Canada's Trade Resilience: Navigating Beyond the U.S.

Canada's trade deficit contracted in December as exports to non-U.S. markets hit an all-time high, reducing reliance on the U.S. While total exports rose 2.6%, exports to the U.S. fell in share to the lowest on record. The trend highlights Canada's strategy to diversify its trade partners.

Canada's trade deficit narrowed significantly in December, boosted by a robust increase in exports to countries outside the United States. This marks a shift in Canada's trade strategy aimed at reducing dependency on its largest trading partner.

Data from Statistics Canada indicates a C$1.31 billion deficit in December, down from a revised C$2.59 billion in November. Export growth was driven by record-high exports to non-U.S. markets, while commodities like unwrought gold saw substantial price increases.

Economists note the decline in the U.S. share of Canadian exports, now at a record low, underscores a broader trend rather than just a monthly anomaly, emphasizing Canada's efforts to diversify its export portfolio beyond the U.S. market.

(With inputs from agencies.)