Argentina recorded a trade deficit of USD 207 million in February, significantly lower than in the same month last year. The cumulative deficit for the first two months was USD 356 million, a decrease of USD 355 million compared to the same period in 2025. Total imports contracted by USD 382 million, largely explained by a drop in the automotive sector, which fell by USD 284 million and accounted for 74% of the overall contraction. Regarding the decrease in exports (-USD 204 million), this was weighed down by a USD 92 million drop in the agricultural sector (45% of the total decrease) and the automotive sector, which contributed USD 103 million, representing 51% of the contraction. This occurred in the context of lower production at local terminals, related to prolonged technical stoppages to reconfigure assembly lines. Imports: Argentina's total imports from Brazil amounted to USD 1.057 billion in February, showing a 26.5% year-on-year decrease, marking the sharpest fall since July 2024. This marks seven consecutive months of declines and the deepest contractions since 2024 (except for April 2025). The agricultural sector showed a negative dynamic in February, with a 67.5% year-on-year drop in wheat exports to USD 38.6 million (reducing its share of the total to 4.5%), as well as an 84.7% annual reduction in unmalted barley to USD 3.7 million. This is happening in a context of regional market saturation due to the Brazilian harvest, impacting export destinations (shifting to destinations such as Southeast Asia). The automotive sector had a poor performance, with a 27.1% year-on-year drop in motor vehicles for goods transport to USD 165.9 million, while the segment of passenger cars for transport contracted by 28.6% annually to USD 103.5 million. Lower production at local terminals due to operational stoppages (such as Stellantis in El Palomar and Renault in Córdoba) on a larger scale than in February 2025 would be related to this dynamic, as well as efficiency problems in their setup. In contrast, the petrochemical sector showed positive figures, with an increase of USD 25 million (87.0% annually) in crude petroleum oils or bituminous minerals. Meanwhile, the primary ethylene polymers sector expanded by 24.1% annually to USD 33.8 million, and sales of organic chemicals, oxides, and halogen salts rose by 140.8% to USD 15.1 million. Similarly, aluminum exports grew by 25.8% annually to USD 41.2 million. Exports: Argentina's exports to Brazil reached USD 850 million in the second month of the year, registering a 19.4% year-on-year decrease. This marks the fourth consecutive month of decline, which has been accelerating since November (when imports fell by -3.5%). Purchases of passenger cars for transport decreased by 43.6% annually to USD 164.3 million, and purchases of automotive parts and accessories fell by 30.9% annually to USD 99.5 million. Purchases in the metallurgical sector, on the other hand, showed a positive dynamic, with a rise of USD 16.8 million in aluminum oxide, a 142.8% annual increase in iron and steel bars, angles, and profiles (including sheet piling) to USD 9.1 million, a 51.4% increase in aluminum (to USD 24.4 million), and a 37.0% increase in iron ore, reaching USD 29.5 million. The combined growth of these sectors (USD 38.4 million) offset 10% of the total import decrease. Energy imports fell significantly, with a reduction in imports of petroleum fuel oils or bituminous mineral oils (except crude oils) falling by 76.1% to USD 7.4 million (after representing 2.2% of total purchases in 2022). This contrasts with the high growth recorded between January and October last year (40.3% ytd accumulated). The automotive sector had a strongly negative performance in the month.
