Chile - Japan Trade 2024 Q2: Resource-for-Tech Surplus

Key Market Takeaways: Chile - Japan Trade

The bilateral trade relationship between Chile and Japan shows growth with high volatility in 2024 Q2.

• Economic Pulse: Chile maintains a $1.28B trade surplus, exporting $1.78B (mostly ores) while importing $503M (primarily vehicles). Volatility in both directions suggests uneven demand or supply chain adjustments.
• Exchange Structure: The Chile - Japan trade statistics reveal a resource-for-tech complementarity—Chile supplies 75% of its exports as raw materials (ores), while Japan dominates with high-value vehicles and machinery (34% of imports).
• Strategic Interdependence: Highly complementary economies, with Japan holding the higher value-add position in finished goods against Chile’s raw material exports.

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

Chile-Japan Trade Trend in Q2 2024

Chile Export Performance: Shipments to Japan

• Total Volume: $1.78B in Q2 2024.
• Growth Trend & Context:
  • Mixed YoY performance: +1.58% in April, -18.38% in May, and +11.44% in June.
  • No specific trade news to explain fluctuations.
• Key Volatility: June saw a sharp MoM rebound (+47.41%) after May’s -36.35% drop.

Chile Import Performance: Sourcing from Japan

• Total Volume: $502.99M in Q2 2024.
• Growth Trend & Context:
  • Volatile YoY: +61.32% in April, -37.06% in May, and -2.58% in June.
• Key Volatility: April’s imports surged 39.4% MoM, followed by a -42.68% collapse in May.

Chile - Japan Trade Balance & Market Dynamics

• Net Position: Chile holds a trade surplus of $1.28B (Exports: $1.78B > Imports: $502.99M).
• Relationship Status: Dominant net exporter, with exports nearly 3.5x imports. Volatility in both directions suggests uneven demand or supply chain adjustments.

Chile Import Trend from Japan 2024 Q2 (Source: yTrade)**

Chile Export Trend to Japan 2024 Q2 (Source: yTrade)**

Get Historical Chile Japan Trade Records

Chile-Japan Top Trading Products in Q2 2024

Chile Export Profile: What Does Chile Sell to Japan

• Top Commodity: Rank #1 export is HS Code 26 (Ores, slag, and ash) at 75.09% of total exports to Japan.
• Demand Driver: Japan imports these raw materials for industrial processing, likely in steel and metal production.
• Concentration: Trade is highly concentrated, with HS Code 26 dominating over 75% of exports.

Chile Import Profile: What Does Chile Buy from Japan

• Top Commodity: Rank #1 import is HS Code 87 (Vehicles) at 34.31% of total imports from Japan.
• Dependency Nature: Chile relies on Japan for high-tech machinery and transportation equipment, indicating a critical technology dependency.

Chile - Japan Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Chile exports raw materials (ores) to Japan, while importing advanced machinery and vehicles.
• Value Chain Position: Japan holds the higher value-add position, supplying finished goods (vehicles, machinery) against Chile’s raw material exports.

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 likely to persist in Q3 2024, driven by steady demand for ores (HS Code 26) amid Japan’s industrial activity. However, volatility in monthly trade flows signals potential supply chain disruptions or uneven demand, requiring close monitoring. The resource-for-tech exchange model will remain dominant, but Chile must address over-reliance on raw material exports to mitigate price sensitivity risks. Traders should prepare for short-term fluctuations while anticipating stable long-term growth in bilateral trade volume.

Strategic Moves

• Diversify Export Basket: Chilean exporters must reduce dependence on ores by promoting secondary commodities (e.g., agriculture, processed metals) to Japan, leveraging trade promotion agencies to identify niche opportunities.
• Lock in Long-term Contracts: Japanese buyers of Chilean ores should secure fixed-price agreements to hedge against commodity market volatility, ensuring stable supply for industrial production.
• Upgrade Import Substitution: Chile’s manufacturers should prioritize localizing high-tech vehicle and machinery components (HS Code 87) to reduce dependency on Japanese imports, supported by targeted industrial policy incentives.

Frequently Asked Questions

How did Chile - Japan trade perform in 2024 Q2?

Chile's exports to Japan totaled $1.78B, with mixed YoY growth (+1.58% in April, -18.38% in May, +11.44% in June). Imports from Japan were $502.99M, showing volatility (+61.32% in April, -37.06% in May, -2.58% in June).

What are the top exports from Chile to Japan?

HS Code 26 (Ores, slag, and ash) dominates Chile's exports to Japan, accounting for 75.09% of total shipments, driven by Japan's demand for raw materials in steel and metal production.

What does Chile import from Japan?

HS Code 87 (Vehicles) is Chile's top import from Japan, representing 34.31% of total imports, reflecting Chile's reliance on Japan for high-tech machinery and transportation equipment.

What is the trade balance between Chile and Japan?

Chile holds a trade surplus of $1.28B with Japan (exports: $1.78B > imports: $502.99M), maintaining a dominant net exporter position with exports nearly 3.5x imports.