The Department of Trade and Industry (DTI) has initiated a preliminary investigation to determine whether increased imports of cement are causing or threatening to cause serious injury to the domestic industry. The investigation covers cement classified under AHTN Codes 2523.29.90 and 2523.90.00 for the period of 2019 to June 2024.

The DTI’s decision is based on evidence indicating a significant increase in cement imports during the investigation period. In absolute terms, imports have steadily risen year-on-year from 2019 to 2023. Imports grew by 10% in 2020, 17% in 2021, and 5% in 2023. Additionally, the relative share of imports has also increased from 30% in 2019 to 47% in 2023, and further to 51% in the first half of 2024.

Based on the initial findings, there is substantial evidence indicating that increased imports of cement have caused serious injury to the domestic industry. This injury is manifested in declining market share, reduced production and sales, decreased capacity utilization, diminished profitability, price depression, undercutting, and suppression.

The significant increase in the volume of imported cement preceded the serious injury to the domestic industry in 2023. This surge in imports has led to a shift in market share, with imported cement displacing domestic products. Consequently, the domestic industry has suffered serious injury.

DTI Secretary Ma. Cristina A. Roque emphasized that, “At DTI, we are actively looking on how to assist Philippine industries, considering their contribution to economic value addition and jobs generation.  We remain committed to providing an environment where the domestic industries can effectively compete with imports.”

The DTI invites the interested parties particularly the exporters and importers to submit their comments and position on the matter, including their views whether the imposition of a safeguard measure is in the public interest.  Safeguard measure, pursuant to Republic Act 8800, is a trade policy tool which allows the government to remedy serious injury caused by increased imports. These measures are temporary and are implemented to give injured domestic industries time to adjust to import competition and be competitive. ♦

Date of release: 11 November 2024

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