Argentina - Brazil Trade 2023 Q1: Steady Growth & Deficit

Key Market Takeaways: Argentina - Brazil Trade

The bilateral trade relationship between Argentina and Brazil shows steady growth with deepening interdependence in Q1 2023.

• Economic Pulse: Argentina runs a $1.28B trade deficit with Brazil ($4.02B imports vs. $2.74B exports), but both flows post strong YoY growth (+6-23% for exports, +10-23% for imports).
• Exchange Structure: Intra-industry trade dominates, with vehicles (HS 87) traded both ways—highlighting tight supply chain integration in auto manufacturing (top 3 exports make up 62% of Argentina’s shipments to Brazil).
• Strategic Interdependence: Brazil holds an edge in machinery and metals, while Argentina relies on it for industrial inputs, signaling asymmetrical but codependent trade ties.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Argentina-Brazil Trade Trend in Q1 2023

Argentina Export Performance: Shipments to Brazil

• Total Volume: $2.74B in Q1 2023.
• Growth Trend & Context:
  • YoY growth remained positive across all months (Jan: +6.36%, Feb: +12.18%, Mar: +14.89%), indicating steady demand.
• Key Volatility: February saw a sharp MoM rebound (+23.35%) after January’s -32.26% drop, suggesting possible supply chain adjustments.

Argentina Import Performance: Sourcing from Brazil

• Total Volume: $4.02B in Q1 2023.
• Growth Trend & Context:
  • Strong YoY growth (Jan: +16.79%, Feb: +10.41%, Mar: +23.08%) reflects sustained reliance on Brazilian goods.
• Key Volatility: March imports surged 47.41% MoM, likely due to preemptive stockpiling or seasonal demand.

Argentina - Brazil Trade Balance & Market Dynamics

• Net Position: Trade deficit of $1.28B (Imports $4.02B > Exports $2.74B).
• Relationship Status: Argentina remains a net importer, with deepening dependence on Brazilian supplies amid robust YoY import growth.

Argentina Import Trend from Brazil 2023 Q1 (Source: yTrade)**

Argentina Export Trend to Brazil 2023 Q1 (Source: yTrade)**

Get Historical Argentina Brazil Trade Records

Argentina-Brazil Top Trading Products in Q1 2023

Argentina Export Profile: What Does Argentina Sell to Brazil

• Top Commodity: Vehicles (HS 87) dominate exports, accounting for 28.62% of total value.
• Demand Driver: Brazil imports vehicles for its consumer market, reflecting demand for transportation and industrial use.
• Concentration: The top 3 exports (HS 87, 99, 27) make up 61.93% of total exports, indicating moderate concentration.

Argentina Import Profile: What Does Argentina Buy from Brazil

• Top Commodity: Vehicles (HS 87) also lead imports, representing 22.45% of total value.
• Dependency Nature: Imports include machinery (HS 84) and iron/steel (HS 72), suggesting industrial and infrastructure reliance on Brazilian manufacturing.

Argentina - Brazil Trade Relationship Dynamics

• The Exchange Model: Intra-Industry Trade dominates, with vehicles (HS 87) traded both ways. This points to deep supply chain integration, likely in auto manufacturing.
• Value Chain Position: Brazil holds a slight edge in machinery (HS 84) and metals (HS 72), indicating higher-value exports compared to Argentina’s agricultural (HS 10, 04) and processed food (HS 20) shipments.

Import Analysis by Product: Brazil to Argentina (Source: yTrade)

Export Analysis by Product: Argentina to Brazil (Source: yTrade)

Check Detailed Argentina-Brazil Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Argentina’s trade with Brazil is poised for continued growth in Q2 2023, driven by resilient demand for vehicles (HS 87) and industrial inputs. The steady YoY export growth (+6.36% to +14.89%) and surging imports (+10.41% to +23.08% YoY) signal deepening supply chain integration, particularly in auto manufacturing. However, Argentina’s $1.28B trade deficit may widen further if import momentum outpaces export diversification. Traders should prepare for potential volatility in key commodities like machinery (HS 84) and iron/steel (HS 72), where Brazil holds a competitive edge.

Strategic Moves

• Diversify Export Markets: Argentine exporters must reduce reliance on Brazil by targeting new markets for processed foods (HS 20) and agricultural goods (HS 10, 04), leveraging trade pacts with Asia or Europe.
• Optimize Cross-Border Logistics: Companies engaged in intra-industry trade (e.g., vehicle parts) should adopt JIT inventory systems to mitigate MoM swings like February’s 23.35% export rebound.
• Lock in Brazilian Inputs: Industrial importers should secure long-term contracts for critical machinery (HS 84) and metals (HS 72) to hedge against price spikes from Brazil’s March 47.41% import surge.

Frequently Asked Questions

How did Argentina - Brazil trade perform in 2023 Q1?

Argentina's exports to Brazil grew steadily YoY, totaling $2.74B, while imports surged to $4.02B, reflecting strong demand for Brazilian goods.

What are the top exports from Argentina to Brazil?

The top exports are Vehicles (HS 87), accounting for 28.62% of total value, followed by other key commodities in the top 3, which make up 61.93% of exports.

What does Argentina import from Brazil?

Argentina primarily imports Vehicles (HS 87), Machinery (HS 84), and Iron/Steel (HS 72), indicating reliance on Brazilian industrial and infrastructure supplies.

What is the trade balance between Argentina and Brazil?

Argentina recorded a trade deficit of $1.28B with Brazil in Q1 2023, driven by higher imports ($4.02B) compared to exports ($2.74B).