Falling imports drove Canada’s trade surplus to a surprising near-record high in November, Statistics Canada said today.

The trade surplus for the month hit $7.3 billion, the third highest since 1997 and slightly less than the record of $7.5 billion set in June 2004.

Canadian companies imported $27.4 billion worth of merchandise, down 10.2% from October. Meanwhile, exports fell 2.9% to $34.7 billion.

“Imported goods have become less expensive as the Canadian dollar has appreciated, resulting in lower import values,” said StatsCan, adding that approximately one-third of the drop in import values in November was due to the rising Canadian dollar.

The November trade figure was much better than economists had been expecting. Forecasts had the trade surplus coming in between $4.4 and $4.5 billion.

“The Bank of Canada will read this as stronger than expected for growth, with the firmer net export position outweighing concerns over soft imports,” BMO Nesbitt Burns chief economist Sherry Cooper said in a commentary.

“Combined with the news of a record U.S. deficit, the results are a huge boost to the [Canadian dollar], and reinforce the view that the underlying trend in the currency will still be higher in 2005,” she said.