Argentina - Brazil Trade 2024 Q2: Shrinking Imports, Tight Links

Key Market Takeaways: Argentina - Brazil Trade

The bilateral trade relationship between Argentina and Brazil shows near-balanced trade but with Argentina’s import demand shrinking sharply in Q2 2024.

• Economic Pulse: Total trade reached $6.34B, with Argentina posting a marginal $20M deficit. Exports grew unevenly (+9% YoY avg), while imports collapsed (-42% YoY avg).
• Exchange Structure: Argentina - Brazil trade statistics reveal intra-industry trade, dominated by vehicles (HS 87) and machinery (HS 84), signaling deep manufacturing supply chain integration.
• Strategic Interdependence: Both economies are tightly linked, but Brazil holds a slight value-add edge with a more diversified export mix.

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

Argentina-Brazil Trade Trend in Q2 2024

Argentina Export Performance: Shipments to Brazil

• Total Volume: $3.16B in Q2 2024.
• Growth Trend & Context:
  • YoY growth was mixed: April (-2.79%), May (+12.05%), June (+9.25%). No clear trend due to volatility.
• Key Volatility: June saw a sharp MoM drop (-10.8%), offsetting May’s 5.3% gain.

Argentina Import Performance: Sourcing from Brazil

• Total Volume: $3.18B in Q2 2024.
• Growth Trend & Context:
  • Steep YoY declines: April (-34.66%), May (-42.68%), June (-51.11%). Demand contraction is severe.
• Key Volatility: June imports fell -10.76% MoM, the lowest monthly value ($1.00B).

Argentina - Brazil Trade Balance & Market Dynamics

• Net Position: Marginal trade deficit of $20M (Imports $3.18B > Exports $3.16B).
• Relationship Status: Near-balanced trade, but Argentina’s import demand from Brazil is shrinking faster (-42% YoY avg) than exports (-9% YoY avg).

Argentina Import Trend from Brazil 2024 Q2 (Source: yTrade)**

Argentina Export Trend to Brazil 2024 Q2 (Source: yTrade)**

Get Historical Argentina Brazil Trade Records

Argentina-Brazil Top Trading Products in Q2 2024

Argentina Export Profile: What Does Argentina Sell to Brazil

• Top Commodity: Vehicles (HS 87) dominate exports, accounting for 29.84% of total value.
• Demand Driver: Brazil imports vehicles for its consumer market, reflecting demand for transportation goods.
• Concentration: Trade is moderately concentrated, with the top two categories (HS 87 and HS 99) making up 57.09% of exports.

Argentina Import Profile: What Does Argentina Buy from Brazil

• Top Commodity: Vehicles (HS 87) also lead imports, comprising 29.27% of total value.
• Dependency Nature: Argentina relies on Brazilian vehicles and machinery (HS 84), indicating industrial and consumer market interdependence.

Argentina - Brazil Trade Relationship Dynamics

• The Exchange Model: Intra-Industry Trade, with both countries heavily trading vehicles (HS 87) and machinery (HS 84). This suggests deep supply chain integration in manufacturing.
• Value Chain Position: Brazil holds a slight edge in value-add, given its broader export mix (e.g., HS 99, HS 10) beyond vehicles, while Argentina’s exports are more concentrated.

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

Argentina’s trade with Brazil is likely to face continued volatility in Q3 2024, with exports stabilizing but imports declining further. The sharp contraction in Argentina’s demand for Brazilian goods (-42% YoY average) suggests a prolonged slowdown, while export growth remains uneven. However, the deep intra-industry integration—particularly in vehicles (HS 87) and machinery (HS 84)—means supply chain dependencies will persist. Traders should prepare for a period of consolidation, with Brazil maintaining a slight value-add advantage due to its diversified export mix.

Strategic Moves for Traders

• Diversify Export Markets: Argentina’s reliance on Brazil for vehicle exports (29.84% of total) exposes traders to demand volatility. Seek alternative markets in Latin America or Asia to mitigate risk.
• Optimize Supply Chains: Given the intra-industry trade structure, streamline logistics and adopt just-in-time (JIT) inventory practices to reduce costs amid fluctuating import demand.
• Monitor Brazil’s Industrial Policy: Brazil’s edge in value-add sectors (e.g., machinery, HS 84) could widen. Argentine exporters must track Brazilian regulatory shifts to anticipate competitive pressures.

Frequently Asked Questions

How did Argentina - Brazil trade perform in 2024 Q2?

Argentina's exports to Brazil totaled $3.16B, with mixed YoY growth, while imports fell sharply (-42% YoY avg) to $3.18B, resulting in a marginal trade deficit of $20M.

What are the top exports from Argentina to Brazil?

Vehicles (HS 87) dominate Argentina's exports to Brazil, accounting for 29.84% of total value, followed by other key categories like HS 99, reflecting strong demand for transportation goods.

What does Argentina import from Brazil?

Argentina primarily imports vehicles (HS 87) and machinery (HS 84) from Brazil, with vehicles alone making up 29.27% of total import value, highlighting industrial interdependence.

What is the trade balance between Argentina and Brazil?

Argentina recorded a marginal trade deficit of $20M with Brazil in Q2 2024, as imports ($3.18B) slightly exceeded exports ($3.16B), with the gap widening due to steeper import declines.