The deficit on trade in goods was reduced by $2.3 billion in the fourth quarter to $2.8 billion. This largely reflected increased exports, led by energy products and by farm, fishing and intermediate food products. The goods surplus with the United States was up $2.0 billion on stronger exports in the fourth quarter, although for the year 2012, it was reduced by $6.8 billion to $42.1 billion. The deficit on goods with all other countries reached a record of $54.0 billion in 2012, up $6.0 billion from 2011.
The deficit on trade in services was reduced by $0.1 billion in the fourth quarter from a high of $6.2 billion the previous quarter. For the year 2012, the deficit in trade in services reached a new high at $24.6 billion, mostly on the travel account
The deficit on investment income advanced $1.8 billion in the fourth quarter to $6.9 billion. This mainly reflected increased earnings of non-residents on their foreign direct investment in Canada, which advanced $1.9 billion on higher dividend payments. On the other side of the ledger, earnings on Canadian direct investment abroad were up $0.3 billion. Higher interest paid to foreign holders of Canadian bonds pushed the deficit on portfolio investment income up a further $0.2 billion.