Canada’s trade surplus with the world expanded to $5.5 billion in May, from $4.8 billion in April, Statistics Canada reported today.

StatsCan said exports to countries other than the United States reached their highest level ever and exports to the United States remained strong.

Canadian exports rose for the fifth consecutive month, increasing 5.4% to $42.1 billion, as both volumes and prices increased. However, since November 2007, export prices have been on the rise, while volumes have been on a downward trend.

Imports increased 3.9% to $36.6 billion, their largest increase since July 2007. Volumes were up, while prices declined. Nevertheless, import prices have been on an upward trend for the past seven months, while movements in volume have been more volatile.

Exports to the United States increased for the fifth month in a row, reaching $31.3 billion, their highest level since December 2006. Imports grew by almost the same dollar value as exports, leaving the trade surplus with Canada’s largest trading partner virtually unchanged at $8.1 billion.

South of the border, the U.S. trade deficit unexpectedly narrowed during May despite sharply climbing oil prices, as the amount of crude purchased by volume declined and overall exports increased.

The U.S. deficit in international trade of goods and services decreased by 1.2% to $59.79 billion from April’s revised US$60.50 billion, the Commerce Department said today.

U.S. trade deficits with major trading partners generally shrank in May, although the shortfall with China expanded to US$21.05 billion from April’s US$20.24 billion.

The overall, $59.79 billion trade deficit was smaller than Wall Street expectations. Economists estimated a $62.70 billion shortfall for May.

U.S. exports in May rose 0.9% to US$157.55 billion from US$156.16 billion, aided by a soft dollar and solid growth of major trading partners.

May imports rose by 0.3% to US$217.34 billion from US$216.65 billion.