Brazil - Canada Trade 2023 Q3: $630M Surplus

Key Market Takeaways: Brazil - Canada Trade

The bilateral trade relationship between Brazil and Canada shows Brazil as a net exporter with strong growth in Q3 2023.

• Economic Pulse: Brazil holds a $630M trade surplus ($1.59B exports vs. $959M imports), fueled by double-digit YoY export growth despite volatile import declines.
• Exchange Structure: Brazil - Canada trade statistics reveal a resource-for-tech dynamic—Brazil ships precious metals (28.6% of exports) while relying on Canadian fertilizers (62.5% of imports) for its agribusiness sector.
• Strategic Interdependence: Highly complementary but imbalanced; Canada supplies critical inputs while Brazil’s exports remain commodity-concentrated (top 4 categories = 75% of total).

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

Brazil-Canada Trade Trend in Q3 2023

Brazil Export Performance: Shipments to Canada

• Total Volume: $1.59B in Q3 2023.
• Growth Trend & Context:
  • Strong YoY growth across all months (+14.04% in Jul, +4.47% in Aug, +18.52% in Sep), indicating sustained demand.
• Key Volatility: September saw the highest MoM jump (+8.13%), suggesting end-of-quarter acceleration.

Brazil Import Performance: Sourcing from Canada

• Total Volume: $959.91M in Q3 2023.
• Growth Trend & Context:
  • Steep YoY declines (-63.07% in Jul, -28.98% in Aug, -51.36% in Sep), reflecting reduced reliance or supply constraints.
• Key Volatility: August had a 34.12% MoM surge, but September plummeted -33.19%, highlighting erratic procurement patterns.

Brazil - Canada Trade Balance & Market Dynamics

• Net Position: Brazil holds a trade surplus of $630.09M (Exports: $1.59B > Imports: $959.91M).
• Relationship Status: Brazil is a net exporter to Canada, with exports consistently outpacing imports by a significant margin.

Brazil Import Trend from Canada 2023 Q3 (Source: yTrade)**

Brazil Export Trend to Canada 2023 Q3 (Source: yTrade)**

Get Historical Brazil Canada Trade Records

Brazil-Canada Top Trading Products in Q3 2023

Brazil Export Profile: What Does Brazil Sell to Canada

• Top Commodity: Precious stones/metals (HS 71) dominate, accounting for 28.61% of exports.
• Demand Driver: Canada likely uses these for industrial processing (e.g., jewelry, electronics).
• Concentration: The top 4 categories (HS 71, 28, 17, 88) make up 75.35% of exports, indicating high reliance on a few sectors.

Brazil Import Profile: What Does Brazil Buy from Canada

• Top Commodity: Fertilizers (HS 31) lead imports with a 62.46% share.
• Dependency Nature: Reflects agricultural input dependency, critical for Brazil’s agribusiness sector.

Brazil - Canada Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Brazil exports raw materials (precious metals, sugar) while importing high-value inputs (fertilizers, machinery).
• Value Chain Position: Canada holds the higher value-add position, supplying advanced industrial goods (HS 84, 90) versus Brazil’s commodity-heavy exports.

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 further in Q4 2023, driven by sustained demand for precious metals (HS 71) and seasonal agricultural exports. However, the sharp decline in Brazilian imports of Canadian fertilizers (HS 31) signals potential supply chain disruptions or shifting procurement strategies, which could introduce volatility. With Canada maintaining a high-value position in advanced industrial goods, Brazil must prioritize upgrading its export mix to reduce over-reliance on raw materials. The Brazil-Canada trade forecast remains bullish for exporters but demands caution for import-dependent sectors.

Strategic Moves

• Lock in Precious Metal Contracts: Brazilian exporters should secure long-term agreements with Canadian buyers to capitalize on stable demand and hedge against price fluctuations in HS 71 commodities.
• Diversify Fertilizer Sources: Given the erratic import trends, Brazilian agribusinesses must explore alternative suppliers or negotiate bulk purchase terms to mitigate dependency on Canadian inputs.
• Pursue Value-Add Exports: Trade policymakers should incentivize processed goods (e.g., semi-finished metals, biofuels) to shift Brazil’s export profile toward higher-margin products and reduce commodity concentration risk.

Frequently Asked Questions

How did Brazil - Canada trade perform in 2023 Q3?

Brazil's exports to Canada grew YoY (+14.04% in Jul, +4.47% in Aug, +18.52% in Sep), totaling $1.59B, while imports fell sharply (-63.07% in Jul, -28.98% in Aug, -51.36% in Sep), reaching $959.91M.

What are the top exports from Brazil to Canada?

Precious stones/metals (HS 71) dominate, accounting for 28.61% of exports, followed by other key sectors like chemicals (HS 28), sugar (HS 17), and aerospace (HS 88).

What does Brazil import from Canada?

Fertilizers (HS 31) lead imports with a 62.46% share, reflecting Brazil's reliance on agricultural inputs from Canada.

What is the trade balance between Brazil and Canada?

Brazil holds a trade surplus of $630.09M with Canada, as exports ($1.59B) consistently outpace imports ($959.91M).