Brazil - Argentina Trade 2024 Q2: Export Plunge & Auto Dominance

Key Market Takeaways: Brazil - Argentina Trade

The bilateral trade relationship between Brazil and Argentina deteriorated in Q2 2024, marked by a deepening export contraction and volatile import swings.

• Economic Pulse: Brazil posted a $420M trade deficit with Argentina ($3.48B imports vs. $3.06B exports), exacerbated by a 51.38% YoY export plunge in June. Volatility spiked with double-digit MoM drops.
• Exchange Structure: Intra-industry trade dominates, with vehicles (HS 87) as the top import (38.63%) and export (29.95%). Brazil-Argentina trade statistics reveal tightly linked auto supply chains.
• Strategic Interdependence: Reciprocal high-value trade in vehicles and machinery signals deep regional production integration, not dependency.

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

Brazil-Argentina Trade Trend in Q2 2024

Brazil Export Performance: Shipments to Argentina

• Total Volume: $3.06B in Q2 2024.
• Growth Trend & Context:
  • YoY decline persisted, worsening from -34.07% in April to -51.38% in June. No trade policy shifts were reported to explain this contraction.
  • Key Volatility: May saw the steepest MoM drop (-7.79%), followed by a milder -6.52% decline in June.

Brazil Import Performance: Sourcing from Argentina

• Total Volume: $3.48B in Q2 2024.
• Growth Trend & Context:
  • Mixed YoY performance: +37.66% in April, then -3.39% in May and +9.24% in June. No news context to clarify the swings.
  • Key Volatility: June recorded the lowest monthly value ($1.05B) and the sharpest MoM fall (-10.04%).

Brazil - Argentina Trade Balance & Market Dynamics

• Net Position: Brazil ran a trade deficit of $420M (Imports $3.48B > Exports $3.06B).
• Relationship Status: Persistent deficit suggests reliance on Argentine imports, though export contraction exacerbated the gap.

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

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

Get Historical Brazil Argentina Trade Records

Brazil-Argentina Top Trading Products in Q2 2024

Brazil Export Profile: What Does Brazil Sell to Argentina

• Top Commodity: Vehicles (HS 87) dominate exports, accounting for 29.95% of total value.
• Demand Driver: Argentina relies on Brazilian auto exports for consumer and industrial needs, reflecting integrated supply chains in the region.
• Concentration: No single category exceeds 50%, but vehicles (29.95%) and machinery (HS 84, 9.54%) form a significant share.

Brazil Import Profile: What Does Brazil Buy from Argentina

• Top Commodity: Vehicles (HS 87) also lead imports, making up 38.63% of total value.
• Dependency Nature: The reciprocal trade in vehicles suggests intra-industry trade, likely driven by regional production networks rather than dependency.

Brazil - Argentina Trade Relationship Dynamics

• The Exchange Model: Intra-Industry Trade dominates, with vehicles (HS 87) being both the top export and import. This indicates deep supply chain integration, possibly in auto manufacturing.
• Value Chain Position: Both countries trade similar high-value categories (e.g., vehicles, machinery), suggesting balanced value-add positions rather than a clear hierarchy.

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

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

Check Detailed Brazil-Argentina Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

The Brazil-Argentina trade relationship faces continued volatility in Q3 2024, with Brazil’s export decline likely to persist due to weak demand signals and no immediate policy interventions. The intra-industry trade in vehicles (HS 87) will remain the backbone of bilateral flows, but exporters should prepare for tighter margins as Argentina’s economic instability weighs on purchasing power. The trade deficit may narrow slightly if import volumes stabilize, but Brazil must act aggressively to reverse its weakening export position.

Strategic Moves

• Diversify Export Markets: Brazilian auto and machinery exporters must reduce reliance on Argentina by targeting other Latin American markets (e.g., Colombia, Chile) to offset declining sales.
• Optimize Supply Chains: Firms engaged in intra-industry trade should streamline cross-border logistics and adopt just-in-time inventory systems to cut costs amid fluctuating demand.
• Lobby for Trade Facilitation: Industry groups must push both governments for faster customs clearance and tariff reductions on key inputs to revive competitiveness in regional supply chains.

Frequently Asked Questions

How did Brazil - Argentina trade perform in 2024 Q2?

Brazil's exports to Argentina fell sharply (-51.38% YoY in June), totaling $3.06B, while imports from Argentina were volatile but reached $3.48B, widening Brazil's trade deficit.

What are the top exports from Brazil to Argentina?

Vehicles (HS 87) dominated Brazil's exports (29.95% of total value), followed by machinery (HS 84, 9.54%), reflecting strong regional supply chain integration.

What does Brazil import from Argentina?

Vehicles (HS 87) were also Brazil's top import (38.63% of total value), highlighting reciprocal intra-industry trade in the auto sector.

What is the trade balance between Brazil and Argentina?

Brazil ran a trade deficit of $420M with Argentina in Q2 2024, driven by higher imports ($3.48B) than exports ($3.06B).