The proposed safeguard duty on cement imports is not expected to cause price increases and is needed to protect local jobs from “unfair competition,” according to an industry group.
The Cement Manufacturers Association of the Philippines (CeMAP) and other business groups said the measure is necessary to allow local manufacturers a fair chance to compete against foreign suppliers, particularly those that benefit from government support.
The Department of Trade and Industry (DTI) imposed a provisional safeguard duty of P400 per metric ton, or P16 per 40-kilogram bag, on imported cement for 200 days starting March 2025. The DTI initiated the duty motu proprio after finding signs of “serious harm” to the local industry. Since the levy was imposed, cement prices have remained stable, with local manufacturers keeping the market competitive.
Cement imports reached 7.6 million metric tons in 2024, mostly from Vietnam, despite the Philippine industry having a total capacity of 51 million tons. With domestic demand at around 35 million tons, actual production dropped to 27 million tons, meaning only 53 percent of capacity was used.
CeMAP said the resulting market conditions led to P5 billion in losses for local firms, slower operations and job cuts.
Industry leaders said the situation is unfair because some Vietnamese cement companies are state-owned or receive government incentives that Filipino manufacturers do not. This, they said, allows them to sell cement at very low prices, even when the Philippines has sufficient domestic supply.
CeMAP executive director Rey Baja said the safeguard would ensure the industry remains viable and protect local jobs.
“We also don’t think it will result in higher prices,” Baja said. “It is of national interest to promote and protect the local cement industry against unfair competition from other countries. The Philippines is not subsidized.”
The safeguard measure has strong support from groups like the Philippine Chamber of Commerce and Industry (PCCI) and the Federation of Philippine Industries (FPI), who stress its importance for local employment and industry survival.
Cement manufacturing contributes at least 1 percent to the country’s gross domestic product (GDP) and supports an estimated 130,000 direct and indirect jobs.
Local manufacturers with integrated plants also aid government environmental initiatives by recovering and processing plastic waste for use as alternative fuel. Given that the country generates approximately 2.7 million metric tons of plastic waste each year, these initiatives are considered impactful.
Stakeholders said a definitive safeguard measure is needed to keep local cement manufacturing viable and able to support the national interest.
