See Who Are Brazil's Top Five Trading Partners

Have you ever stopped to think about the origin of the products in your daily life? It is estimated that an average person consumes goods from at least ten different countries in a single day, which highlights the importance of international trade in our lives.

International trade can be understood as a result of a globalized world, which is related to the 'multiplication and intensification of the relationships established between economic agents located in different parts of the global space' (Martins, 1996). In other words, it is a process that, to achieve satisfactory results, requires the opening of national markets and the reduction of barriers that separate countries from one another.

In this context, various international trade theories, from Adam Smith to the theories of the CEPAL school, state that these trade operations involve tax, financial, administrative, commercial, and customs issues, which promote benefits among countries, including access to raw materials, increased production and efficiency, and especially entry into new markets. For this purpose, countries build a special type of relationship: the trade partnership.

The Brazilian Context

Brazil is a country with one of the largest economies in the world, ranking eighth among the most significant global economies. The country meets a diverse demand in today's trade, being a leader in the export of products such as soybeans, oil, iron ore, cellulose, corn, and beef and chicken meat. According to Trading Economics, Brazil's main export consumers include countries such as China, the United States, Argentina, the Netherlands, Canada, Japan, Germany, among others.

Below, check out more specific data on Brazil's top five trading partners:

01 - CHINA

The Asian country leads the ranking with 27% of total exports. Exports to China, predominantly soybeans, totaled USD 104.3 billion, while imports, mainly valves, tubes, and technological equipment, amounted to USD 53.2 billion. Despite this, exports to China, Hong Kong, and Macau in September 2024 decreased by 20.4%.

02 - UNITED STATES

The United States, which for a long time was Brazil's main trading partner, is now ranked second, accounting for 11% of Brazil's total exports. The country recorded a trade flow of USD 74.9 billion, with a negative balance of USD 1.04 billion. According to Brazil's trade balance, from January to September 2024, compared to the same period of the previous year, exports to the United States grew by 10.3% and reached USD 29.44 billion.

03 - ARGENTINA

Accounting for 5% of Brazil's total exports, Argentina has become the third-largest trading partner, with a trade volume of US$ 28.7 billion and a surplus of US$ 4.7 billion for Brazil. According to Brazil's trade balance, from January to September 2024, compared to the same period in the previous year, exports to China, Hong Kong, and Macau decreased by 0.9%, totaling US$ 77.84 billion. Imports increased by 17.3%, reaching US$ 47.08 billion. Consequently, during this period, the trade balance showed a surplus of US$ 30.76 billion, and the trade volume expanded by 5.3%, totaling US$ 124.92 billion.

04 - NETHERLANDS

The Netherlands, with 4% of Brazil's total exports, is the fourth-largest buyer of Brazilian products. The main items traded between the two countries are iron ore, soybeans, and steel. Trade with the European Union, including the Netherlands, grew by 5.5%, reaching US$ 4.08 billion. Imports increased by 17.0%, totaling US$ 4.01 billion.

05 - CANADA

Canada ranks as the fifth-largest trading partner of Brazil, accounting for 3% of the country's total exports. In 2023, total transactions amounted to US$ 9.1 billion, with Brazil setting a record for exports to Canada, totaling US$ 5.7 billion of that amount. However, despite Canada being one of the most open economies to international trade, it still does not have a Free Trade Agreement with Brazil, which makes it harder for Brazilian products and services to enter this market.

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Sources: Associação de Comércio Exterior do Brasil; Migalhas; Suno; "Da Globalização da Economia à Falência da Democracia" (Carlos Estevam Martins); Balança Econômica Mensal; Sapientia; CNN Brasil; Koetz; Sebrae; ComplianceTotal; Tecnicon.

Written by: Júlia Almeida, Marketing Consultant

Reviewed by: Eduarda Teixeira, Marketing Consultant