GHY Tradelines

(David Ljunggren – Reuters)

Canada’s trade deficit leapt in April as imports hit a record high and exports edged down, a further sign that exporters’ woes are helping to crimp growth, Statistics Canada data indicated on Tuesday.

The April deficit hit C$567 million ($550 million), slightly more than the C$550 million shortfall analysts had expected. Statscan also revised March’s initial C$24 million surplus to a deficit of $3 million.

The revision means Canada has posted 16 consecutive monthly trade deficits as exporters struggle to cope with a strong Canadian dollar and uncertainty in major markets such as the United States and the European Union. Read more here.
 

(Journal of Commerce)

Import volume at the U.S.’s major retail container ports is expected to rise 3.3% in May compared with the same month last year, but growth could slow to a standstill by the end of the summer, according to the monthly Global Port Tracker report released by the National Retail Federation and Hackett Associates.

“The weak cargo increases expected over the next few months are consistent with other signs that the economy is slowly improving but show that retailers remain cautious, especially when it comes to stocking their inventories,” said Jonathan Gold, NRF vice president for supply chain and customs policy, in a written statement. “We’re looking at barely 1% of year-over-year growth through the early summer, and August and September are expected to be basically flat, even though they’re supposed to be two of the busiest months of the years.” Read more here.
 

(Today’s Trucking)

Trucks moved nearly 55% of freight between the United States and Canada in February 2013, according to the United States Bureau of Transportation Statistics (BTS).

Of the $48.9 billion of goods moved between the two countries, other methods of transport such as rail followed at just 17%, with pipelines at 13.3%, while vessels and air trail behind at 5.3 and 4.4%, respectively. In total, surface transportation brought almost 85% of freight to Canada. Read more here.
 

(Nasdaq)

The U.S. trade deficit fell far more than expected in March as imports slumped, particularly from China.

The overall deficit contraction is likely to be a small boost to the U.S. recovery. But the fact that both exports and imports shrank could be another indication of a moderate spring slowdown. The U.S. deficit in international trade of goods and services declined 11% to $38.83 billion from a revised $43.63 billion deficit the month before, the Commerce Department said Thursday. Economists surveyed by Dow Jones Newswires had expected the gap to shrink to $42.1 billion.

The March trade gap with the country’s second largest trade partner, China, fell to its lowest level in three years. Previously-released China trade data showed a large contraction in sales to the U.S. following the national lunar new year celebration in February, which shuts down manufacturing for days. Read more here.
 

(Statistics Canada)

Canada’s merchandise exports increased 5.1% in March and imports rose 1.7%. As a result, Canada’s trade balance went from a deficit of $1.2 billion in February to a surplus of $24 million in March.

Exports grew to $40.5 billion in March, and have been on an upward trend since July 2012. Gains were recorded in all sections during the month and export volumes were up 5.1%.

Imports rose for a third consecutive month to reach $40.4 billion, their second highest value on record. The main contributors to the monthly increase were energy products and metal and non-metallic mineral products. Overall, prices grew 1.4% and volumes were up 0.3%.

Exports to the United States rose 4.0% to $29.5 billion in March, on higher exports of motor vehicles and parts and energy products. Imports from the United States were up 2.0% to $25.6 billion, a third consecutive monthly advance. Consequently, Canada’s trade surplus with the United States increased from $3.2 billion in February to $3.8 billion in March.

Exports to countries other than the United States rose 7.9% to $11.0 billion in March. All principal trading areas registered gains, with Japan (+25.2%) recording the largest percentage increase. Imports from countries other than United States grew 1.2% to $14.8 billion. As a result, Canada’s trade deficit with countries other than the United States decreased from $4.4 billion in February to $3.8 billion in March. Read more here.
 

