Grain Traders Under Fire: Unraveling Pledges to Protect Brazil's Forests

Environmental groups express skepticism as major grain traders abandon the Amazon Soy Moratorium, casting doubt on their pledges to avoid deforestation-linked crops. This corporate pact, crucial for the protection of Brazil's rainforest, fell apart after local lawmakers threatened significant tax repercussions.

Environmental groups are raising concerns as major grain traders withdraw from a vital corporate agreement aimed at preserving Brazil's rainforests. The Amazon Soy Moratorium, established to curb deforestation, was recently dismantled following threats of tax sanctions from influential lawmakers in Mato Grosso, Brazil's primary agricultural state.

This withdrawal comes amidst new trader commitments to eliminate deforestation from supply chains and protect additional ecosystems like the Cerrado and Pantanal. However, these pledges were met with skepticism, as details remain vague on how the commitments will be upheld and monitored against deforestation in regions integral to global soy production.

Despite a third-party auditor confirming 99% of COFCO's soy purchases being deforestation-free, transparency and compliance with pledges are still in question. Environmental watchdogs and major retail groups emphasize the importance of transparency, urging traders to adhere to the Soy Moratorium's original spirit to safeguard crucial ecosystems.

(With inputs from agencies.)