Mato Grosso Rule Penalizing Soy Moratorium Signatories Takes Effect as AGU Seeks STF Delay

Overview

• Mato Grosso published a decree regulating Article 2 of Law 12.709/2024, now in force, blocking state tax incentives and public land concessions to companies that adopt restrictions beyond Brazilian law, such as the Soy Moratorium.
• The decree exempts sector-wide incentives and ICMS immunities or deferrals, and it preserves benefits granted through December 31, 2025.
• The federal solicitor general’s office (AGU) asked Minister Flávio Dino for a 120‑day extension of the suspension to pursue a negotiated solution via its business legal‑certainty chamber, citing overlapping lawsuits and CADE probes.
• Greenpeace also petitioned for prolongation, warning traders could exit the Moratorium and citing studies projecting up to 30% more Amazon deforestation by 2045 and economic losses from higher traceability costs and potential loss of premium European markets.
• Aprosoja Brasil and Aprosoja‑MT urged the STF to deny any extension, arguing the transition time set in April 2025 was sufficient and that the state rule does not encourage illegal deforestation, while broader merits of the case remain pending.