The Amazon soy moratorium will remain in effect for the rest of the year, following Brazil’s competition watchdog’s ruling to uphold this important pact.
CADE, Brazil’s anti-trust authority, initially sought to suspend the agreement, citing concerns regarding the sharing of sensitive information between companies.
In late August, a Brazilian judge issued an injunction, effectively suspending CADE’s attempt to halt the moratorium, which has been in place since 2006.
This move sparked backlash from environmental groups, with one campaigner describing it as “the biggest example of punching yourself in the face in conservation history.”
Moreover, Brazil’s Ministry of Environment and Climate Change expressed its concerns regarding CADE’s position.
Earlier this week, CADE decided that the moratorium can remain intact until December 31.
As reported by Brazilian business daily Valor Econômico, this decision allows stakeholders to engage in discussions regarding potential amendments to the agreement.
“The decision does not definitively resolve the matter within CADE but leaves room for negotiation and adjustments, providing an opportunity to enhance the agreement,” noted the Brazilian law firm BGA on LinkedIn.
The soy moratorium was established to ensure that soy production in the Amazon region occurs exclusively on existing agricultural land.
According to FAIRR, an organization advising investors on ESG issues within the animal protein sector, soy-linked deforestation has decreased significantly. Notably, Amazonian soy production has increased by 400% since the moratorium was enacted, demonstrating that forest protection and agricultural growth can coexist.
