China is subsidizing export of pre-painted and galvanized steel sheets and still enjoys zero duty on export of these products to the Philippines under the ASEAN-China Free Trade Act (ACFTA), dealing Philippine steel roof producers a double whammy from which the industry may not recover, the Filipino Galvanizers Institute (FGI) said.
In a statement, FGI president Salvio Perez said that in violation of World Trade Organization (WTO) rules, China subsidizes exports of pre-painted and galvanized roofing sheets with 13 percent tax rebate while enjoying zero duty on exports of the same products to the Philippines under the ACFTA.
The result is a double-edged negative impact on the competitiveness of local galvanizing industry that is confronted with high import duty on raw materials while competing with low-priced Chinese roofs that pays no import duty at all.
”There is no way local manufacturers can compete in this utterly unfair and lopsided business environment. Despite urgent appeals, the government has not acted to aid the local industry,” Perez said. FULL STORY
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