Bolivia

Jan. 9 (UPI) — The government of Bolivia confirmed it will introduce changes to 35 articles of a decree that established a package of economic adjustments, including the end of fuel subsidies, as groups affiliated with the Central Obrera Boliviana continue blocking highways at 29 points across the country.

Deputy Minister of Autonomies Andrea Barrientos said the changes are procedural rather than substantive and are aimed at adding clarifications, such as respect for the Constitution and mechanisms for social oversight, according to local daily El Deber.

No date has been announced for the changes.

The government said the amendments will not affect eliminating fuel subsidies. The decree set new reference prices that imply increases ranging from 86% to more than 160% compared with subsidized levels.

Authorities argue the measure is necessary to restore public finances and correct fiscal distortions.

The labor confederation, which has led protests and road blockades for the past two weeks in La Paz, Cochabamba, Potosí, Oruro and Santa Cruz, is demanding the repeal of the decree and denied the existence of any pre-agreement with the government.

Government officials estimated Thursday that economic losses from the labor confederation’s road blockades could reach $100 million a day, when considering the overall impact on industry, commerce and transportation.

“Industrial groups are talking about $20 million to $40 million a day. In commerce, transportation …. Without a doubt, we are easily talking about around $100 million a day,” the official said.

In a new phase of the political confrontation with President Rodrigo Paz, Vice President Edmand Lara on Thursday introduced a bill seeking to nullify articles of the decree that ended fuel subsidies.

Since the elections, relations between Lara and Paz have deteriorated. The vice president says he was excluded from executive decision-making and has declared himself in “constructive opposition.”

Lara’s initiative targets provisions of the decree enacted in December that dismantled a subsidy system in place for more than two decades and sharply raised gasoline and diesel prices.

The vice president, who also presides over the Legislative Assembly, said several articles are “unconstitutional” because they encroach on congressional powers and alter key rules governing investments in natural resources.

Criticism has focused on a fast-track mechanism included in the decree to approve investment contracts involving natural resources.

Analysts, lawmakers and unions warn that the expedited process could weaken legislative oversight and bypass constitutional requirements, such as environmental licenses and prior consultations with affected communities.

Political tensions escalated further with a new decree allowing the president to perform his duties digitally during temporary absences from the country. Paz is expected to travel to the World Economic Forum in Switzerland later this month, a trip that would normally require transferring power to the vice president.

At the same time, constitutional challenges were filed with the Tribunal Constitucional Plurinacional, whose ruling could be delayed due to a lack of quorum.

Opposition lawmakers, including members of the Libre alliance linked to former President Jorge Quiroga, also have objected to several articles of the decree.

Dec. 23 (UPI) — At least four law officers were injured Tuesday in La Paz during clashes between marchers from the Central Obrera Boliviana, the country’s largest labor federation, and police as protests intensified over the government’s decision to end fuel subsidies.

President Rodrigo Paz issued a decree Dec. 18 eliminating fuel subsidies that had been in place for nearly 20 years. He also declared an “economic, financial and social emergency” to justify the reform and paired the measure with a 20% increase in the minimum wage to cushion its impact.

As a result of the decision, gasoline and diesel stopped being sold at state-controlled prices of about 53 cents per liter and shifted to prices reflecting the real cost of imports, leading to increases of nearly 200% for consumers.

According to reports by the Bolivian newspaper El Deber, the incidents that left police officers injured occurred near Plaza Murillo, close to the government palace, when miners and transport workers attempted to approach areas secured by law offivers.

The Ministry of Government said the injured officers were attacked with stones and blunt objects while carrying out public order duties.

Police said a miner was detained for allegedly throwing fireworks and dynamite. Labor leaders, meanwhile, criticized using tear gas to disperse demonstrators.

Union leaders warned that protests will continue unless their main demand is met — the repeal of the decree that eliminated fuel subsidies.

Bolivia’s Human Rights Ombudsman’s Office said that after the fuel price changes, fares for interdepartmental, interprovincial and urban transportation rose by as much as nearly 200% in several regions, according to La Razón.

After inspections at transport terminals and hubs in La Paz, Cochabamba and Santa Cruz, the ombudsman’s office documented widespread and unilateral fare hikes that in many cases doubled or even tripled prices, directly affecting the cost of living for Bolivian families.

El Deber reported that similar protests were recorded in Santa Cruz, including temporary road blockades and clashes with police, amid growing public anger over the impact of higher fuel prices on transportation and household expenses.

Authorities reiterated calls for dialogue and warned they will not tolerate violence, while unions said they will maintain mobilizations until the government reviews the measure.

EU delays Mercosur trade deal until January amid farmer protests and opposition from France and Italy.

The European Union has delayed a massive free-trade deal with South American countries amid protests by EU farmers and as last-minute opposition by France and Italy threatened to derail the agreement.

European Commission chief spokesperson Paula Pinho confirmed on Thursday that the signing of the trade pact between the EU and South American bloc Mercosur will be postponed until January, further delaying a deal that had taken some 25 years to negotiate.

