MercoPress, en Español

Montevideo, October 15th 2024 - 16:23 UTC

 

 

Argentina/Brazil bilateral trade drops to 2010 level. Auto industry hardest hit

Tuesday, September 2nd 2014 - 22:45 UTC
Full article 35 comments
 Vehicles, auto parts, tractors, engines were among the items which experienced the greatest contraction in bilateral sales Vehicles, auto parts, tractors, engines were among the items which experienced the greatest contraction in bilateral sales

Bilateral trade between Mercosur leading partners Argentina and Brazil plummeted 27.6% in August and 22% in the last twelve months, according to Buenos Aires consultants, Abeceb. Recession in Brazil plus strict Argentine trade restrictions and slower domestic demand has contributed to the results.

 For Argentina “trade with Brazil has been falling at an accumulated 22% in the last year and this is because of a 24.5% drop in imports and 19.2% in exports”, said Abeceb which also pointed out that during August Argentine exports to Brazil were down 15.8% and imports 35.9%.

“This has been strongly influenced by Argentina's restriction on imports plus a slower domestic market and recession in Brazil, which means overall trade in eight months has reached 19,1bn dollars”.

The drop in Brazilian exports to Argentina, which totaled 9.8bn dollars, can be tracked to the auto industry, (70%), while the rest is attributed to a retraction in capital goods, minerals, fuel and chemicals.

Likewise Argentine exports to Brazil were also hit by lesser activity in the auto industry.

“Most of the drop in Argentine sales is because of lesser shipments of vehicles and auto-parts, although other issues as agriculture produce, minerals and fuels, also contributed” said Abeceb.

Argentine exports to Brazil in eight months reached 9.4bn dollars.

Last August Argentine sales to Brazil were 1.08bn dollars, with a fall in exports of autos, cargo vehicles, auto-parts, gasoline, farm produce, engines and pharmaceuticals among others.

Brazilian August exports to Argentina reached 1.16bn dollars, which are the lowest since the beginning of 2010, “which was when both countries were climbing out of recession triggered by the international collapse of markets”.

According to Abeceb the overall contraction in trade is associated to lesser sales of automobiles, auto-parts, cargo vehicles, minerals, engines, tractors, tires, pumps and compressors.

Argentina's bilateral trade deficit with Brazil is forecasted to reach 800 million dollars.

Top Comments

Disclaimer & comment rules
  • yankeeboy

    Just so everyone remembers I said this would happen over 2 yrs ago and the idiotic Rgs on this board disagreed with me...over and over and over again.

    Its still just the beginning of the end
    This crisis will be worse and longer than 2001 or probably any other crisis that Arg has ever experienced.
    Wait and see
    :)

    Sep 03rd, 2014 - 12:38 am 0
  • 4n conTroll

    You also said we should follow Chile's model, and surprise surprise, they are crumbling into recession too.

    Difference Chile, Uruguay, and Brazil depend on the rest of the world and now lie at their mercy.

    Argentina disentangled itself from subjugating debt and trade with the rest of the world that undermined our independence long ago.

    So now any downturn is not exaggerated by our dependence on trade with others, since we have none.

    Sep 03rd, 2014 - 03:09 am 0
  • Anglotino

    When did Chile's economic slowdown become a crumble into recession?

    Brazil and Argentina are in recession.

    Chile isn't.

    Sep 03rd, 2014 - 03:39 am 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!