Opposition from industry and in particular from the metallurgical sector has forced the government to reject the possibility of signing the agreement in June.
In the view of the metalworking sector, the agreement constitutes a threat to the domestic industry.Estuardo Rivera, president of the Union of Metallurgy, told Prensalibre.com:"...'It is not that we are opposed to the agreement, what happened is that 7% of the products to be exchanged in the steel sector were killing off local industry'."
Two companies in the sector have reported dumping of iron rods from China and are asking the government for temporary safeguards to be put on imports.
The companies Corporación Aceros de Guatemala (AG) and Aceros Suárez (ASSA) asked the Ministry of Finance to stop the importation of iron rods from China alleging unfair practices with prices of the material in the local market.
The Guatemalan metallurgical industry anticipates sales growth of between 3% and 5% in 2012.
The sector saw a slight recovery in 2011, after successive lows in 2008, 2009 and 2010.
The increase projected for 2012 is based on the expected performance of the construction sector.
Federico Prado, president of the union of metallurgy, the Chamber of Industry, told Prensa Libre, "the expectation of a change in government, the policy of nation-building and public works will increase the demand for steel products."