CEMENT TRADERS asked the Department of Trade and Industry (DTI) to drop its motu proprio investigation into safeguard measures for imported cement, rejecting claims of a surge in cement imports.

In a statement over the weekend, the traders, including Cohaco Merchandizing & Development Corp., Fortem Cement Corp., NGC Land Corp., Pabaza Import and Export, Inc., and Philcement Corp. said that the volume of imports has remained steady over the years.

“Cement importers have denied any significant increase in the volume of cement imports into the country, warning that additional restrictions to the existing ‘protectionist’ measures already in place could only lead to higher prices of this basic construction material,” they said.

According to the importers, the investigation into possible safeguard measures is “unnecessary and counterproductive.”

Late last year, the DTI launched a preliminary safeguard measures investigation into the increasing imports of cement classified under ASEAN Harmonized Tariff Nomenclature (AHTN) Codes 2523.29.90 and 2523.90.00, citing the possibility of serious injury to domestic producers.

These claimed injuries include declining market share, reduced production and sales, diminished profitability, price depression, undercutting, and suppression.

However, the traders said that the data cited in the initial DTI report of increasing imports between 2019 and June 2024 reflects market conditions during the pandemic.

Cement imports grew 10.34% to 5.882 million metric tons (MMT) in 2020 and by 17.2% to 6.894 MMT in 2021.

“Importers attributed this increase to the pandemic period, during which local production was curtailed as manufacturers faced difficulties operating due to quarantine restrictions imposed by the government,” they said.

“Cement suppliers, particularly importers, were compelled to increase the volume of imports to meet demand for cement,” they added.

Further, the traders said cement manufacturers were able to swiftly recover after lockdowns and quarantine restrictions were eased, as seen in the drop in imports in 2022.

Cement imports declined 2.89% to 6.695 MMT in 2022, whereas they increased 4.74% to 7.013 MMT in 2023.

“In 2024, cement imports were projected to have reached 7.361 MMT, representing a modest 4.96% increase. At this rate of increase, traders maintain this does not warrant the imposition of safeguard measures under World Trade Organization standards,” they said. — Justine Irish D. Tabile

EXPORTERS need to make healthier, more sustainable, and authentic products to appeal to French consumers, which in turn will help them appeal to other markets, the Philippine Exporters Confederation, Inc. (Philexport) said.

Citing Antonie Lyka Manaloto, the Department of Trade and Industry’s Export Marketing Bureau European Union Market officer, Philexport said the French market is focused on sustainability, plant-based products, healthy indulgences, authenticity, and innovation in ocean products.

“If you export to France, it (would help if the packaging) reflects environment consciousness. More consumers are seeking to reduce their carbon footprint, minimize food waste, and protect the environment,” Ms. Manaloto said.

Citing Market Insights, she noted the rapid growth of nature-related claims in the French food and beverage industry.

“Consumers are increasingly adopting plant-based products but still look for a sense of familiarity and clarity,” she said.

“Thus, growing preference for plant-based versions of well-known dishes and formats, providing both comfort and ease,” she added.

The top food categories featuring plant-based claims are dairy, desserts, ice creams, and sports nutrition.

French consumers are also looking for diverse culinary experiences featuring authenticity and global influences, with 46% of French consumers looking for flavors they have tried at a restaurant and street stalls.

“This food trend is reflected in the rise in Greek moussaka and Chinese sweet and sour flavors over the past five years,” she said.

“Maybe if they could try our flavors. French consumers are somewhat adventurous when it comes to the taste of the food that they want to pursue,” she added.

French consumers are also seeking food that promises health benefits, including weight management, heart health, and bone and joint health.

“Energy, high protein, palm oil-free, and plant-based claims are also growing strongly in the space. This trend signifies a strong consumer preference in France for products that satisfy both cravings and health goals,” she said.

Meanwhile, marine farms are also being eyed as sources of new and environmentally positive ingredients.

