Local cement firms optimistic of favorable ruling vs imports

MANILA, Philippines — Local cement manufacturers expressed confidence the Tariff Commission would uphold the imposition of a higher and definitive measure against imported cement.

In a statement, the Cement Manufacturers Association of the Philippines (CeMAP) said imported cement has negatively affected the domestic cement industry.

Last Feb. 9, the Department of Trade and Industry imposed a safeguard measure of P8.40 per 40-kilogram bag of imported cement after finding evidence the surge of cheaper cement imports has been hurting local cement manufacturers.

Cemap executive director Cirilo Pestaño II said the industry is hoping the Tariff Commission would uphold the Trade department’s order.

“We are confident the Tariff Commission will come out with a ruling consistent with the national interest after the finding of its technical staff that imports have increased their share of the domestic market at the expense of the Philippine cement manufacturing industry,” he said.

According to the findings of the technical staff of the Commission, imports have increased their share of the domestic market to 17 percent at the end of 2017 from nearly seven percent of domestic cement production of 23.4 million metric tons.

He said cement imports surged 64 percent to 1.74 million MT in  January to March this year from 1.06 million tons in the same period last year despite the imposition of the safeguard duty effective Feb. 21.

Pestaño cited the report of the Commission’s technical staff which said: “The increase in volume of imports in 2016 was recent, sudden, sharp and more importantly, is of such a magnitude which can be considered significant.”

In its amended position paper submitted to the Commission, CeMAP said imports may be good for consumers in the short-term but they will be bad to every Filipino in the mid-to long term if the Philippine Industry’s viability is compromised, its contributions to the economy lost and its capacity to meet future demand impaired.

It warned that if the safeguard measures are not put in place, demand in the mid-to long-term would definitely outstrip supply.

If this trend continues, the country will go the way of import dependence supporting foreign economies to progress while neglecting our own.

“Do we support the growth of other economies and be forever dependent on them? Or do we give our economy the chance to grow by supporting our own industry’s call for help to invest and modernize for it to be able to compete globally and satisfy future demand? That is the more important issue that faces the Tariff Commission,” Pestaño said.

The DTI imposed the safeguards against imported cement, noting that the local cement industry directly employs some 42,000 workers, with an additional 125,000 jobs contributed through the value chain.