Galvanizers urge GMA not to raise tariff on steel products

Salvio D. Perez, president of the Filipino Galvanizers Institute, reiterated yesterday the appeal of users of flat steel sheets for President Arroyo not to grant the new owner of National Steel Corp. its request for tariff increases on steel products. He underscored the fact that the approval of this request will unduly penalize producers and burden end-users.

"If President Arroyo and government agencies concerned would intently listen to protests from a lot of sectors they will realize how widespread this clamor has become. They will also get a full understanding of the negative consequences of these increases," he said.

Among the protesters are the Tin Can Manufacturers Association of the Philippines (TCMAP), the Coconut Oil Refineries Association (CORA), the Philippine Association of Meat Processors (PAMPI) and the Philippine Chamber of Food Manufacturers and the Filipino Galvanizers Institute.

The object of all these protests is Global Steelworks Inc.’s (GSII) request for a 35-percent tariff on tin plates and 30 percent on hot rolled coils and cold rolled coils.

Perez, made it clear that the Filipino Galvanizers Institute which he represents is not against the rehabilitation and re-operation of NSC. What they are against is the granting of the request for tariff increases as these would translate into cost penalties not only to downstream producers but to the consumers.

Perez cited the fact that most countries all over the world including those in ASEAN have reduced or altogether waived the tariff duties on imported steel products. GSII on the contrary has asked government to raise the tariff levels for steel products they have yet to produce.

Perez said higher tariffs will translate into 30-percent increases in such prime commodities as sardines, canned milk and cooking oil, liquefied petroleum gas (LPG) tanks and roofing sheets. It is for this reason that Perez asks the President "to consider prudently the far-reaching negative impact of Global’s tariff hike request on the entire industry, the consumer and the economy.