Brazil - Italy Trade 2024 Q2: Deficit & Tech Imbalance
Key Market Takeaways: Brazil - Italy Trade
The bilateral trade relationship between Brazil and Italy shows growth with high volatility in Q2 2024.
- Economic Pulse: Brazil posted a $290M trade deficit with Italy ($1.65B imports vs. $1.36B exports), driven by a June import surge (+20.86% YoY).
- Exchange Structure: Brazil - Italy trade statistics reveal a resource-for-tech complementarity—Brazil supplies wood pulp and agricultural inputs, while Italy dominates with machinery (30.92% of imports).
- Strategic Interdependence: The partnership reflects classic asymmetry, with Italy holding the high-value manufacturing edge and Brazil as a key commodity supplier.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Brazil-Italy Trade Trend in Q2 2024
Brazil Export Performance: Shipments to Italy
- Total Volume: $1.36B in Q2 2024.
- Growth Trend & Context:
- YoY swings were volatile: +71.09% in April, +9.8% in May, then -8.47% in June. No clear directional trend.
- Key Volatility: April saw a sharp 28.68% MoM surge, followed by consecutive declines (-13.73% in May, -17.0% in June).
Brazil Import Performance: Sourcing from Italy
- Total Volume: $1.65B in Q2 2024.
- Growth Trend & Context:
- YoY growth turned positive in May (+3.84%) and June (+20.86%) after an -8.75% drop in April.
- Key Volatility: June imports spiked 14.12% MoM, the highest monthly gain.
Brazil - Italy Trade Balance & Market Dynamics
- Net Position: Brazil recorded a $290M trade deficit with Italy (Imports $1.65B > Exports $1.36B).
- Relationship Status: Brazil remains a net importer, though June’s import surge suggests rising Italian demand.
Brazil Import Trend from Italy 2024 Q2 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Apr | 490.63M | -16.68% | -8.75% |
| May | 543.01M | 10.68% | 3.84% |
| Jun | 619.70M | 14.12% | 20.86% |
| Total | 1.65B | - | - |
Brazil Export Trend to Italy 2024 Q2 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Apr | 528.16M | 28.68% | 71.09% |
| May | 455.65M | -13.73% | 9.8% |
| Jun | 378.18M | -17.0% | -8.47% |
| Total | 1.36B | - | - |
Get Historical Brazil Italy Trade Records
Brazil-Italy Top Trading Products in Q2 2024
Brazil Export Profile: What Does Brazil Sell to Italy
- Top Commodity: HS Code 47 (Pulp of wood or other fibrous cellulosic material) dominates at 20.38% of exports.
- Demand Driver: Italy uses these raw materials for industrial processing, likely in paper and packaging industries.
- Concentration: The top 3 exports (HS Codes 47, 09, 12) account for 56.38%, indicating moderate concentration in agricultural and industrial inputs.
Brazil Import Profile: What Does Brazil Buy from Italy
- Top Commodity: HS Code 84 (Nuclear reactors, boilers, machinery) leads at 30.92% of imports.
- Dependency Nature: Critical technology dependency, as Brazil relies on Italian machinery and industrial equipment.
Brazil - Italy Trade Relationship Dynamics
- The Exchange Model: Resource-for-Tech Complementarity. Brazil exports raw materials (wood pulp, coffee, oilseeds) and imports high-value machinery and pharmaceuticals from Italy.
- Value Chain Position: Italy holds the higher value-add position, supplying advanced manufactured goods, while Brazil provides commodities.
Import Analysis by Product: Italy to Brazil (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 84 | 511.17M | 30.92% |
| 30 | 204.44M | 12.37% |
| 87 | 130.75M | 7.91% |
| 73 | 93.03M | 5.63% |
| 85 | 89.00M | 5.38% |
| 39 | 60.15M | 3.64% |
| 90 | 57.49M | 3.48% |
| 29 | 53.63M | 3.24% |
| 27 | 48.91M | 2.96% |
| 38 | 37.74M | 2.28% |
Export Analysis by Product: Brazil to Italy (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 47 | 277.54M | 20.38% |
| 09 | 251.93M | 18.50% |
| 12 | 238.29M | 17.50% |
| 27 | 82.07M | 6.03% |
| 23 | 74.73M | 5.49% |
| 76 | 52.51M | 3.86% |
| 84 | 49.55M | 3.64% |
| 41 | 44.32M | 3.25% |
| 44 | 35.54M | 2.61% |
| 02 | 34.84M | 2.56% |
Check Detailed Brazil-Italy Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
Brazil’s trade with Italy is expected to remain volatile in the near term, with the deficit likely widening further if June’s import surge continues. While Italian demand for Brazilian raw materials (wood pulp, coffee, oilseeds) remains steady, Brazil’s reliance on high-value Italian machinery and pharmaceuticals will keep the trade balance skewed. The resource-for-tech exchange model ensures mutual dependency, but Brazil must address its structural trade deficit by boosting value-added exports or diversifying import sources.
Strategic Moves
- Lock in Long-Term Supply Contracts: Brazilian wood pulp and agricultural exporters should secure multi-year agreements with Italian buyers to stabilize revenue streams amid volatile monthly swings.
- Diversify Machinery Imports: Brazil’s heavy dependence on Italian industrial equipment (HS Code 84) calls for exploring alternative suppliers in Germany or Japan to mitigate price and supply chain risks.
- Invest in Export Upgrading: Brazilian firms must shift from raw material exports to semi-processed or finished goods (e.g., paper products from wood pulp) to capture higher margins and reduce the trade gap.
Frequently Asked Questions
How did Brazil - Italy trade perform in 2024 Q2?
Brazil's exports to Italy totaled $1.36B, with volatile YoY growth, while imports from Italy reached $1.65B, showing a rebound in May and June.
What are the top exports from Brazil to Italy?
Brazil's top exports to Italy include wood pulp (HS Code 47), coffee (HS Code 09), and oilseeds (HS Code 12), accounting for 56.38% of total exports.
What does Brazil import from Italy?
Brazil primarily imports machinery and industrial equipment (HS Code 84) from Italy, making up 30.92% of total imports.
What is the trade balance between Brazil and Italy?
Brazil recorded a $290M trade deficit with Italy in Q2 2024, driven by higher imports of Italian machinery and a surge in June demand.
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.
Brazil - Italy Trade 2024 Q3: Deficit & Growth
Brazil's trade deficit with Italy hit $460M in Q3 2024, but exports surged 75% YoY. Explore Brazil-Italy trade trends and top trading products via yTrade data.
