DTI to probe rising cement imports threatening domestic industry

The Department of Trade and Industry (DTI) said it will begin a preliminary investigation to determine if rising cement imports are harming the local industry.

In a notice of motu proprio initiation signed by Trade Secretary Ma. Cristina Roque, the probe will cover cement products classified under AHTN Codes 2523.29.90 and 2523.90.00 and will examine data from 2019 to June 2024.

The DTI noted a significant increase in cement imports during this period, both in volume and market share. Cement imports in absolute terms increased continuously from 2019 to 2023, with increases of 10 percent in 2020, 17 percent in 2021, and 5 percent in 2023.

In relative terms, the share of imports rose from 30 percent in 2019 to 47 percent in 2023 and 51 percent in January to June 2024.

Similarly, domestic industry sales revenue declined due to the imports, from P79 billion in 2019 to P64 billion in 2023.

"The significant increase in the volume of imported cement preceded the serious injury to the industry in 2023," the DTI said, stressing that "the conditions of competition show that the market share of locally produced cement was essentially displaced during the POI as the share of imports in the domestic market significantly increased."

Interested parties may submit comments to the Bureau of Import Services within five days of the notice's publication, the department said.