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.