MANILA, Philippines - At the behest of Indian firm Global Steel Philippines Inc (GSPI), the government has decided to delay the removal of the seven percent tariff on imported steel.
In an interview, Trade Undersecretary Zenaida C. Maglaya said that the decision to not sign the Executive Order was the result of the lowering of steel prices in the world market.
“The EO was supposed to be signed together with the EO relaxing the tariff on petroleum, crude oil and asphalt,” Maglaya said.
The EO for the removal of steel tariff was sent back to the National Economic Development Authority (NEDA) board for further study.
Maglaya said the decision to remove the tariff on imported steel will now be up to the new administration.
In spite of this, Maglaya said they are not worried that the safeguard will result in the tightening of supply of steel products.
“We are not worried because the industry is not complaining. Maybe they do not need it,” Maglaya explained. “The government is reviewing this again but the new administration will review it,” she said.
Global Steel managing director Lalit K. Sehgal said the planned tariff removal has placed their operations in danger. However, he stressed they have not recommended the closing of the Philippine operations to the head office.
Sehgal said they have power availability problems after failing to pay their electricity bills some years back. He said their debt is now being restructured because they are questioning the interest rates that were imposed on them.