Brazilian Supreme Court suspends actions against the Soy Moratorium.

Brazilian Supreme Court Justice Flávio Dino has ordered the immediate suspension of all judicial and administrative proceedings discussing the legality of the Soy Moratorium. The decision includes proceedings before the Administrative Council for Economic Defense (Cade) and will remain in effect until the Supreme Court makes a final ruling on Direct Action of Unconstitutionality (ADI) 7774.

The measure fulfills a request from the Brazilian Association of Vegetable Oil Industries (Abiove). The organization argues that the suspension is necessary to avoid contradictory decisions while the Court analyzes the issue. According to Dino, maintaining the debate in the lower courts could generate "legal turmoil" and "serious economic consequences," given the relevance of the topic to agribusiness and its multi-billion dollar effects.

ADI 7774 was proposed by four parties — PCdoB, PSOL, PV, and Rede — and challenges Law 12.709/2024 of the state of Mato Grosso. This law prohibits the granting of tax benefits and public land to companies that adhere to agreements such as the Soy Moratorium.

Initially, the Supreme Federal Court (STF) suspended the effects of the law in its entirety. Later, Flávio Dino partially reconsidered the injunction and maintained the prohibition of incentives, effective from January 1, 2026. According to the minister, states can define their own fiscal policy criteria, as long as they respect national legislation.

The Soy Moratorium is a voluntary agreement among companies in the sector to avoid buying grains produced in areas deforested in the Amazon after July 2008. The goal is to stop deforestation linked to the soy supply chain and preserve the country's image in the global market.

Dino emphasized that there is no Supreme Court decision that considers the Moratorium illegal or unconstitutional. He also stressed that compensation measures between companies must await the Court's position.

The preliminary decision will be submitted to a referendum in the STF's Virtual Plenary between November 14 and 25.