Exports to the United States, which accounted for 73.1 per cent of all Canadian exports in March, edged up by 0.1 per cent while imports increased by two per cent.
The energy and consumer goods sectors helped Canadian exports rise to a record high in March as the country's trade deficit narrowed to $135 million, Statistics Canada said Thursday.
Imports were up for a fourth consecutive month, increasing 1.7 percent to Can$47.1 billion in March.
Imports from the United States - Canada's largest trading partner, by far - were up two percent, while exports to the USA edged down a fraction of a percentage point.
Imports fell in March because of reduced spending on civilian aircraft, computers, oil and cars.
On a regional basis, Canada's trade surplus with the United States slipped to $4 billion in March compared with $4.5 billion in February.
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The bounce back in export volumes is certainly a welcome development, but strong imports and weak exports earlier in the year means that net trade will weigh on economic growth in the first quarter of this year. "Consequently, Canada's annual merchandise trade deficit with the world widened from $23.0 billion in 2015 to a record $26.0 billion in 2016".
Driving the gain was a 7.0 per cent increase in energy exports to $8.7 billion. Imports fell 0.7 percent to $234.7 billion on capital goods and industrial supplies.
President Donald Trump told Reuters that he was "psyched" to terminate the North American Free Trade Agreement with Canada and Mexico, but changed his mind after their leaders asked for it to be renegotiated instead.
Compared to the same month previous year, exports are now nearly 13% higher.
The rise in exports was widespread, led by energy, consumer goods and metal and non-metallic mineral products which were all up by 7% during the month.