Brazilian Barbecue Arrives and Food Imports Continue to Grow

In the land of cows, meat imports are growing and exports are falling. Purchases of food from abroad that have local production grew by more than 150% in less than a year. In April, the trade surplus fell to one of the lowest levels since Javier Milei took office. Agricultural sales are becoming more primary and show a setback in value addition. They question the distortion in incentives generated by export taxes and anticipate that the phenomenon has come to stay. The data released by INDEC this week once again highlights the structural weakness in Argentina's external sector. The trade surplus, which was substantial throughout 2024, was reduced to the second lowest level of this administration. The balance was just $204 million, about $1,600 million below the mark of the same month the previous year. Analysts agree that the exchange rate appreciation model generates a strong incentive for imports and disincentive for exports. This is already reflected even in the most ...