Brazil - Italy Trade 2024 Q4: Deficit Widens

Key Market Takeaways: Brazil - Italy Trade

The bilateral trade relationship between Brazil and Italy reflects a net importer reliance with weakening Brazilian export demand in Q4 2024.

• Economic Pulse: Brazil posted a $677.50M trade deficit with Italy ($1.50B imports vs. $822.50M exports), as exports fell sharply (-28.92% YoY in December) while imports showed mixed growth.
• Exchange Structure: Brazil - Italy trade statistics reveal a resource-for-tech complementarity—Brazil supplies coffee (30.51% of exports) and raw materials, while Italy dominates with machinery (32.20% of imports) and pharmaceuticals.
• Strategic Interdependence: Italy holds the higher value-add position, supplying critical industrial inputs, while Brazil remains a key agricultural supplier, though export volatility signals demand risks.

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

Brazil-Italy Trade Trend in Q4 2024

Brazil Export Performance: Shipments to Italy

• Total Volume: Brazil exported a total of $822.50M to Italy in Q4 2024.
• Growth Trend & Context:
  • Exports showed a sharp YoY decline, with December recording a -28.92% drop, the steepest in the quarter.
  • No specific trade news or policy changes were reported to explain this contraction.
• Key Volatility: November saw the largest MoM drop at -15.32%, signaling sustained weakness in demand.

Brazil Import Performance: Sourcing from Italy

• Total Volume: Brazil imported $1.50B worth of goods from Italy in Q4 2024.
• Growth Trend & Context:
  • Imports grew YoY in October (+8.07%) and November (+7.21%) but turned negative in December (-1.29%).
  • No external events were cited to contextualize the mixed performance.
• Key Volatility: December posted the steepest MoM decline at -6.87%, suggesting a year-end slowdown.

Brazil - Italy Trade Balance & Market Dynamics

• Net Position: Brazil ran a trade deficit of $677.50M with Italy (Imports: $1.50B > Exports: $822.50M).
• Relationship Status: Net importer reliance, with Italian goods dominating despite weakening Brazilian export demand.

Brazil Import Trend from Italy 2024 Q4 (Source: yTrade)**

Brazil Export Trend to Italy 2024 Q4 (Source: yTrade)**

Get Historical Brazil Italy Trade Records

Brazil-Italy Top Trading Products in Q4 2024

Brazil Export Profile: What Does Brazil Sell to Italy

• Top Commodity: Coffee (HS 09) dominates at 30.51% of exports.
• Demand Driver: Italy buys Brazilian coffee for its consumer market, reflecting strong demand for agricultural commodities.
• Concentration: The top 3 exports (coffee, wood pulp, meat) account for 57.51%, indicating moderate concentration.

Brazil Import Profile: What Does Brazil Buy from Italy

• Top Commodity: Machinery (HS 84) leads at 32.20% of imports.
• Dependency Nature: Brazil relies on Italian machinery and pharmaceuticals (HS 30) for industrial and technological needs, highlighting critical technology dependency.

Brazil - Italy Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Brazil exports raw materials (coffee, wood pulp) and imports high-value machinery and pharmaceuticals.
• Value Chain Position: Italy holds the higher value-add position, supplying advanced manufactured goods, while Brazil provides primary 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 face continued headwinds in the near term, with Brazil’s export decline likely to persist due to weakening demand for its key commodities like coffee and wood pulp. Italy’s machinery and pharmaceutical exports to Brazil may stabilize but remain vulnerable to Brazil’s economic slowdown. The trade deficit is projected to widen further unless Brazil diversifies its export basket or secures higher-value trade terms. Traders should brace for volatility and adjust strategies to mitigate risks in this lopsided exchange.

Strategic Moves

• Diversify Export Markets: Brazilian exporters must reduce reliance on Italy by targeting emerging EU markets with similar demand profiles for agricultural goods, such as Spain or Germany.
• Negotiate Long-Term Contracts: Lock in stable pricing for critical Italian machinery imports to hedge against supply chain disruptions and currency fluctuations.
• Boost Value-Added Exports: Brazil should incentivize processed food and semi-finished goods (e.g., roasted coffee, paper products) to capture more value in the Italy-bound supply chain.

Frequently Asked Questions

How did Brazil - Italy trade perform in 2024 Q4?

Brazil exported $822.50M to Italy and imported $1.50B, showing a YoY decline in exports (-28.92% in December) and mixed import growth (+8.07% in October, -1.29% in December).

What are the top exports from Brazil to Italy?

The top exports are coffee (HS 09), wood pulp, and meat, accounting for 57.51% of total exports.

What does Brazil import from Italy?

Brazil primarily imports machinery (HS 84) and pharmaceuticals (HS 30), with machinery alone making up 32.20% of imports.

What is the trade balance between Brazil and Italy?

Brazil recorded a trade deficit of $677.50M with Italy, driven by higher imports ($1.50B) than exports ($822.50M). The deficit reflects net importer reliance.