Canada’s trade surplus expanded for the second straight month as merchandise exports rose in November, while imports increased at a slower pace.

It was only the third export increase in 2007 and halted a three-month decline.

Canadian companies exported $37.9 billion worth of merchandise, a 3.1% increase, while imports rose 1.7% to $34.2 billion, Statistics Canada reported today.

Canada’s trade surplus with the world expanded to $3.7 billion, up from a revised $3.1 billion in October.

While exports have grown since early 2006, the share of Canada’s exports to the United States has fallen.

Exports to the United States accounted for 75% of the total in November, compared with 82% in January 2006.

On a year-to-date basis, both exports and imports stood at higher levels in the first 11 months of the year compared with the same period in 2006.

South of the border, he U.S. trade deficit swelled during November on record oil prices, widening to the biggest gap in 14 months even though exports rose and the volume of crude imports shrank.

The U.S. deficit in international trade of goods and services surged by 9.3% to US$63.12 billion from October’s revised US$57.77 billion, the US Commerce Department said today. The October trade gap was originally reported as $57.82 billion.

The November deficit exceeded Wall Street expectations. Economists had forecast a $59.75 billion shortfall.