Safeguard duty on cement meant to protect jobs —CeMAP

Insider Spotlight

• Cement safeguard duty seen as protecting jobs, not raising prices
• Industry says imports undercut local producers, causing losses
• Groups push for long-term safeguards to secure industry viability
  

The Department of Trade and Industry’s (DTI) move to impose a provisional safeguard duty on imported cement is less about raising costs and more about saving local jobs, according to the Cement Manufacturers’ Association of the Philippines Inc. (CeMAP). 

With the Philippines operating at just over half of its cement-making capacity, industry leaders argue the safeguard is necessary to stop unfair competition from imports that enjoy government support in their home countries.

Why it matters

Cement is the backbone of infrastructure and housing, but the industry that produces it locally is struggling. In 2024, imports surged to 7.6 million metric tons—mostly from Vietnam—even though domestic capacity stood at 51 million tons. Actual production dropped to just 27 million tons, leading to P5 billion in losses, slowed operations, and job cuts.

This is not only an industry issue. Cement manufacturing contributes about 1 percent to GDP and sustains about 130,000 direct and indirect jobs. If the local sector continues to shrink, the Philippines risks over-reliance on foreign suppliers for a material critical to national development.

Driving the news

In March, the DTI slapped a P400-per-metric-ton duty (P16 per bag) on imported cement for 200 days. Prices have not risen since, with local manufacturers keeping the market competitive.

“We need this safeguard to ensure the industry remains viable and to protect local jobs. We also don’t think it will result in higher prices,” CeMAP executive director Rey Baja said in a statement. 

He added: “It is of national interest to promote and protect the local cement industry against unfair competition from other countries. The Philippines is not subsidized.”

What’s next

The safeguard has strong backing from groups like the Philippine Chamber of Commerce and Industry (PCCI) and the Federation of Philippine Industries (FPI). They want a definitive, longer-term measure to ensure local manufacturers stay afloat.

Beyond economics, domestic cement companies are also helping address waste management. Many plants process plastic waste as alternative fuel, a critical boost in a country generating 2.7 million metric tons of plastic annually.

The fight over safeguard duties isn’t just about cement—it’s about whether Philippine industries can compete fairly in a globalized economy while protecting jobs at home. —Ed: Princess Daisy Ominga