[From today's editions] For the first time since 1976, Canadians spent more money buying goods and services from foreign suppliers than they did selling things to foreign customers, drawing attention to the importance of exports to Canada's own recovery plans.
Where Canada had been posting monthly trade surpluses of $3 billion or more for most of 2008, that surplus evaporated in December, with a trade deficit — the difference between the amount Canada sold to the world and the amount Canada bought — coming in at $458 million, Statistics Canada reported Wednesday. Analysts said it likely will be the first of several monthly trade deficits. 
In simple terms, Canada's foreign customers did not do much shopping here in December and when they did, they didn't pay very much for what they got.
“It's predictable when we're in a worldwide downturn in the economy and some of our major purchasers — the United States, China — are going through a very difficult time and therefore, they're buying less,” International Trade Minister Stockwell Day said Wednesday. “It reflects the tough economic times we're in.”
But the Opposition Liberals jumped on the latest data to note that the Conservative government is amassing a dismal record of economic indicators.
In December, bankruptcies shot up 50%. In January, the country suffered its worst single month for job losses. Now, the Conservatives have presided over the first trade deficit in 33 years.
“This is a bad record for this government,” Liberal Leader Michael Ignatieff said in the House of Commons Wednesday.
Day said the federal government is continuing to push for open markets and against rising protectionist trends, as it has done in the last six months at international gatherings such as the G20 and the annual summit of Pacific Rim leaders.
“When we see a drop in exports, certainly it magnifies the reasons why we can't have any country fall backwards into protectionist activities and start slamming the doors on trade,” said Day. “We will continue to lead the parade so far as encouraging countries not to fall into protectionist activity.”
But Liberal trade critic Scott Brison said the Harper government must shoulder some of the blame. Brison said the Conservatives have taken the wrong tone with China and have done little to foster ties with India. The economies of both China and India are expected to post strong growth this year.
The big lie has finally been exposed. When you factor out energy exports Canada isn't the net exporter free trade supporters claim it is.