By Bernie Cahiles-Magkilat

Cement importers denied allegations that imports have caused serious injury to the domestic industry even as it questioned the Department of Trade (DTI)and Industry’s initiation of a motu propio investigation for allowing itself “to be led to believe and act” on allegations by the same industry which is actually enjoying robust demand, profitability and even expanding its capacity to address local production shortfall.

In its response to the DTI’s motu propio investigation, cement importers presented data to help correct understanding of the DTI “for a balanced view of the current state of affairs of the cement industry.”

“There is no substantial case of, or are threatening to substantially cause, serious injury to the domestic industry,” said the letter addressed to DTI Secretary Ramon M. Lopez. The letter was signed by a group of importers composed of Napoleon Co, chairman of NGC Land Corp., Ed A. Sahagun, president and CEO of cement importer Philcement Corp.; Jose Francisco Miranda, president of Pabaza Import and Export, Inc.; Kendrick Tan, general manager of Fortem Cement Corp.; and Paulino Garcia Jr. of All Asia Countertrade Inc.

The DTI has already notified the WTO that it has initiated a motu propio investigation against cement imports citing the Safeguard Measures Act.

The importers even asked, “Why the esteemed Department (DTI) is led to believe and act on alleged ‘substantial injury’ by the same industry which just announced that it is, in fact, thriving. The basis of the Motu Propio initiation of preliminary safeguard measures investigation on the importation of cement has been proven unfounded and without rationale by the very industry which asked for relief.”

Importers admitted that except for 2016 and 2017, cement imports to the Philippines were minimal. The increase in imports in 2016 and 2017, they said, was due to a surge in demand reaching a high of 29.52 million metric tons from only 26.84 MMT, the importers said. The estimated shortfall in cement supply during 2016-2017 was 2.47 MMT and 2.98 MMT, respectively, with local manufacturers importing 67 percent and 36 percent of total over the same period.

Based on data from the DTI’s Bureau of Import Services, the deficiency in capacity among local manufacturers was at least 8.2 MMT in 2017, which was supplemented by imports not just by pure traders but also by the local cement manufacturers, which have to resort to importation to augment their supply as they have reached maximum capacity.