P. M. BRIEFING : Canada’s Trade Surplus Shrinks
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OTTAWA — A robust currency and weakening U.S. economic growth shrank Canada’s merchandise trade surplus last year to its lowest level in a decade, a federal agency said today.
Canada’s exports grew 1.2% in 1989 while imports climbed a more brisk 5.3% for a net trade surplus of $4.7 billion ($3.9 billion U.S.).
That was less than half the $9.8 billion ($8.1 billion U.S.) surplus reported in 1988 when the Conservative government signed the free trade agreement with the United States, promising it would be a boon to business. The pact removed remaining tariffs on goods between the nations over 10 years.
International Trade Minister John Crosbie has been under attack from opposition parties, which opposed free trade, for Canada’s deteriorating trade position.
A higher Canadian dollar made exports less attractive abroad last year while slashing the cost of such basic imports as clothing.
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