Bolivia's Heavy Transport Sector Plans Nationwide Roadblock Over Dollar and Fuel Shortages

The Chamber of Heavy Transport in Bolivia has confirmed a nationwide roadblock on June 3-4, 2024, to protest against dollar and fuel shortages, plus a decree regulating contracts between transport companies and drivers. The chamber is demanding a direct meeting with President Luis Arce to address their concerns.

Why this matters: The nationwide roadblock in Bolivia has significant implications for the country's economy and political stability. If the demands of the heavy transport sector are not met, it could lead to further economic losses and exacerbate the existing economic difficulties, including dollar shortages and fuel rationing.

Héctor Mercado, president of the Chamber of Heavy Transport (CBT), expressed the sector's reluctance to resort to blockades but emphasized the necessity of such measures if their demands are not met. "We don't want a blockade, but unfortunately if [Arce] doesn't listen to us, the transport [sector] will stage a blockade," Mercado stated.

Marcelo Cruz, president of Bolivia's heavy transport association (Asociatrin), warned that more sectors could join the blockade, potentially leading to further economic losses. The situation has already seen the transport chamber staging protests in recent weeks, rejecting a meeting with Public Works Minister Édgar Montaño and insisting on a direct dialogue with President Arce.

The Bolivian government, however, has rejected the demands for a direct meeting with President Arce. Public Works Minister Édgar Montaño accused Mercado of being part of a "new right wing" planning a coup against Arce. Montaño claimed that his office is working on a response to CBT's demands, but Mercado dismissed the meeting offer, citing previous failed encounters.

The economic implications of the planned blockade are significant. Bolivia's economy, forecasted to grow by just 1.6% this year according to the International Monetary Fund (IMF), could face further strain. A similar blockade earlier this year resulted in an estimated $1 billion in economic losses. Moody's recent downgrade of Bolivia's credit rating, citing economic and political instability, adds to the challenges facing the nation.

The transport sector's grievances stem from a combination of dollar and fuel shortages and a decree regulating contracts between transport companies and drivers. The decree, which removes the requirement for drivers to join CBT before seeking work, is seen as harmful to the sector. The lack of access to foreign currency and fuel shortages have exacerbated the situation, leading to widespread dissatisfaction within the transport community.

Earlier this year, Bolivia faced similar unrest when supporters of former President Evo Morales blocked highways for two weeks, resulting in significant economic losses. The current crisis highlights the ongoing economic difficulties, including dollar shortages and fuel rationing, which have led to protests from various sectors, including heavy transport and informal merchants.

As Bolivia struggles with these economic and political challenges, the planned roadblock by the heavy transport sector highlights the urgency of addressing the underlying issues. Whether the government and the transport sector can find common ground remains to be seen, but the potential impact on Bolivia's already struggling economy is undeniable.

Key Takeaways

• Bolivia's heavy transport sector to stage nationwide roadblock on June 3-4, 2024.
• Protest against dollar and fuel shortages, and decree regulating contracts.
• Sector demands direct meeting with President Luis Arce to address concerns.
• Blockade could lead to further economic losses and exacerbate existing difficulties.
• Bolivia's economy already struggling, with 1.6% growth forecast and recent credit rating downgrade.