Brazil - Japan Trade 2023 Whole Year: $1.22B Surplus

Key Market Takeaways: Brazil - Japan Trade

The bilateral trade relationship between Brazil and Japan reflects a volatile yet complementary exchange in 2023.

• Brazil holds a $1.22B trade surplus ($6.62B exports vs. $5.40B imports), driven by mixed export growth and broad import declines.
• Brazil - Japan trade statistics reveal a resource-for-tech dynamic: Brazil supplies cereals and raw materials (57% of exports), while Japan dominates with machinery and high-value industrial goods (25% of imports).
• Strategic interdependence is asymmetric—Japan retains higher value-add leverage, but Brazil’s commodity exports remain critical for Japan’s industrial and food security needs.

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

Brazil-Japan Trade Trend in Whole Year 2023

Brazil Export Performance: Shipments to Japan

• Total Volume: Brazil exported $6.62B worth of goods to Japan in 2023.
• Growth Trend & Context:
  • Exports showed mixed YoY trends, with sharp spikes in March (+97.34% YoY) and July (+37.21% MoM), but declines in April (-32.08% MoM) and October (-34.6% YoY).
  • No specific trade news or policy changes were cited to explain these fluctuations.
• Key Volatility: March stood out with a 57.36% MoM surge, while February saw a -34.63% MoM drop.

Brazil Import Performance: Sourcing from Japan

• Total Volume: Brazil imported $5.40B worth of goods from Japan in 2023.
• Growth Trend & Context:
  • Imports faced broad YoY declines, with September (-19.26% YoY) and August (-16.55% YoY) as the weakest months.
  • November (+12.36% YoY) and March (+9.65% YoY) were rare positive outliers.
• Key Volatility: March saw a 33.06% MoM jump, while February and December had steep MoM drops (-24.07% and -17.85%, respectively).

Brazil - Japan Trade Balance & Market Dynamics

• Net Position: Brazil maintained a trade surplus of $1.22B ($6.62B exports vs. $5.40B imports) with Japan.
• Relationship Status: Brazil is a net exporter to Japan, though import volatility suggests uneven demand for Japanese goods. The surplus reflects stronger export performance despite broader import declines.

Brazil Import Trend from Japan 2023 Whole Year (Source: yTrade)**

Brazil Export Trend to Japan 2023 Whole Year (Source: yTrade)**

Get Historical Brazil Japan Trade Records

Brazil-Japan Top Trading Products in Whole Year 2023

Brazil Export Profile: What Does Brazil Sell to Japan

• Top Commodity: Rank #1 export is HS Code 10 (Cereals, likely soybeans or corn) at 22.30% of total exports to Japan.
• Demand Driver: Japan imports these for industrial processing (e.g., animal feed, food production) and to supplement domestic agricultural shortages.
• Concentration: The top 3 exports (HS Codes 10, 26, 02) account for 57.33%, showing moderate concentration in raw materials.

Brazil Import Profile: What Does Brazil Buy from Japan

• Top Commodity: Rank #1 import is HS Code 84 (Nuclear reactors, machinery) at 24.87% of total imports from Japan.
• Dependency Nature: Reflects critical technology dependency, as Japan supplies high-value machinery and industrial equipment essential for Brazil’s manufacturing sector.

Brazil - Japan Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Brazil exports raw materials (agricultural, mineral) while Japan supplies advanced machinery and industrial goods.
• Value Chain Position: Japan holds the higher value-add position, with exports dominated by high-tech products (HS 84, 85, 90), while Brazil’s exports are primarily low-margin commodities.

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

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

Check Detailed Brazil-Japan Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Brazil’s trade surplus with Japan is likely to hold steady in 2024, driven by sustained demand for agricultural commodities (HS Code 10) and minerals. However, import volatility—particularly in machinery (HS Code 84)—signals potential supply chain disruptions or shifting Japanese industrial priorities. Traders should anticipate asymmetric growth: stable exports but uneven imports, with risks tied to Japan’s economic slowdown and Brazil’s reliance on high-tech inputs. The Brazil-Japan trade forecast hinges on commodity prices and Japan’s capacity to maintain machinery exports amid global competition.

Strategic Moves

• Lock in long-term cereal contracts: With Japan’s structural dependence on Brazilian soybeans and corn, exporters should secure multi-year agreements to stabilize revenue and mitigate price swings.
• Diversify machinery suppliers: Brazilian manufacturers must reduce overreliance on Japanese tech imports by exploring alternative markets (e.g., South Korea, Germany) to hedge against supply shocks.
• Push for trade facilitation agreements: Both governments should streamline customs procedures for high-value machinery (HS 84) and agricultural goods (HS 10) to reduce logistical friction and boost bilateral volume.

Frequently Asked Questions

How did Brazil - Japan trade perform in 2023 Whole Year?

Brazil exported $6.62B to Japan and imported $5.40B, with mixed YoY trends in exports and broad declines in imports. The trade surplus for Brazil was $1.22B.

What are the top exports from Brazil to Japan?

Brazil’s top exports to Japan are HS Code 10 (Cereals, likely soybeans or corn), HS Code 26 (Mineral ores), and HS Code 02 (Meat), accounting for 57.33% of total exports.

What does Brazil import from Japan?

Brazil’s top imports from Japan are HS Code 84 (Nuclear reactors, machinery), HS Code 85 (Electrical machinery), and HS Code 90 (Optical/medical instruments), reflecting a dependency on high-tech goods.

What is the trade balance between Brazil and Japan?

Brazil recorded a trade surplus of $1.22B with Japan in 2023, driven by stronger export performance despite volatility in imports. The surplus highlights Brazil’s role as a net exporter.