Chile - Brazil Trade 2023 Whole Year: Widening Deficit

Key Market Takeaways: Chile - Brazil Trade

The bilateral trade relationship between Chile and Brazil remains lopsided, with Chile deepening its trade deficit in 2023 amid volatile commodity flows.

• $13B Trade Flow, $4.5B Deficit: Chile’s imports from Brazil ($8.77B) dwarfed exports ($4.28B), widening the deficit YoY despite export rebounds in late 2023.
• Resource-for-Resource Exchange: Chile - Brazil trade statistics show copper (39.6% of exports) swapped for Brazilian fuels (42% of imports), highlighting raw material interdependence.
• Asymmetric Dependency: Chile relies on Brazil for critical energy supplies, while Brazil taps Chilean copper for industrial needs—a stable but unbalanced partnership.

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

Chile-Brazil Trade Trend in Whole Year 2023

Chile Export Performance: Shipments to Brazil

• Total Volume: $4.28B in 2023.
• Growth Trend & Context: Mixed YoY performance—sharp declines early (-22.75% in Jan, -20.35% in May) offset by rebounds (24.74% in Feb, 17.27% in Oct). No news to contextualize.
• Key Volatility: July saw the highest MoM surge (+25.47%), while September had the steepest drop (-16.8%).

Chile Import Performance: Sourcing from Brazil

• Total Volume: $8.77B in 2023.
• Growth Trend & Context: Overall YoY contraction, with double-digit declines in 8 of 12 months (e.g., -45.69% in Sep). March’s 36.37% YoY spike was an outlier.
• Key Volatility: March imports peaked at $1.07B (+64.05% MoM), while April and September saw dramatic drops (-40.71% and -32.83% MoM, respectively).

Chile - Brazil Trade Balance & Market Dynamics

• Net Position: Trade deficit of $4.49B (Imports $8.77B > Exports $4.28B).
• Relationship Status: Chile remains heavily dependent on Brazilian imports, with a lopsided trade flow. The deficit widened YoY due to import volatility and weaker export recovery.

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

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

Get Historical Chile Brazil Trade Records

Chile-Brazil Top Trading Products in Whole Year 2023

Chile Export Profile: What Does Chile Sell to Brazil

• Top Commodity: Copper (HS 74) dominates exports, accounting for 39.60% of total value.
• Demand Driver: Brazil relies on Chilean copper for industrial processing, particularly in construction and electronics manufacturing.
• Concentration: The top 3 exports (copper, fish, and ores) make up 66.21% of total trade, indicating moderate concentration.

Chile Import Profile: What Does Chile Buy from Brazil

• Top Commodity: Mineral fuels (HS 27) lead imports, representing 41.99% of total value.
• Dependency Nature: Energy security is critical, as Brazil supplies nearly half of Chile's fuel imports, likely for transportation and industrial use.

Chile - Brazil Trade Relationship Dynamics

• The Exchange Model: Resource-for-Resource Complementarity. Chile exports raw materials (copper, fish) while importing energy (fuels) and agricultural goods (meat, sugar) from Brazil.
• Value Chain Position: Both countries trade low-value-added commodities, but Chile holds a slight edge with copper (higher global demand elasticity).

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

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

Check Detailed Chile-Brazil Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Chile’s trade deficit with Brazil is likely to persist in 2024, driven by continued reliance on Brazilian mineral fuels and volatile copper demand. While copper exports may stabilize due to Brazil’s industrial needs, Chile must address import dependency to prevent further imbalance. Expect short-term fluctuations in trade volumes, particularly if Brazil’s fuel production or Chile’s mining output faces disruptions. Proactive measures are essential to mitigate risks and capitalize on niche opportunities in agricultural and processed goods.

Strategic Moves

• Diversify Energy Sources: Reduce reliance on Brazilian fuel imports by securing alternative suppliers or investing in domestic renewable energy infrastructure.
• Expand Value-Added Exports: Process raw copper and fish into higher-margin products (e.g., refined copper cathodes, canned seafood) to capture more value from Brazil’s industrial demand.
• Lock in Long-Term Contracts: Negotiate fixed-price agreements for critical imports (fuels) and exports (copper) to hedge against market volatility and currency fluctuations.

Frequently Asked Questions

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

Chile's exports to Brazil totaled $4.28B in 2023, with mixed YoY growth, while imports from Brazil reached $8.77B, showing an overall YoY contraction.

What are the top exports from Chile to Brazil?

Chile's top exports to Brazil are copper (HS 74), fish, and ores, which together account for 66.21% of total trade.

What does Chile import from Brazil?

Chile primarily imports mineral fuels (HS 27) from Brazil, making up 41.99% of total import value, along with agricultural goods like meat and sugar.

What is the trade balance between Chile and Brazil?

Chile recorded a trade deficit of $4.49B with Brazil in 2023, as imports ($8.77B) significantly exceeded exports ($4.28B). The deficit widened YoY due to import volatility.