Guatemalan President Bernardo Arévalo has withdrawn a decree mandating compulsory car insurance after two days of widespread protests, road blockades, and clashes with police. The proposed law, aimed at ensuring compensation for traffic accident victims, faced strong opposition from citizens—many of whom said they couldn’t afford the added cost in a country where 55% live in poverty.

The decree was introduced following a tragic bus accident that killed over 50 people. While Arévalo defended the need for reform, he acknowledged the rollout lacked transparency on expected costs and caused significant disruption, including school and business closures.

After meeting with protest representatives, Arévalo announced the creation of a technical committee to explore how to implement compulsory insurance within a year, as part of broader transport reforms.