Brazil soy industry exits moratorium on use of Amazon land

ABIOVE, the Brazilian soy industry association, has begun withdrawing from the nearly 20-year soy moratorium that banned purchases of soy grown on Amazon land cleared after July 2008; the move came after Mato Grosso ended tax benefits for pact participants.

ABIOVE, the main association for Brazil's soy traders, has begun the formal process of leaving the nearly 20-year soy moratorium that restricted purchases of soy grown on land in the Amazon cleared after July 2008. The moratorium was launched in 2006 and renewed in 2016 as a voluntary industry pledge and is credited with helping reduce deforestation where it applied. The association's withdrawal followed a Mato Grosso state decision to end tax incentives for companies participating in the pact, and government officials have said the agreement is effectively at an end. Key facts: - ABIOVE announced it has started withdrawing from the soy moratorium. - The moratorium was a voluntary pledge that banned buying soy from Amazon land cleared after July 2008 and relied on satellite monitoring and audits. - Mato Grosso ended tax benefits for companies in the pact as of Jan. 1, which traders cited as a factor in their exits. - The Environment Ministry said companies remain subject to penalties for buying soy from illegally deforested land and that enforcement continues. Summary: ABIOVE's announced withdrawal and the exits of major traders have been reported as effectively ending the moratorium, though no member has formally declared the pact terminated. ABIOVE said companies will rely on their own monitoring and on Brazilian authorities to implement a new regulatory framework, and officials stress that enforcement against illegal deforestation remains in place. Wider effects on Amazon deforestation rates and Brazil's broader environmental targets are undetermined at this time.