Brazil - Spain Trade 2023 Q2: Widening Deficit

Key Market Takeaways: Brazil - Spain Trade

The bilateral trade relationship between Brazil and Spain contracted sharply in Q2 2023, with Brazil posting a widening deficit amid volatile export performance.

• Economic Pulse: Brazil recorded a $440M trade deficit with Spain ($1.55B exports vs. $1.11B imports), as exports plummeted YoY (-46.7% in April, -64.5% in June) while imports grew modestly (+8.8% in June).
• Exchange Structure: Brazil - Spain trade statistics reveal a resource-for-tech complementarity—Brazil supplies oilseeds (46.7% of exports) while Spain dominates with refined fuels (27% of imports) and machinery.
• Strategic Interdependence: Spain holds higher value-add leverage, processing Brazilian raw materials into energy and industrial goods, though export volatility signals shifting competitiveness.

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

Brazil-Spain Trade Trend in Q2 2023

Brazil Export Performance: Shipments to Spain

• Total Volume: $1.55B in Q2 2023.
• Growth Trend & Context: YoY declines persisted across all months (-46.69% in Apr, -26.29% in May, -64.54% in Jun), signaling a structural downturn. No news context provided to explain the contraction.
• Key Volatility: May saw a 66.44% MoM surge, but June reversed sharply with a -38.03% drop.

Brazil Import Performance: Sourcing from Spain

• Total Volume: $1.11B in Q2 2023.
• Growth Trend & Context: Mixed YoY trends (Apr +12.98%, May +1.4%, Jun +8.84%) suggest stable but slower demand growth. No external shocks reported.
• Key Volatility: May imports spiked 11.22% MoM before an 11.09% correction in June.

Brazil - Spain Trade Balance & Market Dynamics

• Net Position: Brazil recorded a $440M trade deficit with Spain (Exports $1.55B vs. Imports $1.11B).
• Relationship Status: Brazil remains a net importer, though export volatility indicates shifting competitiveness.

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

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

Get Historical Brazil Spain Trade Records

Brazil-Spain Top Trading Products in Q2 2023

Brazil Export Profile: What Does Brazil Sell to Spain

• Top Commodity: Rank #1 export is HS Code 12 (Oilseeds, grains, seeds, fruits) at 46.66% of total exports to Spain.
• Demand Driver: Spain uses these for industrial processing (e.g., food production, biofuels).
• Concentration: Highly concentrated—top commodity alone accounts for nearly half of exports.

Brazil Import Profile: What Does Brazil Buy from Spain

• Top Commodity: Rank #1 import is HS Code 27 (Mineral fuels, oils, distillation products) at 27.02% of total imports from Spain.
• Dependency Nature: Energy security dependency, likely refined petroleum products for Brazil's industrial and transport sectors.

Brazil - Spain Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Brazil exports raw materials (oilseeds, minerals) and imports refined energy products and machinery (HS 84, 85).
• Value Chain Position: Spain holds higher value-add, supplying processed goods (fuels, machinery) while Brazil provides primary commodities.

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

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

Check Detailed Brazil-Spain Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Brazil’s trade with Spain is likely to remain volatile in the near term, with exports facing persistent headwinds due to structural declines in key commodities like oilseeds (HS 12). The sharp YoY contractions suggest weakening competitiveness or demand shifts in Spain’s processing sectors. However, Brazil’s import growth from Spain—driven by energy (HS 27) and machinery (HS 84-85)—indicates stable demand for high-value inputs. Without external catalysts, the trade deficit may widen further, urging Brazilian exporters to reassess pricing and diversification strategies.

Strategic Moves

• Diversify Export Markets: Brazilian agribusinesses should reduce reliance on Spain by targeting emerging EU markets for oilseeds and grains, mitigating demand volatility.
• Lock in Energy Contracts: Importers of Spanish refined fuels (HS 27) should secure long-term supply agreements to hedge against potential price spikes from global energy disruptions.
• Upgrade Value Chains: Brazilian firms should invest in processing capabilities for key exports (e.g., biofuels from oilseeds) to capture more value and reduce exposure to raw commodity price swings.

Frequently Asked Questions

How did Brazil - Spain trade perform in 2023 Q2?

Brazil's exports to Spain totaled $1.55B in Q2 2023, with significant YoY declines, while imports from Spain reached $1.11B, showing mixed but slower growth.

What are the top exports from Brazil to Spain?

The top export from Brazil to Spain is HS Code 12 (Oilseeds, grains, seeds, fruits), accounting for 46.66% of total exports.

What does Brazil import from Spain?

Brazil's top import from Spain is HS Code 27 (Mineral fuels, oils, distillation products), making up 27.02% of total imports.

What is the trade balance between Brazil and Spain?

Brazil recorded a $440M trade deficit with Spain in Q2 2023, driven by higher imports of refined energy products and machinery.