(OTTAWA) Canada’s merchandise trade deficit with the rest of the world narrowed last July, from a revised $4.9 billion in June to $987 million the following month, according to Statistics Canada.

The federal agency said that in July, Canada’s merchandise imports fell by 5.4%, while exports increased by 0.7%.

The 5.4% drop in imports was the largest percentage decline since January 2022. Overall, imports in nine of the eleven product sections fell last July, as they did in May and June, with unwrought gold imports contributing the most to the monthly movement.

Statistics Canada notes that the strike at marine terminals in British Columbia affected July imports and exports to the country.

Nevertheless, the declines in exports attributable to the strike were more than offset by the increases posted for products less affected by this labor dispute. Thus, in July, exports of aircraft and other transport equipment and parts increased by 23.4% to reach a peak of 3.2 billion.

On the other hand, after four consecutive months of sharp declines, exports of agricultural and fishing products, as well as those of intermediate food products, increased by 9.7% in July.

Statistics Canada reports that after peaking at $11.4 billion in June, Canada’s trade deficit with countries other than the United States narrowed to $8.4 billion in July.

As for imports from the United States, Canada’s main trading partner, they fell by 0.6% in July, while exports to this country increased by 1.5%. As a result, Canada’s trade surplus with the United States increased from $6.4 billion in June to $7.4 billion in July.