Local industry groups are urging the government to act quickly against unfair trade practices from cheap imports and smuggling to head off massive losses for local businesses and the massive loss of jobs.
The Cement Manufacturers Association of the Philippines (CeMAP) is calling for the government to consider safeguard measures against cheap cement imports.
CeMAP expressed full support to Trade and Industry Secretary Cristina Aldeguer-Roque’s decision to launch a motu proprio probe on rising cement imports and the possible injury it had caused to the local cement industry.
DTI figures showed the domestic cement industry incurred substantial losses in 2023, amounting to P15 billion.
CeMAP executive director Renato Baja lamented there has been no safeguards duty on imported cement for the past two years.
“We believe the removal of the safeguards contributed to the surge of imported cement,” Baja said.
Pivotal investigation
CeMAP said it cannot yet conclude a massive cement smuggling in the country, thus citing the importance of the DTI probe.
In October 2022, the Tariff Commission (TC) recommended not to extend the safeguard measure for cement imports.
“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 TC said in its final report on the formal investigation on the petition for extension of safeguard measures filed by CeMAP.
“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 ruling reads.
Former Trade and Industry Secretary Alfredo Pascual did not seek an extension into the safeguard measures on cement imports as he said the DTI did not find “serious injury” to the domestic cement industry from the expiry of the measures, basing his decision on the probe of the TC.
The DTI-Department Administrative Order (DAO) 22-14 was signed by Pascual on 24 October, which cited the recommendation of the Tariff Commission not to extend safeguard measures.
The motu proprio investigation will promote a level playing field between importers and local cement manufacturers, which have been contributing to the economy through job creation and revenue generation for the government, according to CeMAP.