Brazil’s competition authority, the Administrative Council for Economic Defense (CADE), ordered grain traders on August 18, 2025, to suspend the “Soy Moratorium” within ten days or face daily fines of R$250,000 per company, a move that threatens a decades-long effort to curb deforestation in the Amazon rainforest.
The Soy Moratorium, a voluntary agreement initially established in 2006 and later revised to 2008, committed major commodity traders to refrain from purchasing soybeans grown on land deforested in the Amazon after those dates. CADE’s decision, stemming from an administrative proceeding launched against the Brazilian Association of Vegetable Oil Industries (ABIOVE) and the Brazilian National Association of Grain Exporters (ANEC), along with 30 exporting companies, alleges anticompetitive practices.
The investigation was triggered by a complaint filed by the Agriculture, Livestock, Supply, and Rural Development Committee of the Brazilian Chamber of Deputies. According to CADE, the signatories of the Soy Moratorium created the Soy Working Group to monitor the market and facilitate an agreement establishing conditions for soybean purchases, effectively creating an anticompetitive environment that harms soy exports. CADE’s Superintendent General has prohibited the Soy Working Group from collecting, storing, sharing, or disseminating commercial information related to the sale, production, or purchase of soybeans, as well as conducting audits.
The ruling has prompted concerns about the future of forest conservation efforts in the Amazon. While the moratorium successfully reduced forest clearing for soy production, its suspension raises the possibility of increased deforestation as traders are no longer bound by the agreement’s restrictions. The decision follows regulatory sanctions imposed by state governments that have already led to the withdrawal of major soy traders from the program, according to reports.
The move has exposed divisions within the Brazilian government. While the Agriculture Ministry has voiced opposition to the pact, the Finance and Environment ministries have previously acknowledged its positive effects on deforestation rates. CADE officials had privately indicated a potential injunction to suspend the agreement as early as June 2025, prior to the formal order issued in August.
CADE’s investigative unit accused the 30 leading exporters and the two industry associations of inducing uniform market behavior, effectively operating as a cartel. The precautionary measure imposed by CADE will now be reviewed by the CADE tribunal, with a reporting commissioner assigned to oversee the process. No timeline has been set for the tribunal’s review. The probe has been under seal since August 2024.
The Brazilian Confederation of Agriculture and Livestock (CNA) also submitted a complaint in February 2025, adding to the pressure on the Soy Moratorium. Companies have ten days to formally withdraw from the pact, and CADE has also prohibited the sharing of reports or lists used to identify compliant or non-compliant farmers.
