The deficit on international transactions in goods was reduced by CAD 1.3 billion in the third quarter to CAD 5.1 billion. After a large increase in the first quarter, Canada's trade in goods deficit with the rest of the world has narrowed for a second straight quarter.
The goods surplus with the United States rose by CAD 0.5 billion despite lower exports of crude petroleum. The trade deficit with all other countries was down by CAD 0.8 billion. One of the main contributors was trade with India, where the goods surplus expanded by CAD0.6 billion on higher exports.
Total exports of goods advanced CAD 4.7 billion to CAD 134.2 billion in the third quarter. The largest gains were recorded in consumer goods and in motor vehicles and parts. Consumer goods rose CAD 2.3 billion, mostly on higher volumes of miscellaneous goods and supplies and of pharmaceutical products. Motor vehicles and parts increased CAD 2.2 billion, led by higher prices and volumes of passenger cars exported. Aircraft and other transportation equipment rose CAD 0.5 billion, mostly on higher prices. Moderating these gains was a CAD 2.2 billion decline in exports of energy products, with lower crude petroleum prices accounting for nearly all the reduction.
Total imports of goods were up CAD 3.4 billion to CAD 139.3 billion in the third quarter. Imports of consumer goods increased CAD 1.1 billion, on higher prices. Electronic and electric equipment and parts rose by CAD 1.0 billion, led by larger volumes of communications and audio and video equipment. Imports of basic and industrial chemical, plastic and rubber products increased CAD 0.7 billion, also on higher volumes. Motor vehicles and parts were up CAD 0.4 billion, as a CAD 1.1 billion increase in parts was moderated by a reduction in passenger cars imported.
The overall deficit on international trade in services narrowed CAD 0.1 billion to CAD 5.6 billion in the third quarter.
The investment income deficit increased CAD 0.6 billion to CAD 4.2 billion in the third quarter. Profits earned by foreign direct investors on their Canadian assets were up CAD 0.2 billion, while those earned by Canadian direct investors on their assets abroad were largely unchanged. Higher interest payments on other investment liabilities mainly accounted for the rest of the increase. For portfolio investment, income on both assets and liabilities was up by the same amount during the quarter.
The deficit in secondary income rose by CAD 0.5 billion to CAD 0.8 billion, as payments of government transfers increased following a weak second quarter.