A powerful Brazilian soy grower lobby is advising farmers to reject contracts that require compliance with the European Union regulations, citing a statement released on Friday.
The EU is set to implement legislation barring the import of products, including soy and beef, associated with deforestation post-December 2020. Attempts by global traders to enforce this provision in contracts with farmers from Goias state met resistance, leading Aprosoja Brasil to recommend nationwide non-compliance.
The group's dissent underscores Brazil's increasing pushback against foreign mandates to curb deforestation in response to the global climate crisis, citing concerns over national sovereignty.
Amid these developments, Brazil's existing pledge, in which trading firms agreed not to purchase soy from deforested Amazon regions post-2008, also faces challenges.
While the soy processor lobby Abiove emphasizes the need to align with the new anti-deforestation regulations to sustain EU market access, they caution about unresolved uncertainties in rule application that could impact current trade.
According to the farmer group, complying with the EU law on deforestation should only be considered if a premium is offered for soy produced in areas untouched post-2020.
The enforcement of the EU regulation has been postponed by a year following industry requests for more adjustment time. Brazil's soymeal primarily goes to the EU, with China leading in soybean imports and Spain in raw bean imports.
While clearing land for agriculture is legal under Brazil's forestry code, farmers must preserve a specific percentage of legal reserves based on the biome in which they operate. Aprosoja Brasil views Brazilian environmental laws regarding rural properties as some of the most stringent globally.