Business as Usual: Dutch neo-colonialism in Brazil

At the core of the Fair, Green, and Global (FGG) Alliance’s mission is the commitment to building a just and sustainable world. As members of this alliance, Both ENDS, SOMO, and the Transnational Institute (TNI) recognise the urgent need to reimagine global investment frameworks. These frameworks, entrenched in outdated treaties such as Bilateral Investment Treaties (BITs) and the Energy Charter Treaty (ECT), often prioritise corporate profits over human rights, environmental sustainability, and social justice.

On Wednesday, November 14, Dutch Newspaper De Volkskrant published a joint op-ed by Both ENDS, Hivos, Greenpeace Netherlands and Witness about the deforestation in the Amazon region which is still going on rapidly, having disastrous consequences for the indigenous people who live in the area, for biodiversity and for the climate. The Netherlands is one of the largest buyers of Brazilian agricultural products such as soy and beef, and should ensure that deforestation, land grabbing and human rights violations do not occur in these production chains. Unfortunately, this is not at all the case yet.

Dutch pension money is invested heavily in companies that contribute to deforestation in the Amazon region and the Cerrado savanna in Brazil, such as soy, animal feed and beef companies. This is concluded in a report published today by Profundo, commisioned by the Fair Finance Guide, Hivos and Both ENDS. All ten pension funds that were examined invest in these types of companies, with the ABP pension fund and Pensioenfonds Zorg en Welzijn on top with investments worth EUR 580 million and EUR 383 million respectively.

The new year has barely begun but already record high summer temperatures are being reported in parts of South America, especially Argentina, Paraguay and Southern Brazil. The latest heatwave, with temperatures of up to 45C, arrives on top of two years of severe drought which had a devastating effect on the entire region. It is a painful reminder of the immediacy of climate change and emblematic for what happens when vital ecosystems are not protected and for the catastrophic consequences as much on already endangered wildlife as on the local communities who depend on them for their livelihoods. One of the most affected areas are the regions wetlands – unique ecosystems, which are crucial ecological pressure points, vital for the regulation of river systems and huge carbon sinks. Their loss not only has ecological impacts but affects thousands of local communities which depend on their health for fishing, tourism and local agriculture. The threat to them by for example droughts and fires, can be directly linked to the large-scale production of soy, produced mainly for export. This in turn means responsibility for what is happening in the region needs to be acknowledged and shared by leaders around the world, and especially large importers such as the Netherlands.

After 15 years, the members of the Dutch Soy Coalition have decided to disband the coalition. A total of 16 civil society organisations have worked together for many years to put the negative impact of the production, transport, processing and consumption of soy on the agenda and to seek solutions together with other stakeholders.

The Pantanal, in the heart of South America, at the border of Brazil, Bolivia and Paraguay, is the world’s largest freshwater wetland with an extremely rich biodiversity. Tourism and fishing are the main sources of income for the local population. This enormous natural area is invaluable for the water management of a large part of the continent, stretching all the way down to the Argentinian La Plata area, some 1,500 kilometres away. The area faces many threats and Both ENDS therefore already started actively supporting local organisations striving to protect the Pantanal in 1994.

The EU is the world's largest "importer of deforestation," due to the huge volumes of unsustainably produced soy, timber, palm oil, and other raw materials that EU member states import. After many years of delay, the European Parliament and the European Council passed a law in December 2023 to address this problem: The EU Deforestation Regulation (EUDR). Both ENDS is part of a broad coalition of organizations that have been pushing for this European legislation. However, there is now a serious delay, and perhaps even postponement, of the law's implementation. Objections have been raised by a number of member states, who are sensitive to lobbying by certain business sectors and producer countries.

The EU is still one of the world’s largest importers of deforestation: EU demand for commodities like soy, palm oil, beef, coffee and cacao requires millions of hectares of tropical rainforest to be cleared. This deforestation has significant biodiversity and climate impacts, and is often linked to human rights violations and violence against local communities and indigenous peoples. Both ENDS and partners have been actively lobbying the EU Commission to adopt a robust action plan to address and prevent human rights violations and deforestation ‘embodied’ in EU imports of agricultural commodities. 

The government of Kenya has officially terminated its bilateral investment treaty (BIT) with the Netherlands, marking a significant win for economic justice and environmental protection. Kenya’s decision reflects a growing global trend of rethinking outdated treaties that often prioritize corporate interests over public welfare. The Dutch Minister for Foreign Trade and Development recently confirmed that Kenya unilaterally ended the treaty in December 2023, rendering it inoperative from 11 June 2024. Kenya now joins South Africa, Tanzania, and Burkina Faso as the fourth African country to terminate its BIT with the Netherlands. 

Today, more than 340 organisations from both South America and Europe, including Both ENDS, have sent a joint open letter to European Union leaders calling for the EU to cease negotiations on the EU-Mercosur Free Trade Agreement. The organisations and their constituencies are seriously concerned about increasing violations of indigenous human rights and damage to nature and the environment in Brazil.