Chile - Canada Trade 2023 Q3: Resource-Food Surplus

Key Market Takeaways: Chile - Canada Trade

The bilateral trade relationship between Chile and Canada showed growth amid volatility in Q3 2023, with Chile maintaining a net exporter position.

• Economic Pulse: Chile posted a $113.17M trade surplus with Canada ($340.04M exports vs. $226.87M imports), despite sharp monthly swings in export volumes.
• Exchange Structure: Chile - Canada trade statistics reveal a resource-for-food complementarity—Chile supplies raw metals (34.55% HS 71) while importing Canadian cereals (26.70% HS 10).
• Strategic Interdependence: The partnership hinges on Chile’s raw material exports and Canada’s agricultural output, creating a stable but concentrated trade dynamic.

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

Chile-Canada Trade Trend in Q3 2023

Chile Export Performance: Shipments to Canada

• Total Volume: Chile exported $340.04M worth of goods to Canada in Q3 2023.
• Growth Trend & Context:
  • Exports showed mixed performance: August surged 79.82% MoM and 30.64% YoY, but July and September saw sharp declines (-42.48% MoM and -40.78% MoM, respectively).
  • YoY trends were volatile, with September exports down -25.55% YoY.
• Key Volatility: August was the standout month with a 79.82% MoM jump, offsetting steep drops in July and September.

Chile Import Performance: Sourcing from Canada

• Total Volume: Chile imported $226.87M from Canada in Q3 2023.
• Growth Trend & Context:
  • Imports contracted sharply YoY, with September down -43.29% YoY and August -32.73% YoY.
  • MoM declines were consistent: -15.71% in August and -8.11% in September.
• Key Volatility: July was the peak month at $86.67M, but subsequent months saw steady erosion in import volumes.

Chile - Canada Trade Balance & Market Dynamics

• Net Position: Chile posted a trade surplus of $113.17M (Exports: $340.04M > Imports: $226.87M).
• Relationship Status: Chile remains a net exporter to Canada, with exports outpacing imports despite volatility in both flows. The August export surge was pivotal in maintaining the surplus.

Chile Import Trend from Canada 2023 Q3 (Source: yTrade)**

Chile Export Trend to Canada 2023 Q3 (Source: yTrade)**

Get Historical Chile Canada Trade Records

Chile-Canada Top Trading Products in Q3 2023

Chile Export Profile: What Does Chile Sell to Canada

• Top Commodity: Rank #1 export is HS 71 (Pearls, precious stones, metals) at 34.55% of total exports to Canada.
• Demand Driver: Canada likely uses these raw materials for industrial processing, particularly in jewelry or manufacturing sectors.
• Concentration: The top two categories (HS 71 and HS 74) dominate with 61.65% combined share, indicating high trade concentration.

Chile Import Profile: What Does Chile Buy from Canada

• Top Commodity: Rank #1 import is HS 10 (Cereals) at 26.70% of total imports from Canada.
• Dependency Nature: Reflects food security dependency, as Chile relies on Canada for staple agricultural products.

Chile - Canada Trade Relationship Dynamics

• The Exchange Model: Resource-for-Food Complementarity. Chile exports raw materials (metals, ores) and imports agricultural goods (cereals) from Canada.
• Value Chain Position: Canada holds a higher value-add position in agriculture (processed cereals), while Chile supplies lower-value raw materials.

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

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

Check Detailed Chile-Canada Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast for Chile-Canada Trade

Chile’s trade surplus with Canada is likely to persist in Q4 2023, but volatility in export volumes—particularly for HS 71 (precious metals) and HS 74 (copper)—demands caution. The August surge suggests sporadic demand spikes, while the steep MoM declines in July and September signal underlying instability. Canada’s weakening imports of Chilean goods (-43.29% YoY in September) may reflect broader economic headwinds, but Chile’s resource-for-food complementarity with Canada provides a stable foundation. Traders should prepare for asymmetric recovery: metals exports could rebound sharply, while agricultural imports (HS 10 cereals) may remain subdued due to Canada’s domestic supply chain adjustments.

Strategic Moves for Traders & Policymakers

• Lock in Long-Term Contracts for Precious Metals: With HS 71 (34.55% of exports) driving Chile’s surplus, miners and exporters should secure fixed-price agreements to mitigate price swings and ensure stable revenue.
• Diversify Cereals Sourcing Beyond Canada: Chile’s 26.70% reliance on Canadian cereals (HS 10) is a vulnerability. Importers must explore alternative suppliers in the U.S. or Mercosur to hedge against supply shocks.
• Push for Higher-Value Exports: Chile’s raw-material-heavy exports (61.65% concentration in HS 71/74) leave it exposed to commodity cycles. The government should incentivize processing industries (e.g., refined copper products) to capture more value before shipment.

Frequently Asked Questions

How did Chile - Canada trade perform in 2023 Q3?

Chile exported $340.04M to Canada and imported $226.87M, resulting in a $113.17M surplus. Exports showed volatile growth, with an August surge offsetting sharp declines in July and September, while imports contracted YoY.

What are the top exports from Chile to Canada?

The top exports are HS 71 (Pearls, precious stones, metals) at 34.55% and HS 74 (Copper and articles)—combined, they dominate 61.65% of Chile’s exports to Canada.

What does Chile import from Canada?

Chile’s top import is HS 10 (Cereals) at 26.70%, reflecting a dependency on Canadian agricultural products for food security.

What is the trade balance between Chile and Canada?

Chile maintains a trade surplus of $113.17M with Canada, driven by higher exports of raw materials despite volatile monthly performance.