FPI urges GIHL not to ask for higher tariff on steel imports

The Federation of Philippine Industries (FPI) urged yesterday Global Infrastructure Holding Ltd. (GIHL) not to ask for a higher tariff on steel imports.

FPI president Jesus Arranza said "raising tariffs on steel imports will increase the prices of consumer goods, both for food and non-food items."

"Prices of products that use tin cans as packaging materials such as sardines, corned beef, and cooking oil will go up," Arranza warned.

Likewise, Arranza said, "higher costs of steel construction materials will also set back the government’s ongoing mass housing and infrastructure projects."

Arranza reiterated the FPI’s position that NSC should not be given tariff protection because it would adversely affect viable downstream steel industries which have been performing so well i n the past four years.

Arranza cited the adverse effect on higher steel tariffs imposed by the US government which resulted in job losses to the US downstream steel industry of between 36,000 and 74,000 jobs while saving only between 5,000 and 9,000 jobs in the upstream steel industry.

Arranza noted that aside from possible tariff protection, NSC may be given other assistance in the form of tax holldays, reduced power cost and declaration of the NSC plant as a special economic zones.