(STR Trade Report)

Trade statistics released April 5 by the Department of Commerce show that the monthly U.S. trade deficit dropped 3.4% in January to $43.0 billion after a 16.5% jump in January. Monthly exports rose 0.87% to $186.0 billion and imports saw a slight gain to $228.9 billion. Press reports indicate that these figures reflect a drop in oil imports to their lowest level since 1996 and an improving demand for U.S. goods in foreign markets. Compared to a year earlier the February trade deficit was down $1.6 billion as exports increased by 3.2% ($5.8 billion) and imports saw a 1.9% gain ($4.2 billion).

The monthly deficit in goods trade declined 2.4% in February to $60.2 billion. Exports of goods rose 1.0% to $132.2 billion while imports edged downward to $192.4 billion. The services surplus was virtually unchanged at $17.3 billion as exports and imports both moved up $0.2 billion to $53.8 billion and $36.5 billion, respectively.

The bilateral trade deficit with China resumed its downward slide in February, falling 15.8% to $23.4 billion a month after a 13.5% gain. The U.S. also saw smaller deficits with Japan (3.3% to $5.9 billion), OPEC (43.8% to $3.6 billion), Canada (45.8% to $2.6 billion), India (20% to $1.2 billion), Korea (42.9% to $1.2 billion) and Venezuela (45% to $1.1 billion). Deficits increased with the European Union (2.3% to $8.8 billion), Germany (7.1% to $4.5 billion), Mexico (19.4% to $4.3 billion) and Ireland (15.8% to $2.2 billion).

The U.S. continued to run surpluses with several trade partners, including Hong Kong (up 22.2% to $3.3 billion), Australia (up 8.3% to $1.3 billion), Singapore (up 28.6% to $0.9 billion) and Brazil (up 88.9% to $1.7 billion).
 

(Reuters)

Lower exports and slightly higher imports pushed Canada’s trade deficit in February up to C$1.02 billion ($1.01 billion) from a revised shortfall of C$746 million in January, Statistics Canada said on Friday.

Market operators had expected a modest surplus of C$200 million after the initial C$237 million deficit reported in January. Read more here.
 

(CBSA)

This notice is for the attention of importers and custom brokers who are involved in the importation of steel and steel products.

As you may know, through the Canada Border Services Agency’s (CBSA) Pathfinder Solution, Foreign Affairs and International Trade Canada (FAITC) has been able to implement a new import permit process for steel and steel products that came into effect on April 1, 2012.   The Pathfinder Solution provides Participating Government Agencies with relevant commercial trade data currently collected by the CBSA and is the forerunner to the Single Window Initiative.  The quality of the B3 data provided by importers/brokers to the CBSA and shared through the Pathfinder Solution allowed FAITC to apply this data against permit requirements and thereby eliminate FAITC’s separate reporting requirements for steel and steel products.

Modernizing the steel import permit process has resulted in a significant reduction of paper permits as well as the elimination of the steel permit fee, resulting in savings to trade. The success and continuation of the Pathfinder Steel Import Reporting process is dependent upon the accurate reporting of B3 data.

The purpose of this notice is to remind importers and customs brokers of the importance of reporting accurate B3 data to the CBSA for the importation of steel and steel products.  In particular, importers and custom brokers are requested to pay particular attention to the reporting of value, quantity, origin, and tariff classification.

Errors in data submission result in an inability to effectively monitor steel import volumes and pricing, thereby inhibiting the CBSA’s mandate to promote and protect Canadian business and international trade obligations.  This data is also critically important to the FAITC Steel Monitoring program; poor data quality results in an inability for FAITC to effectively monitor the importation of steel and steel products as per its mandate under the Export and Import Permits Act.

In addition, inaccurate reporting of B3 data places importers and customs brokers at risk of increased scrutiny whether through examinations at the border, post border importer audits or possible penalties applicable under the Administrative Monetary Penalties System.

We strongly encourage importers and custom brokers to examine their current data entry practices and implement improved processes for ensuring the quality of the data that is being reported on the B3.

For additional information regarding the Steel Monitoring Program, please refer to the Foreign Affairs and International Trade Canada website here.
 

(Journal of Commerce)

Import cargo volume at the United States’ major retail container ports is expected to rise 2.3% in March compared with the same month last year, despite federal spending cuts that could slow down cargo processing, according to the monthly Global Port Tracker report from the National Retail Federation and Hackett Associates.

