Canada’s trade surplus hit its highest level in three years in March as merchandise exports grew at almost twice the pace of imports, Statistics Canada said today.

StatsCan said Canadian companies exported nearly $34.9 billion worth of merchandise outside the country, up 1.7%. On the other hand, imports rose only 0.9% to nearly $28.7 billion, the highest level in a year.

As a result, the surplus surpassed $6.2 billion, its highest level since May 2001.

South of the border, the U.S. trade gap widened to a record US$45.96 billion in March as increased exports were offset by ballooning oil prices. Import prices rose 0.2% in April.

The growth in Canadian exports in March followed a 7.5% rebound in February, marking the first back-to-back monthly increases since January 2003, StatsCan said.

The rise was led by automotive trade, which showed some consistency in March, dampening some recent trade volatility.

Exports to the United States rose 0.9% to $28.1 billion, the highest level since March last year, while imports from south of the border were up 1.2%. Canada’s trade surplus with the United States remained unchanged at just over $8.1 billion.

Canadian firms sent more goods to most non-U.S. destinations, except for a 2.7% decline to the European Union.

Higher exports of automotive and agricultural products to Mexico, combined with energy product shipments to South Korea, helped shrink the country’s non-U.S. trade deficit to less than $1.9 billion.

U.S. trade gap widens to record

The U.S. trade deficit swelled to an all-time high of US$46 billion in March as a stronger U.S. economy stoked Americans’ appetite for foreign-made cars, TVs and other goods.

Although imports grew faster than exports, sales of U.S. goods and services to other countries also climbed in March, to their highest level on record. This was encouraging news for U.S. manufacturers and exporters.

The trade gap reported by the Commerce Department on Wednesday was 9.1% bigger than the $42.1 billion deficit posted in February.

The trade deficit with Canada grew slightly to US$5.1 billion. U.S. exports to Canada came to US$17.2 billion, a record. Imports from Canada to the U.S. also were at record at US$22.3 billion.