Statistics Canada released the trade data on Wednesday. Canada's trade deficit narrowed to C$1.99 billion in November from a deficit of C$2.49 billion in October. October's figure was revised up from a deficit of C$2.76 billion.

Analysts had expected a trade deficit of C$2.6 billion.

The fall in deficit was driven by a rise in exports and a drop in imports. Exports rose 0.4% in November, while imports fell 0.7%.

Exports of motor vehicles and parts increased by 5.9% in November, exports of energy products fell by 6.6%, while exports of metal and non-metallic mineral products climbed 20.4%.

Imports of consumer products declined by 1.0% in November, and imports of electronic and electrical equipment and parts dropped 2.9%, while imports of energy products slid 6.4%.