(Manila Bulletin file photo)
The Cement Manufacturers’ Association of the Philippines (CeMAP) welcomed the government’s move to impose a temporary safeguard duty of ₱349 per metric ton (MT) on two kinds of imported cement as a measure to strengthen the local industry.
In a statement on Thursday, Oct. 16, the CeMAP said it “respects the decision” of the Department of Trade and Industry (DTI) to adopt the recommended measures of the Tariff Commission (TC).
The DTI on Tuesday said it will adopt the TC’s suggestion to slap a safeguard duty of ₱14 for a 40-kilogram bag or ₱349 per MT of ordinary Portland cement type 1 and blended cement for a period of three years.
The TC issued the recommendation last month following the conclusion of its investigation into the DTI’s imposition of duties amounting to ₱400 per MT in February.
The DTI earlier found a causal link between the increased imports of cement products and the serious injury to the domestic industry. This was later confirmed by the TC.
In its report to the DTI, the TC said the ₱349 safeguard suty is the difference between the weighted average store price of imported cement and the weighted average selling price of the local cement industry for 2024.
“While we had hoped for a higher tariff, we fully respect the DTI’s decision,” said CeMAP.
The industry group recently pushed the DTI to increase the safeguard duty to as high as ₱600 per MT.
“We view this as a fair measure consistent with trade rules and supportive of the competitiveness of the local cement industry,” it also said.
CeMAP stated that it is confident that the local cement manufacturing will improve its capacity utilization, which was only at 53 percent last year, once the duties are officially imposed.
The industry group said this should enable the industry to better support the country’s growing infrastructure needs.
“CeMAP remains committed to ensuring the steady supply of quality cement products and to contributing to the country’s infrastructure development,” it said.
According to CeMAP, the local cement manufacturing industry contributes at least one percent to the country’s gross domestic product (GDP), supporting around 130,000 direct and indirect jobs.