Glass, aluminum sectors buck high tariff on glass

The Philippine Chamber of Glass and Aluminum Industries Inc. (PCGAI) appealed yesterday for all-out support from the country’s glass and mirror users – furniture, construction, automotive and other sectors of the glass industry "in our firm resolve to fight for our cause by putting a stop on Asahi Glass Phils.’ desperate attempt to fully monopolize the local glass and mirror business.

PCGAI spokesman lawyer Delano M. Valera said the chamber is strongly objecting Asahi’s petition to seek from the government higher tariffs from 10 percent to 40 to 50 percent on imported glass such as float and figured glass (clear and colored) "is aimed to eliminate small and medium glass enterprises and get 70-to 80- percent share of the market where they are already a dominant player."

Valera said a 40-to 50-percent tariff rate will give Asahi Glass a leverage in the pricing of locally-manufactured glass and mirrors "using it as a solution to an erstwhile self-inflicted injury."

"Asahi Glass Phils. is not deserving of such protection, rather, it should be the local glass fabricators, processors and importers that should be protected by the government. Asahi Glass is a monopoly which is prohibited by the government and the Philippine Constitution," Valera said.

Aside from affecting other allied industries such as construction, furniture, automotive and other sectors using glass and mirrors, a tariff increase would mean, according to PCGAI, 1) dislocation of some 50,000 Filipino workers in the industry; 2) promoting the "monopolistic designs" of Asahi; 3) indiscriminate increases in the prices of local and imported glass products thereby affecting public interests and consumers’ welfare; and 4) shortage of glass products in terms of good quality, variety of sizes and designs, technology, services and volume.

An increase in tariff rates on imported glass and mirrors will also directly affect the volume of furniture export, construction and automotive business because eventually, Valera said, "for our industry to survive, we will have to pass on the additional cost of importation to the market."

"This is an inevitable phenomena which would later relate to the question: Will these sectors still be competitive in terms of pricing, availability of choices and delivery with their competitors from other exporting countries?"

During the two last hearings conducted jointly by the Department of Trade and Industry (DRI) and the Tariff Commission, Valera said PCGAI presented a comparative analysis between the imported glass prices, variety of designs, technology, services and actual samples of Asahi’s raw glass.

"Wala sa kanila (Asahi) ang nag-object sa ginawa naming presentation, a clear indication of Asahi’s acceptance of the competitive advantage of imported glass products," Valera added.