Tariff lifting won’t lead to cement import surge — CUP

The Consumers Union of the Philippines (CUP) said yesterday there will be no import surge even if the safeguard duty on imported cement is removed by the Department of Trade and Industry (DTI).

CUP president Quirino Marquinez said it is highly improbably that an import surge would occur since most of the cement manufacturing capacities are owned and operated by the same foreign companies that own almost 90 percent of the capacities in the Philippines.

Lafarge, Cemex and Holderbank operate in the Philippines as well as in Thailand, Malaysia, Indonesia and Vietnam.

Marquinez argues that an import surge cannot occur if the same companies own the bulk of cement capacities in ASEAN and the Philippines.

A surge would only happen, Marquinez said, "if the same companies will stage it in order to convince the Department of Trade and Industry to continue with the imposition of the safeguard duty."

CUP is asking the DTI to investigate the operation of the cement companies since there appears to be a cartel "which is disastrous to consumers and will greatly hamper government’s low cost housing and infrastructure projects."

The DTI’s obligation, Marquinez said, is to protect consumers.

The DTI had threatened to remove the safeguard duty following a rise in cement prices during the rainy season when demand is traditionally low.

In July this year, the DTI imposed a P20.60 safeguard tariff on imported Portland cement following the influx of imported cement which adversely affected the supply and cement prices.

Government had gotten assurance from local cement manufacturers that with the safeguard measure, cement prices and supply would continue to remain stable to benefit consumers.