Argentina Breaks 11-Month Trade Deficit Streak with Brazil

Argentina recorded a trade surplus of USD 52 million with Brazil in December, the first surplus balance in eleven months, according to a report from the Argentine Chamber of Commerce and Services (CAC).

The surplus is the result of exports totaling USD 886 million, compared to USD 834 million in imports.

Bilateral trade between Argentina and Brazil reached USD 1.721 billion in the twelfth month of the year, a 12% decrease compared to the same period in 2022, when it amounted to USD 1.954 billion.

Additionally, trade fell by 10.9% compared to the month before due to a 14.3% drop in imports and a 7.3% decline in exports.

“Argentine sales to Brazil fell 9.7% year-on-year in December 2023 (the ninth consecutive month of declining sales), totaling USD 886 million, while imports from the neighboring country amounted to USD 834 million, with a year-on-year decrease of 14.3%,” highlighted the CAC.

Thus, Argentina’s trade balance resulted in a surplus of USD 52 million (after eleven months of a negative streak).

The year-on-year decline in Argentina’s exports to Brazil in December (9.7%) is mainly explained by a decrease in shipments of crude oil or bituminous mineral oils and preparations, wheat and rye, ethylene polymers, cereals, liquefied propane, and butane.

Meanwhile, the reduction in Argentine imports (14.3%) was mainly explained by the decline in purchases of hollow tubes and fittings for iron or steel pipes, civil engineering installations and equipment, and piston engines and their parts, among others, detailed the CAC.

See below which were the top most exported products from Brazil to Argentina through maritime means between January and November last year.

Top Brazilian Exports to Argentina | 2023 | TEU

Source: DataLiner (click here to request a demo)

Still, with December data already consolidated, the organization pointed out that trade between the two countries accumulated a deficit of USD 4.719 billion for Argentina through 2023.

“It is worth noting that exports decreased by 8.4% between January and December 2023 compared to the twelve months of 2022, while imports from Brazil increased by 8.9% in the same period,” added the CAC.

Source: Télam – Agencia Nacional de Noticias 

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