Balance of Argentine Foreign Trade in 2024

Argentina closed the year with the trade surplus of approximately USD 18.000 billion, the largest in the history of foreign trade in goods of our country, reversing the $7.000 billion deficit of 2023 

The result reflects a 18% growth in exports, with a total of USD 72.642 billion,  and a 20% drop in imports, compared to 2023.

This balance shows a positive year for Argentine foreign trade, with a focus on recovery and growth in exports, despite initial challenges in imports.

What was the reason for the huge growth in exports?

This was mainly due to the performance of key sectors such as:

a) Agroindustry, due to better international prices and an increase in production.
The post-drought climate improvement decisively influenced the increased exports of
MOA – Manufactures of Agricultural Origin and PP – Primary Products.

b) Manufacturing industry, due to increased demand for industrial products in
key markets, which resulted in a strong recovery in MOI exports –
Manufacturing of Industrial Origin.

c) Energy, due to a significant increase in the export of gas and oil.

And what happened to Imports?

While, the fall in imports was very pronounced.

It turned out to be 21,5% in the first 10 months of the year, but began to recover in the fourth quarter. 

 Three reasons explain this phenomenon:

a.Great devaluation at the beginning of the year.

b.Tax deferrals by BCRA regulations.

c.The recession due to macroeconomic adjustment weakened demand.

Finally, the elimination of the PAIS tax is expected, which reduced costs by 7,5% as of December 24, will boost foreign purchases.

Key factors

To achieve the stated results, the government implemented:

• • Trade Policies: With reduction of tariffs and elimination of taxes to facilitate foreign trade.

  • Exchange rate: The Argentine currency appreciated against the US dollar. The Argentine currency is 5% more appreciated in real terms than at the end of Mauricio Macri's government, which favors imports.

Business partners

1.The main purchasing countries, destination of our foreign sales (exports), were:

• • Brazil: 17% 
  • European Union (EU): 14,0%
  • China: 8,0%
  • Chile: 8%
  • United States: 8%
  • India: 4%
  • Indonesia: 2%
  • Vietnam: 2%
  • Peru: 2%
  • Rest of the World: 35%

What do we sell them?

Argentina exports a variety of products to its main trading partners. A good summary of the best-selling products to each of these countries is as follows:

• Brazil

• • Cereals and oilseeds: Corn, soybeans, wheat.

  • Meat and dairy products: Beef, milk and derivatives.

• European Union (EU)

• • Cereals and oilseeds: Soybeans, corn.

  • Meat and dairy products: Beef, milk and dairy products

• China

• • Cereals and oilseeds: Soybeans, corn.

  • Meat and dairy products: Beef, milk and derivatives.

• Chile

• • Cereals and oilseeds: Corn, soybeans.

  • Meat and dairy products: Beef, milk and derivatives.

• United States

• • Cereals and oilseeds: Soybeans, corn.

  • Meat and dairy products: Beef, milk and derivatives.

• India

• • Cereals and oilseeds: Soybeans, corn.

  • Meat and dairy products: Beef, milk and derivatives.

• Indonesia

• • Cereals and oilseeds: Corn, soybeans.

  • Meat and dairy products: Beef, milk and derivatives.

• Vietnam

• • Cereals and oilseeds: Corn, soybeans.

  •  Meat and dairy products: Beef, milk and derivatives.

• Peru

• • Cereals and oilseeds: Corn, soybeans.

  • Meat and dairy products: Beef, milk and derivatives.

These products represent a significant part of Argentine exports and reflect the strong presence of agribusiness in the country's foreign trade. 

2. The main countries that are the origin of our external purchases (imports)), are:

• • Brazil: 23.1%
  • China: 18.8% 
  • European Union (EU): 16.1%
  • United States: 10.3%
  • Other countries: 31.7%

What do we buy from them? Imported Products

• Brazil

• •  Fuels and lubricants, machinery and equipment, chemical products.

• China

• • Machinery and equipment, electronic products, textiles.

• European Union (EU)

• • Machinery and equipment, chemicals, motor vehicles.

• United States

• • Machinery and equipment, chemicals, motor vehicles.

Impact of the Mercosur-EU Agreement

With the implementation of the trade agreement between Mercosur and the EU, imports of European products are expected to increase, especially in sectors such as machinery, equipment and chemicals. This could benefit Argentine industries by providing access to advanced technologies and high-quality raw materials.

What is expected for 2025?

The government is proposing a GDP growth in 2025 of 5%, which would result in terms of foreign trade in goods, trade surplus of approximately US$20.000 billion.

However, if we analyze that scenario, Imports always follow the same GDP growth curve due to increased economic activity, so we will surely have a relatively greater growth than that of exports, and therefore, The trade balance, which would still be in surplus, will undoubtedly be lower than in 2024, due to a 9% increase in exports and a 13,4% increase in imports.