Cement safeguards backed

Federation of Philippine Industries (FPI) chairman Meneleo Carlos has expressed support for the imposition of definitive safeguard measures on imported cement to save jobs and preserve the local cement industry, following a Court of Appeals decision upholding the authority of the Department of Trade and Industry (DTI) in implementing the Safeguard Measures Act (RA 8800).

In a radio interview recently, Carlos said the DTI is the rightful implementing arm of RA 8800 as safeguards is not a revenue measure but a protective mechanism for local industries against the dumping of imports.

He said that without the imposition of safeguards, other countries may again dump their excess capacity in the Philippine market, which could result in plant closures and loss of jobs.

Carlos also discounted the possibility that local cement manufacturers will take advantage of the imposition of safeguards by increasing their prices and behave like a cartel. "There can be no cartel, because of the surplus capacity of local producers. Connivance is impossible under such a situation. The local manufacturers are now engaged in very stiff competition among themselves," he said in Filipino.

As a result of the competition among local producers, Carlos said the prices of cement in the Philippines are the second lowest in Asia, next only to China.

Earlier, consumers through the Citizens Action for Consumer Protection (CACP) also lauded the CA decision, and called on the trade secretary to immediately impose definitive safeguard measures to prevent the excessive entry of imported cement into the country, which could result in the closure of local manufacturing plants and lay-offs among cement workers.

The CACP said the imposition of the P20.60 per bag provisional tariff on imported cement leveled the playing field and brought down cement prices from P150 to P104 per bag at present. The group said a permanent safeguard measure could further stabilize prices and supply of cement, and preserve tens of thousands of jobs in the cement industry.