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Business World reported that according to the Tariff Commission, Philippine’s steel industry has adjusted to import competition after the end of a decade long imposition of safeguard duties on angle bars. It said “The actions that the steel angle bar industry undertook to improve production efficiencies and expand output were effective. 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.”
The Tariff Commission said the local industry had kept a dominant market position and expanded production and sales, generating PHP 5.8 billion in average yearly sales from 2014 to 2019. It said “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. A narrower price gap between imported and locally produced steel angle bars showed a successful adjustment to competition.”
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.”
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.
Petitioners Cathay Metal Corp, Dragon Asia Rolling Mills Inc and Lunar Steel Corp, had said in February that the safeguards need not be extended after the sector posted financial growth.