Local cement makers warned yesterday that the Tariff Commission's decision to end the safeguards on the domestic industry will discourage investments and may result in massive layoffs when local factories cut down on costs.

The influx of cheap cement primarily from Vietnam had placed in jeopardy the P60-billion expansion and modernization program of the industry.

On 5 October, the TC released a report recommending not to extend the safeguard tariff on cement mainly coming from Vietnam.

The punitive tariff ends on 22 October and local manufacturers under the Cement Manufacturers Association of the Philippines or CeMAP are now weighing their options after the extension of the safeguard was rejected.

An industry official said the TC decision merely reinforces import dependency which "is not good for our economy."

The high-ranking Daily Tribune source said allowing massive importation will result in significant dollar outflows while helping the economy of other countries.

Dumping prices

Based on Bureau of Customs data, some 91 percent of imported cement comes from Vietnam at impossibly low prices meant to eliminate local manufacturers.

The official added that relying on imports despite the capability of local industries will mean lost job opportunities.

"It is like giving away jobs that should have benefited Filipinos to Vietnam and other exporting countries," the official pointed out.

The official lamented that the government is allowing imports to compete unfairly with local produce since the country has abundant mineral resources for cement production.

"More taxes should be earned by our government from our domestic industry. We need to be more patriotic if we want our country to progress," the executive added.

The continued dumping of cement imports from Vietnam has resulted in material injury to the domestic manufacturers contrary to the findings of the TC that the local industry has positively adjusted to imports.