OTTAWA, Feb. 11 -- Canadian government officials said on Wednesday that the drop in oil and gas revenues is the principal factor in December's trade deficit.
Canada reported its first trade deficit since 1976 in December.
Prime Minister Stephen Harper said in Parliament that trade numbers were "due to a weakness in world markets and a sudden drop in value of Canadian exports," particularly the falling crude oil prices.
"At the same time, we do expect the change in the value of the Canadian dollar to help that situation," Harper said.
Harper said that economic stimulus packages being passed or prepared in most G20 countries should strengthen world trade markets.
Finance Minister Jim Flaherty said the high Canadian dollar affected exports to the United States during the month. Canada should export more goods to the United States now that the Canadian dollar has slipped away from parity with the U.S. Greenback, he said.
International Trade Minister Stockwell Day said the trade imbalance is directly linked to the struggling U.S. economy.
He said Canada's largest trading partner is going through "very difficult times," and as a result isn't buying as much as in the past -- especially Canadian energy exports.
"Principally the drop is related to oil and gas revenues," Day said.
"If another country like the U.S. isn't producing as much, then they're not burning as much oil and gas, and therefore that's a significant part of the drop in the exports," he noted.
Canada sells three quarters of its exports to the United States.
Canada reported its first trade deficit since 1976 in December.
Prime Minister Stephen Harper said in Parliament that trade numbers were "due to a weakness in world markets and a sudden drop in value of Canadian exports," particularly the falling crude oil prices.
"At the same time, we do expect the change in the value of the Canadian dollar to help that situation," Harper said.
Harper said that economic stimulus packages being passed or prepared in most G20 countries should strengthen world trade markets.
Finance Minister Jim Flaherty said the high Canadian dollar affected exports to the United States during the month. Canada should export more goods to the United States now that the Canadian dollar has slipped away from parity with the U.S. Greenback, he said.
International Trade Minister Stockwell Day said the trade imbalance is directly linked to the struggling U.S. economy.
He said Canada's largest trading partner is going through "very difficult times," and as a result isn't buying as much as in the past -- especially Canadian energy exports.
"Principally the drop is related to oil and gas revenues," Day said.
"If another country like the U.S. isn't producing as much, then they're not burning as much oil and gas, and therefore that's a significant part of the drop in the exports," he noted.
Canada sells three quarters of its exports to the United States.
