Peru's Congress voted on Wednesday to temporarily suspend two land laws that ignited violent clashes between protesting indigenous groups and security forces last week killing at least 60 and claims of missing protestors.
The laws, decreed by Peruvian President Alan Garcia under special powers Congress gave him to implement a free-trade pact with the United States, outline a broad plan for how to regulate investment in the Amazonia province rich in natural and mineral resources.
President Garcia has 15 days to either sign the suspension order or send it back to Congress, which can override his veto.
Indigenous groups have been protesting since early April arguing they will lose control of their natural resources and were not consulted by Lima on the extent of leases to foreign companies. They backed protests blocking roads, waterways and oil pipelines.
The congressional opposition had called for the bills to be overturned and a cabinet minister resigned in disagreement with the handling of the situation.
The suspension order is considered a compromise that could give time for negotiations between the presidency and indigenous groups.
The Catholic Church which supports the claims of indigenous groups and their land rights has offered to mediate.
The recent protests were the worst violence seen in Peru in a decade.
Indigenous groups say more than 100 protesters cannot be accounted for.
Earlier this week the Alberto Pizango one of the leaders of Aidesep, Inter-ethnic Association for the Development of the Peruvian Jungle and charged with instigating the riots and sedition, took refuge in the Nicaraguan embassy.
Peruvian Primer Yehude Simon has rejected calls to step aside but conceded that once the situation is under control and calm has returned to the Amazonia province, he would consider leaving his post.
“The government has been unable to communicate directly with the communities; it believed that good actions or good wishes of progress and development in the Amazon region could be done from the capital without contacting as should have been” admitted PM Simon.
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