The soaring loonie is one of the contributing factors to Canada’s widening trade deficit in cultural goods, as imports — particularly from the U.S. and China — continued to exceed exports in 2006, according to new numbers released by Statistics Canada.

Exports fell for the third consecutive year — by 12.7% to $2.1 billion — while Canada imported $3.9 billion worth of cultural goods, including books, CDs, videos, films and paintings from the rest of the world.

Exports of cultural goods to neighboring U.S., Canada’s largest trading partner, fell by 12.4% as a result of a drop in the American dollar, which makes Canuck exports less attractive. Meanwhile, imports from China increased 5.9% to $295 million in 2006, with printed books accounting for the largest portion, while exports to Canada’s second largest trading partner rose 3.9% to $13.8 million.

Books, film and advertising materials account for more than half of Canada’s total exports of culture goods.