DTI under pressure to cut tariff on cement

An alliance of labor organizations has expressed concerns over the alleged collusion of cement importers with cement foreign companies to pressure the Department of Trade and Industry (DTI) in modifying the current safeguard measures imposed on imported cement.

The National Confederation of Labor (NCL), a labor center of various labor federations, disclosed that a certain group of importers are closely working with foreign cement companies in Japan, Taiwan and Indonesia to compel Trade and Industry Secretary Manuel Roxas II in reducing or removing the safeguard measures.

The three countries were among those that used to unfairly import cement in the Philippines prior to the imposition of the safeguard measures in November 2001.

"Obviously, these groups want the tariff reduced or removed so they could continue their cement importations," NCL acting secretary general Ernesto Arellano said in his letter to the DTI secretary.

He said there is a potential harm to the labor sector once the tariffs are lowered prematurely and if cement imports flood the local market anew.

"Every bag of cement imported displaces a bag of cement locally made. Every foreign cement factory that operates due to exports to the Philippines can result in the closing of a Philippine cement factory," Arellano noted.

"Every foreign factory that remains open due to imports to the Philippines means that thousands of Japanese, Taiwanese or Indonesian workers will keep their job in those countries," he added.

There are about 120,000 people directly employed in domestic plants mostly located in Norzagaray (Bulacan), Batangas, Antipolo, La Union, Cebu, Bicol, Surigao, and Davao.

To avoid the dislocation of these workers, Arellano said that it is important to maintain the current level of tariff on imported cement.

Arellano urged Roxas not to allow himself to be pressured by certain groups that have been pushing for the review of the currently imposed tariff on cement.

Japan, Taiwan and Indonesia have excess cement capacity that lowering the tariff would be for their benefit as they could easily export their cement products to the Philippines, according to Arellano.

Ironically, these countries have closed their cement markets to the Philippine-made cement with their tariff and non-tariff barriers, he added.

While he urged the DTI to look after the welfare of the local cement manufacturers, the NCL secretary general nevertheless acknowledged Roxas for his effort to protect local workers.

The NCL hailed Roxas for his decision to impose tariff against unfairly traded cement as a landmark decision, which according to them, signals his commitment to protecting local industries and promoting local jobs.

"The position you have taken to defend local industries and keeping jobs in the Philippines as representative of the Philippines in the WTO Ministerial Conference in Cancun (Mexico) last October was admirable and in our national interest," Arellano further said.

Meanwhile, among the labor federations affiliated with the NCL include National Federation of Labor, United Filipino Service Workers, Solidarity of Independent and General Labor Organization, Katipunan ng Manggagawang Pilipino, Kapatiran ng Kristiyanong Organisasyong Manggagawa, UNORKA Mindanao, and Filipinong Samahang Manggagawa.