Brazil - Italy Trade 2023 Q3: Deficit Widens
Key Market Takeaways: Brazil - Italy Trade
The bilateral trade relationship between Brazil and Italy remains heavily skewed toward imports, with Brazil running a significant deficit in Q3 2023.
- Economic Pulse: Brazil posted a $716.68M trade deficit with Italy, driven by $1.58B in imports (mixed YoY growth) versus $863.32M in exports (sharp YoY declines).
- Exchange Structure: Brazil - Italy trade statistics reveal a resource-for-tech model—Brazil supplies coffee, wood pulp, and oilseeds (HS 09, 47, 12) while importing high-value machinery and vehicles (HS 84, 87).
- Strategic Interdependence: Italy holds the upper hand in value chains, supplying critical industrial inputs, while Brazil’s export slump signals weakening commodity leverage.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Brazil-Italy Trade Trend in Q3 2023
Brazil Export Performance: Shipments to Italy
- Total Volume: $863.32M in Q3 2023.
- Growth Trend & Context:
- YoY declines persisted across all months, with August (-33.73%) and September (-26.59%) showing severe contractions.
- No specific trade news to explain the downturn.
- Key Volatility: July saw the sharpest MoM drop (-27.24%), followed by another double-digit decline in September (-16.56%).
Brazil Import Performance: Sourcing from Italy
- Total Volume: $1.58B in Q3 2023.
- Growth Trend & Context:
- Mixed YoY performance: July (+7.35%) and August (+6.9%) grew, but September (-6.69%) reversed gains.
- Key Volatility: September imports plummeted 18.89% MoM, the steepest monthly drop.
Brazil - Italy Trade Balance & Market Dynamics
- Net Position: Brazil ran a trade deficit of $716.68M (Imports $1.58B > Exports $863.32M).
- Relationship Status: Heavy reliance on Italian imports, with exports failing to offset despite July-August import growth.
Brazil Import Trend from Italy 2023 Q3 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jul | 556.98M | 8.63% | 7.35% |
| Aug | 564.31M | 1.31% | 6.9% |
| Sep | 457.72M | -18.89% | -6.69% |
| Total | 1.58B | - | - |
Brazil Export Trend to Italy 2023 Q3 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jul | 300.61M | -27.24% | -14.9% |
| Aug | 306.75M | 2.04% | -33.73% |
| Sep | 255.96M | -16.56% | -26.59% |
| Total | 863.32M | - | - |
Get Historical Brazil Italy Trade Records
Brazil-Italy Top Trading Products in Q3 2023
Brazil Export Profile: What Does Brazil Sell to Italy
- Top Commodity: Coffee (HS 09) dominates at 16.93% of exports.
- Demand Driver: Italy imports raw materials (coffee, wood pulp, oilseeds) for industrial processing and consumer markets.
- Concentration: No single category exceeds 50%, but the top 3 (HS 09, 47, 12) account for 41.47%, indicating moderate concentration.
Brazil Import Profile: What Does Brazil Buy from Italy
- Top Commodity: Machinery (HS 84) leads at 31.71% of imports.
- Dependency Nature: High-tech machinery and vehicles (HS 84, 87, 85) signal critical technology dependency for Brazil’s industrial base.
Brazil - Italy Trade Relationship Dynamics
- The Exchange Model: Resource-for-Tech Complementarity—Brazil exports raw materials (coffee, wood, grains) while importing Italian machinery and manufactured goods.
- Value Chain Position: Italy holds the higher value-add position, supplying advanced machinery (HS 84, 87) versus Brazil’s commodity-heavy exports.
Import Analysis by Product: Italy to Brazil (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 84 | 500.78M | 31.71% |
| 30 | 176.03M | 11.15% |
| 87 | 157.37M | 9.97% |
| 85 | 100.77M | 6.38% |
| 73 | 83.80M | 5.31% |
| 39 | 62.16M | 3.94% |
| 29 | 56.13M | 3.55% |
| 90 | 52.17M | 3.30% |
| 38 | 31.43M | 1.99% |
| 40 | 26.70M | 1.69% |
Export Analysis by Product: Brazil to Italy (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 09 | 146.18M | 16.93% |
| 47 | 116.73M | 13.52% |
| 12 | 95.17M | 11.02% |
| 23 | 84.56M | 9.79% |
| 84 | 50.52M | 5.85% |
| 72 | 45.07M | 5.22% |
| 76 | 31.89M | 3.69% |
| 41 | 31.60M | 3.66% |
| 10 | 29.11M | 3.37% |
| 02 | 27.49M | 3.18% |
Check Detailed Brazil-Italy Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
Brazil’s trade deficit with Italy is likely to persist in Q4 2023, driven by continued volatility in exports and structural reliance on Italian machinery imports. The sharp declines in Brazilian shipments—particularly coffee and raw materials—signal weakening demand or competitive pressures, while Italy’s high-tech exports remain resilient. Without intervention, Brazil risks deepening its resource-for-tech dependency, leaving it exposed to price swings in commodities and supply chain disruptions. Traders should prepare for a period of consolidation, with export recovery hinging on diversification and value-added processing.
Strategic Moves
- Diversify Export Markets: Brazilian exporters must reduce reliance on Italy by targeting emerging EU markets for processed goods (e.g., roasted coffee, refined wood products) to capture higher margins.
- Lock in Machinery Contracts: Importers should negotiate long-term supply agreements for critical Italian machinery (HS 84) to hedge against currency fluctuations and potential tariff shifts.
- Invest in Local Tech Capacity: Brazil’s industrial sector must prioritize partnerships with Italian firms to co-develop manufacturing capabilities, reducing long-term import dependency.
Frequently Asked Questions
How did Brazil - Italy trade perform in 2023 Q3?
Brazil's exports to Italy fell sharply (-33.73% YoY in August), totaling $863.32M, while imports rose slightly (+7.35% YoY in July) to $1.58B, resulting in a trade deficit.
What are the top exports from Brazil to Italy?
Brazil's top exports to Italy are Coffee (HS 09), Wood Pulp (HS 47), and Oilseeds (HS 12), accounting for 41.47% of total shipments.
What does Brazil import from Italy?
Brazil primarily imports Machinery (HS 84), Vehicles (HS 87), and Electrical Equipment (HS 85) from Italy, with machinery alone making up 31.71% of imports.
What is the trade balance between Brazil and Italy?
Brazil recorded a trade deficit of $716.68M with Italy in Q3 2023, driven by higher imports ($1.58B) than exports ($863.32M).
Brazil - Italy Trade 2023 Q2: Deficit & Tech Imbalance
Brazil's $430M trade deficit with Italy highlights a resource-for-tech model, with machinery dominating imports. Explore Brazil-Italy trade trends & top products via yTrade data.
Brazil - Italy Trade 2023 Q4: Deficit & Tech Exchange
Brazil's trade deficit with Italy hit $420M in Q4 2023, with coffee and minerals fueling Brazil's exports while Italy dominated machinery. Explore Brazil-Italy trade trends on yTrade.
