Canada’s services surplus grows in December as imports fall

Canada’s trade surplus in services widened in December as imports declined and exports edged higher, the latest Statistics Canada numbers indicate.

The monthly surplus in international trade in services grew to $0.7 billion in December from $0.1 billion in November.

Imports of services fell 2.2 per cent to $19.4 billion in December. Imports of commercial services declined 1.8 per cent to $11.0 billion, led by lower non-financial commercial services. Transportation services imports dropped 4.9 per cent to $3.3 billion, largely due to fewer services tied to marine freight. Travel services imports slipped 1.6 per cent to $5 billion as spending by Canadians abroad decreased.

Meanwhile, exports of services rose 0.8 per cent to $20.2 billion. Exports of commercial services increased 1.5 per cent to $12.2 billion, mainly on higher non-financial commercial services. Transportation services exports climbed 1.3 per cent to $2 billion, while travel services exports dipped 0.6 per cent to $5.8 billion.

In trade of goods, total exports increased 2.6 per cent to $65.6 billion in December, while imports rose 0.6 per cent to $66.9 billion. The trade deficit in goods narrowed to $1.3 billion from $2.6 billion in November.

“Trade volatility is now part of the supply chain’s operating environment, not a temporary disruption. With the share of exports to the United States declining to 71.7 per cent in 2025, Canadian trade is gradually diversifying,” said Fab Brasca, senior vice-president of product strategy with Kinaxis. “Exports to countries outside the U.S rose 5.7 per cent in December to reach an all time high, while currency movements continue to reshape costs in a U.S.-dollar-driven system.

“For supply chain leaders, that has clear operational implications. As trade patterns evolve, businesses need to reassess supplier concentration, transportation routes and adopt a more disciplined approach to inventory and working capital. Organizations that translate trade insights into stronger scenario planning, diversified supplier networks and better visibility will be best positioned to manage ongoing volatility in 2026.”

Overall, Canada’s combined trade balance for goods and services posted a deficit of $0.6 billion in December.

On an annual basis, services exports rose 3.2 per cent to $239.2 billion in 2025, while imports increased 2.0 per cent to $234.8 billion. Canada’s trade in services surplus widened to $4.4 billion in 2025 from $1.5 billion in 2024.