Raising tariffs still failed to stop the flood of imported cement from the Philippines!

Manila's recent 4% tariff has failed to curb the flood of imported cement from the Philippines, thus increasing the need for more protection for local manufacturers who continue to produce high-quality products despite market challenges. < br/>

However, the Department of Trade and Industry (DTI) needs to determine whether the tariff is sufficient to protect the public interest and to ensure stability of supply and pricing in the local market after confirmation by the Tariff Commission (TC) through a preliminary investigation. It is necessary and reasonable to levy safeguard tax on imported cement.

Trade Secretary Ramon Lopez has already ordered a temporary tariff of 4% on imported cement at P210 per metric ton or P4.80 per bale, and the TC has confirmed that local cement manufacturers are facing serious injuries after several "pure" importers. Since 2016, sometimes substandard but cheaper cement has been over-imported.

Despite the new tariffs, DTI's latest monitoring shows that cement imports rose to 64% in the first quarter of 2019. The DTI compared its figures with the same period in 2018 when safeguards had not yet been implemented. Imports rose from 1.06 million metric tons (MMT) in the first quarter of 2018 to 1.47 million MMT in the first quarter of 2019,

the DTI report noted. It found that the local industry lost significant market share from 2013 to 2017 due to increased imports of cement.

Capacity utilization has also declined, with cement companies reporting a sharp 49% decline in earnings in 2017, while total net income began to decline by 29% in 2016 and further by 78% in 2017.

In carrying out its duties, DTI follows the policy announced in the "Safeguards Act" (Republic Act 8800) to protect the domestic industry from serious injury caused by surges in imports.

This development could serve as a basis not only for the implementation of permanent safeguard measures, but also for the provision of higher tariffs on imported cement to serve the public interest.

DTI's position is clear as it shows that the highly competitive domestic cement industry is an important part of infrastructure projects in the country. It complements the pillars of the Duterte administration's "build, build, build" plan and is crucial to the country's development. Cement supplies and prices in the country remained stable even with temporary safeguard measures,

it added. It affirms the actions of the DTI to place the SGM above the public interest. The higher rate is not expected to lead to a shortage of cement in the local market,

it said.

According to the DTI, safeguards were put in place to heal the serious injuries caused by the local cement manufacturing industry. However, according to recent data, imports increased despite the SGM. Therefore, increasing SGM may be necessary to support local industries.

The DTI will continue to monitor the price of cement and will consider its movements when deciding whether to continue with the tariff.

It maintains that cement users have the option to choose between local and imported cement, as imports are still allowed.