An expected 1% decline in Argentina's GDP in 2018 will cost Brazil an estimated $770 million in exports, according to an internal report by Brazil's chamber of foreign trade.

The estimated export loss, which represents a roughly 4.4% decrease, is tied predominantly to external sales that are "highly sensitive" to variations in Argentina's economy, El Cronista reported citing the private study.

Brazil and Argentina's economies are especially linked within the auto industry, which is expected to be among the most impacted by Argentina's fiscal and currency crisis. About 40% of international sales in Brazil's automotive industry come from Argentina. Estimates of Brazilian car sales to Argentina for 2018 have dropped to 700,000 units from an initial 900,000.

The chemical industry will also be notably impacted, according to the chamber's report, with an expected $400 million drop in foreign sales to Argentina.

Still the weaker trade with Argentina could be partially offset by greater participation from other countries through the Americas, including Paraguay, Bolivia, Chile and Canada.

The report comes on the heels of reports that Jair Bolsonaro, the leading candidate in Brazil's upcoming runoff presidential election, had a brief phone conversation with Argentine President Mauricio Macri on Oct. 16. The Brazilian candidate vowed to strengthen the relationship between both countries, believing that the two South American countries are strategic partners, according to official sources that spoke to La Nación.