Brazil - Argentina Trade 2023 Q3: Weakening Demand
Key Market Takeaways: Brazil - Argentina Trade
The bilateral trade relationship between Brazil and Argentina shows weakening demand but maintains a net exporter role for Brazil in Q3 2023.
- Economic Pulse: Brazil recorded a $0.98B trade surplus with Argentina ($4.21B exports vs. $3.23B imports), though both flows declined YoY, signaling softening bilateral demand.
- Exchange Structure: Brazil - Argentina trade statistics reveal intra-industry dominance, with vehicles (HS 87) as the top traded commodity both ways, reflecting deep Mercosur supply chain integration.
- Strategic Interdependence: The relationship hinges on regional manufacturing ties, with Brazil exporting higher-value machinery while Argentina’s exports remain vehicle-heavy.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Brazil-Argentina Trade Trend in Q3 2023
Brazil Export Performance: Shipments to Argentina
- Total Volume: Brazil exported $4.21B worth of goods to Argentina in Q3 2023.
- Growth Trend & Context: Exports declined YoY in August (-8.4%) and September (-20.33%), despite a 17.51% YoY rise in July. No specific trade news explains this volatility.
- Key Volatility: September saw the sharpest MoM drop (-18.91%), erasing earlier gains.
Brazil Import Performance: Sourcing from Argentina
- Total Volume: Brazil imported $3.23B from Argentina in Q3 2023.
- Growth Trend & Context: Imports fell YoY across all months, with the steepest drop in September (-18.72%). No news context is provided to explain the contraction.
- Key Volatility: August had a 13.47% MoM surge, but September reversed it with a -13.56% decline.
Brazil - Argentina Trade Balance & Market Dynamics
- Net Position: Brazil recorded a trade surplus of $0.98B (Exports: $4.21B > Imports: $3.23B).
- Relationship Status: Brazil maintains a net exporter role, though both trade flows show weakening demand YoY.
Brazil Import Trend from Argentina 2023 Q3 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jul | 1.04B | 7.91% | -3.07% |
| Aug | 1.17B | 13.47% | -13.37% |
| Sep | 1.02B | -13.56% | -18.72% |
| Total | 3.23B | - | - |
Brazil Export Trend to Argentina 2023 Q3 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jul | 1.62B | -17.05% | 17.51% |
| Aug | 1.43B | -11.52% | -8.4% |
| Sep | 1.16B | -18.91% | -20.33% |
| Total | 4.21B | - | - |
Get Historical Brazil Argentina Trade Records
Brazil-Argentina Top Trading Products in Q3 2023
Brazil Export Profile: What Does Brazil Sell to Argentina
- Top Commodity: Rank #1 export is HS Code 87 (Vehicles) at 24.48% of total exports.
- Demand Driver: Argentina's consumer market drives demand for Brazilian vehicles, indicating strong intra-regional trade in manufactured goods.
- Concentration: No single category dominates (>50% share), but vehicles, machinery (HS 84), and oilseeds (HS 12) form a diversified export basket.
Brazil Import Profile: What Does Brazil Buy from Argentina
- Top Commodity: Rank #1 import is HS Code 87 (Vehicles) at 43.44% of total imports.
- Dependency Nature: High reliance on Argentine vehicles suggests intra-industry trade in the automotive sector, likely due to regional supply chain integration.
Brazil - Argentina Trade Relationship Dynamics
- The Exchange Model: Intra-Industry Trade dominates, with both countries exchanging vehicles (HS 87) and machinery (HS 84). This reflects deep supply chain ties, possibly under Mercosur trade agreements.
- Value Chain Position: Brazil holds a slight edge in value-add, exporting higher-value machinery (HS 84) and electronics (HS 85), while Argentina's exports are more concentrated in vehicles.
Import Analysis by Product: Argentina to Brazil (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 87 | 1.40B | 43.44% |
| 27 | 469.50M | 14.55% |
| 84 | 162.79M | 5.05% |
| 10 | 156.12M | 4.84% |
| 04 | 134.28M | 4.16% |
| 11 | 127.44M | 3.95% |
| 39 | 117.80M | 3.65% |
| 20 | 74.23M | 2.30% |
| 38 | 68.85M | 2.13% |
| 08 | 64.86M | 2.01% |
Export Analysis by Product: Brazil to Argentina (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 87 | 1.03B | 24.48% |
| 84 | 448.86M | 10.67% |
| 12 | 381.36M | 9.06% |
| 85 | 242.63M | 5.77% |
| 27 | 225.87M | 5.37% |
| 72 | 223.71M | 5.32% |
| 39 | 188.13M | 4.47% |
| 40 | 140.24M | 3.33% |
| 26 | 116.12M | 2.76% |
| 48 | 111.22M | 2.64% |
Check Detailed Brazil-Argentina Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
Brazil’s trade with Argentina is likely to face continued volatility in Q4 2023, driven by weakening demand and macroeconomic instability in both markets. The sharp YoY declines in exports and imports suggest a period of consolidation, particularly in the automotive sector (HS 87), which dominates bilateral trade. However, the deep supply chain integration under Mercosur provides a stabilizing foundation, preventing a full-scale retreat. Traders should prepare for uneven recovery, with potential upside if Argentina’s consumer market stabilizes.
Strategic Moves
- Diversify Export Markets: Brazilian vehicle exporters must reduce reliance on Argentina by targeting other Latin American markets to offset demand fluctuations.
- Optimize Automotive Supply Chains: Firms engaged in intra-industry trade should streamline logistics and adopt just-in-time inventory practices to mitigate cost pressures from volatile shipments.
- Monitor Currency Risks: With Argentina’s economic instability, Brazilian importers should hedge against peso depreciation to protect profit margins on vehicle imports.
Frequently Asked Questions
How did Brazil - Argentina trade perform in 2023 Q3?
Brazil exported $4.21B to Argentina and imported $3.23B, but both flows declined YoY, with sharp drops in September.
What are the top exports from Brazil to Argentina?
The top exports are Vehicles (HS 87), Machinery (HS 84), and Oilseeds (HS 12), forming a diversified basket.
What does Brazil import from Argentina?
Brazil’s top import is Vehicles (HS 87), accounting for 43.44% of total imports, reflecting strong intra-industry trade.
What is the trade balance between Brazil and Argentina?
Brazil recorded a trade surplus of $0.98B in Q3 2023, though both exports and imports showed weakening demand.
Brazil - Argentina Trade 2023 Q1: Surplus & Auto Dominance
Brazil's $830M trade surplus with Argentina in Q1 2023 highlights strong auto sector ties, with vehicles leading both exports and imports. Explore Brazil Argentina trade trends and top trading products via yTrade data.
Brazil - Argentina Trade 2024 Q1: Deficit & Volatility
Brazil's rare trade deficit with Argentina in Q1 2024 highlights shifting Brazil Argentina trade trends, with vehicles dominating Brazil Argentina top trading products. Data via yTrade.
