China Surpasses EU as Latin America’s Key Trading Partner
In 2023, trade between Latin America and China dramatically soared to an unprecedented record of $480 billion.
This surge positioned China as the region’s second most important trading partner, surpassing the European Union.
This surge in trade marks a significant increase from $14 billion in 2000, showcasing a dramatic growth over two decades.
This trade balance slightly favored Latin America with a $2 billion surplus.
Latin America’s exports to China, 72% of the total volume, primarily include soybeans, copper, iron ore, oil, and beef.
In contrast, the region imports predominantly industrial products from China.
This dynamic has expanded access for local consumers and businesses while impacting some local industries.
Brazil, as China’s largest Latin American trade partner, reported $181 billion in trade for 2023.
Brazil’s exports were notably high at $122 billion, resulting in a $63 billion surplus, making Brazil one of the few global economies to maintain a trade surplus with China.
Fifteen trade agreements signed in 2023, worth about $10 billion, are expected to deepen this partnership.
Chile and Peru trail Brazil in trade with China. In 2023, Chile’s exports surpassed $43 billion, yielding a $23 billion surplus under a 2005 trade agreement.
Peru exported over $25 billion, with a $13 billion surplus, with China being its top trading partner since a 2009 agreement.
Mexico contrasts with these nations, facing a $62 billion deficit, largely due to its export focus on industrial rather than raw materials.
China Surpasses EU as Latin America’s Key Trading Partner
Ecuador is becoming a significant trade player with China, with exports reaching $7.9 billion and a $1.9 billion surplus in 2023.
Following a new trade agreement, exports are expected to increase by 30% over the next three years.
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