Tuesday, 30 September 2025, 4:05 pm

    Safeguard duty seen as lifeline for local cement industry

    The proposed safeguard duty on imported cement is drawing strong support from industry and business groups, who claim it will not trigger price hikes but is essential to protecting the local cement industry and jobs.

    In March, the Department of Trade and Industry (DTI) imposed a provisional safeguard duty of ₱400 per metric ton (₱16 per 40-kg bag) on cement imports, effective for 200 days. The move followed DTI’s finding of potential serious injury to the domestic industry. Despite the tariff, industry leaders said market prices have remained stable, with local manufacturers keeping competition healthy.

    Cement imports hit 7.6 million metric tons in 2024, mainly from Vietnam, despite the Philippines having a 51-million-ton production capacity. Actual production fell to 27 million tons—just 53 percent capacity use—due to a demand of only 35 million tons. But the industry reported ₱5 billion in losses, reduced operations, and job cuts.

    Industry leaders, including the Cement Manufacturers Association of the Philippines (CeMAP), argue that foreign suppliers—particularly some Vietnamese firms—benefit from state ownership or subsidies, enabling them to undercut Filipino manufacturers.

    “We need this safeguard to ensure the industry remains viable and to protect local jobs,” said CeMAP executive director Rey Baja. “This is about national interest. The Philippines is not subsidized, and we are simply seeking fair competition.”

    The Philippine Chamber of Commerce and Industry (PCCI) and the Federation of Philippine Industries (FPI) echoed the call, highlighting the cement sector’s contribution of at least 1 percent to GDP and support for around 130,000 jobs.

    Local manufacturers also play a role in environmental sustainability, using integrated plants to process plastic waste into alternative fuel—helping manage the country’s 2.7 million metric tons of annual plastic waste.

    Stakeholders are urging the government to implement a definitive safeguard measure to ensure the long-term viability of the sector and maintain its contribution to economic and environmental goals.

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