Mato Grosso Enforces Law Penalizing Soy Moratorium Signatories as AGU Seeks 120-Day STF Pause

Overview

• Article 2 of Law 12.709/2024 and its new decree took effect on January 1, ending state tax incentives and public land concessions for companies that adopt private restrictions beyond federal environmental law.
• The decree assigns oversight to the state Business Development Council with the economic development, environment and finance secretariats and the state attorney’s office, and it preserves sector‑wide incentives and benefits granted through December 31, 2025.
• The federal solicitor general’s office asked the Supreme Court for a 120‑day extension to suspend Article 2 to allow negotiations under AGU’s business security chamber, warning that firms may abandon the Moratória da Soja and that litigation is proliferating.
• Greenpeace and allied groups filed to extend the suspension and cited IPAM modeling of roughly 30% higher Amazon deforestation by 2045 if the pact erodes, while Aprosoja Brasil and Aprosoja‑MT urged the Court to reject an extension.
• An ICV study with Esalq/USP projects small national GDP effects but a 0.24% loss in Mato Grosso and 5%–6% higher operating costs from individual traceability demands, with risks to premium market access, as Cade’s antitrust inquiries and the STF merits case continue.