Extending the anti-dumping duty on cement imports is necessary for domestic firms to put into effect a roadmap for the competitiveness of the local industry amid the deluge of cheap imports.

Domestic producers also criticized the recent TC recommendation as potentially contributing to the depletion of the foreign currency reserves to $95 billion in September from $97.4 billion in August.

The Cement Manufacturers Association of the Philippines assailed yesterday the 5 October report of the Tariff Commission that recommended not to extend the safeguard measures on the local cement industry.

"CeMAP is saddened by the recommendation of the honorable TC to discontinue the implementation of the Safeguard Measure upon its expiry on 22 October 2022. The requested Safeguard Measure Extension was necessary for adjustment plans to be completed for the local industry to be ready for global competition," CeMAP president Cirilo Pestaño said.

CeMAP said that it cannot hide its disappointment over TC's decision, which has a great bearing on the industry's expansion plans.

The industry will be constantly prone to further injury due to the impact of the dumping of imported cement, CeMAP added.

"The threat of injury to the local cement manufacturing industry remains imminent from neighboring exporting countries, which continue to this day to flood the domestic market with imported cement even with the safeguard measure enforced," Pestaño added.

Definitive safeguard junked

The TC decision said, "the Commission recommends that the imposition of the definitive general safeguard measure on importations of Ordinary Portland Cement Type 1 and Blended Cement Type 1P no longer be extended."

"The domestic cement industry has undertaken, and continues to undertake, considerable efforts to comply with its adjustment plans and is thus making positive adjustments to import competition," the TC said.

The Commission said during the period under review from 2019 to 2021, the domestic cement industry maintained its market standing, increased its mill capacities, stabilized its manufacturing costs, and improved its profitability.