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| - Canada's trade deficit fell sharply in December to Can$370 million (US$278 million) as oil exports rebounded, the government statistical agency said Wednesday. The deficit narrowed from Can$1.2 billion the previous month, when disruptions in rail and pipeline transportation slowed Canadian trade activity, Statistics Canada said in a statement. Exports rebounded 1.9 percent to Can$49.3 billion in December, led by an 18 percent increase in oil exports. Imports, which had also fallen the previous month, rose slightly in December, but less rapidly (+ 0.2 percent), led by an increase in pharmaceuticals and other consumer goods. For 2019 as a whole, Canada posted a trade deficit of $18.3 billion, the lowest since 2014, when the country posted its last annual trade surplus. Exports last year to China -- Canada's second largest trading partner behind the United States -- fell 16 percent, in the first annual decline in five years. That followed a diplomatic row over the arrest of Huawei executive Meng Wanzhou on a US warrant, and China's detention in apparent retaliation of two Canadians, former diplomat Michael Kovrig and businessman Michael Spavor. Meanwhile, Canadian exports to the United States rose 2.9 percent in December, mainly due to oil sales, and imports from the US fell 0.2 percent, down for a fourth consecutive month. As a result, Canada's surplus with its neighbor widened to Can$5.2 billion in December. At the same time, its trade deficit with countries other than the US rose to Can$5.6 billion. jl-amc/bgs
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