Canadian News Terminal

Statistics Canada reported service imports rose 2.0% to $21.2 billion in May while service exports rose 0.9% to $20.8 billion, widening the services trade deficit from $0.2 billion in April to $0.5 billion. The import increase was led by transportation services, up 5.1% on higher marine freight costs. Total goods exports rose 0.9% to $77.1 billion while goods imports fell 0.2% to $72.9 billion, pushing the combined goods and services trade surplus to $3.8 billion.

Leaders of Canada, Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Türkiye and Ukraine, meeting at the NATO Summit in Ankara, announced their shared intention to establish the Defence, Security and Resilience Bank (DSRB). The declaration states the bank's founding Articles of Agreement were negotiated in Montréal, and that it is designed to expand access to capital and reduce financing costs for defence industrial capacity, while complementing rather than duplicating existing instruments. Leaders committed to advancing the DSRB with the aim of beginning operations as early as 2027.

The Bank of Canada's second-quarter Business Outlook Survey found overall business sentiment deteriorated after three quarters of improvement, with sales outlooks softening amid rising fuel costs and Middle East uncertainty. Export outlooks improved, with fewer firms citing US trade hesitancy as a constraint. Investment intentions remained strong, particularly in the oil sector, while employment intentions stayed below historical averages. The share of firms expecting higher input and selling prices rose markedly, tied to elevated global oil prices, though inflation expectations eased after a mid-June US-Iran interim agreement.

AI voice technology company ElevenLabs announced the formal launch of its Canadian business, citing 30,000 existing users in the country and a growing team across Montreal, Toronto and Vancouver. The company appointed Max Lemmens as General Manager in Canada and said it plans to double its Canadian headcount this year while opening its first Canadian office in Toronto. Ontario Economic Development Minister Vic Fedeli welcomed the move, citing the province's technology sector and talent pool.

Minister Tim Hodgson launched the Canada Critical Minerals Accelerator (CCMA) and announced its first Strategic Investment Agreement, with the Canada Growth Fund and Teck Resources. The deal supports expanding Teck's Trail Operations in British Columbia, part of an up to $850 million investment that could double germanium and antimony production and add gallium capacity. The Canada Growth Fund's stake could reach $400 million, with Ottawa also negotiating offtake rights to future output.

Prime Minister Mark Carney met Ukrainian President Volodymyr Zelenskyy on the margins of the NATO Summit in Ankara. Carney announced new military assistance as part of Canada's $2.8 billion commitment this year, including $475 million for ammunition, nearly $400 million for 35 Canadian-made armoured vehicles, and $50 million for technology and engineering equipment. He also confirmed Operation UNIFIER, Canada's training mission to Ukraine, has been extended to 2029. The two leaders discussed co-developing drones and Ukraine's reconstruction.

Prime Minister Mark Carney, German Chancellor Friedrich Merz and Norwegian Prime Minister Jonas Gahr Støre issued a joint statement from Ankara confirming Canada has joined the German-Norwegian Type 212CD submarine cooperation. The three leaders said the move creates an opportunity to deepen defence industrial and military ties among the countries. The statement frames the partnership as part of a broader push on transatlantic security and collective defence, with cooperation also extending to investment, energy, artificial intelligence, space and critical minerals.

Prime Minister Mark Carney and German Chancellor Friedrich Merz met on the margins of the 2026 NATO Summit in Ankara and announced negotiations toward a Canada-Germany Strategic Partnership Agreement. The readout says the agreement would consolidate cooperation on security and defence, technology, investment, supply chains and raw materials, energy, and space under one framework. Germany is Canada's largest EU trading partner, with bilateral trade valued at over $34 billion. The leaders directed their foreign ministers to advance talks, aiming to finalise the agreement before year's end.

Canada's merchandise trade surplus widened to $4.2 billion in May from $3.4 billion in April, Statistics Canada reports, a third consecutive surplus month. Exports rose 0.9 per cent to a record $77.1 billion, a fourth straight monthly gain, while imports edged down 0.2 per cent. The surplus with the United States grew to $11.6 billion, the largest since January 2025. A trading nation running consistent surpluses through a period of tariff pressure and supply disruption signals resilience in the terms on which Canada meets the world.