According to the latest report from the Argentine Chamber of Commerce and Services (CAC), the decline was explained by the decrease in exports and imports, accumulating the fourth consecutive month of year-on-year decline.
The CAC specified that trade between Argentina and Brazil reached US$1681 billion in January 2026, which represented a year-on-year drop of 19,8% compared to the same month in 2025, when the bilateral flow had been US$2097 million.
Furthermore, the entity explained that the contraction of trade between the two countries was due both to the drop in Argentine exports to Brazil and to the decrease in imports from the main regional trading partner.
Exports and imports are down
In particular, theArgentine exports towards Brazil totaled US$ 766 million In January 2026, sales registered a year-on-year decrease of 13,5%, marking seven consecutive months of decline. Month-on-month sales also fell, with a decrease of 28,2% compared to December 2025.
Meanwhile, Argentine imports from Brazil they added US$ 915 millionThis implied a year-on-year drop of 24,5% —the third consecutive one— in addition to a reduction of 12,2% compared to the previous month.
As a result of this dynamic, the bilateral trade balance was again in deficit for Argentina in January, with a negative result of US$149 millionHowever, the deficit was lower than that recorded in January 2025, when it had reached US$326 million.
Thus, 2026 began with a negative trade balance in the bilateral relationship, although with a smaller deficit than that observed at the beginning of the previous year.
Sectors that explained the decline
The CAC explained that the year-on-year decrease in Argentine exports to Brazil was mainly due to smaller shipments of wheat and rye, motor vehicles passenger vehicles, freight vehicles, milk, cream and dairy products, and ethylene polymers.
Meanwhile, the drop in imports from Brazil was associated with the dDecrease in purchases of parts and accessories for motor vehicles, passenger vehicles, vehicles for the transport of goods, paper and cardboard, and iron ores and their concentrates.
The automotive sector's weight in both trade flows continues to be a determining factor for the dynamics of bilateral trade.
Context of Brazilian foreign trade
On a global level, Brazil registered a slight year-on-year drop in its exports of 1% in January 2026, going from US$25.398 billion to US$25.153 billion.
Brazilian imports showed a more marked contraction, with a year-on-year decrease of 9,8%, falling from US$23.061 billion to US$20.810 billion.
As a result, Brazil maintained a positive trade balance with the world for the eleventh consecutive month, with a surplus of US$4343 million.
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