Canada: November’s merchandise trade report could hardly be described as positive – NFB

The trade deficit in November in Canada narrowed in November to CAD 1.09 billion. According to Jocelyn Paquet, analyst at National Bank of Canada points out the report showed the effects of the  Canadian National (CN) railroad workers strike. 

Key Quotes:

“Despite a reduction of the deficit in Canada, November’s merchandise trade report could hardly be described as positive. Two-way trade (exports + imports) fell no less than 1.9% in the month although some of this deterioration could be attributed to a week-long work stoppage at CN, the country’s largest rail network. According to Statistics Canada, the strike significantly reduced trade by rail, especially on the exports side.”

“Export volumes fell sharply in the month, led by a 14.6% collapse in the crude oil/bitumen segment, the largest monthly decline observed since 2003. On top of the rail delays, crude oil shipments also suffered from disruptions in pipeline transportation following a rupture in late October. As a result, export volumes of this key commodity now stand at their lowest level in nearly two years.”

“The CN strike having ended in late November, we can expect goods exchanges to have bounced back in December, but this rebound is unlikely to prevent a negative contribution to growth from merchandise trade in the last quarter of 2019.”