Consumers back safeguards against imported cement

A consumer group lauded yesterday the recent decision of the Court of Appeals (CA) upholding the authority of the Department of Trade and Industry (DTI) secretary to impose safeguard measures against the surge of imported cement in the market to protect the industry.

"The court is one of the few government institutions in the country that could still see the imminent threat of a blind liberalization policy that only erodes domestic industries like cement," former UP professor Raul E. Segovia and chairman of the nationwide Citizen’s Alliance for Consumer Protection (CACP) said in a statement.

The group also expressed support for the immediate enforcement of "permanent safeguard measures" required by RA 8800, and authorizing the DTI secretary to execute the measures. The CA decision made this power explicit which was the bone of contention when Secretary Mar Roxas acceded to the Tariff Commission Report on the belief that he was bound to agree with the recommendation despite his dissenting opinion and that the DTI’s role was merely optional.

With the CA decision, it corrected the gray area, according to the CACP, and in effect protected cement consumers and the thousands of workers in the industry, which faced massive closures due to the surge of imported cement.

Segovia stated that massive cement imports have never benefited consumers. He explained that prices of cement in a market dominated by imports beginning 1999 reached P150 per bag, but when Roxas imposed a P20.60 per bag provisional tariff, retail prices went down to an average of P108-112 per bag.

"That was an indication that safeguards work for the interest of the consumers," he added. Worse, the surge of imports from 1999 to 2001 caused many local cement companies to reduce production, close shop and retrench workers.

Citing the CA decision, the CACP called for the immediate imposition of permanent safeguard measures on imported cement for prices to stabilize and make the local cement industry viable again.

Segovia said there are 120,000 workers who are dependent on the local cement industry, who may become "ineffectual consumers" if they lose their jobs due to importer’s domination of the local market.

He warned that if imported cement continues to dominate the market, the government social programs like the building of more classrooms and houses for the urban poor may be reduced to cover the cost of highly priced imported cement.

"The larger significance of the decision is that other industries threatened by massive imports, dumping and smuggling could now appeal for urgent assistance from the DTI for tariffs that could give domestic products a good fighting chance in a playing field that could allow fair competition with foreign products," Segovia said.

The CACP chairman also stressed that the CA decision has also provided government the legal backing to proceed decisively in implementing long-term safeguard measures meant to ensure the survival of local industry and agriculture from the onslaught of imports disguising as the benefits of globalization.

"With the CA decision, we now hope the DTI and other similarly mandated agencies exercise stronger will on behalf of our local industries, our agriculture, our workers, farmers and, ultimately, our consumers," Segovia said.

Show comments