Canada's world trade deficit expanded from $1.9 billion in June to $2.3 billion in July amid shrinking exports, Statistics Canada reported Tuesday.
Exports declined by 3.4 percent to $37.7 billion in July, while imports also dipped by 2.2 percent to $40.1 billion, the agency said.
The export market was mostly impacted by the energy sector, the report said.
"Exports of energy products fell 8.5 percent to $8.2 billion in July on lower volumes and prices," StatsCan said. "Crude petroleum exports, down 9.6 percent to $5.1 billion, led the decline."
The agency breaks down Canada's trade with the United States and all other countries.
Exports to the United States fell 5 percent to $27.4 billion on a monthly basis in July while imports declined 2.1 percent to $25.3 billion, lowering Canada's trade surplus with the United States to $2.1 billion from $3 billion a month earlier.
"Imports from countries other than the United States decreased 2.4 percent to $14.7 billion while exports rose 1.2 percent to $10.3 billion," the report said. "As a result, Canada's trade deficit with countries other than the United States narrowed from $4.9 billion in June to $4.4 billion in July."