Brazil's Soy Moratorium Faces Legal Scrutiny Amid Competition Concerns

Brazil's competition authority, CADE, has decided to permit the Soy Moratorium to remain in effect until December 31, following a 5-1 vote. This decision overturns a previous ruling against the agreement by the reporting councilor, although the two-decade-old pact still faces legal challenges.

In August, CADE's superintendent argued the moratorium functions as a cartel, unfairly benefiting certain companies. This led to a suspension order that was later blocked by a federal judge. During recent proceedings, councilor Carlos Jacques Gomes expressed concerns over competition but stopped short of ending the practice outright.

The industry group Abiove welcomed the temporary relief to seek dialogue, while Aprosoja Mato Grosso, representing farmers, praised the suspension as a step against an unfair market agreement. Though the moratorium remains, its future hinges on ongoing legal disputes and market negotiations.