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Trade Measures to Support Legal and Sustainable Agriculture in Brazil

By Josh Gregory - Forest Trends
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Brazil is a major producer and exporter of agricultural commodities (such as beef, soy, and cotton) that are associated with deforestation in the Amazon and surrounding regions. A way to reduce deforestation in Brazil, would be the implementation of trade measures, border policies directed at imports or exports of particular products. This report discusses two such trade measures: 1. A “Forest Code measure” would discriminate in favor of imported Brazilian commodities that were produced on land which is compliant with the Brazilian Forest Code. 2. A “sustainable territories measure” would discriminate in favor of commodities produced within regions (such as the States of Mato Grosso and Para) that have achieved environmental standards, including reduction or elimination of deforestation, through a combination of private sector initiatives, government regulation and jurisdictional REDD+. Both of these measures could involve a tariff reduction for “sustainable” imports, an increased tariff for “unsustainable” imports, and a prohibition on “unsustainable” imports.