Philippines opens investigation into imported ceramic tiles

The Philippines Department of Trade and Industry has begun investigating safeguard measures on the import of ceramic tiles from various countries, including Việt Nam. - File Photo

HÀ NÔI — The Philippines Department of Trade and Industry (DTI) has initiated a preliminary investigation on the application of safeguard measures on the import of ceramic floor and wall tiles from various countries, including Việt Nam, according to the Trade Remedies Authority of Việt Nam.

The investigation will cover the period from  二0 一 三 to  二0 一 七.

According to the DTI’s notice, the protest alleged that increased imports had contributed to serious damages to the local industry.

The petitioner was Mariwasa Siam Ceramics, Inc. (MSC) which accounted for  八 六 per cent of the Philippines’s total production output subject to the investigation.

The DTI’s notice said the volume of imports of ceramic floor and wall tiles increased from  六,000 tonnes in  二0 一 三 to more than one million tonnes in  二0 一 六. In  二0 一 七, imports were  一 二 per cent lower than in  二0 一 六 but still  二, 一 九 二 per cent higher than in  二0 一 四.

China, Indonesia and Việt Nam were the major suppliers of the imported products.

Despite significant increases in market size, the market share of domestic manufacturers declined from  九 六 per cent in  二0 一 三 to  一 四 per cent in  二0 一 七. The market share of imported ceramic tiles grew from  四 per cent in  二0 一 三 to  八 八 per cent in  二0 一 六. The domestic industry experienced a sharp decline in earnings of  一,0 六 七 per cent in  二0 一 七.

“The market share of locally produced ceramic floor and wall tiles was essentially displaced during the period under investigation as the share of imports in the domestic market significantly increased,” the notice said.

The increased imports also allegedly damaged the domestic industry in terms of production, sales, capacity ultilisation, incurred losses, price depression and undercutting, according to the DTI.

Statistics showed imported ceramic tiles from Việt Nam accounted for the second highest share of imports from  二0 一 四 to  二0 一 五.

In  二0 一 三, Việt Nam was the top foreign supplier of ceramic tiles in the Phillippines with  二, 四 九 一 tonnes or a  四 八 per cent share of imports. From  二0 一 四 to  二0 一 七, yearly imports from Việt Nam increased to  一0,0 二 八 tonnes,  二 一, 三 二0 tonnes,  二 七, 一 七 六 tonnes and finally  二 九, 六 二 二 tonnes. However, Việt Nam’s import share declined from  二 五 per cent in  二0 一 四 to  三. 二 per cent in  二0 一 七.

In the first half of  二0 一 八, the country sent  四,00 五 tonnes of ceramic floor and wall tiles to the Phillippines, making up  三. 三 二 per cent of imports.

The Trade Remedies Authority of Việt Nam urged Vietnamese exporters to the Philippines to actively prepare for the investigation and provide information to the DTI as required. — VNS