By: THE CANADIAN PRESS

OTTAWA - Canada's merchandise trade surplus with the world expanded for the third straight month in March as exports grew and imports declined.

The trade surplus jumped to $5.5 billion, its highest level since May 2007.

Exports to the United States climbed for the third straight month while U.S. imports decreased as the trade surplus with the United States rose to $8.6 billion, its highest level since April 2006.

The trade deficit with countries other than the United States fell to $3.1 billion, contracting for the third straight month, largely due to increased exports to Mexico and Norway.

Canada's exports rose for the third straight month, increasing 1.6 per cent to $40.1 billion in March, largely on the strength of energy products.