CEMENT TRADERS asked the Department of Trade and Industry (DTI) to drop its motu proprio investigation into safeguard measures for imported cement, rejecting claims of a surge in cement imports.
In a statement over the weekend, the traders, including Cohaco Merchandizing & Development Corp., Fortem Cement Corp., NGC Land Corp., Pabaza Import and Export, Inc., and Philcement Corp. said that the volume of imports has remained steady over the years.
“Cement importers have denied any significant increase in the volume of cement imports into the country, warning that additional restrictions to the existing ‘protectionist’ measures already in place could only lead to higher prices of this basic construction material,” they said.
According to the importers, the investigation into possible safeguard measures is “unnecessary and counterproductive.”
Late last year, the DTI launched a preliminary safeguard measures investigation into the increasing imports of cement classified under ASEAN Harmonized Tariff Nomenclature (AHTN) Codes 2523.29.90 and 2523.90.00, citing the possibility of serious injury to domestic producers.
These claimed injuries include declining market share, reduced production and sales, diminished profitability, price depression, undercutting, and suppression.
However, the traders said that the data cited in the initial DTI report of increasing imports between 2019 and June 2024 reflects market conditions during the pandemic.
Cement imports grew 10.34% to 5.882 million metric tons (MMT) in 2020 and by 17.2% to 6.894 MMT in 2021.
“Importers attributed this increase to the pandemic period, during which local production was curtailed as manufacturers faced difficulties operating due to quarantine restrictions imposed by the government,” they said.
“Cement suppliers, particularly importers, were compelled to increase the volume of imports to meet demand for cement,” they added.
Further, the traders said cement manufacturers were able to swiftly recover after lockdowns and quarantine restrictions were eased, as seen in the drop in imports in 2022.
Cement imports declined 2.89% to 6.695 MMT in 2022, whereas they increased 4.74% to 7.013 MMT in 2023.
“In 2024, cement imports were projected to have reached 7.361 MMT, representing a modest 4.96% increase. At this rate of increase, traders maintain this does not warrant the imposition of safeguard measures under World Trade Organization standards,” they said. — Justine Irish D. Tabile