In response to an influx of cheap imports, Philippine glass companies want Vietnam added to the list of companies subject to safeguard duties. Asahi Glass Philippines“ Renato R. Ermita, president of …
In response to an influx of cheap imports, Philippine glass companies want Vietnam added to the list of companies subject to safeguard duties. Asahi Glass Philippines“ Renato R. Ermita, president of the newly established Flat Glass Alliance of the Philippines, said that imports from Vietnam have risen from only about 3% before provisional safeguard duties were imposed in September 2003, and now account for 15% of the market. “After the issuance of the [orders], imports went down, but picked up again when [the importers] started importing from Vietnam,” Mr. Ermita said. Asahi Glass wants the Tariff Commission to issue the definitive safeguards soon, and is hopeful that these will be extended to cover Vietnam. The provisional duties, in effect for 200 days and set to expire in May 2004, are PHP 1,535 per metric tonne for figured glass, PHP 2,000 for float glass, PHP 2,650 for tinted float glass, and PHP 3,560 for framed and unframed glass mirrors. China, Thailand, Taiwan, Indonesia, Singapore, South Africa, and South Korea are the countries covered by the provisional duties under two orders issued by the Department of Trade and Industry. Developing countries whose share of imports is less than 3%. are exempt from the orders. Mr. Ermita argued that the local glass industry is able to meet domestic demand and that there was no need to import. “We have to operate at full capacity and we have more than enough capacity to supply the needs of the market,” he added. Industry data placed total monthly demand at 210,000 to 220,000 converted cases, equivalent to 10,000 metric tonnes. Asahi Glass“s capacity is 260,000 converted cases or 11,818 metric tonnes. The firm controls 75% of the market, down from about 90% in previous years. At its height, imported glass reached 87,000 converted cases a month, with an average of 60,000 converted cases. Mr. Ermita said imports fell 22% in the last quarter of 2003 following the imposition of safeguard duties. “That“s why the definitive measure is important to us,” he said. At the induction of officers of the Flat Glass Alliance, Mr. Ermita said the domestic flat glass industry “is still very much a growth industry.” “Per capita consumption has doubled in the past 10 years,” he said. “However, if we compare [ourselves] with our Asian neighbors, our consumption is still far below [theirs]. While Philippine consumption is about 1.6 kilograms per capita, Indonesia is at 1.8 kilograms (kg), with three times the population. Thailand is more than double at 3.8 kg, and China is at 6.4 kg or four times,” Mr. Ermita added He urged Flat Glass Alliance members to focus on improving costs, the quality of products and services, ensuring prompt delivery, and “enhanced communication.”