Canada's merchandise trade deficit narrowed to C$1.9 billion in January from C$3.1 billion in December 2017, reflecting widespread declines in imports, Statistics Canada said.
January imports dropped 4.3% to C$47.7 billion following a record high in the previous month as all commodity sectors posted declines. Industrial machinery, equipment and parts, consumer goods, and electronic and electrical equipment and parts drove the decline in January.
Exports fell 2.1% to C$45.8 billion in the month after increasing for three straight months, reflecting lower exports in seven of the 11 sectors. Exports of motor vehicles and parts, which fell 5.7% to C$7.2 billion, drove the decrease in exports.
Canada's trade surplus with the U.S. narrowed to C$3.1 billion in January from $3.6 billion in the previous month. The figure reflects a decline of exports to the U.S. of 2.9% to C$34.1 billion and a decrease in imports by 1.8% to C$30.9 billion.
