Amcham Reports Seven US-Brazil Trade Highlights in 2023

The Amcham Brasil recently released its Brazil-US Trade Monitor, which listed seven major highlights in trade relations between the two countries during the first nine months of 2023. These findings shed light on significant trends and shifts in economic activity.

1. Second-highest trade Flow in History

Despite a 17.4% decrease in bilateral trade (exports + imports) during the first nine months of the year, the total bilateral trade volume reached $55.5 billion. This is the second-highest value for this period, surpassed only by the $67.2 billion recorded in 2022.

2. US Grows as Destination for Brazilian Industrial Exports

While Brazilian total exports to the US contracted by 4.5% during the early months of the year, reaching $26.6 billion, which marks the second-highest value in the historical series initiated in 1997, industrial sales saw a more modest decline of 0.7%. In contrast, global industrial exports decreased by 3.1%. Consequently, the US has grown its share as the primary destination for Brazilian industrial exports, rising from 16.0% to 16.5%.

3. Imports of Gas and Oil Decrease by $10.5 Billion

Brazilian imports from the US suffered a significant decline of 26.5% during the year, totaling -$10.4 billion in losses. This decline is solely attributable to the reduction in energy-related purchases, such as fuel oil, crude oil, and natural gas, which together experienced a decrease of $10.5 billion in Brazilian acquisitions from the US. The outbreak of the Russia-Ukraine conflict in 2022 and Brazil’s gas procurement needs in the previous year explain this drop.

4. Increased Industrial Composition in Bilateral Trade

The manufacturing industry expanded its presence in bilateral trade during the January-August period. In Brazilian exports, this share increased from 78.5% to 81.6%, while imports grew from 82.6% to 90.6%.

5. Substantial Reduction in Brazil’s Trade Deficit

Brazil’s trade deficit with the United States fell by 80% compared to the same period in 2022. The negative balance decreased from $11.5 billion to $2.3 billion.

6. Brazilian Product Exports on the Rise

Five of Brazil’s top ten products sold to the US saw an increase in value during this period. The most significant increase was observed in civil engineering equipment, which saw its value rise from $881 million to $1.2 billion. Other products with export growth to the US included semi-finished iron or steel products, pulp, petroleum fuels, and fruit juices.

7. Imports of Many Goods Remain Robust

Brazil’s imports of various US products increased in this period. These goods included non-electric motors and machinery, aircraft, insecticides and fungicides, ethylene polymers, measuring instruments, and other pharmaceuticals.

Source: Comex do Brasil e Amcham

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