THE Department of Trade and Industry (DTI) said it will be looking into possible safeguard measures against imported ceramic tiles.
In a notice dated Feb. 3, the DTI said it received an application from the Ceramic Manufacturers’ Association, Inc. to initiate a preliminary investigation into imported ceramic tiles from various countries.
“The application alleged that the increased imports have contributed significantly to the serious injury suffered by the local industry,” it said.
After evaluating the application, the DTI said there are prima facie indications that justify the initiation of the probe.
“The period of investigation is from 2020 up to the first quarter of 2025,” it said.
In a report, the DTI said imports of ceramic tiles have been fluctuating from 2020 to 2024, with imports growing 81% from 2020 to 2022 before decreasing 29% in 2023. In 2024, imports were little changed.
During the period of investigation, China accounted for 71% of the imported ceramic tiles, followed by Indonesia (14%) and Vietnam (10%).
The report also found that imports have consistently accounted for much more than the volume of domestic production.
“In 2020, the imports’ share relative to domestic production was approximately 235%, rose sharply in 2021, and reached its peak in 2022. This indicates that imports grew much faster than local production during this period,” it said.
In the first quarter of 2025, the report found that imports were equivalent to about three times domestic output.
“The market share of the domestic industry steadily declined from 2020 to 2024, while imports increased their share over the same period,” it said.
“Market conditions in the first quarter of 2025 indicate a strong reliance on imports, with domestic industry contributing only marginally to total supply,” it added.
“Based on the above findings, there are indications that increased imports of ceramic tiles are the substantial cause of serious injury to the domestic industry in terms of loss of market share, declining domestic sales, utilization rate, reduction in labor productivity, incurred losses, and increased production cost,” the DTI said. — Justine Irish D. Tabile
