Statistics Canada says the country’s merchandise trade deficit narrowed to $978 million in September compared with a revised deficit of $1.2 billion in August.
Economists on average had expected a deficit of $700 million, according to financial markets data firm Refinitiv.
The deficit came as total imports fell 1.7 per cent to $50.8 billion in September.
Imports of metal and non-metallic mineral products fell 9.2 per cent in September due to a drop in gold imports.
Meanwhile, total exports fell 1.3 per cent to $49.8 billion.
Exports of metal and non-metallic mineral products fell 7.3 per cent, while exports of energy products dropped 2.6 per cent due to lower crude oil exports.
Trade deficit down in U.S. as well
The U.S. trade deficit fell 4.7 per cent to $52.5 billion US in September as the country recorded its first petroleum surplus, but overall imports and exports otherwise fell under the weight of rising global tariffs and a slowing world economy.
Economists polled by Reuters had forecast the trade gap would fall slightly to $52.5 billion in September.
The United States imported fewer cars but sold fewer overseas in September. It also imported fewer cellphones, toys and games, but sold less food, feed and beverages abroad.
The goods trade gap with China narrowed by $100 million to $31.6 billion, with exports to the country falling $800 million in September and imports from China falling $1.0 billion.
The United States and China have been embroiled in a 16-month trade war, but the two parties have edged towards an initial agreement.