Argentina - Brazil Trade 2023 Q3: Auto Sector Dominates

Key Market Takeaways: Argentina - Brazil Trade

The bilateral trade relationship between Argentina and Brazil shows mixed performance with persistent volatility in Q3 2023.

• Economic Pulse: Argentina posted a $1.27B trade deficit with Brazil, though slightly narrower than 2022. Total trade volume reached $7.65B, with exports declining YoY (-15.2% peak) while imports showed uneven demand.
• Exchange Structure: Argentina - Brazil trade statistics reveal intra-industry dominance, with vehicles (HS 87) as the top export (40.5% share) and import (24.1%), signaling deep supply chain integration in auto manufacturing.
• Strategic Interdependence: The bilateral trade data highlights balanced value-add roles, with both countries exchanging high-value manufactured goods rather than raw materials.

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

Argentina-Brazil Trade Trend in Q3 2023

Argentina Export Performance: Shipments to Brazil

• Total Volume: $3.19B in Q3 2023.
• Growth Trend & Context: YoY decline persisted across all months, with August (-15.23%) marking the sharpest drop. No trade policy shifts were reported to explain the contraction.
• Key Volatility: September saw a 17.9% MoM rebound, though still down 3.06% YoY, suggesting short-term demand recovery.

Argentina Import Performance: Sourcing from Brazil

• Total Volume: $4.46B in Q3 2023.
• Growth Trend & Context: Mixed YoY performance—July (+8.42%) growth offset by declines in August (-3.97%) and September (-6.52%). No news-driven disruptions were noted.
• Key Volatility: July imports fell 22.19% MoM, the steepest monthly drop, before partial recovery in September (+6.58% MoM).

Argentina - Brazil Trade Balance & Market Dynamics

• Net Position: Trade deficit of $1.27B (Imports exceeded exports).
• Relationship Status: Argentina remains a net importer of Brazilian goods, though the deficit narrowed slightly from Q3 2022’s $1.4B gap. Demand volatility in both directions points to uneven economic activity.

Argentina Import Trend from Brazil 2023 Q3 (Source: yTrade)**

Argentina Export Trend to Brazil 2023 Q3 (Source: yTrade)**

Get Historical Argentina Brazil Trade Records

Argentina-Brazil Top Trading Products in Q3 2023

Argentina Export Profile: What Does Argentina Sell to Brazil

• Top Commodity: Vehicles (HS 87) dominate exports, accounting for 40.47% of total value.
• Demand Driver: Brazil imports vehicles for its consumer market, reflecting Argentina's role as a key supplier of manufactured goods.
• Concentration: High—HS 87 alone holds over 40% share, indicating heavy reliance on one category.

Argentina Import Profile: What Does Argentina Buy from Brazil

• Top Commodity: Vehicles (HS 87) also lead imports, making up 24.13% of total value.
• Dependency Nature: Dual reliance on vehicles suggests intra-industry trade, likely driven by supply chain integration rather than one-way dependency.

Argentina - Brazil Trade Relationship Dynamics

• The Exchange Model: Intra-Industry Trade dominates, with vehicles (HS 87) appearing as top exports and imports. This signals deep supply chain linkages, possibly in auto manufacturing.
• Value Chain Position: Both countries trade similar high-value products, suggesting balanced value-add roles rather than a clear hierarchy.

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 for Argentina-Brazil Trade

The Argentina-Brazil trade relationship is expected to remain volatile in the near term, with persistent deficits and uneven demand. The intra-industry reliance on vehicles (HS 87) suggests supply chain resilience, but the YoY declines in both exports and imports signal economic headwinds. Traders should anticipate continued fluctuations, particularly in the auto sector, with potential stabilization if regional demand rebounds. The slight narrowing of the trade deficit indicates cautious optimism, but structural diversification is critical for long-term balance.

Strategic Moves for Traders

• Diversify Export Markets: Argentina’s heavy reliance on vehicle exports to Brazil exposes it to demand shocks. Exporters must aggressively target alternative markets in Latin America and beyond to mitigate concentration risk.
• Optimize Supply Chain Logistics: Given the intra-industry trade in vehicles, manufacturers should streamline cross-border logistics and adopt Just-in-Time (JIT) inventory strategies to reduce costs and improve efficiency.
• Leverage Trade Agreements: Both countries should maximize existing Mercosur frameworks to negotiate tariff reductions on key goods, particularly in sectors where trade imbalances persist. Policymakers and businesses must collaborate to secure favorable terms.

Frequently Asked Questions

How did Argentina - Brazil trade perform in 2023 Q3?

Argentina's exports to Brazil totaled $3.19B, showing a YoY decline, while imports from Brazil reached $4.46B with mixed YoY performance. The trade deficit narrowed slightly to $1.27B compared to Q3 2022.

What are the top exports from Argentina to Brazil?

Vehicles (HS 87) dominate Argentina's exports to Brazil, accounting for 40.47% of the total export value.

What does Argentina import from Brazil?

Argentina's top import from Brazil is also vehicles (HS 87), making up 24.13% of the total import value.

What is the trade balance between Argentina and Brazil?

Argentina recorded a trade deficit of $1.27B with Brazil in Q3 2023, though the gap narrowed slightly from the previous year's $1.4B deficit.