President Arévalo argued that the new rule was necessary to compensate victims of traffic accidents, but many in Guatemala - where an estimated 55% live in poverty - said they would not be able to afford the extra cost.
Speaking at a news conference on Wednesday, the president said he had been elected to bring about necessary changes in the country, some of which could be difficult.
"I remain convinced that a new general transport law is the right way forward for the wellbeing of our country," he said, adding that traffic accidents were the main cause of death in Guatemala.
He said that after talks with representatives of the protesters, the two sides had agreed to set up a technical committee to come up with a plan on how to introduce compulsory insurance within a year.
Speaking at a news conference on Wednesday, the president said he had been elected to bring about necessary changes in the country, some of which could be difficult.
"I remain convinced that a new general transport law is the right way forward for the wellbeing of our country," he said, adding that traffic accidents were the main cause of death in Guatemala.
He said that after talks with representatives of the protesters, the two sides had agreed to set up a technical committee to come up with a plan on how to introduce compulsory insurance within a year.
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