Brazil Supreme Court Backs State Laws Threatening Amazon Soy Moratorium

Brazil's Supreme Court dealt a significant blow to environmental efforts by upholding state laws that deny tax incentives to farmers participating in the Amazon soy moratorium. This voluntary agreement, which helped reduce deforestation by 35% over nearly two decades, has been in effect since 2006.

The court's ruling comes after major grain traders withdrew from the pact in January due to state laws revoking tax benefits for participating companies. Brazil is the world's largest soybean producer, accounting for about 40% of global output, with most of its crop grown in central and northern states that include parts of the Amazon biome.

The moratorium, which banned the purchase of soy grown on Amazon land cleared after July 2008, was a response to pressure from environmental groups and international buyers. However, soy producers argued it hurt business as it imposed stricter restrictions than Brazilian environmental law.

The study published in Science found that ending the pact could drive up to 1.4 million hectares (3.5 million acres) of deforestation in the next decade and leave an area the size of Portugal vulnerable to legal deforestation.