Soybean traders withdraw from pact protecting Amazon rainforests

Abiove, representing major soybean traders, said it is withdrawing from the 2006 Soy Moratorium that bars soy grown on Amazon land deforested after 2008; Mato Grosso recently removed tax benefits tied to the pact and a November Supreme Court ruling partly favored the state.

Abiove, an industry group that includes several large global traders, announced it is withdrawing from the Soy Moratorium. The moratorium was created in 2006 and prohibits dealing in soy grown on Amazon land deforested after 2008. The decision follows a Mato Grosso law that removed tax benefits for traders supporting the pact and a November Supreme Court ruling that partly favored the state. Key facts: - Abiove said it is leaving the Soy Moratorium; the group’s associates include major trading companies mentioned in reports. - The Soy Moratorium bars soy from Amazon land deforested after 2008 and began in 2006. - Mato Grosso enacted a law removing tax benefits for traders who observe the moratorium, effective Jan. 1. - The attorney general has requested a four-month delay to implementing the Mato Grosso law, and WWF Brazil said the moratorium still exists but companies’ withdrawals weaken its effect. Summary: The withdrawal reduces private participation in a 19-year-old pact intended to limit soy-driven deforestation in the Amazon. The attorney general’s request for a four-month delay to implementing the Mato Grosso law is the next stated procedural step; how traders and regulators will proceed beyond that is undetermined at this time.