Brazil - France Trade 2024 Q1: Widening Deficit

Key Market Takeaways: Brazil - France Trade

The bilateral trade relationship between Brazil and France is marked by a widening deficit and volatile commodity-for-tech exchange in Q1 2024.

• Economic Pulse: Brazil’s trade deficit with France hit $744.86M, driven by $1.39B in imports (mixed YoY growth) overshadowing $645.14M in exports (consistent YoY declines).
• Exchange Structure: Brazil - France trade statistics reveal a resource-for-tech complementarity: Brazil supplies food waste (26.4% of exports) while importing French machinery (29.2% of imports). Top 5 products dominate 66% of exports.
• Strategic Interdependence: France holds the high-value position in this lopsided partnership, with Brazil dependent on critical industrial inputs.

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

Brazil-France Trade Trend in Q1 2024

Brazil Export Performance: Shipments to France

• Total Volume: $645.14M in Q1 2024.
• Growth Trend & Context:
  • YoY decline persisted across all months, with March showing the sharpest drop (-29.84%).
  • February’s -29.53% MoM plunge was the most volatile monthly contraction.
• Key Volatility: February’s exports fell to $187.57M, the lowest in the quarter.

Brazil Import Performance: Sourcing from France

• Total Volume: $1.39B in Q1 2024.
• Growth Trend & Context:
  • Mixed YoY performance: January (+11.93%) and February (+14.91%) grew, while March (-1.5%) dipped.
• Key Volatility: January’s imports peaked at $507.12M (28.21% MoM surge), then dropped sharply in February (-22.26%).

Brazil - France Trade Balance & Market Dynamics

• Net Position: Brazil ran a trade deficit of $744.86M (Imports exceeded exports).
• Relationship Status: Heavy reliance on French imports, with exports failing to offset the gap. The deficit widened notably from January’s export peak.

Brazil Import Trend from France 2024 Q1 (Source: yTrade)**

Brazil Export Trend to France 2024 Q1 (Source: yTrade)**

Get Historical Brazil France Trade Records

Brazil-France Top Trading Products in Q1 2024

Brazil Export Profile: What Does Brazil Sell to France

• Top Commodity: Rank #1 export is HS Code 23 (Residues and waste from the food industries) at 26.41% of total exports to France.
• Demand Driver: France uses these for industrial processing, likely as inputs for animal feed or biofuel production.
• Concentration: The top 5 exports account for 66.17% of total exports, indicating moderate concentration.

Brazil Import Profile: What Does Brazil Buy from France

• Top Commodity: Rank #1 import is HS Code 84 (Nuclear reactors, boilers, machinery) at 29.20% of total imports from France.
• Dependency Nature: Critical technology dependency, as Brazil relies on French machinery and industrial equipment.

Brazil - France Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Brazil exports raw materials (HS 23, 27, 47) while importing high-value machinery and chemicals (HS 84, 30, 29).
• Value Chain Position: France holds the higher value-add position, supplying advanced industrial goods, while Brazil provides commodities and intermediate products.

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

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

Check Detailed Brazil-France Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Brazil’s trade deficit with France is likely to persist in Q2 2024, driven by continued demand for French machinery (HS 84) and weak export recovery in key commodities like food industry residues (HS 23). The YoY decline in Brazilian exports signals structural challenges, while import volatility—especially in high-value French goods—suggests potential supply chain disruptions. Without intervention, the deficit could widen further, straining Brazil’s trade balance.

Strategic Moves

• Diversify Export Markets: Brazilian exporters must reduce reliance on France by targeting EU and Asian buyers for commodities like HS 23, mitigating demand shocks.
• Lock in Tech Imports: Importers should negotiate long-term contracts for French machinery (HS 84) to hedge against price volatility and ensure stable supply.
• Boost Value-Added Exports: Brazil should incentivize processing of raw materials (e.g., refining HS 27 minerals) to capture higher margins and reduce the tech-for-resource imbalance.

Frequently Asked Questions

How did Brazil - France trade perform in 2024 Q1?

Brazil's exports to France totaled $645.14M, showing a YoY decline, while imports from France reached $1.39B, with mixed growth. The trade deficit widened to $744.86M.

What are the top exports from Brazil to France?

The top export is HS Code 23 (Residues and waste from food industries), accounting for 26.41% of total exports. The top 5 exports represent 66.17% of shipments, indicating moderate concentration.

What does Brazil import from France?

The top import is HS Code 84 (Nuclear reactors, boilers, machinery), making up 29.20% of total imports. Brazil relies heavily on French machinery and industrial equipment.

What is the trade balance between Brazil and France?

Brazil recorded a trade deficit of $744.86M with France in Q1 2024, as imports significantly outweighed exports. The deficit widened compared to previous periods.