Chile - Spain Trade 2023 Q1: Volatile Deficit

Key Market Takeaways: Chile - Spain Trade

The bilateral trade relationship between Chile and Spain shows volatility with a persistent deficit in Q1 2023.

• Economic Pulse: Chile posted a $217.54M trade deficit with Spain, driven by $466.71M in imports (mixed YoY trends) versus $249.17M in exports (volatile recovery).
• Exchange Structure: Chile-Spain trade statistics reveal a resource-for-tech model—Chile supplies copper (31.36% of exports) while Spain dominates with electrical machinery (15.14% of imports).
• Strategic Interdependence: Highly complementary but unequal: Spain holds the high-value position, while Chile remains a critical raw material supplier.

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

Chile-Spain Trade Trend in Q1 2023

Chile Export Performance: Shipments to Spain

• Total Volume: $249.17M in Q1 2023.
• Growth Trend & Context:
  • Volatile YoY performance: Jan (-22.89%), Feb (-66.28%), Mar (+143.72%).
  • No specific trade news to explain fluctuations.
• Key Volatility: March saw a 147.1% MoM surge, offsetting earlier declines.

Chile Import Performance: Sourcing from Spain

• Total Volume: $466.71M in Q1 2023.
• Growth Trend & Context:
  • Mixed YoY trends: Jan (-1.33%), Feb (+1.47%), Mar (-12.3%).
• Key Volatility: January imports dropped 11.9% MoM, while March posted a modest 2.5% MoM rise.

Chile - Spain Trade Balance & Market Dynamics

• Net Position: Trade deficit of $217.54M (Imports exceed exports).
• Relationship Status: Chile remains heavily dependent on imports from Spain, with exports failing to offset inbound trade volume.

Chile Import Trend from Spain 2023 Q1 (Source: yTrade)**

Chile Export Trend to Spain 2023 Q1 (Source: yTrade)**

Get Historical Chile Spain Trade Records

Chile-Spain Top Trading Products in Q1 2023

Chile Export Profile: What Does Chile Sell to Spain

• Top Commodity: Copper (HS 74) dominates at 31.36% of exports.
• Demand Driver: Spain uses these raw materials for industrial processing, particularly in construction and electronics manufacturing.
• Concentration: The trade is highly concentrated, with copper alone accounting for nearly a third of exports.

Chile Import Profile: What Does Chile Buy from Spain

• Top Commodity: Electrical machinery (HS 85) leads at 15.14% of imports.
• Dependency Nature: Critical technology dependency, as Spain supplies high-value machinery and equipment essential for Chile’s industrial and infrastructure sectors.

Chile - Spain Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Chile exports raw materials (copper, ores, seafood) while Spain supplies advanced machinery and consumer goods.
• Value Chain Position: Spain holds the higher value-add position, exporting complex manufactured goods, while Chile’s exports are primarily resource-based.

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

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

Check Detailed Chile-Spain Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Chile’s trade with Spain in Q1 2023 revealed volatile export performance but a steady import dependency, signaling a persistent deficit in the near term. Given Spain’s structural advantage in high-value machinery and Chile’s reliance on raw material exports, the resource-for-tech exchange model will likely deepen, with copper demand driving sporadic export surges. However, without diversification, Chile’s trade balance will remain under pressure. Traders should brace for continued volatility, especially in commodity prices, while Spain’s industrial demand for Chilean inputs offers a stabilizing floor.

Strategic Moves

• Diversify Export Basket: Chilean exporters must reduce reliance on copper by promoting secondary products like processed seafood or lithium-based goods to capture higher margins and mitigate price swings.
• Lock in Tech Supply Chains: Importers should secure long-term contracts for Spanish machinery (HS 85) to hedge against potential supply disruptions and rising costs in Europe’s manufacturing sector.
• Leverage Trade Agreements: Both nations should aggressively utilize existing EU-Chile agreements to streamline tariffs on non-traditional goods, fostering balanced trade beyond raw materials and machinery.

Frequently Asked Questions

How did Chile - Spain trade perform in 2023 Q1?

Chile's exports to Spain totaled $249.17M, with volatile YoY growth (-22.89% in Jan, +143.72% in Mar). Imports from Spain reached $466.71M, showing mixed YoY trends (-1.33% in Jan, -12.3% in Mar).

What are the top exports from Chile to Spain?

Copper (HS 74) dominates Chile's exports to Spain, accounting for 31.36% of total shipments, primarily used in Spain's industrial sectors like construction and electronics.

What does Chile import from Spain?

Chile's top import from Spain is electrical machinery (HS 85), making up 15.14% of imports, reflecting a dependency on high-value technology for industrial and infrastructure needs.

What is the trade balance between Chile and Spain?

Chile recorded a trade deficit of $217.54M with Spain in Q1 2023, as imports significantly exceeded exports, highlighting Spain's stronger position in the trade relationship.