Bolivian president declares state of emergency after weeks of protests

Protesters in Bolivian call for President Paz's resignation. [AFP]

Bolivian President Rodrigo Paz declared a state of emergency across the Latin American country on Saturday after more than six weeks of road blockades and protests demanding his resignation, saying he had exhausted "all avenues of dialogue."

The decision came hours after Paz signed an agreement with the country's main trade union federation, Bolivian Workers' Central (COB), ending the protests sparked by Paz's plans for the economy.

But not all sectors were covered by the agreement, and some unions continued protesting.

"After exhausting all avenues of dialogue, reaching agreements with those whose demands were legitimate, and identifying those who used violence in an attempt to destabilize Bolivia, we made the decision to declare a state of emergency across the entire national territory," Paz said in a televised speech.

COB launched the protest movement in early May to reject US-backed Paz's ideas for ending the country's worst economic crisis in 40 years.

Demonstrators -- mainly blue-collar workers, farmers, miners, truck drivers and teachers -- called for an end to the center-right president's economic reforms and demanded his resignation.

Paz has been in power only seven months, and his arrival ended 20 years of socialist rule.

Roadblocks across Bolivia have led to shortages of fuel, food and medicine in the country's main cities, including La Paz.

The government reached an agreement with COB on Friday, after negotiations began last week.

"From now on, pressure measures are lifted nationwide," announced Mario Argollo, leader of COB.

Paz defended the agreement, saying, "dialogue is stronger than force itself."

Betrayed

Labor groups and coca farmers in the Chapare region, former president Evo Morales' stronghold, continued protesting.

"We have decided to harden the roadblocks," Antonio Mallku, leader of one of the main workers' unions, told the television channel Unitel.

"Our Indigenous brothers felt betrayed" by the agreement, he said.

The number of road blockades, which exceeded 100 at the height of the protests, has decreased, but around 50 remained in place.

Paz said he had ordered the police and armed forces "to restore freedom of movement, regain control of the roads, and guarantee the security of the population," warning that those who continue the blockades or resort to violence would face "the full force of the law."

Under the terms of Friday's agreement, the government promised not to privatize public companies -- a key demand of the unions.

The agreement also provides for working groups bringing together ministers and union leaders to discuss the protest movement's demands.

The government now has 90 days to make progress on several union demands, according to Argollo.

"The ball is now in its court," he said.

Paz has claimed that the protests were driven by "narcoterrorists" he links to Morales.

Morales is in hiding while facing charges of alleged trafficking of a minor, which he denies.