The diplomatic spat over Canada’s arrest of Huawei executive Meng Wanzhou has hurt Canada’s bottom line, with exports to China diving nearly 20 per cent in October—the biggest drop since 2012, to the lowest export level in over five years. Yet thanks in part to increased exports to U.S., Canada’s merchandise trade deficit with the world actually narrowed by $100 million to $1.1 billion. (The Logic)
Talking point: Don’t tell Donald Trump: Canada’s trade surplus with its neighbour hit an 11-year high of $5.5 billion, fuelled by energy and gold. The surplus was also driven in part by the export of fine art valued in the hundreds of millions of dollars; it was sent to New York for sale at a fair, but any unsold works that are returned to Canada will be booked as imports in a subsequent report. And though trade with China plunged in apparent retaliation for Meng’s arrest last year—especially affecting the export of crops like soybeans—relations between the two countries may be thawing; in November, China lifted a four-month ban on Canadian beef and pork.