SOVIET TRADE WITH LATIN AMERICA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001900010188-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 19, 2016
• Document Release Date: May 23, 2006
• Sequence Number: 188
• Publication Date: February 20, 1974
• Content Type: MF

 ME&NORAFDU4 FOR: Major Robert Eames
DAMI-SD
Department of the Army
Attached is the information you requested on Soviet
trade with Latin America.
Chief
Trade and Aid Branch
Office of Economic Research
Attachment:
As stated
Distribution: (S-5945)
Orig & 1 - Addressee
1 - D/OER
1 - SA/ER
Q---- St/P/C
1 - D/D
1 - D /TA
OER/D/TA (20 Feb 74)
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Soviet Trade with Latin America
Preliminary estimates indicate that Soviet trade with Latin
America in 1973 may have increased by about 25 percent over the
$200 million turnover for 1972. j/ Soviet imports may have
amounted to about $220 million and exports to roughly $30 million.
The increase in total trade reflected unusually large Soviet
purchases of?sugar,from Brazil and higher prices for that commodity.
We have no evidence that the approximately 35%.increase in
Moscow's imports from Latin America in 1973 was compensated for by
a similar expansion in exports. Thus, the large deficit that it
has run in its trade balance with Latin America in recent years
was accentuated in 1973. In spite of the increase in trade, Moscow
still accounts for less than 1% of Latin America's global trade,
this percentage has declined slightly over the past ten years.
Trade consists primarily of traditional Latin American
products -- coffee, copper, leather, sugar, and wool -- being
exchanged for Soviet equipment and machinery, with Brazil being
the largest trading partner. In 1973, trade between Moscow and
Brazil probably exceeded $150 million. Argentina and Chile are
the other major trade partners. To help reduce the persistent
and increasing imbalance in its trade with Latin America, Moscow
has made available 8-10 year credits to finance equipment purchases,
1. This estimate is based on preliminary press reporting. Nineteen
seventy-two data are from the Soviet Foreign Trade Handbook. 25X1
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but until now little has been drawn under these credits. Recently
Soviet marketing efforts in Latin America have, begun to offer the
possibility of major sales, particularly for hydro-electric
equipment in several countries.
The outlook for Soviet-Latin Americas: trade in 1974 is not
clear. It seems likely, however, that the pattern of 1973 will
continue and the, imbalance in trade'will grow. The Soviet Union
appears interested 'in concluding long term contracts for raw
materials and it is possible that these might introduce greater
stability in their trade, which traditionally has fluctuated
from year to year. Sales contracts already concluded for 1974
indicate that Moscow will increase its imports from several Latin
American nations. Brazil again should register large gains
because of sugar sales and prospective diesel oil deliveries. On
the other hand Chilean copper sales probably will decline.
OEWD/TA
Feb 1974
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