Canada has first trade deficit since 1976

Canada recorded its first monthly international trade deficit since 1976 in December, which had declines in imports and exports, Statistics Canada reported.

Exports dropped 9.7 percent to $35.3 billion and imports fell 5.7 percent to $35.8 billion, the federal agency said.

This resulted in a trade deficit of $458 million compared with a trade surplus of $1.2 billion in November, StatsCan said, noting it was the first trade deficit since March 1976.

Exports to the United States dropped 10 percent to $25.9 billion, lowering the trade balance from $4.6 billion in November to $3.8 billion in December, the report said.

Canada’s trade deficit with other countries grew to $4.2 billion from $3.4 billion in November, as exports declined 9 percent and imports fell 1 percent.

The leading decliner among exports was crude petroleum, which fell 29.1 percent to $2.8 billion, the lowest level since March 2006. The agency attributed the decrease to a 25 percent drop in prices.