Argentina - Italy Trade 2023 Q1: Deficit Widens

Key Market Takeaways: Argentina - Italy Trade

The bilateral trade relationship between Argentina and Italy shows deepening dependency amid volatile export performance and sustained import demand in Q1 2023.

• Deficit Widens: Argentina’s trade gap with Italy hit $240.97M (exports $171.99M vs. imports $412.96M), with imports growing YoY (+2.09% to +11.34%) while exports fluctuated sharply (-39.08% in February).
• Resource-for-Tech Exchange: Argentina - Italy trade statistics reveal a lopsided structure: raw materials (animal feed, fish) make up 80% of Argentina’s exports, while Italy dominates with machinery (40.76%) and pharmaceuticals.
• Asymmetrical Reliance: Italy holds the high-value position, supplying critical tech and healthcare goods, while Argentina remains a commodity supplier—highlighting limited diversification.

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

Argentina-Italy Trade Trend in Q1 2023

Argentina Export Performance: Shipments to Italy

• Total Volume: $171.99M in Q1 2023.
• Growth Trend & Context:
  • Exports showed mixed YoY performance: +8.29% in January, but sharp declines in February (-39.08%) and March (-0.33%).
  • No relevant trade news to explain the February collapse, but the rebound in March suggests partial recovery.
• Key Volatility: February saw the steepest MoM drop (-38.82%), with March exports stabilizing slightly (-4.02% MoM).

Argentina Import Performance: Sourcing from Italy

• Total Volume: $412.96M in Q1 2023.
• Growth Trend & Context:
  • Imports grew YoY across all months (+2.09% in January, +7.48% in February, +11.34% in March), indicating sustained demand.
• Key Volatility: March posted the highest value ($147.95M) and strongest MoM growth (+22.27%), while February had the sharpest MoM contraction (-15.96%).

Argentina - Italy Trade Balance & Market Dynamics

• Net Position: Argentina ran a trade deficit of $240.97M (Imports $412.96M > Exports $171.99M).
• Relationship Status: Heavy reliance on Italian imports, with exports failing to offset the gap. The widening deficit in Q1 suggests deepening dependency.

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

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

Get Historical Argentina Italy Trade Records

Argentina-Italy Top Trading Products in Q1 2023

Argentina Export Profile: What Does Argentina Sell to Italy

• Top Commodity: HS Code 99 (67.15M, 39.04%). Likely unclassified or special category goods, dominating nearly 40% of exports.
• Demand Driver: HS Code 23 (animal feed/residues) and 03 (fish) suggest Italy sources raw materials for agri-processing and food industries.
• Concentration: Top 3 exports (HS 99, 23, 03) account for 79.57% of total, indicating high reliance on a few categories.

Argentina Import Profile: What Does Argentina Buy from Italy

• Top Commodity: HS Code 84 (machinery/equipment, 168.34M, 40.76%). Reflects Argentina's dependence on Italian industrial technology.
• Dependency Nature: Dominance of machinery (HS 84), electrical equipment (HS 85), and pharmaceuticals (HS 30) signals critical tech and healthcare reliance.

Argentina - Italy Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Argentina supplies raw materials (animal feed, fish) while Italy provides high-value machinery and pharmaceuticals.
• Value Chain Position: Italy holds the higher value-add position, exporting complex manufactured goods (HS 84, 85, 90) versus Argentina’s primary commodities (HS 23, 03).

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

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

Check Detailed Argentina-Italy Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Argentina’s trade deficit with Italy is likely to widen further in Q2 2023, driven by sustained Italian demand for high-value machinery and pharmaceuticals, coupled with Argentina’s volatile export performance. The rebound in March exports suggests potential stabilization, but structural reliance on unclassified goods (HS 99) and raw materials (HS 23, 03) leaves Argentina vulnerable to price swings. Without diversification, the resource-for-tech imbalance will deepen, reinforcing Italy’s value-chain dominance.

Strategic Moves

• Lock in Agri-Export Contracts: Argentine exporters of animal feed (HS 23) and fish (HS 03) should secure long-term contracts with Italian buyers to mitigate price volatility and stabilize revenue streams.
• Diversify Import Sources: Argentine importers must reduce dependency on Italian machinery (HS 84) by exploring alternative suppliers in Germany or China to improve bargaining power and cost efficiency.
• Push for Value-Add Exports: Argentina’s trade agencies should incentivize processed food exports (e.g., canned fish, refined feed) to capture higher margins and reduce reliance on bulk commodity sales.

Frequently Asked Questions

How did Argentina - Italy trade perform in 2023 Q1?

Argentina's exports to Italy totaled $171.99M in Q1 2023, with mixed YoY growth (+8.29% in January, -39.08% in February, -0.33% in March). Imports from Italy grew consistently (+2.09% to +11.34% YoY), reaching $412.96M.

What are the top exports from Argentina to Italy?

Argentina's top exports to Italy include unclassified/special category goods (HS 99, 39.04%), animal feed/residues (HS 23), and fish (HS 03). These three categories account for 79.57% of total exports.

What does Argentina import from Italy?

Argentina primarily imports machinery/equipment (HS 84, 40.76%), electrical equipment (HS 85), and pharmaceuticals (HS 30) from Italy, reflecting reliance on industrial technology and healthcare products.

What is the trade balance between Argentina and Italy?

Argentina recorded a trade deficit of $240.97M with Italy in Q1 2023 (imports $412.96M > exports $171.99M), indicating deepening dependency on Italian goods.