Chile - Japan Trade 2023 Q2: Resource-for-Tech Boom

Key Market Takeaways: Chile - Japan Trade

The bilateral trade relationship between Chile and Japan shows robust growth with high volatility in Q2 2023.

• Economic Pulse: Chile maintains a $1.30B trade surplus, exporting $1.80B (up sharply in June) while importing $498.37M (mixed YoY performance).
• Exchange Structure: Chile - Japan trade statistics reveal a resource-for-tech model—Chile supplies ores (73.55% of exports) and imports vehicles (35.64% of imports).
• Strategic Interdependence: Highly complementary, with Japan dominating high-value manufacturing and Chile providing critical raw materials.

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

Chile-Japan Trade Trend in Q2 2023

Chile Export Performance: Shipments to Japan

• Total Volume: $1.80B in Q2 2023.
• Growth Trend & Context:
  • Mixed YoY performance: April (+14.66%), May (+9.99%), June (+29.96%). June’s 29.96% YoY surge drove overall growth.
  • Key Volatility: April saw a 33.68% MoM jump, followed by a -20.79% drop in May.

Chile Import Performance: Sourcing from Japan

• Total Volume: $498.37M in Q2 2023.
• Growth Trend & Context:
  • YoY declines in April (-43.09%) and June (-8.53%), partially offset by May’s 19.67% increase.
  • Key Volatility: April’s imports plummeted 44.44% MoM, while May rebounded with 46.91% growth.

Chile - Japan Trade Balance & Market Dynamics

• Net Position: Trade surplus of $1.30B (Exports $1.80B vs. Imports $498.37M).
• Relationship Status: Chile maintains a strong net exporter role, with exports 3.6x higher than imports. No evidence of external shocks disrupting this dynamic in Q2.

Chile Import Trend from Japan 2023 Q2 (Source: yTrade)**

Chile Export Trend to Japan 2023 Q2 (Source: yTrade)**

Get Historical Chile Japan Trade Records

Chile-Japan Top Trading Products in Q2 2023

Chile Export Profile: What Does Chile Sell to Japan

• Top Commodity: Rank #1 export is HS 26 (Ores, slag, and ash) at 73.55% of total exports to Japan.
• Demand Driver: Japan uses these raw materials for industrial processing, likely in steel and metal production.
• Concentration: Extreme dominance by a single category (HS 26 >70%), indicating high trade reliance on ores.

Chile Import Profile: What Does Chile Buy from Japan

• Top Commodity: Rank #1 import is HS 87 (Vehicles) at 35.64% of total imports from Japan.
• Dependency Nature: Critical technology dependency, with Japan supplying high-value machinery (HS 84, 87) and industrial inputs (HS 40, 72).

Chile - Japan Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Chile exports raw materials (ores, seafood) and imports advanced machinery/vehicles.
• Value Chain Position: Japan holds the higher value-add position, with Chile primarily supplying low-processed commodities.

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

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

Check Detailed Chile-Japan Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Chile’s trade surplus with Japan is expected to widen in Q3 2023, driven by sustained demand for ores (HS 26) amid Japan’s industrial recovery. However, import volatility—particularly in vehicles (HS 87)—may persist due to supply chain adjustments. The resource-for-tech exchange model will remain dominant, but Chile’s overreliance on raw material exports exposes it to commodity price swings. Traders should anticipate tighter margins if Japan’s manufacturing demand softens.

Strategic Moves

• Lock in Long-Term Ore Contracts: Chilean exporters must secure fixed-price agreements with Japanese buyers to mitigate price volatility and stabilize revenue streams.
• Diversify Import Sources: Reduce dependency on Japanese vehicles (HS 87) by exploring alternative suppliers in South Korea or the EU to hedge against supply disruptions.
• Invest in Value-Added Processing: Chilean firms should prioritize upgrading ore refinement capabilities to capture higher margins and reduce reliance on low-processed exports.

Frequently Asked Questions

How did Chile - Japan trade perform in 2023 Q2?

Chile's exports to Japan grew to $1.80B in Q2 2023, driven by a 29.96% YoY surge in June, while imports from Japan fell to $498.37M with mixed YoY performance.

What are the top exports from Chile to Japan?

Chile's top export to Japan is HS 26 (Ores, slag, and ash), accounting for 73.55% of total exports, reflecting high reliance on raw materials for Japan's industrial processing.

What does Chile import from Japan?

Chile primarily imports HS 87 (Vehicles) from Japan, making up 35.64% of total imports, alongside high-value machinery (HS 84) and industrial inputs (HS 40, 72).

What is the trade balance between Chile and Japan?

Chile recorded a trade surplus of $1.30B in Q2 2023, with exports 3.6x higher than imports, maintaining its strong net exporter role.