Chile - Germany Trade 2023 Q3: Deficit & Tech Dependency

Key Market Takeaways: Chile - Germany Trade

The bilateral trade relationship between Chile and Germany reflects heavy reliance on German imports with volatile export performance in Q3 2023.

• Trade Deficit Dominates: Chile posted a $468.04M deficit (exports: $286.52M, imports: $754.56M), with imports consistently outpacing exports despite some YoY growth in shipments to Germany.
• Resource-for-Tech Exchange: Chile - Germany trade statistics show a lopsided structure—44.79% of Chile’s exports are ores (HS26), while 24.88% of imports are German machinery (HS84), highlighting a raw-materials-for-technology dependency.
• Asymmetric Interdependence: Germany holds the high-value position, supplying critical industrial inputs, while Chile remains a commodity supplier, exposing vulnerability to price swings.

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

Chile-Germany Trade Trend in Q3 2023

Chile Export Performance: Shipments to Germany

• Total Volume: $286.52M in Q3 2023.
• Growth Trend & Context:
  • YoY growth was volatile, with August surging 40.22% but September dropping -15.6%.
  • No specific trade news to explain the fluctuations.
• Key Volatility: August saw a 32.69% MoM spike, while September plunged -48.43% MoM.

Chile Import Performance: Sourcing from Germany

• Total Volume: $754.56M in Q3 2023.
• Growth Trend & Context:
  • YoY growth remained positive (August +9.08%, September +8.04%) despite a -1.29% MoM dip in September.
• Key Volatility: August was the peak month (4.08% MoM growth), while September showed mild contraction.

Chile - Germany Trade Balance & Market Dynamics

• Net Position: Chile ran a trade deficit of $468.04M (Exports $286.52M vs. Imports $754.56M).
• Relationship Status: Heavy reliance on German imports, with exports failing to offset the imbalance.

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

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

Get Historical Chile Germany Trade Records

Chile-Germany Top Trading Products in Q3 2023

Chile Export Profile: What Does Chile Sell to Germany

• Top Commodity: Rank #1 export is HS Code 26 (Ores, slag, and ash), accounting for 44.79% of total exports to Germany.
• Demand Driver: Germany imports these raw materials for industrial processing, likely for metal production or manufacturing inputs.
• Concentration: Trade is highly concentrated, with ores alone representing nearly half of exports.

Chile Import Profile: What Does Chile Buy from Germany

• Top Commodity: Rank #1 import is HS Code 84 (Nuclear reactors, boilers, machinery), making up 24.88% of total imports from Germany.
• Dependency Nature: Reflects a critical technology dependency, as machinery and equipment are essential for Chile's industrial and infrastructure development.

Chile - Germany Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Chile supplies raw materials (ores, agricultural products), while Germany exports high-value machinery and pharmaceuticals.
• Value Chain Position: Germany holds the higher value-add position, with exports dominated by advanced manufactured goods, while Chile's exports are primarily low-processed commodities.

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

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

Check Detailed Chile-Germany Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Chile-Germany trade is expected to remain volatile in Q4 2023, with Chile’s exports facing uncertainty due to erratic demand for ores (HS Code 26), while German machinery imports (HS Code 84) will likely sustain steady growth. The persistent trade deficit may widen further unless Chile diversifies its export basket or secures higher-value processing for raw materials. Long-term, Germany’s industrial demand and Chile’s resource base will keep the relationship complementary, but Chile must act to reduce its over-reliance on low-value commodity exports.

Strategic Moves

• Diversify Export Offerings: Chilean exporters should push beyond ores by promoting processed minerals, renewable energy inputs (e.g., lithium), and premium agricultural goods to capture higher margins in Germany.
• Lock in Machinery Supply Contracts: Importers must negotiate long-term agreements with German suppliers to hedge against price volatility and ensure stable access to critical industrial equipment.
• Pursue Trade Deficit Mitigation: The Chilean government should incentivize value-added exports and explore bilateral investment in local manufacturing to reduce dependency on German high-tech imports.

Frequently Asked Questions

How did Chile - Germany trade perform in 2023 Q3?

Chile's exports to Germany totaled $286.52M in Q3 2023, with volatile YoY growth, while imports from Germany reached $754.56M, showing steady YoY growth despite minor MoM dips.

What are the top exports from Chile to Germany?

The top export from Chile to Germany is HS Code 26 (Ores, slag, and ash), accounting for 44.79% of total exports, reflecting Chile's role as a raw material supplier.

What does Chile import from Germany?

Chile's top import from Germany is HS Code 84 (Nuclear reactors, boilers, machinery), making up 24.88% of total imports, highlighting a dependency on advanced technology and industrial equipment.

What is the trade balance between Chile and Germany?

Chile recorded a trade deficit of $468.04M with Germany in Q3 2023, driven by higher imports of machinery and technology compared to exports of raw materials.