OTTAWA — Canada's merchandise trade deficit narrowed to $4.9 billion in July as the trade surplus with the United States grew in part because of higher exports of oil and cars.

Statistics Canada said Thursday that the overall result compared with a revised deficit of $6 billion in June.

The results came as exports to the U.S. rose five per cent, while imports from Canada's largest trading partner fell 2.2 per cent to result in a trade surplus of $6.7 billion for July compared with $3.7 billion in June.

TD economist Marc Ercolao said there is still considerable uncertainty on the trade front for the quarter ahead.

"On the plus side, the Canadian government recently removed counter-tariffs on U.S. imports, which should aid in more positive discussions with the U.S. administration around

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