Argentina’s exports to Brazil grow 91% YoY in June

Argentina’s exports to Brazil grew 91.8% Year-over-Year in June, totaling US$973 million and after six consecutive increases. The export pace is growing faster than imports, which increased by 70.7%.

This was highlighted by the report by the Ministry of Development, Industry and Foreign Trade of Brazil analyzed by the Argentine Chamber of Commerce (CAC), which pointed out that June imports from the neighboring country totaled US$ 1,030 million.

Thus, Argentina’s trade balance presented a deficit of US$ 57 million in June, improving 87.8% per month and 40.6% in the year-on-year comparison since in the same month of 2020 when the negative balance was US$ 97 million.

In this sense, bilateral trade between Argentina and Brazil reached US$ 2.003 million in the sixth month of the year, 80.3% higher than in 2020 when it was US$ 1.111 million, but the exchange rate fell 4.2% compared to the previous month.

The following chart shows container movement between Brazil and Argentina since 2019, according to DataLiner:

Imports and Exports between Brazil and Argentina | Jan 2019 to May 2021 | WTMT

Graphic source: DataLiner  (To request a DataLiner demo click here)

In relation to the year-to-date figures from January to June, the trade flow increased 49.1% year-on-year, reaching US$ 11.051 million, while Argentina’s trade balance showed a deficit of US$ 580 million against the surplus of $24 million for the same period in 2020.

This performance is explained by the growth of Argentine imports from Brazil (57.5%), which surpassed the increase in Argentine exports to Brazil (40.9%) in that period.

The increase in exports from Argentina to Brazil (91.8%) is mainly explained by automotive vehicles for transporting goods, tourist vehicles, and unground wheat and rye.

The increase in Argentine imports (70.7%) was driven by passenger cars, parts and accessories for motor vehicles and semi-finished products, ingots, and other primary forms of iron or steel.

In terms of destinations, Argentina ranked third among Brazil’s largest suppliers, behind China, Hong Kong, and Macau (US$ 3.797 million) and the United States (US$ 2.947 million).

In turn, among the main buyers from Brazil, Argentina was also in third place, behind China, Hong Kong, and Macau (US$ 10,678 million) and the United States (US$ 2,671 million).

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