It sets a very dangerous precedent by allowing commercial interests to invade indigenous lands that have been guaranteed under Article 231 of the Brazilian Constitution. If his decision goes into effect, it may lead to the reduction of other indigenous areas in Brazil. After the end of the military dictatorship, this is the first time that the government orders an indigenous territory to be reduced. This overall stagnation and potential for the reduction of indigenous lands only accentuates the already pitiful reality of indigenous peoples in Brazil. Invasions of indigenous lands continue to increase, causing the destruction and pollution of the natural resource base on which they rely for physical and cultural survival.
Invasions also continue to spread infectious diseases and generate violence.
In 1994 and 1995 alone, there were 75 reported cases of indigenous people murdered, mostly as a result of land conflicts. Currently, several indigenous groups face serious threats. Poverty, expulsion from traditional territories in recurrent disputes with wealthy ranchers, and the overpopulation of the remaining lands are the main factors leading this unique people to slow extinction. Several areas of the Guarani-Kaiowa territory have been the site of intense and at times lethal struggles for land. The area of Sete Cerros, for example, was heavily contested by an agro-industrial company by the name of Sattin Agropecuaria S.A, which has made full use of Decree 1775 and sued the state, claiming title to the land.