Rising exports helped improve Canada's trade balance in May as the deficit with the rest of the world fell to CAN$814 million ($840 million US), Statistics Canada reported Tuesday.
The figure was better than the billion-dollar deficit expected by analysts and down from a downwardly revised CAN$857 million in April.
Exports rose 1.2 percent to CAN$36.9 billion, led by machinery and equipment as well as automotive products.
Imports increased 1.1 percent to CAN$37.8 billion, with sectors except energy showing gains.
Canada's trade surplus with the United States narrowed to CAN$3.7 billion from CAN$4.0 billion in April as a 0.1 percent gain in exports was offset by a 1.1 percent rise in imports.