By Al Edwards, Financial EditorTHE ANTI-DUMPING and Subsidies Commission (ADSC) has made an affirmative final ruling in the Safeguard Investigation regarding imported building cement. The ADSC has recommended a definitive Safeguard measure in the amount of 25.83% duty on imported cement.
This ruling is not only significant to Carib Cement but has positive implications for the manufacturing sector in Jamaica.
Carib Cement's General Manager, Anthony Haynes lauded the ADSC on its foresight and action in its application of the trade remedy provided for in the Safeguard Act. Mr. Haynes said that the company would continue to provide superior service to all its customers, as it retooled and prepared for borderless trading following the implementation of the Free Trade Area of the Americas (FTAA) in 2006.
Cordia Constable, Manager Legal and Corporate Services, noted that this ruling was historic as Carib Cement's application was the first since the introduction of the Safeguard Act. She said that the action by the ADSC would give the Company the opportunity to continue improving its operations in its bid to reach world-class standard by 2006.
IMPLEMENTED
Caribbean Cement Company anticipates that the Government will confirm the recommendations of the ADSC and will move swiftly and expeditiously to have the necessary safeguard measures gazetted and implemented.
Speaking with Wednesday Business last night, Mr. Haynes said: "This is an important milestone in the history of Caribbean Cement Company and it will now send the right signal to the funding agencies we need for our expansion project.
"Vendors bidding on the job will now be more confident and it allows our managers to focus on our more conventional business activities. We don't see this action as stopping imported building cement but it now does mean we have a level playing field."
The company is looking to bring its plant to international standards and to this end is looking at investing some US$100 million in this enterprise. One of the funding agencies expressing interest is International Finance Corporation (IFC).
Dumped cement has proved problematic for Carib Cement. Last year wasn't a good year. Beset by foreign imports it struggled to sell 50,000 tonnes on the home market. As a result market share dropped to 68 per cent.
Since November of last year when imported cement supplies began dwindling, it sales have picked up tremendously. Carib Cement now has 96 per cent of the market.
Last year over 200,000 tones of imported cement (regarded as dumped) was sold in Jamaica. So far this year 62,000 tonnes of imported cement has entered the country.