“Retailers are aware of the impact of the cuts on customs operations at the ports and are working to plan accordingly so the impact on merchandise headed for the store shelves is minimized,” said Jonathan Gold, NRF’s vice president for supply chain and customs policy, in a written statement. Read more here.
 

(NYT)

Chinese exports soared beyond forecasts to rise by a fifth in February from the level of a year ago, data from China’s General Administration of Customs showed Friday, a sign that the country’s modest economic revival is intact and a suggestion that global demand might also be on the mend.

Chinese imports, however, were surprisingly weak, falling 15.2% from a year earlier to a 13-month low, the customs data showed.

Exports rose 21.8% in February from a year earlier. A Reuters poll of 22 economists had forecast that February exports would grow 10.1%, while imports would fall 8.8%. Export growth to the United States was the strongest in a year, and export growth to the euro zone the strongest in 18 months. Read more here.
 

(Reuters)

Canada’s trade deficit in January dwindled to just C$237 million ($230 million) as exports grew at a faster rate than imports, Statistics Canada said on Thursday.

The deficit – less than the C$600 million predicted by market operators – represented the best performance since the C$21 million surplus recorded in March 2012. Statscan revised December’s deficit to C$332 million from an initial $901 million. Read more here.
 

(Canada.com)

The country’s economic growth is facing another set of challenges and weakness in exports is weighing particularly heavy on the Bank of Canada’s outlook, governor Mark Carney said Monday.

“In the very near term, more of the elements of the downside risk have materialized than the upside risk,”‘ Carney said after a speech to students at the Richard Ivey School of Business in London, Ont. “We’ve dampened our forecast of exports because we’re seeing a competitiveness challenge – a productivity issue. Even with that, the export performance has been lower on average than we have expected.”

The country’s central banker made the comments following disappointing economic data last week that showed inflation at its lowest point in more than three years and a holiday shopping season that fell short of expectations, all of which has helped send the Canadian dollar below parity with its U.S. counterpart. Read more here.
 

(Globe & Mail)

China has surpassed Britain as Canada’s No. 2 export destination, a milestone in the inevitable shift from the stagnant Old World to faster-growing emerging markets.

Canadian goods exports to China surged 15 per cent last year to $19.3-billion, paced by a near-doubling of canola seed and canola oil shipments, according to newly tabulated government trade figures.

It’s a case of “China meets Saskatchewan,” Dan Ciuriak, former deputy chief economist at the Department of Foreign Affairs and International Trade, said of the numbers showing China topping Britain for the first time. Exports to Britain fell nearly 1 per cent to $18.6-billion. Read more here.
 

(STR Trade Report)

U.S. Customs and Border Protection has issued a report on import trade trends for fiscal year 2012. Among other things this report includes the following statistics on import value, revenue, source countries, entry summaries, consignees, compliance rates and trade partnership programs for the period Oct. 1, 2011, through Sept. 30, 2012.

- records were set in total import value at $2.38 trillion (up 5% from FY 2011) and total revenue collected at $39.4 billion (up 6%)

- 53% of total import value was imported from China ($418 billion), Canada ($320 billion), Mexico ($275 billion), Japan ($145 billion) and Germany ($105 billion)

- total duty collections also hit a record at $31.2 billion (up 4.7%) but estimated duty undercollections jumped 41.5% to $484 million

- $20 billion in duties were paid on imports from the top five duty-paying source countries (China, Japan, Germany, Vietnam and Indonesia), up from $19 billion

- antidumping duty deposits jumped 12.8% to $371 million and countervailing duty deposits soared 160% to $69 million

- the percentages of imports that were of dutiable value (31%), conditionally free value (21%) and duty-free value (47%) were virtually unchanged from FY 2011 and have varied only slightly over the past five years
Read more »

(RTTNews)

America recorded a much narrower than expected trade deficit in the month of December, according to a report released by the Commerce Department on Friday, with the data potentially leading to an upward revision to the disappointing fourth quarter GDP data.

