Brazil: Supreme Court backs state laws that undermine Soy Moratorium, despite affirming its constitutionality
Agência Brasil - EBC
"Brazil Supreme Court upholds laws that led to downfall of Amazon soy moratorium", 12 August 2026
...Brazil’s Supreme Court on Wednesday dealt a major blow to the future of the country’s soy moratorium, upholding state laws that deny tax incentives to farmers who complied with the agreement barring the purchase of soy grown on deforested Amazon land. At the same time, the court affirmed the constitutionality of the voluntary pact.
In January, major grain traders withdrew from the soy moratorium, which helped slash deforestation over its nearly two decades in effect, after top soy-producing states passed bills revoking tax benefits for participating companies...
Launched in 2006 as a response to pressure from environmental groups and international buyers, the moratorium was a voluntary commitment rather than law. Major soy traders agreed — and the Brazilian government later endorsed — a ban on purchasing soy grown on Amazon land cleared after July 2008...
But soy producers long argued that the moratorium hurt business because it was stricter than Brazilian environmental law...
Greenpeace Brazil legal coordinator Angela Barbarulo called the court’s recognition of the moratorium’s constitutionality “enormously important,” but said the ruling was undercut by its endorsement of state laws that penalize farmers and companies that adopt environmental standards beyond those required by law...