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Canada's trade deficit up in May

Ottawa -- Canada's international trade figures dropped in May, increasing its world trade deficit to $1.4 billion from $389 million, Statistics Canada reported Friday.

"Canada's merchandise exports fell 6.9 percent to $28.4 billion in May, as volumes declined 4.1 percent and prices decreased 2.9 percent," the agency said. "Imports were down 3.5 percent to $29.8 billion due to a 4.9 percent reduction in prices, while volumes rose 1.5 percent."

International trade has been falling since July and May's figures are the third consecutive month of decline, StatsCan said.

Another factor in the widening deficit was the Canadian dollar's 6.4 percent appreciation against the U.S. dollar, the report said.

All export sectors declined, with the largest dips reported in energy and automotive products. All import sectors also fell, led by the automotive products, energy products, and machinery and equipment sectors, the agency said.

Copyright 2009 by United Press International.

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