Canada's merchandise trade deficit with the world narrowed from $743 million in June to $114 million in July, the smallest deficit since the most recent surplus in December 2016. Total exports rose 0.8%, mainly on higher crude oil prices. Total imports declined 0.4%, due to fewer aircraft imports.

In real (or volume) terms, exports were down 0.8%. Export prices rose 1.6%, and were behind the export gain in nominal terms. This price increase was primarily attributable to higher prices of energy products. Total import volumes fell 1.1% in July, and prices were up 0.7%.