SAO PAULO, Aug 18 (Reuters) - Brazilian competition

authority CADE has ordered soybean traders in the world's

largest soybean exporter to end a program called "Soy

Moratorium" or face hefty fines, according to a decision signed

by General Superintendent Alexandre Barreto de Souza on Monday.

In the ruling seen by Reuters, De Souza recommended a

full-blown investigation into the signatories of the voluntary

program, which bars soybean traders from buying the oilseed from

farmers who cleared land in the Amazon rainforest after July

2008.

The two-decade-old voluntary agreement seeks to protect the

Amazon rainforest. Brazilian farmers have complained that the

agreement blocks farmers who comply with environmental rules.

Companies and trade groups Anec and Abiove, which represent

global grain handlers such as ADM, Bunge, Cargill, Louis

Dreyfus and Cofco, have 10 days to comply, according to the

document.

Anec, which represents grain exporters, said CADE's stance

in relation to the soy moratorium is "extremely worrisome." It

said it will take administrative measures to appeal the

decision.

The soy moratorium should stand as it is "a multi-sector

pact" backed by civil society, the Ministry of the Environment

and Brazilian Environment agency Ibama, Anec said.

Abiove, which represents oilseeds crushers, said it was

"surprised" with De Souza's decision to recommend a full-blown

probe and impose preventive measures, and said it would take

measures to defend the legality of the soy moratorium program.

CADE's preventive measure must be observed by the soy

moratorium's working group, including Anec and Abiove, and

exporting firms that are signatories of the program, according

to De Souza's decision.

Under the order, soy exporters are to refrain from

collecting, sharing, storing and disseminating commercially

sensitive information related to the soy trade and the farmers

they do business with.

The preventive measure also calls for the withdrawal of

all soy moratorium information and related online publicity.

CADE's General Superintendent wrote that companies that

wish to apply soy moratorium criteria to buy soybeans grown in

the Amazon "must do so independently and in accordance with

national legislation."