Canada's December Trade Surplus: Energy Exports Drive Growth
Canada recorded its first trade surplus in ten months in December, reaching C$708 million, driven by increased energy exports and higher crude oil prices. The surplus with the U.S. grew, while imports fell slightly. Retaliatory tariffs were rolled back, highlighting the dynamic trade relationship.

In a significant economic development, Canada achieved a trade surplus of C$708 million in December, marking its first in ten months. This growth stems from a robust 4.9% increase in exports, primarily in energy sectors, thanks to higher crude oil prices and a weaker local currency, as revealed by Statistics Canada.
With imports climbing at a slower 2.3% rate, the trade surplus surpassed expectations, as analysts had anticipated a C$750 million surplus. The surplus with the U.S. expanded for a second month, reaching C$11.3 billion, driven by energy export growth, though U.S. imports decreased by 1.5%.
Despite a decrease in the annual merchandise surplus with the U.S. from 2023 to 2024, the bilateral trade volume remains substantial at over C$1 trillion, underpinning 17.8% of Canada's GDP. The trade balance with non-U.S. countries, however, widened, indicating a nuanced global trade landscape.
(With inputs from agencies.)