The report showed that the U.S. trade deficit narrowed to $38.5 billion in December from a revised $48.6 billion in November. Economists had expected the deficit to shrink to $46.0 billion from the $48.7 billion originally reported for the previous month.

The much narrower than expected trade deficit came as the value of exports rose by 2.1%, while the value of imports fell by 2.7%.
 

(iPolitics – BJ Siekierski)

According to new data from the OECD and WTO, Canadian exports to the U.S. are much lower than conventional trade statistics indicate.

Released Wednesday, the collaborative Trade in Value-Added Database (TiVA) is the first attempt by the two bodies to better measure the impact of intermediate imports in global value chains. Unlike conventional trade statistics, which only measure the final export of a good from one country to another, value-added trade statistics try to capture every stage of the production process – including all the countries and inputs involved.

When applied to Canada, the most noticeable finding is a decrease in Canadian exports to its largest trading partner. “The U.S. is by far Canada’s main trading partner, accounting for 58% of its exports and 44% of its imports in value-added terms,” they say in their analysis.  “This is significantly lower than the share of gross exports (70%) and imports (48%) with the US, reflecting intermediate input trade within NAFTA.”

The Conference Board of Canada reached a similar conclusion a year ago, concluding that, in value-added terms, the U.S. share of Canadian trade was closer to 61.8% than 69% – where conventional measures pegged it. Read more here.
 

(RTTNews)

The U.S. trade deficit unexpectedly widened in the month of November, according to a report released by the Commerce Department on Friday, with a jump in imports more than offsetting an increase in exports.

The report showed that the trade deficit widened to $48.7 billion in November from a revised $42.1 billion in October.

The wider deficit surprised economists, who had expected the deficit to narrow to $41.1 billion from the $42.2 billion deficit originally reported for the previous month. Read more here.
 

(IndustryWeek – AFP)

Slow and steady growth seems to be the consistent pattern for the year as import volume still has not returned to 2007 or 2008 levels.

A total of over 17.6 million TEUs (twenty-foot-containers) were imported in 2012, roughly 200,000 more containers than 2011, according to a study done by Zepol Corp. This translates to an import increase of 1.2% in 2012.

Slow and steady growth seems to be the consistent pattern for the year as import volume still has not returned to 2007 or 2008 levels. There was a large spike from 2009 to 2010 and then a plateau-like trend for the past three years, although 2012 was an especially unique year for U.S. imports, according to Zepol. Read more here.
 

(BJ Siekierski — iPolitics)

The WTO released its 2012 trade policy review of the United States on Tuesday, which — though not exactly full of surprises — did include one curious observation for those with an interest in Canadian trade policy.

“For the first time, in 2011, Mexican imports (into the U.S.) under NAFTA preferences surpassed Canadian imports.”

At first glance, that would seem to suggest a potentially troublesome development for Canadian exporters.

But then you look at the overall numbers and you see that Canada still exported more to the U.S. than Mexico did in 2011, and Canadian goods also surpasses Mexican products under the most favoured nation preferences the U.S. gives to all members of the WTO.

Again, Mexico’s superior performance only applied to its exports given preferential treatment under NAFTA.

But still, for that to suddenly change after 18 years should mean something, right?  Read more here.
 

(Lloyd’s Loading List – Roger Hailey)

Hurricane Sandy and west coast port strikes led to U.S. containerized imports falling by 12.8% from October to November, marking a new monthly inbound volume low since February 2012.

Minneapolis-based trade data research house Zepol reported that November’s 1.2 million teu figure for U.S. import volumes was down 15.2% on the same month in 2011, the lowest inbound box volume for November since 2003.

“Hurricane Sandy on the east coast, and labour strikes on the west, certainly played a large factor in the import slump,” said Zepol.

“For the last two years, November imports have been over 1.4 million teu, though this year’s patterns have been changing. So far in 2012, the peak in imports has shifted to earlier in the summer and there hasn’t been a rise in imports month-over-month since July.” Read more here (subscription required).