Brazil's soy moratorium was implemented in 2006 as a voluntary agreement by soy traders who pledged not to buy soy grown on Amazonian land deforested after July 2008[1][2][5]. Before its introduction, deforestation accounted for up to 30% of new soybean fields in the Amazon, after its introduction this share fell to less than 1.5% within three years and to less than 4% in July 2025[1][2]. At the same time, soybean production in the region increased fourfold without the need for deforestation[1][2][4]. On January 5, 2026, the Brazilian Association of the Vegetable Oil Industry (ABIOVE), representing major traders such as Cargill, Bunge and ADM (45% of Brazilian soybean exports), announced a plan to withdraw from the moratorium[1][3]. The reason is a new law in the state of Mato Grosso, which, as of January 1, 2026, canceled tax breaks for companies complying with voluntary environmental agreements beyond the scope of Brazilian legislation[1][2][3]. Without the moratorium, producers would only be subject to the Forest Code, which allows deforestation of up to 20% of land in the Amazon biome, which could lead to a 30% increase in deforestation by 2045[1][3].