XPost: can.politics, bc.politics, ab.politics   
   From: Panca@nyet.ca   
      
   CBC News Posted: Oct 03, 2014   
      
      
   Canada's export recovery stalls as oil price falls   
   U.S. trade deficit narrows with help of domestic oil boom   
      
      
   Canada’s trade balance with the world shifted from a surplus to a deficit in   
   August, as exports stalled and the pace of imports picked up.   
      
   That is a sharp contrast to the U.S., where the trade deficit narrowed to $40.1   
   billion US,  compared to a revised $40.3 billion in July, mainly because of   
   improved exports.   
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   In Canada, there was a deficit of $610 million Cdn in August, compared to an   
   adjusted surplus of $2.2 billion in July.   
      
   The recovery of Canadian exports, which economists had counted on because of   
   the lower loonie, faded in August.   
      
   Exports were down 2.5 per cent to $44.2 billion, mainly because of weakness in   
   auto parts and energy products.   
      
   The falling price of crude oil helped contribute to the downturn as producers   
   are getting 4.9 per cent less per barrel. New York contracts fell from a high   
   of $104 US a barrel in July to hover just above $95 in August, and they've   
   fallen further to as low as $88 this month.   
      
      
   Imports rise in Canada   
      
   Meanwhile Canada's merchandise imports rose 3.9 per cent, with a spike in   
   imports of precious metals and their alloys and crude oil and energy   
   products.   !!   
      
      
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   Imports from the United States rose 1.4 per cent to $29.7 billion, while   
   exports fell 2.5 per cent to $33.3 billion, shrinking the trade surplus with   
   that country to $3.5 billion in August from $4.8 billion in July.   
      
   The strengthening U.S. economy was meant to boost Canada’s export potential,   
   but the recovery has been spotty.   
      
   The August trade numbers were "a bit of a cold shower,"  Export Development   
   Canada chief economist Peter Hall said, though he was optimistic about the rest   
   of the year.   
      
   "Even though we've taken a one-month hit here, it certainly is a pause in a   
   very strong trend," he said in an interview.   
      
   Hall said exports have expanded by 10.5 per cent since the previous year.   
      
      
   U.S. deficit narrows   
      
   U.S. exports continue to edge upwards despite the higher U.S. dollar.   
      
   Exports increased 0.2 per cent to a record $198.5 billion, aided by increased   
   sales of petroleum, telecommunications equipment and industrial engines.   
   Imports also rose by a smaller 0.1 per cent to $238.6 billion.   
      
   The U.S. oil and gas boom continues to improve its trade outlook. For petroleum   
   products, the trade deficit fell by $1.4 billion, partly as a result of falling   
   prices and stronger exports.  U.S. exports of petroleum were up 2.2 per cent to   
   $14.1 billion while petroleum imports fell 3.8 per cent to $27.2 billion.   
      
   “The dynamics in this month's trade report can almost entirely be viewed   
   from a   
   petroleum vs non-petroleum perspective,” TD economist Andrew Labelle said in   
   a   
   note to investors.   
      
   “Ex-petroleum, the deficit significantly rose, however it was more than   
   offset   
   by a sharper drop in the deficit for petroleum products. This story is expected   
   to continue going forward, as gains in U.S. shale energy production will be at   
   least partly offset by higher imports owing to robust domestic demand.”   
      
   Labelle warned that the rising U.S. dollar and the muted outlook for global   
   growth risk threatening this improvement in the U.S. trade deficit.   
      
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