Canada’s Trade Flat, Conference Board Says

(Montreal Gazette – John Morrissy, Canwest News Service)

On a day when trade failed to deliver the goods, the Conference Board of Canada warned this country must change its game to survive in the future against fierce competitors.

“For a country that considers itself a major trading nation, the trend lines for Canadian trade are uncomfortable. Canada’s trade in real terms has been flat over the past decade,” said the board’s chief economist, Glen Hodgson. “International trade is a tough business at the best of times, and it is about to get tougher. While Canada has some clear areas of strength in global trade, it is also up against exceptionally fierce competitors and can no longer rely on a weak dollar or proximity to the U.S. market. The answer is to refocus our trade policy efforts.”

Statistics Canada released trade figures [June 10] showing Canada posted a smaller-than-expected surplus in April, growing to $175 million where economists had been calling for a $600-million advance. The numbers “surprised to the downside,” said TD Securities Portfolio strategist Ian Pollick, who pointed out exports grew in only three of seven sectors.

Overall, exports fell one per cent, while imports slipped an even greater 2.2%. Read more here.