Foreign trade figures of Brazil

Foreign Trade in Figures

Although foreign trade only represents around 39% of its GDP (World Bank, latest data available), Brazil is the world's 26th-largest exporter and importer and the country has an enormous economic potential (WTO). Brazil mainly exports petroleum oils (16.7%), soya beans (14%), iron ores (8.6%), maze and corn (3.7%), and cane or beet sugar (3.3%); while its main imports are petroleum oils (11.9%), fertilizers (8.6%), parts and accessories for tractors and motor vehicles (2.8%), insecticides (2.4%), and petroleum gas and other gaseous hydrocarbons (2.3% - data Comtrade).

In 2022, Brazil’s main export partners were China (26.8%), the United States (11.4%), Argentina (4.6%), the Netherlands (3.6%), Spain (2.9%); whereas imports came chiefly from China (23.2%), the United States (18.6%), Argentina (4.7%), Germany (4.6%), India (3.3% - data Comtrade). Despite being the largest economy in Latin America and the ninth in the world, Brazil is still relatively closed compared to other large economies, with a low trade penetration and a low number of exporters relative to the population (its absolute number of exporters is roughly the same as that of Norway, a country with approximately 5 million people, compared to Brazil’s 213 million). However, the country has been implementing changes to improve trade, such as reducing the time for documentary compliance for both exporting and importing by enhancing its electronic data interchange system. Additionally, given that the EU is Brazil's second-biggest trading partner, they are working on a free trade agreement - as a part of the EU's Association Agreement negotiations with the Mercosur countries. Not only that, but the bloc has also been looking into signing a bilateral agreement with China in a plan to modernise and open it to other regions. Furthermore, since the inauguration of the newly-elected Brazilian president, Lula, in January 2023, Brazil and Argentina have been working to foster stronger trade ties and introduce a common currency.

Brazil’s trade balance is structurally positive but has declined in recent years due to a drop in the prices of raw materials, an increase in energy imports and a decline in the competitiveness of Brazilian products. According to the latest available data from WTO, in 2022, Brazil imported USD 292.2 billion and exported USD 334.1 billion in goods, while in services the country imported USD 79.4 billion and exported USD 39.4 billion. For the year as a whole, the World Bank estimated Brazil’s trade balance to be positive by 0.8% of GDP (from 0.9% one year earlier). According to the Ministry of Development, Industry, Trade and Services, as of November 2023, Brazilian exports totalled USD 300 billion, while imports stood at USD 213.5 billion.