By Brazil Stock Guide – Brazil’s antitrust regulator, the Administrative Council for Economic Defense (Cade), will discuss on Wednesday (Nov. 12) a directive from its president, Gustavo Augusto Freitas de Lima, asking the board to guide how its legal office should act after the Supreme Federal Court (STF) halted all judicial and administrative cases tied to the soy moratorium.
The moratorium, signed in 2006, bans the purchase of soybeans cultivated on land deforested in the Amazon after July 2008. The matter has sparked tension between Cade, agricultural associations, and the judiciary. The report was originally published by Broadcast (Estadão).
In a formal statement, Augusto requested that Cade’s Federal Specialized Prosecutor’s Office “take appropriate procedural measures to ensure the institutional defense of the council’s competencies.” He also wants the body to maintain its authority to continue evaluating the case and the related appeals, despite the Supreme Court injunction by Justice Flávio Dino.
Cade’s Position and Legal Strategy
The internal investigation at Cade targets 15 executives and directors from major trading companies and agribusiness associations over alleged cartel formation under the soy moratorium. The case has been paused pending the Supreme Court’s decision.
In an interview with Broadcast, Augusto confirmed that Cade intends to appeal the Supreme Court’s injunction. “Investigations into potential cartel practices based on Law 12.529 [the Competition Defense Act] should not be halted, especially when they involve ongoing criminal conduct,” he said.
Cade’s president argues that the antitrust investigation focuses on competitive behavior, not environmental policy — a distinction he says should allow the probe to continue regardless of the moratorium’s constitutionality debate.
Supreme Court Ruling
Justice Flávio Dino’s injunction came after a petition from the Brazilian Association of Vegetable Oil Industries (Abiove), which supports the moratorium and claimed Cade’s actions conflicted with prior Supreme Court rulings. Dino said the suspension aims to prevent “excessive litigation” and to preserve legal certainty.
The injunction will remain in effect until the Supreme Court concludes the constitutional case (ADI 7774/MT). The Court has already formed a majority in favor of Law 12.709/2024, a Mato Grosso statute prohibiting tax incentives for companies joining commercial pacts such as the soy moratorium. The ruling is under virtual plenary review from Nov. 14 to Nov. 25.
Earlier this year, Dino had stated that companies’ participation in the moratorium is voluntary and valid but emphasized that states retain autonomy over fiscal policy. He acknowledged that while the soy moratorium, created before the 2012 Forest Code, brought “clear environmental benefits,” it remains subject to legal revision under updated frameworks.
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