EN 
PT_BR 
As the country's largest soybean producer, the state of Mato Grosso may begin restricting access to tax benefits for companies that have signed trade agreements aimed at limiting agricultural expansion, such as the Soybean Moratorium. This is stipulated in a state law, approved in 2024, but which was suspended by a preliminary injunction from the Supreme Federal Court (STF) in the context of a direct action of unconstitutionality (ADI) filed by political parties. The suspension ended on the last day of 2025, and the section of the Mato Grosso law has been in effect again since January 1st, while the merits of the action are pending judgment in the Constitutional Court.
Photo: Disclosure/OPR Archive
The Soy Moratorium is the name given to the voluntary agreement signed in 2006 by companies in the sector with the support of the federal government and civil society organizations, to not trade soy from areas of the Amazon that have been deforested since 2008. The objective was precisely to curb deforestation of the biome due to pressure from soy. The initiative involves large soy exporting companies affiliated with the Brazilian Association of Vegetable Oil Industries (Abiove) and the National Association of Cereal Exporters (Anec), with support from organizations such as Greenpeace and the Amazon Environmental Research Institute (Ipam).
Since its signing, compliance with the agreement has been closely monitored by environmental organizations through satellite tracking. Data presented by Greenpeace Brazil, for example, shows an increase of 344% in soybean production in the Amazon between 2009 and 2022, while in the same period there was a decrease of 69% in deforestation of the biome, indicating increased productivity without territorial expansion. "Only 3.4% of the soybeans produced today in the biome are outside the rules of the agreement, a key factor for accessing demanding markets such as the European Union," says the NGO.
State law 12.709/2024 explicitly prohibits access to tax benefits and the granting of public land to companies that participate
Photo: Eufran Amaral
Agreements, treaties, or any other forms of commitments, national or international, that impose restrictions on the expansion of agricultural activity in areas not protected by specific environmental legislation, under any form of organization or alleged purpose. This is precisely the section that was suspended and has now come back into effect. Because of this, the Attorney General's Office (AGU) asked the Supreme Federal Court (STF) to extend the suspension of the state regulation for at least another 120 days.
In its statement, the Attorney General's Office (AGU) argues that the removal of tax incentives could lead companies in the sector to abandon the environmental agreement. According to the AGU, citing a technical note from the Ministry of the Environment and Climate Change (MMA), the dismantling of the Soy Moratorium without a parallel, adequate, and ecologically responsible institutional design to replace it could result in immediate damage to the environment and the sustainable development of soy and vegetable oil producing regions, especially in the Amazon biome.
Photo: Press release/IAT
A preliminary study by Ipam indicates that the end of the Soy Moratorium could increase deforestation in the Amazon by up to 30% by 2045, with a direct impact on Brazil's climate goals, known as NDCs, and deforestation targets. “The entry into force of Article 2 of the Mato Grosso Law sends a negative signal to companies that do more for environmental conservation and that act in strict compliance with the constitutional duty to protect an ecologically balanced environment. Just as the Supreme Federal Court has already recognized the legality of the Soy Moratorium, we trust that, in judging the merits of this action, the Court will affirm that the tax system cannot be used to punish those who adopt responsible environmental practices, as ensured by Articles 225 and 145 of the Federal Constitution, and will declare the law unconstitutional,” argues Greenpeace Brazil lawyer Daniela Jerez.
The Soy Moratorium has been targeted by rural sectors in the country, who have orchestrated the approval of similar measures in Maranhão and Rondônia. The agreement was also temporarily suspended administratively in August of last year, after the Administrative Council for Economic Defense (Cade) alleged an investigation into supposed anti-competitive practices.
Back in November, Minister Flávio Dino, the rapporteur for the case at the Supreme Federal Court (STF), ordered the nationwide suspension of all proceedings dealing with the Soy Moratorium, including this one at the Administrative Council for Economic Defense (CADE) and other actions, including judicial proceedings, until there is a final decision from the court on the constitutionality or otherwise of the restrictions applied against companies that wish to expand environmental requirements in agriculture.
