Argentina - Mexico Trade 2023 Q3: Widening Deficit & Tech Imports

Key Market Takeaways: Argentina - Mexico Trade

The bilateral trade relationship between Argentina and Mexico is marked by growth, volatility, and a widening deficit in Q3 2023.

• Economic Pulse: Argentina posted a $194.76M trade deficit with Mexico, driven by $435.64M in imports (up 21.06% YoY in September) versus $240.88M in exports (plunging 45.36% YoY that month).
• Exchange Structure: Argentina - Mexico trade statistics reveal a resource-for-tech dynamic—Argentina ships niche goods (HS Code 99, 58.77% of exports) and raw materials, while Mexico supplies vehicles (HS Code 87, 38.02% of imports) and industrial machinery.
• Strategic Interdependence: Mexico holds the value-add advantage, with Argentina reliant on its manufactured goods, highlighting an asymmetric but complementary pairing.

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

Argentina-Mexico Trade Trend in Q3 2023

Argentina Export Performance: Shipments to Mexico

• Total Volume: $240.88M in Q3 2023.
• Growth Trend & Context:
  • YoY swings were volatile: August saw an 8.86% YoY rise, but September plunged 45.36% YoY.
  • No trade news to contextualize the sharp September decline.
• Key Volatility: August exports spiked 42.61% MoM, the highest monthly growth in the quarter.

Argentina Import Performance: Sourcing from Mexico

• Total Volume: $435.64M in Q3 2023.
• Growth Trend & Context:
  • Mixed YoY performance: September imports surged 21.06% YoY, but July and August fell 9.32% and 8.05% YoY, respectively.
• Key Volatility: August imports jumped 28.75% MoM, rebounding from July’s 3.88% MoM drop.

Argentina - Mexico Trade Balance & Market Dynamics

• Net Position: Argentina ran a trade deficit of $194.76M (Imports exceeded exports).
• Relationship Status: Heavy reliance on Mexican imports, with exports failing to offset the gap. The deficit widened notably in September.

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

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

Get Historical Argentina Mexico Trade Records

Argentina-Mexico Top Trading Products in Q3 2023

Argentina Export Profile: What Does Argentina Sell to Mexico

• Top Commodity: HS Code 99 dominates exports to Mexico, accounting for 58.77% of total export value. This suggests a highly concentrated trade in a single category.
• Demand Driver: The high share of HS Code 99 (unclassified or special category goods) indicates Mexico may rely on Argentina for niche or specialized products, possibly for industrial or regulatory purposes. Other exports like HS Code 15 (animal/vegetable fats) and agricultural codes (07, 08, 02) point to Mexico sourcing raw materials for food processing or manufacturing.
• Concentration: Extreme reliance on HS Code 99 (>50% share) signals vulnerability to demand shifts in this category.

Argentina Import Profile: What Does Argentina Buy from Mexico

• Top Commodity: HS Code 87 (vehicles and parts) leads imports at 38.02%, reflecting Mexico’s strength in automotive manufacturing.
• Dependency Nature: Imports are heavily skewed toward industrial goods (HS Codes 87, 84, 85, 90—machinery, electronics, optics), indicating critical technology dependency for Argentina’s manufacturing or infrastructure. Consumer goods like HS Code 33 (perfumes/cosmetics) and 39 (plastics) suggest supplementary demand for finished products.

Argentina - Mexico Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Argentina exports raw materials (agricultural, fats) and specialized goods (HS 99) while importing high-value industrial products (vehicles, machinery). This mirrors classic North-South trade patterns.
• Value Chain Position: Mexico holds the higher value-add position, supplying complex manufactured goods (automobiles, machinery) versus Argentina’s commodity-leaning exports. The asymmetry in HS Code 87’s dominance (38% of imports) versus Argentina’s fragmented export profile underscores Mexico’s industrial advantage.

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

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

Check Detailed Argentina-Mexico Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Argentina’s trade deficit with Mexico is likely to persist in Q4 2023, driven by continued demand for Mexican industrial goods (HS Code 87) and volatility in Argentina’s export performance. The sharp September export decline (-45.36% YoY) signals vulnerability in HS Code 99 dominance, while Mexico’s stable automotive and machinery exports will maintain import pressure. Without diversification or new trade incentives, Argentina’s reliance on niche exports and industrial imports will deepen the imbalance. Traders should brace for fluctuating demand in HS Code 99 and prepare for tighter margins.

Strategic Moves

• Diversify Export Basket: Argentine exporters must reduce dependence on HS Code 99 by pushing agricultural and raw material exports (HS Codes 02, 07, 15) to Mexico’s food processing sector, leveraging existing demand.
• Lock in Long-Term Supply Contracts: Importers of Mexican vehicles and machinery (HS Codes 87, 84) should secure fixed-price agreements to hedge against currency volatility and rising industrial input costs.
• Pressure for Trade Rebalancing: Argentine trade bodies should lobby for targeted export promotion programs (e.g., tax breaks for non-HS 99 goods) and negotiate reciprocal manufacturing partnerships to reduce the tech deficit.

Next Steps: Monitor Mexico’s Q4 industrial output data and Argentine export policy shifts—these will dictate short-term trade flow adjustments.

Frequently Asked Questions

How did Argentina - Mexico trade perform in 2023 Q3?

Argentina's exports to Mexico totaled $240.88M, with volatile YoY swings, while imports from Mexico reached $435.64M, showing mixed YoY performance.

What are the top exports from Argentina to Mexico?

The top export is HS Code 99 (unclassified/special category goods), accounting for 58.77% of total exports, followed by agricultural products like animal/vegetable fats (HS Code 15).

What does Argentina import from Mexico?

Argentina primarily imports vehicles and parts (HS Code 87, 38.02% share), along with machinery, electronics, and optics (HS Codes 84, 85, 90).

What is the trade balance between Argentina and Mexico?

Argentina recorded a trade deficit of $194.76M with Mexico in Q3 2023, with the gap widening notably in September.