Argentina's Gas Exports to Brazil Could Flip Bilateral Trade Balance

Argentina could see a substantial shift in its trade relationship with Brazil, potentially moving from a deficit to a surplus, primarily through the export of natural gas. This opportunity was discussed during a meeting organized by the Argentine-Brazilian Chamber of Commerce, Industry, and Services (Cambras).

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We need gas, as Bolivia's reserves are dwindling, so we are looking for other suppliers. Argentina is right next door and has gas.

Julio Bitelli, Brazil's ambassador to Argentina, explained that Brazil is actively seeking new gas suppliers as Bolivia's reserves are declining. "We need gas, as Bolivia's reserves are dwindling, so we are looking for other suppliers. Argentina is right next door and has gas," Bitelli stated. He noted that a bilateral working group is focused on this issue, with a roadmap to ensure significant gas volumes reach Brazil.

This potential gas export deal is considered the most crucial item on the bilateral agenda. While initial shipments of Vaca Muerta gas reached Brazil via Bolivia, projects are underway to establish a direct gas pipeline to Uruguayana. Bitelli suggested that if Argentine gas can be supplied competitively, it would directly impact the trade balance, potentially creating a surplus for Argentina, which he considers not problematic for Brazil.

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If Argentine gas reaches Brazil under competitive conditions, it will have a direct impact on the trade balance. It will possibly give Argentina a surplus, which would not be a problem for us. It could be a very profound change.

Despite the complex relationship between Argentine President Javier Milei and Brazilian President Luiz Inácio Lula da Silva, Ambassador Bitelli emphasized that business continues. "We are now dealing with countries that have common interests. It is no secret today that the presidents do not have a good relationship, if they have a relationship at all, but that does not prevent us from continuing to work on the bilateral relationship," he said. Bitelli added that the romantic idea of a "greater homeland" in Latin America is not feasible, advocating instead for collaboration based on shared interests.

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We are now dealing with countries that have common interests. It is no secret today that the presidents do not have a good relationship, if they have a relationship at all, but that does not prevent us from continuing to work on the bilateral relationship.