Canada Auto, Parts Exports to U.S. Rises

Canada exported $1.4-billion more in autos and auto parts to the United States in the first three months of the year than it imported, the government’s Statistics Canada said Wednesday.

The surplus was $155 million (Canadian) higher than the $1.2 billion recorded in the same period last year, but represented the smallest increase in four years, the government agency said.

When automotive trade with the rest of the world is brought into the equation, that trade surplus is more than halved, however, because of the $829-million deficit Canada has in overseas automotive trade. This deficit is up $133 million from the corresponding period last year.

The growing automotive trade deficit with countries other than the United States comes at a time when the federal government is negotiating a new import agreement with Japan.

Import quotas for Japanese cars expired March 31 and no new agreement has been reached. Industry Minister Sinclair Stevens had hoped to have an accord by early June, but it did not materialize and negotiations continue.

The Statscan figures show Japanese car imports were down 0.9% to 38,800 units in the first quarter and the import share dropped to 16.3% from 18.5%.

However, more recent figures show that shipments of Japanese automobiles to Canada increased 20% in April, compared to April, 1984. Actual sales jumped more than 30% in May, compared to the same month a year ago.

In the first-quarter period, other overseas countries saw imports increase 9.1% to 68,300 units for an import share of 28.7%.