The Department of Trade and Industry (DTI) has called on vehicle makers to manufacture more cars here and, consequently, create jobs for Filipino workers to mitigate the impact of additional tariffs slapped on vehicle imports.
Trade Secretary Ramon M. Lopez on Wednesday said now is the time for vehicle makers to boost their local production with a trade remedy in place against imports. He explained the DTI decided to impose a safeguard to save the jobs of thousands of workers whose livelihoods are put to risk by the surge in imports.
“Safeguard duty is definitely meant to help and boost local manufacturing revival efforts and [is] meant to protect local jobs in the manufacturing of cars and light commercial vehicles,” Lopez said in a text message to reporters.
“The workers alliance in the car industry is the petitioner and their complaint is based mainly on jobs that are declining due to surge in vehicle imports. Injury to the local industry was proven, so we supported the petition of the metal workers alliance.”
According to Lopez, the number of workers in the automotive manufacturing industry is now just numbering around 86,000, from nearly 100,000 before, and job losses were recorded as well in the production of car parts, metal works, plastic and wiring harness.
When compared, he said the import volume have gone up during the time the jobs went down. Imports of completely built units surged 274,874 in 2019, from 88,013 in 2010, Lopez said, citing data from the DTI’s investigation on the safeguard.
Likewise, he urged car makers to take advantage of the situation wherein additional tariff is put on imported units. This way, they can maximize their local production of certain models and they can sell it a price enticing to a population hit by an economic crisis.
“Consumers have the option, and the dealers can now sell more of the locally made vehicles, such as Toyota Vios and Innova, and Mitsubishi Mirage and L300, the prices of which are not changing and therefore will be more attractive,” the trade chief argued.
“Dealers will still have their business. It is maintaining the balance. The imposition of the safeguard duty is in keeping with the law. If we don’t impose this safeguard, after finding injury to local industry, then we are risking the remaining jobs of the Filipino workers.”
The Chamber of Automotive Manufacturers of the Philippines Inc. and the Association of Vehicle Importers and Distributors Inc. have long opposed the imposition of a safeguard on automobile imports, saying it will hurt the operations, particularly sales, of their members.
On Monday the DTI imposed an additional tariff per unit of P70,000 on passenger cars and P110,000 on light commercial vehicles to protect local assemblers from a surge in imports.
The DTI issued its preliminary determination to the petition filed by the Philippine Metalworkers Alliance to apply safeguard measure on vehicle imports. Lopez said the DTI found merit in the petition, and it is putting safeguard duty on the import of automobiles in response.