Gov’t urged to retaliate vs Taiwan for cement tariff

The government was urged yesterday to immediately take retaliatory measures against Taiwan for the latter’s decision to impose a 15-percent "punitive" tariff on Philippine cement exports.

"The Taiwanese government’s decision is totally unfair and uncalled for," said Rep. Loretta Ann Rosales (Party-List, Akbayan).

She said it is ironic that while the Philippine Tariff Commission has lifted the protective tariff imposed by Trade and Industry Secretary Manuel Roxas II on Taiwanese cement being brought into the country, Taiwan chose to levy a higher duty on cement imports from the Philippines.

She said the Taiwanese could have kept the tariff at its previous level since Philippine exports were not hurting their economy and were a mere four percent of their local market.

On the other hand, Taiwanese cement being brought into the country has reached an alarming level of 25 percent of the domestic market, she added.

As for specific retaliatory measures the government can take, Rosales suggested that the Bureau of Customs for instance can blacklist Taiwan Cement Corp. (TCC), the biggest exporter of Taiwanese cement, for tampering with export documents.

The Taiwanese firm was even fined P4.04 million for such infraction, she said.

Rosales and her Akbayan group, some of whose members work in the local cement industry, have supported the petition of domestic cement producers for tariff protection against imports, particularly those from Taiwan.

The producers and their workers have claimed that cheap and unmitigated imports have hurt them, and that in fact, the industry has started to lay off personnel because of the adverse effects of importation.

Roxas had found their petition to be valid and decided to impose a temporary higher tariff on imported cement.

However, the Tariff Commission has reversed the trade secretary’s decision. Roxas initially balked at the reversal but chose to abide by it when the Department of Justice ruled that he has to respect the commission’s ruling.

Rosales said the tariff body "failed to grasp the vulnerability of the local industry against unfair trade practices."

She said while the commission allowed Taiwanese cement to be brought in at a lower duty, Taiwan would not charge a higher impost on Philippine cement imports.

"It is in this context where we see the injustice of the Tariff Commission," she said.

She added that she would call for a review by the proper House committee of the law that created the tariff body "to reorient its mandate and policy directions."