Statistics Canada says the country's trade deficit with the rest of the world dropped to $237-million in January, down from $332-million in December.
Exports rose to $39.1-billion, with crude oil and crude bitumen and unwrought precious metals and precious metal alloys leading the gain.
Meanwhile, imports also increased, to $39.3-billion with energy products contributing the most.
Crude oil and crude bitumen also drove exports to the United States up 2.6 per cent to $29.0-billion in January, while imports from the U.S. also rose 2.1 per cent to $24.7-billion.
That led Canada's trade surplus with the United States to grow from $4.0-billion in December to $4.3-billion in January.
Canada's trade deficit with countries other than the United States went from $4.4-billion in December to $4.5-billion in January.