Peru - Brazil Trade 2024 Q1: Persistent Deficit

Key Market Takeaways: Peru - Brazil Trade

The bilateral trade relationship between Peru and Brazil remains stable but imbalanced in Q1 2024, with Peru running a persistent trade deficit.

• Economic Pulse: Peru recorded a $234.1M trade deficit with Brazil, importing $640.7M (flat YoY) while exporting $406.6M. Volatility spiked in March for both flows (+12% MoM).
• Exchange Structure: Peru - Brazil trade statistics show a resource-for-tech complementarity—Peru supplies copper (28% of exports) and ores, while Brazil dominates with vehicles (25% of imports) and machinery.
• Strategic Interdependence: Moderate concentration in Peru’s exports (top 3 goods = 58% of total) contrasts with Brazil’s diversified industrial exports, reinforcing asymmetric value chain positions.

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

Peru-Brazil Trade Trend in Q1 2024

Peru Export Performance: Shipments to Brazil

• Total Volume: $406.63M in Q1 2024.
• Growth Trend & Context:
  • YoY data shows no change (0.0% for all months), indicating stable demand.
  • MoM volatility: March saw a sharp 12.41% surge after a flat January and slight February dip (-0.3%).
• Key Volatility: March’s spike (12.41%) drove Q1 performance, though no news context explains the jump.

Peru Import Performance: Sourcing from Brazil

• Total Volume: $640.73M in Q1 2024.
• Growth Trend & Context:
  • YoY data also flat (0.0%), suggesting steady supply chains.
  • MoM swings: March imports surged 12.53% after a modest 2.51% February rise.
• Key Volatility: March’s 12.53% MoM growth dominated, with no external events cited to contextualize.

Peru - Brazil Trade Balance & Market Dynamics

• Net Position: Trade deficit of $234.10M (Imports exceeded exports).
• Relationship Status: Peru remains a net importer from Brazil, with Q1 imports 58% higher than exports. No signs of rebalancing yet.

Peru Import Trend from Brazil 2024 Q1 (Source: yTrade)**

Peru Export Trend to Brazil 2024 Q1 (Source: yTrade)**

Get Historical Peru Brazil Trade Records

Peru-Brazil Top Trading Products in Q1 2024

Peru Export Profile: What Does Peru Sell to Brazil

• Top Commodity: Copper (HS 74) dominates exports, accounting for 27.71% of total value.
• Demand Driver: Brazil imports raw materials like copper (HS 74), iron ore (HS 26), and zinc (HS 79) for industrial processing.
• Concentration: The top 3 exports (copper, mineral fuels, and ores) make up 58.08% of total exports, indicating moderate concentration.

Peru Import Profile: What Does Peru Buy from Brazil

• Top Commodity: Vehicles (HS 87) lead imports with a 25.47% share.
• Dependency Nature: Peru relies on Brazil for machinery (HS 84), steel (HS 72), and paper products (HS 48), reflecting industrial and consumer market dependencies.

Peru - Brazil Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Peru exports raw materials (copper, ores) while importing manufactured goods (vehicles, machinery).
• Value Chain Position: Brazil holds the higher value-add position, supplying advanced goods (vehicles, machinery) versus Peru’s commodity-heavy exports.

Import Analysis by Product: Brazil to Peru (Source: yTrade)

Export Analysis by Product: Peru to Brazil (Source: yTrade)

Check Detailed Peru-Brazil Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Peru’s trade with Brazil is expected to maintain stability in Q2 2024, with modest growth potential driven by steady demand for raw materials. The March surge in both exports and imports suggests latent volatility, possibly tied to seasonal industrial activity or supply chain adjustments. However, the persistent trade deficit signals an imbalance that requires strategic intervention. Without diversification or value-added export expansion, Peru risks deepening its reliance on Brazilian manufactured goods while remaining locked in a commodity-export role.

Strategic Moves

• Lock in Long-Term Supply Contracts: Peruvian copper and mineral exporters should secure fixed-price agreements with Brazilian industrial buyers to mitigate price volatility and stabilize revenue streams.
• Diversify Import Sources: Reduce dependency on Brazilian vehicles and machinery by exploring alternative suppliers in Mexico or Southeast Asia to improve trade balance resilience.
• Invest in Export Upgrading: Peruvian firms must prioritize processing raw materials domestically (e.g., refining copper into wires) to capture higher margins and shift the trade dynamic toward value-added exports.

Frequently Asked Questions

How did Peru - Brazil trade perform in 2024 Q1?

Peru's trade with Brazil in Q1 2024 showed stable demand with $406.63M in exports and $640.73M in imports, both showing 0.0% YoY growth but MoM volatility in March.

What are the top exports from Peru to Brazil?

Peru's top exports to Brazil are copper (HS 74), iron ore (HS 26), and zinc (HS 79), which together account for 58.08% of total exports.

What does Peru import from Brazil?

Peru primarily imports vehicles (HS 87), machinery (HS 84), and steel (HS 72) from Brazil, with vehicles alone making up 25.47% of total imports.

What is the trade balance between Peru and Brazil?

Peru recorded a trade deficit of $234.10M with Brazil in Q1 2024, with imports exceeding exports by 58%. The gap shows no signs of rebalancing yet.