Cement firms back DTI probe on import safeguards

MANILA, Philippines — Cement manufacturers have expressed support for the Department of Trade and Industry’s  (DTI) probe on safeguard measures on cement imports, amid concerns the influx of imports may put jobs at risk.

“This is welcome news to the local industry,” Cement Manufacturers Association of the Philippines (CeMAP) executive director Renato Baja said in a Viber message.

He said the surge in cement imports in the country endangers Filipino jobs.

Like the DTI, he said CeMAP recognizes that the influx of imported cement, particularly from Vietnam, has caused injury to the domestic industry.

He also said the local cement industry has a total annual capacity of 50 million tons, greater than the domestic annual demand of 35 million tons.

“While there are nine cement companies with integrated manufacturing plants in the Philippines, the country has more than enough competition in terms of price and quality in the market for the welfare and protection of the buying public,” he said.

To ensure adherence to the due process, he said the CeMAP will be submitting formal position papers and providing testimonies on the matter.

In a notice issued last week, the DTI said it is inviting interested parties to submit their views on the imposition of safeguard measures on cement imports and whether such measures serve the public interest.

The DTI said it will initiate, motu proprio, a preliminary investigation to determine if safeguard measures should be imposed on cement imports in response to observed surges in imports.

The country may impose temporary safeguard measures or increased tariffs on certain imports under Republic Act 8800 or the Safeguard Measures Act, to provide relief to the domestic industry when there is serious threat or injury caused by a surge in imports of like products.

Under the same law, the Trade Secretary may launch a preliminary safeguard investigation, if there is evidence that increased imports of the product are causing serious injury to the local industry producing like products.

The DTI said cement imports have been steadily rising from 2019 to 2023.

In particular, cement imports grew by 10 percent in 2020, 17 percent in 2021 and five percent in 2023.

In addition, the relative share of imports also rose from 30 percent in 2019 to 47 percent in 2023 and went up further to 51 percent in the first half of 2024.

Initial findings of the DTI also showed there is substantial evidence indicating that increased cement imports have caused serious injury to the domestic industry in terms of declining market share, reduced production and sales, decreased capacity utilization, diminished profitability, price depression, undercutting and suppression.