Commission President Ursula von der Leyen was expected to travel to Brazil on Saturday to sign the deal, but needed the backing of a broad majority of EU members to do so.

The Associated Press news agency reported that an agreement to delay was reached between von der Leyen, European Council President Antonio Costa and Italian Prime Minister Giorgia Meloni – who spoke at an EU summit on Thursday – on the condition that Italy would vote in favour of the agreement in January.

French President Emmanuel Macron had also pushed back against the deal as he arrived for Thursday’s summit in Brussels, calling for further concessions and more discussions in January.

Macron said he has been in discussions with Italian, Polish, Belgian, Austrian and Irish colleagues, among others, about delaying the signing.

“Farmers already face an enormous amount of challenges,″ the French leader said.

The trade pact with Argentina, Brazil, Bolivia, Paraguay and Uruguay would be the EU’s largest in terms of tariff cuts.

But critics of the deal, notably France and Italy, fear an influx of cheap commodities that could hurt European farmers, while Germany, Spain and Nordic countries say it will boost exports hit by United States tariffs and reduce reliance on China by securing access to key minerals.

Brazil’s President Lula says Italy’s PM Meloni asked for ‘patience’

The EU-Mercosur agreement would create the world’s biggest free-trade area and help the 27-nation European bloc to export more vehicles, machinery, wines and spirits to Latin America at a time of global trade tensions.

Al Jazeera’s Dominic Kane, reporting from Berlin, said Germany, Spain and the Nordic countries were “all lobbying hard in favour of this deal”. But ranged against them were the French and Italian governments because of concerns in their powerful farming sectors.

“Their worry being that their products, such as poultry and beef, could be undercut by far cheaper imports from the Mercosur countries,” Kane said.

“So no signing in December. The suggestion being maybe there will be a signing in mid-January,” he added.

“But there must now be a question about what might happen between now and mid-January, given the powerful forces ranged against each other in this debate,” he added.

Mercosur nations were notified of the move, a European Commission spokeswoman said, and while initially reacting with a now-or-never ultimatum to its EU partners, Brazil opened the door on Thursday to delaying the deal’s signature to allow time to win over the holdouts.

Brazil’s President Luiz Inacio Lula da Silva said Italy’s Meloni had asked him for “patience” and had indicated that Italy would eventually be ready for the agreement.

The decision to delay also came hours after farmers in tractors blocked roads and set off fireworks in Brussels to protest the deal, prompting police to respond with tear gas and water cannon.

Protesting farmers – some travelling to the Belgian capital from as far away as Spain and Poland – brought potatoes and eggs to throw and waged a furious back-and-forth with police while demonstrators burned tyres and a faux wooden coffin bearing the word “agriculture”.

The European Parliament evacuated some staff due to damage caused by protesters.

Dec. 17 (UPI) — The government of President Rodrigo Paz said it will push to revise Bolivia’s legal framework for coca leaf cultivation after official data showed that planted areas exceed authorized limits and continue to expand.

According to the 2024 Coca Crop Monitoring Report by the United Nations Office on Drugs and Crime, presented in La Paz, Bolivia ended 2024 with about 34,000 hectares of coca crops, a 10% increase from the previous year.

That figure exceeds by 12,000 hectares the cap set by the 2017 General Law of Coca, which authorizes 22,000 hectares for legal cultivation.

Coca leaf is recognized in Bolivia’s Constitution for traditional, medicinal and cultural uses, but part of the production is diverted to cocaine manufacturing, the report said.

Earlier this month, the World Health Organization decided to keep coca leaf on its list of controlled substances, citing the risk to public health posed by its easy conversion into cocaine.

Against that backdrop, the Office on Drugs and Crime urged the Paz administration to strengthen control strategies, particularly in protected areas, and to update data on domestic demand for licit consumption.

Vice Minister for Social Defense and Controlled Substances Ernesto Justiniano said the government plans to amend the law, but said new parameters will depend on a fresh study to determine how much coca is needed for traditional use in Bolivia, according to local newspaper El Deber.

“Bolivia has more coca than it needs for traditional uses. Crops have not stayed at 22,000 hectares. By 2024, they were at 34,000, and in the next report, we will probably be close to 40,000 hectares because very little was eradicated this year — barely 1,700 hectares,” Justiniano said.

He said he recalled a study released in 2013 estimated that 14,700 hectares were sufficient for legal consumption, but that the limit was raised to 22,000 hectares in 2017 — a decision the new government now questions as lacking “technical justification,” the outlet ERBOL reported.

At the same time, the government said the eradication of illegal coca crops will again become a central pillar of its anti-drug strategy, with a focus on what it calls surplus production feeding drug trafficking.

To prepare the new study on domestic demand for coca leaf, authorities said they will invite representatives from coca-growing groups, academic institutions and other sectors to ensure transparency of the data.

Officials expect that once the findings are released, negotiations will begin with coca growers from the Chapare, a coca-producing region in central Bolivia.

Justiniano said farmers there blocked eradication efforts this year, mainly in the tropical Cochabamba region, an area widely regarded as the political stronghold of former President Evo Morales.