Brazil - Canada Trade 2023 Q2: Surplus & Resource Swap

Key Market Takeaways: Brazil - Canada Trade

The bilateral trade relationship between Brazil and Canada showed mixed growth with Brazil maintaining a trade surplus in Q2 2023.

• Economic Pulse: Brazil held a $240M surplus (Exports: $1.35B > Imports: $1.11B), though imports from Canada fell sharply (-66.06% YoY in June).
• Exchange Structure: Brazil - Canada trade statistics reveal a resource-for-resource dynamic: Brazil exports raw materials (precious metals, ores) while importing critical fertilizers (64.06% of total imports).
• Strategic Interdependence: Highly complementary economies, with Canada supplying high-margin agricultural inputs and Brazil providing unprocessed commodities.

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

Brazil-Canada Trade Trend in Q2 2023

Brazil Export Performance: Shipments to Canada

• Total Volume: $1.35B in Q2 2023.
• Growth Trend & Context:
  • YoY growth was mixed: April (-32.74%), May (+25.65%), June (+10.31%).
  • No specific trade news to explain fluctuations.
• Key Volatility: May saw an 80.15% MoM surge, while April dropped 33.66% MoM.

Brazil Import Performance: Sourcing from Canada

• Total Volume: $1.11B in Q2 2023.
• Growth Trend & Context:
  • YoY declines persisted: April (-0.88%), May (-28.88%), June (-66.06%).
• Key Volatility: June imports plummeted 38.18% MoM, the sharpest drop.

Brazil - Canada Trade Balance & Market Dynamics

• Net Position: Brazil held a $240M trade surplus with Canada (Exports: $1.35B > Imports: $1.11B).
• Relationship Status: Brazil maintained a net exporter role, though imports from Canada contracted sharply YoY.

Brazil Import Trend from Canada 2023 Q2 (Source: yTrade)**

Brazil Export Trend to Canada 2023 Q2 (Source: yTrade)**

Get Historical Brazil Canada Trade Records

Brazil-Canada Top Trading Products in Q2 2023

Brazil Export Profile: What Does Brazil Sell to Canada

• Top Commodity: Rank #1 export is HS 71 (Pearls, precious stones, metals) at 27.60% of total exports to Canada.
• Demand Driver: Canada likely uses these raw materials (HS 71, 28, 72) for industrial processing, particularly in jewelry, chemicals, and steel production.
• Concentration: Trade is moderately concentrated, with the top 3 categories (HS 71, 28, 72) accounting for 61.93% of exports.

Brazil Import Profile: What Does Brazil Buy from Canada

• Top Commodity: Rank #1 import is HS 31 (Fertilizers) at 64.06% of total imports from Canada.
• Dependency Nature: Reflects agricultural input dependency, as Brazil relies on Canadian fertilizers to support its massive agribusiness sector.

Brazil - Canada Trade Relationship Dynamics

• The Exchange Model: Resource-for-Resource Complementarity. Brazil exports raw materials (precious metals, ores) and imports critical agricultural inputs (fertilizers) from Canada.
• Value Chain Position: Canada holds a slight edge in value-add, supplying high-margin fertilizers (HS 31) and machinery (HS 84), while Brazil primarily provides unprocessed commodities.

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

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

Check Detailed Brazil-Canada Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Brazil’s trade surplus with Canada is expected to widen in Q3 2023, driven by sustained demand for raw materials (HS 71, 28, 72) in Canadian industrial sectors. However, the sharp decline in Brazilian imports of Canadian fertilizers (HS 31) signals potential supply chain risks for Brazil’s agribusiness. If this trend persists, Brazil may face input shortages or price volatility in key agricultural exports. Traders should monitor Canada’s fertilizer production and Brazil’s domestic stockpiles to anticipate disruptions.

Strategic Moves

• Lock in Fertilizer Supply Contracts: Brazilian agribusinesses must secure long-term agreements with Canadian suppliers to mitigate price spikes and ensure stable input flows for the next planting season.
• Diversify Export Markets for Precious Metals: With Canada’s demand for HS 71 (precious metals) showing volatility, Brazilian exporters should target alternative markets like the EU or India to reduce dependency on a single buyer.
• Invest in Local Fertilizer Production: Brazil should accelerate domestic fertilizer projects to reduce reliance on Canadian imports, leveraging partnerships with mining and chemical firms to build self-sufficiency.

Frequently Asked Questions

How did Brazil - Canada trade perform in 2023 Q2?

Brazil exported $1.35B to Canada (mixed YoY growth) and imported $1.11B (sharp YoY declines), resulting in a $240M trade surplus for Brazil.

What are the top exports from Brazil to Canada?

Brazil's top exports to Canada are HS 71 (Pearls, precious stones, metals), HS 28 (Chemicals), and HS 72 (Iron and steel), accounting for 61.93% of total exports.

What does Brazil import from Canada?

Brazil primarily imports HS 31 (Fertilizers) from Canada, making up 64.06% of total imports, reflecting its agricultural input dependency.

What is the trade balance between Brazil and Canada?

Brazil maintained a $240M trade surplus with Canada in Q2 2023, driven by higher exports despite declining imports.