. Read more here.