Safeguard measures on cement pushed amid rise in imports

MANILA, Philippines — Cement makers are pushing for the imposition of safeguard measures on cement as imports of the contruction product continued to increase.

Speaking at the Kapihan sa Manila Bay on Wednesday, Cement Manufacturers Association of the Philippines (CeMAP) executive director Renato Baja said the group and Eagle Cement Corp. are supporting the Department of Trade and Industry (DTI)’s move to initiate a motu proprio preliminary safeguard measures investigation on cement imports from various countries.

“This critical step underscores the government’s commitment to ensuring fair competition and protecting the local cement industry from undue harm by excessive imports,” he said.

He said the implementation of a safeguard measure on cement is crucial to mitigate the adverse impacts of imports and preserve the competitiveness of local producers.

Citing data from the Bureau of Customs, Baja said cement imports reached 6.2 million tons from January to October, five percent higher than last year.

In October alone, he said cement imports reached a record high of 870,000 tons.

He said the bulk or about 94 percent of cement imports to the Philippines are from Vietnam.

Meanwhile, five percent is accounted for by Japan and one percent is from Indonesia.

“Despite the Philippines’ cement industry’s ample capacity of 50 million tons annually sufficient to meet local demand estimated at 34 million tons, the influx of imported cement has brought substantial harm to domestic manufacturers,” Baja said.

Earlier this month, the DTI announced that it is conducting a preliminary probe to determine if safeguard measures on cement imports should be imposed.

Under Republic Act 8800 or the Safeguard Measures Act, the government may impose a safeguard measure like increased tariff on certain imports as a relief to the domestic industry when a surge in imports of like products cause serious threat or injury.

The DTI decided to conduct a preliminary safeguard measures investigation as cement imports increased from 2019 to 2023.

Baja said the CeMAP submitted its position paper on the matter to the DTI on Nov. 12.

He said CeMAP would continue to work with the government in promoting fair competition.

“The industry together with its stakeholders remain steadfast in its commitment to supporting government’s efforts to foster fair trade practices, promote local manufacturing in a sustainable manner, create jobs and strengthen the national economy,” he said.