Brazil Supreme Court upholds laws that led to downfall of Amazon soy moratorium
The ruling preserves the voluntary pact but lets states penalize compliant farmers, raising doubts about a deal that cut deforestation 35% in its first decade.
- On Wednesday, Brazil's Supreme Court upheld state laws denying tax incentives to farmers who complied with the soy moratorium, while simultaneously affirming the voluntary pact's constitutionality.
- Launched in 2006 as a response to environmental pressure, the moratorium banned soy on deforested Amazon land, though producers long argued it was stricter than Brazilian law permitting 20% clearing.
- A study in Science reported the moratorium reduced deforestation by 35% in its first decade without hurting productivity. Brazil accounts for about 40% of global soybean output.
- Following state actions revoking tax benefits, major traders withdrew from the pact in January. The Brazilian Association of Vegetable Oil Industries said the ruling ends legal uncertainty.
- Scientists warn ending the pact could drive up to 1.4 million hectares of deforestation over the next decade. Greenpeace Brazil legal coordinator Angela Barbarulo called the decision "enormously important.
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28 Articles
Brazil’s STF Upholds the Amazon Soy Moratorium — But Lets States Punish It
Brazil · Agribusiness Key Facts Ruling Kept The STF declared the Amazon Soy Moratorium constitutional and ordered legal challenges dismissed, including at antitrust regulator CADE. State Laws The Court upheld Mato Grosso and Rondônia laws that strip tax benefits from companies adhering to the moratorium. Time Limits Any tax-benefit removal must respect annual anteriority and […] The post Brazil’s STF Upholds the Amazon Soy Moratorium — But Lets …
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Ministers Dias Toffoli, André Mendonça and Luiz Fux were defeated, who argued not to discuss the matter since the actions did not directly address the issue.
Environmental organizations expressed concern about the decision of the Supreme Federal Court (STF) that considered partially constitutional two state laws prohibiting the granting of tax incentives and public land to companies participating in the Soja Moratorium. The Court endorsed the laws of Mato Grosso and Rondônia. The Soja Moratorium is a voluntary agreement, created in 2006, in which companies of the sector undertake not to market soybea…
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