Today, China, Canada and the US all released their monthly trade dataand there were some surprises.
First, China’s trade surplus narrowed from $27.2 billion in October to $22.9 billion in November. However, it did beat estimates of a drop to $21.2 billion. Chinese exports rose 34.9% to a record $153.3 billion and imports rose 37.7% to $130.4 billion. The United States accounts for $16.7 billion or 73% of the trade surplus. This fact will be further fueling momentum within Congress to bring a trade currency bill up for a vote in 2011.
Expect the rhetoric to soar prior to President Hu Jintao’s visit to the US in January.
In Canada, the new trend of deficits continued in November as they posted C1.7 billion in trade red ink. This is the sixth straight month of trade deficits as trade has sunk due to a strengthening currency and weak developed market demand for its exports. The surplus with the United States narrowed to its lowest level in 18 years. The expectations were for a C2.1 billion drop, but exports of copper and precious metals rose to a record via demand from China. Metal and alloy shipments soared 17.8% and underscores emerging market demand importance to Canada.