By September 2023, Brazil-U.S. trade totaled $55.5 billion, making it the second-highest year on record. Amcham Brazil released this data.
Compared to 2022, trade between the two countries fell by 17.4%. This decline mainly comes from a 26.5% drop in imports, which equals $10.4 billion less.
On the other hand, exports dipped only 4.5%.
According to Amcham Brazil’s CEO, Abrão Neto, last year’s high trade levels benefited from high global prices and more energy trade.
He stated that the current decrease mainly affects certain sectors. Still, Neto added that trade remains strong in high-value and tech-intensive items.
The report shows that industrial goods now form 81.6% of Brazil’s exports to the U.S., a rise from last year’s 78.5%.
In addition, five of Brazil’s top 10 exports gained in value. These include petroleum fuels, fruit juices, civil engineering equipment, pulp, and semi-finished iron or steel products.
Meanwhile, some imports from the U.S. also saw increases. These include measuring instruments, non-electric engines, aircraft, and certain chemicals.
Finally, the report revealed a significant 80% drop in Brazil’s trade deficit with the U.S. this year. It fell from $11.5 billion in 2022 to $2.3 billion.
Background
The current trend in Brazil-U.S. trade reflects broader economic dynamics. Historically, the U.S. has been one of Brazil’s top trading partners.
The two countries have often exchanged goods like soybeans, aircraft, and machinery.
However, global events like conflicts and pandemics can disrupt this pattern, as seen in the recent drop.
Brazil’s focus on high-value and tech-intensive items signifies a move toward more advanced industries.
This aligns with global shifts in trade, where innovation and technology play key roles. The sharp drop in the trade deficit also indicates better trade balance.
Overall, the resilience in Brazil-U.S. trade suggests both nations are adapting to new economic realities.