Brazil's Attorney General's Office requests extension of suspension of law affecting Soy Moratorium.

Brazil's Attorney General's Office has asked the Supreme Federal Court to extend, for another 120 days, the suspension of the Mato Grosso state law that prohibits tax breaks and the transfer of public land to companies that have signed trade agreements aimed at limiting the expansion of agriculture. This law affects initiatives such as the Soy Moratorium.

The request was forwarded to Minister Flávio Dino, rapporteur of Direct Action of Unconstitutionality 7774.

State law number 12.709/2024 had its suspension determined by a decision of the rapporteur, later ratified by the plenary of the Supreme Federal Court. The understanding foresees the resumption of the law's validity from January 1, 2026.

In its statement, the Attorney General's Office argues that removing tax incentives could encourage companies in the sector to abandon voluntary environmental commitments. The agency cites a technical note from the Ministry of the Environment and Climate Change.

The Attorney General's Office (AGU) also advocates for the creation of a forum for consensual discussion between companies and the government. The debate would take place within the AGU's own Chamber for the Promotion of Legal Certainty in the Business Environment, Sejan. The request to establish the forum came from the Ministry of the Environment and Climate Change.

According to the petition, public institutions need to address the issue comprehensively. The approach should not be limited to a specific agreement. The text proposes the construction of a general model to guide the participation and monitoring of the Brazilian State in voluntary private agreements that establish sustainability parameters.