Brazil's Soy Moratorium: A Legal Tug-of-War Amidst Competition Concerns

Brazil's competition watchdog, CADE, has voted to continue the nation's soy moratorium until at least the end of the year, marking a significant reversal in its stance. The 5-1 decision seeks to protect the Amazon rainforest by preventing soybean traders from buying from deforested land post-July 2008.

Previously, in August, CADE's superintendent had ordered the suspension of the agreement, labelling it a cartel that unfairly disadvantaged farmers. However, a federal judge blocked this order on appeal. Councilor Carlos Jacques Gomes supports the superintendent's decision, citing emerging competition issues.

Despite differing opinions, councilor Jose Levi Mello do Amaral Junior and three colleagues have pushed for a temporary halt on the suspension until December 31. This extension is meant to foster dialogue between traders and soy producers. Industry group Abiove views the delay as an opportunity to find a mutually agreeable solution.

(With inputs from agencies.)