Connect with us

Hi, what are you looking for?

Economy

Steel sector can compete without safeguards, says Tariff Commission

THE PHILIPPINE steel industry has adjusted to import competition after the end of a decade-long imposition of safeguard duties on angle bars, according to the Tariff Commission.

Safeguard measures on steel angle bars were extended up to 2019 after the local industry reported serious injury from import competition under Republic Act 8800 or the Safeguard Measures Act.

The commission assessed the local industry’s performance in executing a plan to help it adjust to external pressures while safeguard duties were still in place.

“The actions that the steel angle bar industry undertook to improve production efficiencies and expand output were effective,” the agency said in an April report. “The domestic industry has attained a level of efficiency that will allow it to compete successfully against imports after the termination of the safeguard measure.”

Local producers have more than doubled to 21 this year from 10 in 2009.

The Tariff Commission said the local industry had kept a dominant market position and expanded production and sales, generating P5.8 billion in average yearly sales from 2014 to 2019.

“If no safeguard duty was imposed, the domestic industry would not have been able to easily invest in the implementation of efficiency measures, and they would have continued production at relatively higher prices,” it said. 

It added that a narrower price gap between imported and locally produced steel angle bars showed a successful adjustment to competition.

Jose Salvador Rivera, Jr., who lawyered for the petitioners — Cathay Metal Corp., Dragon Asia Rolling Mills, Inc. and Lunar Steel Corp. — in February said the safeguards need not be extended after the sector posted financial growth.

But Ramon Tan, president of a segment of the industry, the Steel Angles, Shapes and Sections Manufacturers of the Philippines, Inc.  said the duties would protect them while unregistered angle bars continue to enter the country.

In its report, the Tariff Commission said the local industry must continue to sustain competitiveness amid a coronavirus pandemic to avoid wasting gains made in the past decade.

“It is similarly imperative that the government do its part, by creating the conditions that will lead to a more stable and predictable business environment and promote ease of doing business in the new normal environment,” it added. — Jenina P. Ibañez

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

The goal for most businesses is to grow, so the concept of bad growth may seem counterintuitive to a lot of business owners. However,...

Investing

Employees of all companies will be able to request flexible working arrangements when they start new jobs under proposals to be published by ministers....

Investing

Our perspectives on remote working have changed dramatically over the course of the pandemic. No doubt many employers in 2019 would have assumed that...

Economy

The Bangko Sentral ng Pilipinas (BSP) lowered the country’s balance of payments (BoP) surplus projection for this year, reflecting the lower current account surplus and the risks...

Economy

The Securities and Exchange Commission (SEC) is encouraging more companies to tap the capital markets, in hopes that there would be over 800 companies listed at...

Economy

Outsourcing firms operating in economic zones are allowed to implement remote work arrangements until March 2022 as the pandemic continues, the Finance department said...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!