Brazil - Italy Trade 2023 Q2: Deficit & Tech Imbalance

Key Market Takeaways: Brazil - Italy Trade

The bilateral trade relationship between Brazil and Italy showed mixed growth with volatile swings in Q2 2023.

• Economic Pulse: Brazil ran a $430M trade deficit with Italy ($1.57B imports vs. $1.14B exports), despite a June export rebound (+11.59% YoY).
• Exchange Structure: Brazil - Italy trade statistics reveal a resource-for-tech model—Brazil supplies raw materials (oil seeds, wood pulp) while Italy dominates with machinery (30.44% of imports).
• Strategic Interdependence: Complementary but unequal: Italy holds the high-value position in advanced manufacturing, while Brazil remains a commodity exporter.

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

Brazil-Italy Trade Trend in Q2 2023

Brazil Export Performance: Shipments to Italy

• Total Volume: $1.14B in Q2 2023.
• Growth Trend & Context:
  • YoY growth was mixed: April (-30.77%) and May (-30.86%) saw sharp declines, but June rebounded (+11.59%).
  • No specific trade news or policy changes were reported to explain the volatility.
• Key Volatility: May had a significant MoM spike (+34.43%), while April recorded a steep drop (-33.28%).

Brazil Import Performance: Sourcing from Italy

• Total Volume: $1.57B in Q2 2023.
• Growth Trend & Context:
  • YoY growth was uneven: April (+9.12%) and June (+7.4%) showed gains, but May (-9.99%) declined.
• Key Volatility: May posted the lowest MoM performance (-2.74%), while April had the highest value ($537.67M).

Brazil - Italy Trade Balance & Market Dynamics

• Net Position: Brazil ran a trade deficit of $430M (Imports $1.57B > Exports $1.14B).
• Relationship Status: Brazil remains a net importer of Italian goods, with imports outpacing exports by 38% in Q2.

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

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

Get Historical Brazil Italy Trade Records

Brazil-Italy Top Trading Products in Q2 2023

Brazil Export Profile: What Does Brazil Sell to Italy

• Top Commodity: Rank #1 export is HS Code 12 (oil seeds, grains, seeds, fruits) at 16.51% of total exports to Italy.
• Demand Driver: Italy uses these for industrial processing (e.g., food manufacturing, biofuels).
• Concentration: No single category dominates; top 3 exports (HS 12, 47, 09) combine for 44.27%, indicating moderate diversification.

Brazil Import Profile: What Does Brazil Buy from Italy

• Top Commodity: Rank #1 import is HS Code 84 (nuclear reactors, boilers, machinery) at 30.44% of total imports from Italy.
• Dependency Nature: Critical technology dependency, as machinery and pharmaceuticals (HS 30) dominate imports.

Brazil - Italy Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Brazil supplies raw materials (oil seeds, wood pulp, ores) while Italy exports high-value machinery and chemicals.
• Value Chain Position: Italy holds the higher value-add position, with advanced manufacturing (HS 84, 85, 90) dominating imports. Brazil’s exports are primarily low-processed commodities.

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

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

Check Detailed Brazil-Italy Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

The Brazil-Italy trade relationship is expected to stabilize in Q3 2023, with modest growth in Brazil’s exports driven by renewed demand for commodities like oil seeds (HS 12) and wood pulp (HS 47). However, Italy’s machinery and pharmaceutical exports (HS 84, 30) will likely maintain dominance, sustaining Brazil’s trade deficit. Volatility may persist due to fluctuating commodity prices and Italy’s industrial demand cycles, but the complementary nature of the exchange—raw materials for high-value tech—will keep trade flows resilient. Traders should prepare for uneven monthly performance but anticipate steady annual growth.

Strategic Moves

• Diversify Export Markets for Commodities: Brazil must reduce reliance on Italy by targeting other EU buyers for oil seeds and wood pulp, mitigating price volatility risks.
• Negotiate Long-Term Tech Supply Contracts: Brazilian importers should lock in favorable terms for Italian machinery (HS 84) to hedge against future cost spikes and supply chain disruptions.
• Boost Value-Added Processing: Brazil should invest in domestic processing capabilities for raw exports (e.g., refining oil seeds into biofuels) to capture more value before shipment, narrowing the trade deficit.

Frequently Asked Questions

How did Brazil - Italy trade perform in 2023 Q2?

Brazil's exports to Italy totaled $1.14B, with mixed YoY growth (-30.77% in April, +11.59% in June). Imports from Italy reached $1.57B, showing uneven growth (+9.12% in April, -9.99% in May).

What are the top exports from Brazil to Italy?

Brazil's top exports to Italy include HS Code 12 (oil seeds, grains, seeds, fruits), HS Code 47 (wood pulp), and HS Code 09 (coffee, tea, spices), accounting for 44.27% of total exports.

What does Brazil import from Italy?

Brazil primarily imports HS Code 84 (nuclear reactors, boilers, machinery) and HS Code 30 (pharmaceuticals) from Italy, with machinery alone making up 30.44% of total imports.

What is the trade balance between Brazil and Italy?

Brazil recorded a trade deficit of $430M with Italy in Q2 2023, as imports ($1.57B) exceeded exports ($1.14B) by 38%.