The Supreme Federal Court upholds Mato Grosso law that bans benefits to companies linked to the Soy Moratorium.

The Supreme Federal Court (STF) formed a majority, this Monday (3), to validate the law of Mato Grosso that prohibits the granting of fiscal benefits and donations of public land to companies participating in the Soy Moratorium. The rapporteur of the case, Minister Flávio Dino, was joined by five ministers — one with reservations — while two voted against. The decision represents a victory for the state government and rural producers, who contest the pact signed by trading companies and processing industries. For the rapporteur, the public power is not obliged to offer incentives to companies that follow environmental criteria more stringent than those established by national legislation. The Soy Moratorium is a voluntary agreement created in 2006 between grain traders and processors to prevent the purchase of soybeans cultivated in deforested areas in the Amazon after 2008. Although recognized for reducing deforestation in the biome, the pact faces criticism from producers and ...