Brazil boosts exports to Argentina as stronger peso fuels demand, including beef

While Brazil is embroiled in a trade dispute with the United States over a potential increase in import tariffs, Argentina has increased its purchases of Brazilian goods by 55.4% in the first half of 2025, totaling US$9.1 billion.

From January to June, Brazil’s top exports to its southern neighbor included passenger vehicles (21.6%), auto parts and accessories (9.7%), and trucks and other cargo vehicles (6.4%).

Even traditionally domestic Argentine sectors saw a surge in Brazilian imports. Beef shipments, for example, jumped from about US$1 million in the first half of 2024 to US$22.9 million in the same period this year.

The figures are sourced from Brazil’s Ministry of Development, Industry, Trade, and Services (MDIC), with some data compiled by the Brazilian Beef Exporters Association (ABIEC).

In volume terms, Brazilian beef still holds a small share of Argentina’s market and does not yet pose a significant threat to local production. Fresh, chilled, or frozen beef accounted for just 0.25% of Argentina’s total imports. Part of these purchases were made by foreign meatpackers operating in Argentina, which have historically imported Brazilian beef for processed products, such as hamburgers. However, in 2025, a portion of these imports began to be allocated to retail cuts, according to Argentine industry sources.

“It’s strange—this is the country of beef and barbecue, and now we’re importing that kind of food from our neighbor Brazil,” said a presenter on Crónica TV in May. “It’s cheaper to import than produce it here.”

According to local media, Brazilian beef was selling for 9,000 Argentine pesos per kilo in parts of Patagonia in March, compared to 22,000 pesos for domestic cuts.

“Depending on the supermarket, we find Brazilian sliced bread or Uruguayan milk at better prices than local products,” said Nérida Arsas, 69, a homemaker in Buenos Aires.

On the other side of the trade balance, Brazil imported US$6.2 billion worth of Argentine goods in the first half of the year—up 1.6%—resulting in a US$3 billion surplus for Brazil. This upswing in trade is not necessarily reflective of any warming in relations between Brazilian President Luiz Inácio Lula da Silva and his Argentine counterpart Javier Milei.

Argentina’s appetite for foreign goods has increased across the board in 2025. In the first quarter alone, imports amounted to 32% of GDP—the highest percentage in 135 years, according to consultancy Argendata. That figure includes travel spending by Argentine tourists abroad.

Here is a historical overview of Brazilian exports to Argentina from January to May from 2022 to 2025. The chart was created using DataLiner data:

Brazilian Exports to Argentina | Jan 2022 – May 2025 | TEUs

Source: DataLiner (Click here to request a demo)

Several factors are behind the surge, including trade liberalization, tariff cuts, and deregulation, which have eased the flow of imported goods—from e-commerce purchases to auto parts. The appreciation of the Argentine peso against the U.S. dollar has also made foreign products more affordable and boosted outbound tourism, including short shopping trips to Brazil, Chile, and Paraguay. Lower inflation has further encouraged the use of longer-term supply contracts and import deals.

Still, economist Santiago Bulat of the IAE Business School and consulting firm Invecq notes that Argentina’s import volumes were coming off a low base after sharp declines in 2024, when Milei’s shock measures were first introduced.

“Imports dropped significantly last year, and many companies still had outstanding debts on past shipments. Meanwhile, economic activity grew rapidly in early 2025—although it now seems to be plateauing,” he said. Bulat added that imports have already begun to slow in July.

Even so, the exchange rate remains competitive, and with greater trade openness, sectors like textiles, home appliances, and automotive are now facing stiffer competition from imports.

Despite macroeconomic stabilization, the import boom has affected Argentine companies unevenly—particularly small and medium-sized enterprises (SMEs). More than 11% of exporters ceased selling abroad due to a loss of competitiveness, and 41.3% of SMEs reported a decline in domestic sales.

Argentina’s SME association, IPA, has warned that while import liberalization has helped lower prices, the lack of protective policies for domestic producers has led to job losses in sectors like textiles and metalworking.

“For now, Argentina’s surge in imports looks sustainable through the end of the year,” Bulat said, “but without a comprehensive tax reform, some industries will suffer more than others. The current tax burden—especially at the provincial level—continues to erode the competitiveness of locally made goods.”

Source: Folha de S. Paulo

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