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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 dropped 2.9 per cent.

Statistics Canada said the value of imports was down 3.5 per cent to $29.8 billion, with a 4.9 per cent cut in prices. Volumes rose 1.5 per cent.

Canada’s dollar appreciated 6.4 per cent against the U.S. dollar in May.

Exports and imports declined for the third straight month in May. Export volumes have fallen 23.7 per cent and prices have declined 16.2 per cent since last July, as import volumes fell 24.5 per cent and prices edged down 0 business card.1 per cent. StatsCan says declines spread across all sectors,but weak global demand for energy products and auto-industry restructuring accounted for more than half the drop in exports and imports.

The value of exports to the United States fell 8.1 per cent to $20.3 billion as that of imports fell 3.3 per cent to $18.8 billion. That shrank Canada’s trade surplus with the U.S. to $1.5 billion from $2.6 billion in April. The trade deficit with other countries narrowed to $2.9 billion from $3 billion, as exports and imports both fell 3.7 per cent.

The Canadian Press

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