“Over the past five years, there has been an 8% rise in new launches containing sea plant-based ingredients, including varied species of algae, marine collagen, and spirulina, driven by growing consumer interest in sustainable and nutritious options,” she said.

“There has also been a 41% increase in new product launches in fish and seafood substitutes, driven by consumer preferences for health and environmental concerns,” she added. — Justine Irish D. Tabile

By Justine Irish D. Tabile, Reporter

THE PHILIPPINES will need to diversify its export markets, strengthen its supply chains, and graduate to higher-value industries to tap opportunities that can opened up with the new tariff policies to be imposed by US President Donald J. Trump.

Former Trade Undersecretary Rafaelita M. Aldaba said that the Philippines needs to reduce its reliance on exporting to the US by expanding trade with ASEAN and deepening partnerships with Japan and the European Union.

“We also need to strengthen, of course, our supply chain resilience, reducing dependence on China and exploring sourcing from Vietnam, Indonesia, India, and other countries,” she said at an online panel discussion organized by the Philippine Manufacturing Team on Friday.

She also said that the Philippines should leverage the Regional Comprehensive Economic Partnership, the EU Generalized Scheme of Preferences, and the ASEAN FTA to access lower tariffs and wider markets.

“We need to invest in higher-value industries and move beyond low-cost production, and we need to closely monitor trade policy. We need to stay updated on US trade policies and tariff changes to adjust our strategies accordingly,” she added.

She said that studies on the likely impact of a tariff war between the US and China indicate that some regional neighbors will successfully substitute for targeted Chinese goods.

“The largest export winners were Vietnam, Thailand, Korea, and Mexico,” she added.

She said other bystander countries were able to early on identify the trade war as an opportunity, and invested in new plants, trade infrastructure, and trade facilitation.

Citing a report by the IMF’s Asia and Pacific Department, she said that the Philippine industrial performance is being held down by ease of doing business and high barriers to foreign direct investment and international trade.

“The Philippine share of the global export market and export diversification lagged behind other ASEAN countries. And the Philippines’ participation in global value chains has also declined over time, and is below many ASEAN peers,” she said.

She said industries need more support from the government in the face of such uncertainty.

“The government has a huge role to play in leveraging trade agreements, investing in higher-value industries, and embracing digitalization and innovation,” she said.

“I think these measures are all necessary to equip and empower our businesses and enable them to better navigate trade uncertainties and remain competitive,” she added.

Philippine Economic Zone Authority Director General Tereso O. Panga said that Mr. Trump’s new trade policy presents an opportunity for the Philippines to attract companies that might be relocating out of China as that market becomes less competitive because of tariffs.

“We’re seeing this happening already. In fact, we’ve been registering projects where companies from the electronics and automotive sectors are relocating because of the need to service the requirements of the US market. This could be a windfall for the Philippines,” Mr. Panga said.

“I would say the biggest winners could be from those in the electronics sector,” he added.

However, he said the Philippines will need to step up and upgrade its capabilities to benefit from this “pivot” by manufacturers.

Philippine Parts Makers Association President Ferdinand I. Raquelsantos said the revival of the US Generalized System of Preferences (GSP) could make the Philippines a good prospect for manufacturers that are relocating.

“Hopefully the government can revive the GSP that we used to have with the US. With that, we will be able to get access and be able to export our products a lot easier,” he said.

He said that when the US GSP was in force before the pandemic, a lot of manufacturers were able to export automotive parts.

“Unfortunately, when the GSP lapsed (in 2020), we had problems,” he said.

The Philippines was a beneficiary of the US GSP, which eliminated duties on approximately 5,000, or 47%, of all tariff lines.

Eligibility for the US GSP benefits expired on Dec. 31, 2020, which caused Philippine exports to the US that were previously duty-free under the preferential scheme to be subject to most-favored-nation tariffs.

While active, the Philippines was the fifth-largest beneficiary of the US GSP with about $1.6 billion in duty-free exports in 2020. This accounted for 10% of US GSP imports.