Brazil: Supreme Court Upholds Deal Banning Purchase Of Soy From Deforested Areas

August 14, 2026

 ABr
By Andre Richter and Fabiola Sinimbu

Key Takeaways

Brazil’s Supreme Court upheld the constitutionality of the 20-year-old Soy Moratorium, a private industry agreement under which major companies commit not to purchase soy grown on Amazon land deforested after July 2008.

In the same ruling the court also found partially constitutional state laws in Mato Grosso and Rondônia that restrict tax incentives and public-land access for companies participating in the moratorium, a decision environmental groups fear could weaken the agreement.

Major industry associations have already begun withdrawing from the voluntary pact following the state measures, and researchers estimate that ending the moratorium could lead to an additional 1.4 million hectares of Amazon deforestation over the next decade.

Brazil’s Supreme Court on Wednesday (Aug. 12) ruled to uphold the so-called Soy Moratorium – an agreement signed 20 years ago by leading companies in the sector to prevent the purchase of soybeans from deforested areas.

By a majority vote, the court’s full bench ruled that the private agreement among companies is in accordance with the Constitution and helps preserve the environment.


In addition, the court also ordered the dismissal of pending administrative proceedings that challenged the moratorium’s validity and sought compensation.

Established in 2006, the Soy Moratorium stipulates that companies in the sector commit to not trading soy originating from deforested areas in the Amazon after July 2008. In exchange, they receive tax exemptions and preferential terms for access to credit, or are allocated public lands for production.
Environmentalists are concerned

However, environmental organizations have expressed concern over the Supreme Court’s decision, which, in the same ruling, also deemed two state laws partially constitutional. These laws prohibit the granting of tax incentives and public land to companies participating in the deal. The court upheld these laws for the states of Mato Grosso and Rondônia.

“The ruling that the state laws are constitutional represents a step backward that could, in the medium term, reverse – as recent studies have indicated – the positive trend of reduced deforestation in the Amazon over the past year,” warned Cristiane Mazzetti, coordinator of Greenpeace Brasil’s Zero Deforestation campaign.


In analyzing the petitions challenging the constitutionality of the laws filed with the Supreme Court, the justices deemed the restrictions imposed on the granting of benefits to be lawful, but ruled that the withdrawal or reduction of incentives could only take effect in the following tax year – or after 90 days in special cases.

According to Cristiane Mazzetti, the laws in question discourage the private sector from making current and future zero-deforestation commitments, hindering Brazil’s ability to meet its climate goals.

Ever since certain state laws went into effect, major companies in the sector have decided to withdraw from the voluntary soy moratorium agreement. One example was the withdrawal of the Brazilian Association of Vegetable Oil Industries (Abiove) in January of this year.

A recent study published in the journal Science estimated an additional 1.4 million hectares of deforestation in the Amazon over the next ten years if the Soy Moratorium were to be abolished.


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