Antitrust Showdown: The Soy Moratorium Debate in Brazil
The fate of Brazil's soy moratorium is under dispute as CADE's tribunal prepares to review an appeal by industry groups. This corporate agreement, credited for curbing deforestation, faces legal challenges amid allegations of competition law violations. The decision could impact global grain trade dynamics.
Brazil's antitrust tribunal, CADE, is set to review an appeal filed by the oilseeds lobby, Abiove, along with major grain traders such as Cargill and Bunge. The appeal challenges a suspension order on the soy moratorium program, known for slowing deforestation in the Amazon.
The moratorium, operational for two decades, prohibits purchasing soybeans from land cleared in the Amazon after July 2008. However, questions about its legality have arisen, with CADE's General Superintendent stating it potentially breaches Brazilian competition law.
Farm groups, including Aprosoja Mato Grosso, support the suspension, arguing it's exclusionary to certain farmers. Conversely, environmental advocates and some governmental bodies have criticized the suspension. Despite an injunction from a federal court blocking the suspension, CADE's tribunal's decision remains pivotal.
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- soy moratorium
- CADE
- Brazil
- deforestation
- grain traders
- Abiove
- Cargill
- Bunge
- Amazon
- rainforest
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