Argentina - Italy Trade 2023 Q2: Growing Deficit

Key Market Takeaways: Argentina - Italy Trade

The bilateral trade relationship between Argentina and Italy reflects a volatile but growing deficit for Argentina in Q2 2023.

• Economic Pulse: Argentina posted a $314.11M trade deficit with Italy (exports: $216.93M, imports: $531.04M), driven by surging Italian machinery imports (+80.33% YoY peak in May).
• Exchange Structure: Argentina - Italy trade statistics reveal asymmetric complementarity—Argentina ships unclassified bulk goods (HS 99, 56.8% share) and agricultural products, while Italy supplies high-value machinery (HS 84, 39.3%) and pharmaceuticals.
• Strategic Interdependence: Italy holds the value-add edge, with Argentina reliant on critical industrial inputs, signaling a resource-for-tech dependency.

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

Argentina-Italy Trade Trend in Q2 2023

Argentina Export Performance: Shipments to Italy

• Total Volume: $216.93M in Q2 2023.
• Growth Trend & Context:
  • YoY growth was mixed: April (-51.56%) collapsed, but May (+14.86%) and June (+1.07%) rebounded.
  • No relevant trade news to explain the April plunge.
• Key Volatility: June saw the highest monthly exports ($87.15M, +25.85% MoM), while April was the weakest ($60.54M).

Argentina Import Performance: Sourcing from Italy

• Total Volume: $531.04M in Q2 2023.
• Growth Trend & Context:
  • Strong YoY growth overall (+80.33% in May), though June moderated (+7.57%).
  • No news to contextualize the surge.
• Key Volatility: May peaked at $216.99M (+34.89% MoM), while June dropped sharply (-29.4% MoM).

Argentina - Italy Trade Balance & Market Dynamics

• Net Position: Trade deficit of $314.11M (Exports $216.93M vs. Imports $531.04M).
• Relationship Status: Heavy reliance on Italian imports, with exports failing to offset the gap.

Argentina Import Trend from Italy 2023 Q2 (Source: yTrade)**

Argentina Export Trend to Italy 2023 Q2 (Source: yTrade)**

Get Historical Argentina Italy Trade Records

Argentina-Italy Top Trading Products in Q2 2023

Argentina Export Profile: What Does Argentina Sell to Italy

• Top Commodity: HS Code 99 (56.80% share). Likely unclassified or special category goods, given the high share.
• Demand Driver: Dominated by a single category (HS Code 99 at 56.8%), suggesting Italy relies on Argentina for a specific niche or unclassified product stream. Secondary exports (HS Codes 23, 03, 02) indicate agricultural or food-related shipments (e.g., animal feed, seafood, meat).
• Concentration: Extreme—HS Code 99 accounts for over half of exports, signaling high dependency on this category.

Argentina Import Profile: What Does Argentina Buy from Italy

• Top Commodity: HS Code 84 (39.33% share)—Machinery (e.g., industrial equipment, reactors).
• Dependency Nature: Critical technology dependency. Italy supplies high-value machinery (HS Code 84) and energy products (HS Code 27, likely oil/gas), alongside pharmaceuticals (HS Code 30). Argentina’s imports are industrial-input heavy.

Argentina - Italy Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Argentina exports raw/unclassified goods (HS 99) and agricultural products to Italy, while importing machinery and energy. Classic asymmetric trade.
• Value Chain Position: Italy holds the higher value-add position, exporting complex machinery (HS 84) and pharmaceuticals (HS 30). Argentina’s exports are less processed, with HS 99’s ambiguity suggesting low-value or bulk commodities.

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

The Argentina-Italy trade relationship is likely to remain volatile but structurally imbalanced in the near term. Italy’s demand for Argentina’s unclassified exports (HS Code 99) shows resilience, but the heavy reliance on a single commodity leaves Argentina vulnerable to demand shocks. Meanwhile, Italy’s machinery and energy exports (HS Codes 84 and 27) will continue dominating, sustaining Argentina’s trade deficit. Without diversification or value-added upgrades, Argentina’s export growth will struggle to offset its import dependency.

Strategic Moves

• Diversify Export Composition: Argentine exporters must reduce over-reliance on HS Code 99 by expanding into higher-value agricultural processing (e.g., packaged meats under HS 02) or niche manufacturing to capture more Italian demand.
• Lock in Machinery Supply Chains: Importers should secure long-term contracts for Italian industrial equipment (HS 84) to mitigate price volatility, especially as global supply chain pressures persist.
• Leverage Trade Diplomacy: Argentina’s government should negotiate targeted tariff reductions on key exports (e.g., seafood under HS 03) to improve competitiveness and narrow the trade gap with Italy.

Frequently Asked Questions

How did Argentina - Italy trade perform in 2023 Q2?

Argentina exported $216.93M to Italy, with mixed YoY growth, while imports surged to $531.04M, resulting in a trade deficit of $314.11M.

What are the top exports from Argentina to Italy?

Argentina’s top export to Italy is HS Code 99 (56.8% share), likely unclassified or special goods, followed by agricultural products like animal feed, seafood, and meat.

What does Argentina import from Italy?

Argentina primarily imports machinery (HS Code 84, 39.33%), energy products (HS Code 27), and pharmaceuticals (HS Code 30) from Italy.

What is the trade balance between Argentina and Italy?

Argentina has a trade deficit of $314.11M with Italy, driven by heavy reliance on Italian machinery and energy imports.