A shipping container is unloaded at the Port of Montreal.
In August, Canada's exports fell 2.9%, mainly due to lower crude oil prices, while imports fell 1.7%, resulting in the smallest trade surplus of the year, Statistics Canada said on Wednesday.
In August, the country's trade surplus was narrowed to C $1.52 billion $1.12 billion, well below analyst forecasts of a surplus of C $3.45 billion, and down from a revised C $2.37 billion in July.
In seven of 11 product sectors, exports fell by 1.3% on a volume basis, according to Statscan. Export prices fell for the third consecutive month, due to a decline in crude oil prices.
The agency said that the drop in crude prices coincides with increased global production and concerns about the future economic outlook.
The decline was caused by motor vehicles and parts on the import side. Statscan noted that while auto production usually rebounded in August from July maintenance shutdowns, industry patterns are still impacted by supply chain issues.
The dollar was trading 0.7% lower at 1.3612 per U.S. dollar, or 73.46 U.S. cents, as the dollar rallied against a basket of major currencies.