The Superintendent-General of the Administrative Council for Economic Defense (Cade) ordered soy traders to halt the “Soy Moratorium” agreement within 10 days or face significant fines, as reported by Reuters.
The private agreement, in place for two decades, aims to safeguard the Amazon rainforest by prohibiting soy traders from purchasing from farmers who have cleared land in the area after July 2008. However, it may potentially breach Brazilian antitrust regulations.
Cade’s superintendent-general, Alexandre Barreto de Souza, decided to launch a full investigation into the companies involved in the voluntary agreement, which involves sharing sensitive business information.
Companies interested in implementing the Soy Moratorium criteria when buying grains from the Amazon region should do it independently and comply with national laws.
The opposite end
Greenpeace stated that the agricultural sector’s influence led to the decision, jeopardizing almost 20 years of progress.
Cade’s decision to lift the moratorium not only encourages deforestation but also limits consumers’ ability to choose products that do not support the destruction of the Amazon, stated the organization in a press release.
The criticism of the agreement benefits politicians and those who gain the most from Amazon’s destruction, he stated.
Cade’s choice to halt the program was deemed “historic” by the producer group Approuse Mato Grosso.
A private agreement had unjustly restricted producers from marketing crops grown in authorized areas without legal backing for many years, according to the organization.
Companies like Anec and Abiove, which stand for major global grain traders like ADM, Cargill, Bunge, Louis Dreyfus, and Cofco, must comply with the decision within 10 days.
Anec’s board expressed serious worry about the regulator’s decision and mentioned that they will take necessary administrative actions to address it.
The program should continue as it is a collaborative effort involving civil society, the Ministry of the Environment, and Ibama, according to Anec.
Abiove, representing the dominant oil industry, expressed surprise at the suggestion for a thorough inquiry and the implementation of precautionary actions. The organization stated that it will take steps to demonstrate the legality of the agreement.
Cade’s precautionary measures must be implemented by the Soy Moratorium working group, comprising Anec, Abiove, and 30 grain companies participating in the program, as per the ruling.
The ruling also instructs soybean exporters not to gather, exchange, store, or spread confidential information about soy trading and their business partners.
It also decides to remove all online information regarding the Soy Moratorium and associated advertising.
