Statistics Canada says the country posted a merchandise trade deficit of $312 million in December, the first monthly trade deficit since July.
The result compared with a revised surplus of $1.1 billion in November. The initial reading for November released last month had shown a $1.6-billion surplus.
The report came as total exports fell 1.9 percent in December to $64.1 billion as shipments of motor vehicles and parts fell 8.2 percent.
Exports of energy products also fell 3.1 percent as crude oil exports dropped 4.9 percent, hurt by lower prices.
Meanwhile, total imports rose 0.2 percent in December to $64.4 billion. The increase came as imports of consumer goods gained 9.4 percent, boosted by a 28.1 percent increase in imports of pharmaceutical products.
In volume terms, total exports fell 0.4 percent in December while imports rose 1.3 percent.