Brazil - Chile Trade 2023 Q1: Surplus Amid Declines

Key Market Takeaways: Brazil - Chile Trade

The bilateral trade relationship between Brazil and Chile showed mixed performance in Q1 2023, with Brazil maintaining a surplus amid export declines.

• Economic Pulse: Brazil held a $690M trade surplus ($1.82B exports vs. $1.13B imports), though exports fell YoY while imports saw partial recovery.
• Exchange Structure: Brazil-Chile trade statistics reveal resource-for-resource complementarity—Brazil supplies mineral fuels (32.2% share) and vehicles, while Chile dominates copper exports (33.3% share).
• Strategic Interdependence: The partnership reflects raw material dependency, with Brazil adding slightly more value through processed goods like machinery.

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

Brazil-Chile Trade Trend in Q1 2023

Brazil Export Performance: Shipments to Chile

• Total Volume: $1.82B in Q1 2023.
• Growth Trend & Context: YoY decline persisted across all months, with February (-19.83%) marking the steepest drop. No trade policy shifts were reported to explain the contraction.
• Key Volatility: March saw a sharp MoM rebound (+46.54%) after two months of decline, though YoY remained negative (-8.12%).

Brazil Import Performance: Sourcing from Chile

• Total Volume: $1.13B in Q1 2023.
• Growth Trend & Context: Mixed YoY performance: January and February fell (-6.67%, -9.55%), while March rose (+2.9%). No news-driven disruptions were noted.
• Key Volatility: March imports surged 13.45% MoM, offsetting earlier declines.

Brazil - Chile Trade Balance & Market Dynamics

• Net Position: Brazil held a $690M trade surplus with Chile (Exports: $1.82B > Imports: $1.13B).
• Relationship Status: Brazil maintained a clear net exporter role, though export declines YoY warrant monitoring.

Brazil Import Trend from Chile 2023 Q1 (Source: yTrade)**

Brazil Export Trend to Chile 2023 Q1 (Source: yTrade)**

Get Historical Brazil Chile Trade Records

Brazil-Chile Top Trading Products in Q1 2023

Brazil Export Profile: What Does Brazil Sell to Chile

• Top Commodity: Rank #1 export is Mineral Fuels (HS 27) with a 32.20% share.
• Demand Driver: Chile likely imports these for energy needs and industrial processing.
• Concentration: Trade is moderately concentrated, with the top 3 exports (HS 27, 87, 02) accounting for 55.41% of total exports.

Brazil Import Profile: What Does Brazil Buy from Chile

• Top Commodity: Rank #1 import is Copper (HS 74) with a 33.34% share.
• Dependency Nature: Reflects raw material dependency, as Brazil relies on Chilean copper for industrial and manufacturing inputs.

Brazil - Chile Trade Relationship Dynamics

• The Exchange Model: Resource-for-Resource Complementarity. Brazil exports energy (HS 27) and vehicles (HS 87) while importing copper (HS 74) and seafood (HS 03), indicating a mutual reliance on raw materials.
• Value Chain Position: Brazil holds a slightly higher value-add position, exporting processed goods (vehicles, machinery) alongside raw materials, while Chile primarily supplies base metals and agricultural products.

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

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

Check Detailed Brazil-Chile Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Brazil’s trade surplus with Chile is likely to stabilize in Q2 2023, but export declines demand caution. The rebound in March suggests potential recovery in mineral fuels (HS 27) and vehicle (HS 87) shipments, yet persistent YoY drops signal underlying demand softness. Chile’s steady copper (HS 74) exports to Brazil will remain critical, but volatility in energy trade could pressure Brazil’s surplus. Traders should prepare for a period of consolidation, with growth hinging on renewed industrial demand in Chile.

Strategic Moves

• Lock in Energy Contracts: Brazilian fuel exporters should secure long-term agreements with Chilean buyers to mitigate price swings and stabilize revenue streams.
• Diversify Copper Sourcing: Brazilian manufacturers must explore alternative copper suppliers (e.g., Peru, Zambia) to reduce dependency on Chilean imports and hedge against supply chain disruptions.
• Boost Value-Added Exports: Brazil should prioritize machinery (HS 84) and processed agricultural goods to Chile, leveraging its higher value-add position to offset declines in raw material shipments.

Frequently Asked Questions

How did Brazil - Chile trade perform in 2023 Q1?

Brazil's exports to Chile totaled $1.82B in Q1 2023, showing a YoY decline, while imports from Chile reached $1.13B with mixed YoY performance.

What are the top exports from Brazil to Chile?

Brazil's top exports to Chile include Mineral Fuels (HS 27), vehicles (HS 87), and other raw materials, accounting for 55.41% of total exports.

What does Brazil import from Chile?

Brazil primarily imports Copper (HS 74) and seafood (HS 03) from Chile, reflecting a reliance on raw materials for industrial needs.

What is the trade balance between Brazil and Chile?

Brazil recorded a $690M trade surplus with Chile in Q1 2023, maintaining its net exporter role despite declining export trends.