The Cement Manufacturers Association of the Philippines (CeMAP) asked the government to impose a P600-per-metric-ton (MT) safeguard duty on imported cement for the next three years.
The group said the higher tariff is necessary to protect the local industry from “real injury” caused by subsidized foreign imports and undercut prices.
The group’s “prayer” for a P600 tariff is significantly higher than the P349 per MT recommended by the Tariff Commission and the P400 provisional duty earlier proposed by the Department of Trade and Industry (DTI), according to CeMAP executive director Renato A. Baja.
“Our recommendation of P600 was based on a comparison between the landed cost of imported cement and the gate price of locally produced ones—that’s the fair and realistic rate that reflects the actual injury suffered by our industry,” said Baja.
Baja said that while CeMAP welcomes the Tariff Commission’s recognition of the need for an increased duty, the proposed P349 rate “remains insufficient.”
DTI Secretary Ma. Cristina Roque said the DTI would issue the final decision on Oct. 14, following an in-depth evaluation of the Tariff Commission’s report and the manufacturers’ appeal. The safeguard measure, if approved, would be effective for three years.
The requested tariff would translate to about P24 per bag of cement and would not lead to higher retail prices, Baja said, citing that prices have remained stable even after the provisional duty was imposed in March. “We’ve proven that prices did not increase despite the existing provisional duty,” he said.
The Philippine cement industry has an installed production capacity of 51 million MT per year, but actual output in 2024 reached only 28 million MT, or a 53-percent utilization rate, against an estimated annual demand of 35 million MT.
CeMAP noted a “temporary slowdown” in public works, which comprises about 40 percent of the demand, following recent reviews and project adjustments by the Department of Public Works and Highways (DPWH).
Despite the slowdown, Baja said the local industry remains capable of fully supplying national demand, noting the problem lies not in production but in the flood of cheap imports eating into local sales.
CeMAP data showed that cement imports declined by 19 percent year-on-year following the imposition of provisional tariffs earlier this year, from 7.6 million MT in 2023.
While the decline is welcome, Baja said the industry continues to face “unfair competition” from subsidized imports that can still sell at lower prices despite the duties.
He said a P600-per-ton safeguard would level the playing field rather than restrict competition.
