A LAWMAKER urged the government to look into the influx of paper being imported into the country by traders at “undervalued” prices, as well as the possible violation of anti-dumping measures, saying these have prompted local paper manufacturers to conduct unscheduled shutdowns of operations for the past two years.
At the Budget briefing of the House Committee on Appropriation for the FY 2024 Proposed Budget for the Department of Trade and Industry (DTI) on Thursday, House Deputy Majority Leader Jose Teves Jr. cited a paper manufacturing association which said that the rate of importation of paper increased in the first half of 2023.
Most imports of recycled container boards rose 35 percent while writing and printing paper increased 5 percent; for tissue and sanitary paper, it was 30 percent, Teves said.
Teves urged the Department of Trade and Industry (DTI) to look into the local paper manufacturing industry’s plea. He said the local paper manufacturing industry has over P55 billion worth of investments with 22 local paper manufacturing companies in the country.
For instance, the lawmaker said the price of imported corrugated medium paper is US$390 per ton, while it costs around US$450 or US$480 per ton in other countries of origin like Vietnam and China.
“Isn’t this a clear violation of anti-dumping because this is being imported into the country at a lower price compared to the countries where the paper originates?” Teves said.
The lawmaker reported that the surge in importation of paper has prompted local producers to conduct unscheduled shutdowns of operations.
“If these shutdowns remain, this could result in massive layoffs of thousands of employees of paper manufacturers because of losses,” Teves warned.
The industry, he reminded everyone, allows Filipinos to have their supply of paper for schools and offices, cartons for packaging, tissue papers and other paper products.
Teves revealed that the country imports an estimated 2 million metric tons of various paper products, 80 percent of which are packaging paper valued at US$1.5 billion.
Because of technical smuggling, these imports are undervalued, “especially packaging paper.” He estimated that government is losing US$108 million from this. Both business and government lose, he stressed.
Trade and Industry Secretary Alfredo E. Pascual said, in response to the concerns, “We will welcome a dialogue with the paper associations referred to by the good congressman.”
Trade Undersecretary Ceferino S. Rodolfo, meanwhile, agreed with the lawmaker’s “observation” of dumping in the paper industry. He recalled that DTI imposed a safeguard duty on paper for 10 years, bit this lapsed in 2018.
In this case, the Trade official said the members of the paper association are welcome to file the relevant trade remedies including anti-dumping duties with DTI.