Brazil Supreme Court upholds soy moratorium laws

Brazil's Brazil — Supreme Federal Court ruled on Wednesday that the Amazon Soy Moratorium, a voluntary agreement barring purchase of soy grown on Amazon land cleared after July 2008, is constitutional. However, the court upheld state laws in Aprosoja Mato Grosso and Brazil — Rondônia that deny tax incentives to companies participating in such agreements. The 6-3 decision also ordered dismissal of antitrust and civil cases against the moratorium, including those before the Brazil — Administrative Council for Economic Defense (CADE). The ruling effectively weakens the moratorium, which had already been abandoned by major grain traders in January 2026 after states passed the tax-incentive laws. Environmental groups and researchers warn the end of the pact could lead to significant deforestation, while producer associations and some economists argue the moratorium unfairly penalized farmers and had little effect on deforestation. The court's decision ends years of legal uncertainty but is unlikely to revive the moratorium, according to industry group Abiove.