Following widespread protests and road blockades, Guatemalan President Bernardo Arévalo has withdrawn a decree that would have made car insurance compulsory for all vehicle owners.
The law aimed to provide compensation for victims of accidents, a significant issue in a country where traffic incidents are a leading cause of death.
The president’s decision came after thousands took to the streets, objecting to the increased costs amid widespread poverty and the lack of clear information on insurance prices.
Talks between the government and protest representatives have led to plans for a technical committee to develop a phased approach to mandatory insurance within a year.