Argentina’s trade deficit with Brazil narrowed in October from a year earlier due to a surge in exports, according to the Argentine Ministry of Industry.
In a statement Tuesday night, the ministry said the latest deficit was $463 million, compared with $479 million a year before.
Argentina’s exports to Brazil rose 30% year-on-year to $1.53 billion in October, led by automobiles, auto parts, wheat and plastics, the statement said. For the January-October period, exports rose 18.1% year-on-year to $13.9 billion.
Meanwhile, October imports from Brazil rose 21% from a year earlier to $1.99 billion, led by automobiles and auto parts, machinery, iron ore, and steel products. For the January-October period, imports increased 28.6% to $18.9 billion.
Brazil is Argentina’s largest trading partner. The two countries have complementary, though competing, manufacturing industries, and periodic trade spats are common.
Brazil’s hefty trade surplus with its neighbor is a politically sensitive issue in Argentina.
Argentine manufacturers that export to Brazil are facing headwinds from inflation–widely thought to exceed 20%–at home, and a slowdown in the Brazilian economy.
-By Ken Parks, Dow Jones Newswires; 54-11-4103-6740; ken.parks@dowjones.com
Source: http://online.wsj.com