Brazil concluded 2024 with a trade surplus of $74.2 billion, marking a 25% decline from the $98.9 billion recorded in 2023, according to government data.
This contraction reflects significant shifts in Brazil’s trade relationships, particularly with its Latin American neighbors. It also underscores the growing influence of Asian and Middle Eastern markets.
South America, traditionally a key contributor to Brazil’s trade surplus, fell from the second to fourth-largest source of trade balance in 2024. Argentina, once Brazil’s fourth-largest surplus partner with a $4.71 billion contribution in 2023, plummeted to 60th place last year.
It recorded just $201 million in trade surplus. Brazilian exports to Argentina declined by 17.6%, while imports rose by 13.2%. Analysts attribute this to a normalization in soybean exports after an atypical surge in 2023 caused by Argentina’s domestic crop failure.
Chile also saw its trade surplus with Brazil halved, dropping from $3.63 billion in 2023 to $1.71 billion in 2024. This decline stemmed from a 16.2% reduction in Brazilian exports, particularly petroleum, which fell by 38%.
Meanwhile, imports from Chile rose by 14.8%, driven by increased copper demand. Mexico’s trade dynamics followed a similar trend. Its surplus contribution dropped from $3 billion to $2 billion as Brazilian automotive exports fell by 35%.
Brazil’s Changing Trade Landscape
This decline occurred despite Mexico importing $715 million worth of vehicles in 2024. In contrast, Asian and Middle Eastern countries gained prominence.
Singapore maintained its position as Brazil’s third-largest surplus partner, while Egypt and Iran entered the top ten for the first time, ranking seventh and eighth respectively. Exports to these nations were dominated by commodities like maize, sugar, and soybean products.
China remained Brazil’s largest trade partner but saw its surplus contribution shrink from $51.15 billion in 2023 to $30.73 billion in 2024. Reduced soybean exports—down from $38.9 billion to $31.5 billion—played a major role.
This was alongside rising Chinese automotive imports into Brazil, which tripled to $3.1 billion. Experts note that these shifts highlight Brazil’s dependence on commodity exports and its vulnerability to global market fluctuations.
As China accelerates its export strategies and Latin American economies struggle with reduced purchasing power, Brazil faces mounting challenges. The country is finding it increasingly difficult to maintain its traditional trade advantages.
