Berlin – A landmark agreement aimed at curbing deforestation linked to soy production in Brazil, known as the Soy Moratorium, is facing significant challenges. Originally established in 2006, the moratorium committed major commodity traders to refrain from purchasing soybeans grown on land deforested in the Amazon after 2008. However, a recent decision by Brazil’s antitrust authority, the Administrative Council for Economic Defense (CADE), has cast a shadow over the future of this crucial conservation effort, raising concerns about a potential rollback of environmental protections.
The Soy Moratorium emerged as a response to growing international pressure to address the environmental impact of agricultural expansion in the Amazon rainforest. Soy production, while a significant contributor to the Brazilian economy, has been a major driver of deforestation, threatening biodiversity and exacerbating climate change. The voluntary agreement, initially brokered by Greenpeace and involving major players in the soy trade, aimed to decouple soy production from further forest clearing. For nearly two decades, it has been credited with significantly reducing deforestation rates associated with soy cultivation.
CADE’s Intervention and Concerns Over Anti-Competitive Practices
In August 2025, CADE issued a precautionary measure ordering the suspension of the Soy Moratorium, citing concerns that the agreement constituted “anti-competitive” practices. According to CADE’s investigative unit, the moratorium fostered cartel-like behavior among 30 leading exporters and industry associations, including the Brazilian Association of Vegetable Oil Industries (Abiove) and the National Association of Cereal Exporters (Anec). The probe was initiated following complaints filed by the Agriculture Committee of Brazil’s lower house of Congress and the Soy and Corn Producers Association of Mato Grosso (Aprosoja-MT), as well as the Brazilian Confederation of Agriculture and Livestock (CNA).
The core of CADE’s argument centers on the belief that the Soy Moratorium restricted competition by creating an artificial barrier to soybean sourcing. The authority alleges that the agreement allowed traders to coordinate their purchasing practices, potentially influencing prices and limiting options for farmers. CADE’s decision requires companies to cease activities related to the collection, storage, sharing, or dissemination of competitively sensitive information regarding the sale, production, or purchase of soybeans, with a focus on price, sales volume, and origin. Companies were given until December 31, 2025, to comply with the interim measure, which came into force on January 1, 2026. On September 30, 2025, CADE upheld the interim measure, further solidifying its stance against the moratorium.
The Moratorium’s Impact on Deforestation
Despite the legal challenges, the Soy Moratorium has demonstrably contributed to reducing deforestation. While it’s difficult to isolate the moratorium’s impact from other conservation efforts and economic factors, studies suggest a significant correlation between the agreement and a decrease in forest clearing for soy cultivation. The agreement focused specifically on soybeans, not other crops, and applied only to the Brazilian Amazon, areas deforested after 2008.
However, critics argue that the moratorium simply shifted deforestation to other areas or commodities. Some suggest that soy production expanded into the Cerrado, a vast tropical savanna region in Brazil, which is also a biodiversity hotspot. The effectiveness of the moratorium has also been debated in terms of its enforcement and the potential for loopholes.
Divisions Within the Brazilian Government
The CADE ruling has exposed divisions within the Brazilian government regarding the appropriate approach to balancing economic development and environmental protection. While the Agriculture Ministry has voiced opposition to the moratorium, citing concerns about its impact on the competitiveness of Brazilian soy exports, the Finance and Environment ministries have reportedly recognized the positive effects of the agreement on forest conservation. This internal conflict highlights the complex political landscape surrounding agricultural policy and environmental regulation in Brazil.
The situation is further complicated by the fact that the administration of President Luiz Inácio Lula da Silva has, in the past, championed environmental protection. However, the current government also faces pressure to boost agricultural production and maintain Brazil’s position as a leading global exporter of soybeans.
The Role of Multilateral Partnerships
Experts suggest that a more sustainable solution lies in strengthening multilateral partnerships between businesses and governments. Rather than dismantling the Soy Moratorium entirely, a revised approach could focus on enhancing transparency, improving traceability of soy supply chains, and providing incentives for sustainable agricultural practices. Collaboration between stakeholders is crucial to ensure that economic development does not come at the expense of environmental integrity.
The Science journal article highlights the necessitate for a collaborative approach, stating that weakening the moratorium is “a brazen assault on efforts to control deforestation” and advocating for strengthened partnerships. This sentiment is echoed by environmental organizations, who argue that the long-term benefits of forest conservation outweigh any short-term economic gains from unrestricted soy production.
What’s Next for the Soy Moratorium?
The CADE tribunal is currently reviewing the precautionary measure imposed by the investigative unit. No deadline has been set for this review, leaving the future of the Soy Moratorium uncertain. Companies involved in the agreement have ten days to withdraw from the pact, with potential daily fines of R$250,000 (approximately $50,000 USD as of February 18, 2026) for each signatory company that fails to comply. CADE has also prohibited the sharing of reports or documents used to identify compliant or non-compliant farmers.
The outcome of the CADE tribunal’s review will have significant implications for the Brazilian Amazon and the global soy market. A complete dismantling of the moratorium could lead to a resurgence of deforestation, while a revised agreement could provide a pathway towards more sustainable soy production. The situation remains fluid, and ongoing monitoring of developments is essential.
The next key checkpoint will be the CADE tribunal’s decision, which is expected in the coming months. Stakeholders are closely watching the proceedings, and the outcome will likely shape the future of agricultural policy and environmental conservation in Brazil for years to come.
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